Broadstone Net Lease — Third Quarter 2026 Earnings Summary

Financial Performance:

• Generated net income of $28.1 million ($0.14 per diluted share) for the quarter ended September 30, 2026, consistent with the same period in the prior year.
• Generated Adjusted Funds From Operations (AFFO) of $77.8 million ($0.39 per diluted share), representing a 5.4% year-over-year increase compared to the previous year.
• Achieved same-store rental revenue growth of 0.7% compared to the prior year period, driven by contractual rent increases and prior leasing activity.
• Reported revenues of $121.9 million for the quarter, compared to $114.2 million in the prior year period.
• Incurred general and administrative expenses of $10.8 million, with core general and administrative expenses of $7.4 million (excluding stock-based compensation and severance).
• Collected 99.9% of base rents due for the quarter across all leased properties.
• For the nine months ended September 30, 2026, net income was $114.8 million ($0.58 per diluted share) and AFFO was $232.9 million ($1.16 per diluted share).

Guidance and Future Outlook:

• Reaffirmed full-year 2026 AFFO per diluted share guidance of $1.55 to $1.57.
• Revised 2026 investment guidance for real estate properties up to a range of $700 million to $800 million (previously $600 million to $800 million).
• Revised 2026 disposition guidance for real estate properties up to a range of $150 million to $200 million (previously $100 million to $150 million).
• Maintained 2026 core general and administrative expense guidance of $30 million to $31 million.
• Expects less than $0.005 per share of estimated dilution from forward equity agreements (350,000 to 600,000 weighted average shares) in full-year AFFO per share calculations.
• Total in-process build-to-suit pipeline stands at $456.3 million as of the release date.
• Approximately $337.6 million in remaining estimated investments for build-to-suit developments are expected to be funded through the fourth quarter of 2027.

Business Segments and Product Lines:

• Invested $236.6 million during the quarter, comprising $63.8 million in new property acquisitions, $137.1 million in build-to-suit developments, $35.1 million in transitional capital, and $0.6 million in redevelopments.
• Completed one acquisition with an initial cash capitalization rate of 7.7%, a 15.0-year lease term, and a 2.0% annual rent increase, resulting in an 8.8% straight-line yield.
• Started three new build-to-suit developments totaling $325.8 million, including two retail projects and continued funding of a $303 million advanced technology facility in Colorado.
• Stabilized six build-to-suit developments totaling $95.3 million at a weighted average cash capitalization rate of 7.3%.
• Sold three properties for gross proceeds of $12.5 million at a capitalization rate of 6.6% on tenanted properties.
• Portfolio consists of 767 individual net leased commercial properties (760 in 44 U.S. states, 7 in four Canadian provinces) with 206 different commercial tenants; no single tenant accounts for more than 3.7% of annualized base rent.
• Portfolio weighted average lease term is 9.3 years with a weighted average annual rent increase of 2.1%.

Market and Competitive Landscape:

• Returned to public equity markets after four years with a $259 million public equity offering completed in August 2026.
• Maintained a diversified portfolio across industrial, retail, and other property types with strong fundamental credit analysis and underwriting.
• Total outstanding debt was $2.9 billion as of September 30, 2026, with a Pro Forma Net Debt to Annualized Adjusted EBITDAre ratio of 5.4x.
• Held $428.8 million in available capacity on the unsecured revolving credit facility and $200.0 million available on the delayed draw term loan.

Risks and Challenges:

• Forward-looking statements involve risks including general economic conditions, inflation, interest rate fluctuations, local real estate conditions, and tenant financial health.
• Uncertainties exist regarding the timing and completion of property investments and acquisitions.
• GAAP net income guidance is not provided due to the inability to reasonably predict impairments, net gains/losses on dispositions, credit loss allowances, and stock-based compensation without unreasonable effort.

Management Commentary and Tone:

• CEO John Moragne described the quarter as "strong," citing portfolio performance and pipeline maturity.
• Management expressed confidence in delivering full-year guidance, citing a strengthened balance sheet and continued confidence from tenant and developer partners.
• The company noted it is "energized by what lies ahead" following the successful return to public equity markets.

Other Key Points:

• Completed a public offering of 12,650,000 shares at $20.50 per share for approximately $259.3 million in gross proceeds in August 2026.
• Sold 1.8 million shares on a forward basis under the ATM Program for approximately $38.9 million in gross proceeds during the quarter.
• Entered into a new $300 million senior unsecured delayed-draw term loan with an initial maturity of January 30, 2030.
• Total outstanding expected net proceeds from forward sale agreements, if settled as of September 30, 2026, are approximately $409.3 million.
• Board of Directors declared an increase in the quarterly dividend from $0.2925 to $0.295 per share (a 0.9% increase).
• Subsequent to quarter-end, invested $12.2 million in connection with in-process build-to-suit investments.
• The 1.2 million-square-foot facility in Bremen, Georgia, reached stabilization in October 2026 at an initial cash capitalization rate of 7.8%.