Broadstone Net Lease, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Broadstone Net Lease, Inc. has filed its 2023 10-K report, detailing its real estate portfolio, financial instruments, and debt obligations.</b>

AI Summary

Broadstone Net Lease, Inc. (BNL) filed a Annual Report (10-K) with the SEC on February 22, 2024. Broadstone Net Lease, Inc. filed its annual report for the fiscal year ending December 31, 2023. The filing includes data related to various asset types, including land, retail, industrial properties (distribution and warehouse, manufacturing), and healthcare properties (clinical). The company utilizes financial instruments such as interest rate swaps with entities like Regions Bank and Capital One National Association. Debt instruments mentioned include senior unsecured notes, senior guaranteed notes, and unsecured term loans, with specific maturity dates and reference rates like LIBOR. The report details various lease-related items, including above-market and below-market leases, and lease agreements.

Why It Matters

For investors and stakeholders tracking Broadstone Net Lease, Inc., this filing contains several important signals. The 10-K filing provides a comprehensive overview of Broadstone Net Lease's real estate assets, including specific property types and their associated financial data, which is crucial for investors to assess portfolio diversification and performance. Details on debt instruments and interest rate swaps offer insight into the company's financial strategy and its management of interest rate risk, important for understanding its leverage and cost of capital.

Risk Assessment

Risk Level: medium — Broadstone Net Lease, Inc. shows moderate risk based on this filing. The filing contains numerous financial instruments, debt obligations, and lease-related data points, indicating a complex financial structure that requires careful analysis to assess risk.

Analyst Insight

Investors should review the detailed breakdown of real estate assets and financial obligations to understand the company's financial health and future prospects.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-22 — Filing Date (Date the 10-K was filed)
• 6798 — SIC Code (Standard Industrial Classification for Real Estate Investment Trusts)

Key Players & Entities

• Broadstone Net Lease, Inc. (company) — Filer of the 10-K report
• Regions Bank (company) — Counterparty for interest rate swaps
• Capital One National Association (company) — Counterparty for interest rate swaps
• LIBOR (dollar_amount) — Reference rate for unsecured term loan

FAQ

Risk Factors

• Debt Obligations [medium — financial]: The company has various debt instruments, including unsecured and secured debt, with specific maturity dates and terms.
• Interest Rate Swaps [medium — financial]: The company utilizes interest rate swaps with financial institutions to manage interest rate risk.
• Lease Agreements [medium — market]: The company's performance is tied to its lease agreements, including potential risks associated with above-market and below-market leases.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K
• 2024-02-22: Filing Date — Date the 10-K was officially submitted to the SEC

Glossary

Interest Rate Swap

A financial derivative contract whereby two parties exchange interest rate payments. (Used by Broadstone Net Lease to manage interest rate risk on its debt.)

LIBOR

London Interbank Offered Rate, a benchmark interest rate. (Mentioned as a reference rate for a term loan, indicating potential exposure to its fluctuations.)

Key Financial Figures

• $0.00025 — nge on which registered Common Stock, $0.00025 par value BNL The New York Stock Ex
• $15.44 — ased on the last reported sale price of $15.44 per share on the New York Stock Exchang
• $1.0 billion — "Revolving Credit Facility" means our $1.0 billion unsecured revolving credit facility, da
• $165.6 m — ights Operating Highlights Invested $165.6 million, including $97.2 million in three
• $97.2 million — ts Invested $165.6 million, including $97.2 million in three development funding opportunit
• $68.4 million — development funding opportunities, and $68.4 million in four property acquisitions and reven
• $200.1 m — ion rate of 6.0%, for gross proceeds of $200.1 million, recognizing a $35.0 million gain
• $35.0 million — oceeds of $200.1 million, recognizing a $35.0 million gain over original purchase price. Ma
• $163.3 million — ing the year. Generated net income of $163.3 million or $0.83 per diluted share. Generated
• $0.83 — nerated net income of $163.3 million or $0.83 per diluted share. Generated funds fr
• $298.6 million — erated funds from operations ("FFO") of $298.6 million or $1.52 per diluted share. Generated
• $1.52 — operations ("FFO") of $298.6 million or $1.52 per diluted share. Generated core fun
• $298.9 million — e funds from operations ("Core FFO") of $298.9 million or $1.52 per diluted share. Generated
• $277.7 million — usted funds from operations ("AFFO") of $277.7 million or $1.41 per diluted share. Ended the
• $1.41 — perations ("AFFO") of $277.7 million or $1.41 per diluted share. Ended the year wit

Filing Documents

• bnl-20231231.htm (10-K) — 5420KB
• bnl-ex10_37.htm (EX-10.37) — 125KB
• bnl-ex10_38.htm (EX-10.38) — 128KB
• bnl-ex21_1.htm (EX-21.1) — 208KB
• bnl-ex23_1.htm (EX-23.1) — 3KB
• bnl-ex31_1.htm (EX-31.1) — 16KB
• bnl-ex31_2.htm (EX-31.2) — 16KB
• bnl-ex32_1.htm (EX-32.1) — 8KB
• bnl-ex32_2.htm (EX-32.2) — 8KB
• bnl-ex97_1.htm (EX-97.1) — 23KB
• img48622915_0.jpg (GRAPHIC) — 30KB
• img145178443_0.jpg (GRAPHIC) — 346KB
• img145178443_1.jpg (GRAPHIC) — 260KB
• img145178443_2.jpg (GRAPHIC) — 199KB
• img145178443_3.jpg (GRAPHIC) — 86KB
• img145178443_4.jpg (GRAPHIC) — 306KB
• 0000950170-24-018725.txt (&nbsp;) — 23955KB
• bnl-20231231.xsd (EX-101.SCH) — 2624KB
• bnl-20231231_htm.xml (XML) — 4379KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 38 Item 1C. Cybersecurity 38 Item 2.

