Key Highlights

  • Diluted EPS of USD 0.14 matched the prior year but trailed the USD 0.16 consensus estimate.
  • Lease revenues of USD 121.9 million rose 6.7% year over year, slightly below the USD 122.19 million consensus estimate.
  • Core FFO of USD 79.4 million edged above the second quarter, while AFFO totaled USD 77.8 million.
  • Investments totaled USD 236.6 million, and August forward equity sales carry USD 247.7 million of anticipated net proceeds.

Broadstone Net Lease, Inc. (NYSE:BNL) reported third-quarter 2026 diluted earnings per share of USD 0.14, level with the same quarter a year earlier and below a consensus estimate of USD 0.16. Net income was USD 28.1 million, up from USD 27.1 million, and net income fell 30.1% from USD 40.3 million in the second quarter. Lease revenues, net, of USD 121.9 million were 6.7% higher than the prior-year quarter and marginally below a consensus estimate of USD 122.19 million.

Net income was affected by charges that do not flow through cash rent. Depreciation and amortization rose to USD 50.8 million, including USD 8.5 million of accelerated depreciation on a property moved into redevelopment, and net write-offs of accrued rental income cost USD 2.9 million. Gains on property sales were USD 3.6 million, compared with USD 13.0 million in the second quarter.

Core Earnings, Portfolio and Development

Funds from operations were USD 76.7 million, Core FFO was USD 79.4 million, and AFFO was USD 77.8 million. The portfolio held 767 properties with annualized base rent of USD 449.5 million, was about 100.0% leased by square footage, and carried a weighted average remaining lease term of roughly 9.3 years. No tenant exceeded 3.7% of base rent, and leases covering 96.9% of base rent contain escalators averaging 2.1%.

Investments of USD 236.6 million included USD 63.8 million of acquisitions at a 7.7% initial cash capitalization rate and USD 137.7 million for build-to-suit projects. The largest project, for an investment-grade company in Colorado, carries an estimated total cost of USD 303.0 million and an 8.5% estimated cash yield. Impairments were USD 1.5 million on two properties, against USD 7.0 million a year earlier.

Balance Sheet and Financing Position

Total debt outstanding was USD 2.9 billion, and the pro forma ratio of net debt to annualized adjusted EBITDAre was 5.4x, against a stated internal ceiling generally below 6.0x. The revolving credit facility carried USD 555.4 million of borrowings, with USD 428.8 million of capacity remaining. Interest expense was USD 26.7 million, down from USD 28.2 million a year earlier.

In August, the company priced 12,650,000 shares at USD 20.50 under forward sale agreements, which it plans to settle by September 2027 for anticipated net proceeds of about USD 247.7 million. The company reported no material debt maturities until 2027. Remaining 2026 obligations total about USD 206.1 million, including USD 114.2 million of investment commitments. The filing gave no earnings guidance.

Checkpoints Ahead

Four items frame the coming quarters. The first is the Colorado build-to-suit project, which has USD 226.8 million of remaining investment and a stabilization target of March 2027. The second is debt due in 2027: a USD 200.0 million term loan in August and USD 150.0 million of notes in April. The third is settlement of the forward sale agreements, with USD 247.7 million of anticipated net proceeds. The fourth is the quarterly distribution of USD 0.295 per share, declared on October 22, 2026 and payable by January 15, 2027, against USD 0.2925 in the prior quarters.