Executive Summary

Q3 2025 delivered clean operating execution: lease revenues rose to $114.167M, AFFO of $74.3M ($0.37/share), 99.5% occupancy, and 100% rent collection; GAAP diluted EPS was $0.14 .
Guidance raised: full‑year 2025 AFFO/share increased to $1.49–$1.50 (from $1.48–$1.50), with investment volume midpoint lifted by $100M to $650–$750M; dispositions guided to $75–$100M; core G&A maintained at $30–$31M .
Estimates comparison: revenue beat consensus in Q3 (Actual $114.167M vs $112.261M*), while GAAP EPS ($0.14) and FFO/share ($0.36) were below consensus ($0.165* and $0.384*), reflecting higher interest expense and impairments; revenue also beat in Q2, missed in Q1* . Values retrieved from S&P Global.
Strategic/capital catalysts: return to public IG bond market with $350M 5.00% notes (7x oversubscribed), $904M revolver availability, declared $0.29 dividend; management emphasized optionality to monetize build‑to‑suit assets and disciplined use of ATM as cost of capital becomes constructive .

What Went Well and What Went Wrong

What Went Well

“We invested $204 million in an attractive pipeline of accretive acquisitions and development projects, collected 100% of our rents… and secured 1.2% sequential quarterly growth in contractual rental obligations,” enabling a guidance raise to $1.49–$1.50 AFFO/share .
Build‑to‑suit pipeline scaling: 8 in‑process developments, weighted average initial cash cap ~7.5% and straight‑line ~8.9%; active, committed pipeline expected to add ~$28M of ABR through end of 2026 (6.7% ABR growth) .
Tenant credit resolutions: “successfully navigated through At Home and Claire’s bankruptcy… all leases assumed and no concessions,” with no anticipated lost rent in 2025 and Claire’s paid for 2025 .

What Went Wrong

GAAP net income down 26.3% YoY to $27.1M ($0.14/share) driven by a $10.1M increase in interest expense and a $5.9M increase in impairment provision .
Core G&A increased 8.7% YoY to $7.4M (core) in Q3 on performance‑based incentives; total G&A $10.0M (+14.4% YoY) .
FFO/share ($0.36) and GAAP EPS ($0.14) trailed consensus* amid higher interest costs and ongoing impairment activity; leverage ratios ticked up vs prior year, with Net Debt/Annualized Adjusted EBITDAre at 5.7x (pro forma 5.4x) . Values retrieved from S&P Global.

Financial Results

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Lease Revenues ($USD Millions)	$108.397	$108.690	$112.986	$114.167
Net Income ($USD Millions)	$37.268	$17.493	$19.830	$27.065
Diluted EPS ($USD)	$0.19	$0.09	$0.10	$0.14
FFO ($USD Millions)	$73.818	$72.627	$73.695	$70.969
FFO per Share (Diluted)	$0.37	$0.37	$0.37	$0.36
Core FFO per Share (Diluted)	$0.37	$0.38	$0.39	$0.35
AFFO ($USD Millions)	$70.185	$71.812	$74.308	$74.314
AFFO per Share (Diluted)	$0.35	$0.36	$0.38	$0.37
EBITDAre ($USD Millions)	$92.371	$93.142	$95.089	$99.489
EBITDAre Margin (%)	85.2%	85.8%	84.2%	87.2%

Notes: EBITDAre Margin % computed from EBITDAre / Lease Revenues using cited values.

Segment/Portfolio Mix (ABR, Q3 2025)

Property Type	ABR ($USD Thousands)	ABR % of Total	Square Feet (000s)	SF % of Total
Industrial Total	$252,887	61.2%	33,081	81.4%
Retail Total	$126,363	30.6%	5,934	14.6%
Other Total	$33,694	8.2%	1,638	4.0%

Key KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Occupancy (by SF)	99.0%	99.1%	99.5%
Rent Collection	99.1%	99.6%	100.0%
Total Properties	773	766	759
ABR ($USD Millions)	$398.2	$404.2	$412.9
WALT (years)	10.3	9.7	9.5
Annual Rent Escalations (WAA)	2.0%	2.0%	2.0%
Net Debt / Annualized Adj. EBITDAre	5.0x	5.3x	5.7x (Pro Forma 5.4x)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AFFO per Share (Diluted)	FY 2025	$1.48–$1.50	$1.49–$1.50	Raised (midpoint +$0.005)
Investments in Real Estate	FY 2025	$500–$700M	$650–$750M	Raised (midpoint +$100M)
Dispositions	FY 2025	$50–$100M	$75–$100M	Raised lower bound
Core G&A	FY 2025	$30–$31M	$30–$31M	Maintained
Dividend	Q4 2025 payable Jan 2026	$0.29/share (ongoing)	$0.29/share declared Oct 23	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Build‑to‑Suit strategy and ABR growth visibility	Six industrial/retail projects underway; straight‑line yields ~8.8–9.4%; pipeline visibility to 2026–2027	Eight in‑process; estimated remaining investment $268.6M; yields ~7.5/8.9%; confident in scaling	Eight in‑process; ~7.5%/8.9%; ~$28M ABR to year‑end 2026 (6.7% ABR growth); option to monetize at stabilized values	Building
Tenant credit (At Home, Claire’s)	No major new issues; 99.1% rent collection	Portfolio rent collection improved to 99.6%; credit watch steady	All leases assumed; no concessions; no 2025 lost rent; Claire’s paid through year‑end	Improving
Capital markets (debt/ATM) & leverage discipline	Extended revolver to 2029; added $500M term loan; maintained leverage ~5.1x	Revolver capacity $802M; Net Debt/Adj. EBITDAre 5.3x	$350M 5.00% notes (7x oversubscribed); revolver capacity $904M; Pro Forma leverage 5.4x; disciplined potential ATM usage	Strengthening
Acquisitions/cap rates & sourcing	Q1 acquisitions $59.0M at 7.2% cap; heavy industrial mix	Q2 acquisitions $54.7M industrial at 7.1% cap; sourcing direct deals	Q3 acquisitions $139.5M at 7.1% cap; >2/3 sourced via direct relationships; competition plateaued caps, retail favored by market	Stable/Competitive
Industrial reshoring/logistics tailwinds	Early pipeline visibility	Noted momentum	Multi‑year reshoring tailwinds; knock‑on logistics demand; active LOIs	Positive

