Broadstone Net Lease Provides Updates on Third Quarter 2022 Results and Full Year Guidance

Broadstone Net Lease, Inc. (NYSE: BNL) ("BNL," the "Company," "we," "our," or "us"), today provided an update on the Company’s third quarter and year-to-date 2022 results.

MANAGEMENT COMMENTARY

“I am pleased to provide a preview of our third quarter activity,” said Chris Czarnecki, Chief Executive Officer. “Exceptional capital markets execution during the quarter allowed us to lock in a cost of capital that accretively complements our robust pipeline of recently closed and under control opportunities as we move toward finishing 2022 on a strong note. This, coupled with consistent and reliable portfolio performance, gives us great confidence in the guidance update provided with this release. We look forward to providing our full quarterly earnings release in the coming weeks.”

INVESTMENT ACTIVITY

• During the third quarter, we invested $204.5 million in 28 properties at a weighted average initial cash capitalization rate of 6.5%. Investments were more heavily weighted towards industrial opportunities ($175.9 million), with a smaller amount of restaurant ($12.8 million), healthcare ($9.2 million), and retail ($6.6 million) transactions. The leases had a weighted average initial term of nearly 21 years and minimum annual rent increases of 2.0%.
• Year-to-date, we have completed investments totaling $596.9 million and currently have $368.5 million of investment opportunities under control, which we define as under contract or executed letter of intent.
• During the third quarter, we sold one property for net proceeds of $1.7 million. Year-to-date, we have sold five assets for net proceeds of $18.8 million.

REAL ESTATE PORTFOLIO UPDATE

• Collected 100% of base rents due for the third quarter for all properties under lease, and our portfolio was 99.3% leased based on rentable square footage, with three of our 790 total properties vacant and not subject to a lease as of quarter end.

CAPITAL MARKETS ACTIVITY

• On August 1, 2022, we entered into a $200 million, five-year unsecured term loan and a $300 million, seven-year unsecured term loan, the proceeds of which were used to repay in full our $190 million term loan which was set to mature in 2024, and a portion of the outstanding borrowings on our unsecured revolving credit facility. In addition, we entered into interest rate swaps with a total notional value of $260 million to fix the SOFR component of the borrowing rate at a weighted average fixed interest rate of 2.59% until August 1, 2029.
• On August 12, 2022, we completed a forward equity offering of 13,000,000 shares for anticipated net proceeds of approximately $270.7 million. As of today, we have not received proceeds from the forward sale of shares.
• During the third quarter, we sold 962,200 shares of common stock for net proceeds of $20.3 million under our ATM Program.

2022 GUIDANCE