Properties

Properties 39 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 39 PART II Item 5. Mar ket for Registrant's Common Equity, Related Stockholder Matters and Issuer of Purchases of Equity Securities 40 Item 6.

Selected Financial Data

Selected Financial Data 41 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 57 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 58 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93 Item 9A.

Controls and Procedures

Controls and Procedures 93 Item 9B. Other Information 95 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 95 PART III Item 10. Directors, Executive Officers and Corporate Governance 96 Item 11.

Executive Compensation

Executive Compensation 96 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 96 Item 13. Certain Relationships and Related Transactions, and Director Independence 96 Item 14. Principal Accountant Fees and Services 96 PART IV Item 15. Exhibits and Financial Statement Schedules 97 Item 16. Form 10-K Summary 97 2 Cautionary Note Regarding F orward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends, that are intended to be made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "projects," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of these words or other comparable words. All of the forward-looking statements included in this Annual Report on Form 10-K are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected b

B usiness

Item 1. B usiness The Company We are an industrial-focused, diversified net lease real estate investment trust ("REIT") that invests in primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. As of December 31, 2023, our portfolio includes 796 properties, with 789 properties located in 44 U.S. states and seven properties located in four Canadian provinces. We focus on investing in real estate that is operated by creditworthy single tenants in industries characterized by positive business drivers and trends. We target properties that are an integral part of the tenants' businesses and are therefore opportunities to secure long-term net leases through which our tenants are able to retain operational control of their strategically important locations, while allocating their debt and equity capital to fund core business operations rather than real estate ownership. Diversified Portfolio . As of December 31, 2023, our portfolio comprised approximately 38.3 million rentable square feet of operational space, was highly diversified based on property type, geography, tenant, and industry, and was cross-diversified within each ( e.g., property-type diversification within a geographic concentration): Property Type : We are diversified across industrial, healthcare, restaurant, retail, and office property types. Within these sectors, we have meaningful concentrations in manufacturing, distribution and warehouse, food processing, casual dining, clinical, quick service restaurants, and general merchandise. Geographic Diversification : Our properties are located in 44 U.S. states and four Canadian provinces, with no single geographic concentration exceeding 9.7% of our ABR. Tenant and Industry Diversification : Our properties are occupied by approximately 220 different commercial tenants who operate 208 different brands that are diversified across 53 differing industries, with no single ten

Properties

Properties ABR ('000s) ABR as a % of Total Portfolio Square Feet ('000s) SF as a % of Total Portfolio

Properties

Properties ABR ('000s) ABR as a % of Total Portfolio Square Feet ('000s) SF as a % of Total Portfolio TX 69 $ 38,110 9.7 % 3,603 9.4 % WA 15 $ 4,384 1.1 % 150 0.4 % MI 55 33,060 8.4 % 3,810 10.0 % LA 4 3,407 0.9 % 194 0.5 % IL 32 24,383 6.2 % 2,424 6.3 % MS 11 3,370 0.9 % 430 1.1 % WI 35 23,096 5.9 % 2,163 5.7 % NE 6 3,286 0.8 % 509 1.3 % CA 13 19,617 5.0 % 1,718 4.5 % SC 13 2,986 0.8 % 308 0.8 % FL 42 16,319 4.2 % 840 2.2 % IA 4 2,819 0.7 % 622 1.6 % OH 47 16,308 4.2 % 1,582 4.1 % NM 9 2,779 0.7 % 107 0.3 % IN 32 16,240 4.1 % 1,906 5.0 % CO 4 2,545 0.6 % 126 0.3 % MN 21 15,668 4.0 % 2,500 6.5 % UT 3 2,492 0.6 % 280 0.7 % TN 49 15,225 3.9 % 1,093 2.9 % MD 3 2,174 0.6 % 205 0.5 % NC 36 12,491 3.2 % 1,135 3.0 % CT 2 1,837 0.5 % 55 0.1 % AL 53 12,418 3.2 % 873 2.3 % ND 3 1,726 0.4 % 48 0.1 % AZ 9 11,929 3.0 % 909 2.4 % MT 7 1,582 0.4 % 43 0.1 % GA 33 11,894 3.0 % 1,576 4.1 % DE 4 1,180 0.3 % 133 0.3 % KY 24 9,832 2.5 % 962 2.5 % VT 2 426 0.1 % 20 0.1 % PA 22 9,807 2.5 % 1,836 4.8 % WY 1 307 0.1 % 25 0.1 % NY 26 9,467 2.4 % 680 1.8 % NV 1 272 0.1 % 6 0.0 % OK 24 8,415 2.1 % 990 2.6 % OR 1 136 0.0 % 9 0.0 % AR 11 7,855 2.0 % 283 0.7 % SD 1 81 0.0 % 9 0.0 % MA 3 6,548 1.7 % 444 1.2 % Total U.S. 789 $ 383,657 97.8 % 37,841 98.8 % MO 12 6,231 1.6 % 1,138 3.0 % BC 2 4,992 1.2 % 253 0.7 % VA 17

View Full Filing

View this 10-K filing on SEC EDGAR