Management Commentary

CEO: “We invested $204 million… collected 100% of our rents… resolved both the At Home and Claire’s situations… and secured 1.2% sequential quarterly growth in contractual rental obligations… we are raising our full‑year 2025 guidance to $1.49 to $1.50 of AFFO per share” .
COO: “Our active, committed build‑to‑suit pipeline will deliver approximately $28 million of additional ABR between Q4 of this year and through the end of 2026, representing 6.7% growth” .
CFO: “We generated adjusted funds from operations of $74.3 million, or $0.37 per share… pro forma leverage of 5.4x net debt… and over $900 million available on our revolver… we raised $350 million of 5% senior unsecured notes due November 2032” .

Q&A Highlights

Build‑to‑suit monetization: Management prefers to hold assets long‑term but will sell selectively to prove value creation and fund growth; potential 1031 redeployment to maintain tax efficiency .
Equity issuance via ATM: Will be driven by opportunity set and incremental cost of capital rather than headline share price; evaluating as pipeline builds .
Lease expirations/backfill: ~10% ABR through 2027 with “nothing material”; re‑leasing outcomes around ~108% in executed cases; only ~3% in 2026 .
Acquisition market: Product volumes constrained; competition intense; cap rates have plateaued; BNL targets ≥7% caps aligning with cost of capital .
Transitional capital projects: Retail JV in St. Louis (Home Depot‑anchored center) optionality to monetize; Pennsylvania industrial land preferred equity at 7.8% with heavy power/water, potential build‑to‑suit or sale/refi .

Estimates Context

Metric	Q1 2025 Actual	Q1 2025 Consensus	Q2 2025 Actual	Q2 2025 Consensus	Q3 2025 Actual	Q3 2025 Consensus
Lease Revenues ($USD Millions)	$108.690	$109.800*	$112.986	$110.676*	$114.167	$112.261*
Diluted EPS ($USD)	$0.09	$0.178*	$0.10	$0.177*	$0.14	$0.165*
FFO per Share (Diluted) ($USD)	$0.37	$0.378*	$0.37	$0.381*	$0.36	$0.384*

Bold highlights: Q3 Revenue beat (Actual > Consensus); Q3 EPS and FFO/share misses (Actual < Consensus).

Values retrieved from S&P Global.

Indicates S&P Global consensus estimate values.

Key Takeaways for Investors

Industrial‑led growth engine: Build‑to‑suit pipeline offers embedded ABR growth (6.7% through 2026) with accretive yields (~7.5% cash/8.9% straight‑line), and optionality to monetize at stabilized valuations—supportive of NAV accretion and capital recycling .
Credit clean‑up de‑risked 2025 cash flows: At Home and Claire’s leases assumed, no concessions, 100% rent collection; supports raised AFFO guidance and dividend coverage .
Mixed print vs Street: Revenue beat, but EPS and FFO/share misses suggest higher interest and impairment drag—estimate models likely to tweak interest expense and impairment assumptions; monitor estimate revisions near Investor Day .
Balance sheet flexibility improved: $350M IG notes and ~$904M revolver capacity provide funding runway; management remains disciplined (target ≤6x leverage) and opportunistic on ATM usage .
Sourcing edge: >2/3 of acquisitions sourced via direct relationships amid competitive market—supports sustained deployment at ≥7% caps aligned to cost of capital .
Near‑term catalysts: Additional LOIs converting to commitments, potential build‑to‑suit announcements to reach ~$500M by year‑end, and Dec. 2 Investor Day; watch for monetization decisions and any ATM activity .
Medium‑term thesis: Multi‑year reshoring and logistics tailwinds plus disciplined capital allocation should underpin AFFO growth trajectory and potential multiple expansion from below‑average earnings multiple cited by management .

Broadstone Net Lease, Inc. (BNL)·Q3 2025 Earnings Summary