Broadstone Net Lease, Inc.

Q2 adjusted funds from operations was $78.2 million, or $0.39 per share, up 2.6% from Q2 2025. Same-store rental revenue increased 2.2% year over year, led by 3.3% industrial growth. Occupancy ended nearly fully occupied with all but 1 of 766 properties leased, and 99.9% of base rents were collected. For the quarter, Broadstone invested $91.5 million, including $77.3 million in build-to-suit developments and $13.5 million in transitional capital. It sold 9 properties for $62 million at a 6.4% cap rate on tenanted properties; year to date, it sold 12 properties for $78.3 million at a 6.2% cap rate. The company raised about $45.5 million of equity in Q2 at a weighted average price of $20.77 per share, and total unsettled equity sales were about $163 million at a weighted average price of $19.97. Management raised full-year 2026 AFFO per share guidance to $1.55-$1.57, from $1.53-$1.57, and lifted investment guidance to $600 million-$800 million from $500 million-$625 million. Disposition guidance was revised to $100 million-$150 million from $75 million-$100 million. Core G&A is expected to be $30 million-$31 million, and the bad debt assumption was lowered to 50 bps from 75 bps.

John D. Moragne framed the quarter as a culmination of years of work on Broadstone’s differentiated growth strategy. He emphasized that the company is seeing durable earnings growth, stronger visibility into 2027-2028, and better capital access, while remaining disciplined on deployment and dispositions. His tone was upbeat and confident, especially around the Colorado JV, which he described as validating the strategy and potentially making Broadstone’s largest tenant by ABR once rent commences.

Kevin Fennell said Q2 AFFO was $78.2 million, or $0.39 per share, and that results benefited from same-store rent growth and build-to-suit investments reaching stabilization. He noted core G&A was $7.3 million and remains on pace for full-year core G&A of $30 million-$31 million. On the balance sheet, Broadstone ended the quarter with $2.7 billion of total debt and 5.9x pro forma leverage, then added a new $300 million delayed-draw term loan and cut bank loan pricing margins by 5 bps; he also said the company has about $1 billion of in-place liquidity. He highlighted forward equity sales, including 2.2 million shares sold in Q2 at $20.77 and another 1.6 million shares after quarter-end at $21.45, and said the company is managing toward a roughly 6x leverage target.

Analysts pressed management on whether the Colorado deal could become a source of capital or be sold later; management said every asset is reviewed hold-versus-sell, and while the economics are attractive, Broadstone is open to recycling it in the future if that makes sense. Questions also focused on why development is dominating over regular acquisitions: management said build-to-suit offers better economics, stronger tenant credit, and more control, while the regular market remains competitive and pricing pressured. On Project Triboro, management said it remains cautiously optimistic on the data center path, expects clarity on zoning, power, and tenant demand this year, and still views year-end as the decision point among land sale, industrial development, or hyperscale data center campus.