Broadstone Net Lease, Inc. (BNL) reported fourth‑quarter 2025 results that surpassed analyst expectations, with revenue of $118.3 million—$1.85 million above the $116.45 million consensus—while the company did not disclose a net‑income figure for the quarter. Core funds from operations (FFO) were $0.38 per diluted share and adjusted funds from operations (AFFO) were $0.38 per diluted share, both beating the $0.37 consensus estimate. Full‑year 2025 revenue totaled $447.97 million, net income was $99.4 million, FFO was $290.3 million, and AFFO was $296.3 million, with EPS of $1.46 (FFO) and $1.49 (AFFO). The portfolio expanded to 771 individual net‑leased properties, 99.8 % of which are leased, and 206 distinct tenants, with an average lease term of 9.6 years and an average annual rent escalation of 2.1%.
The revenue beat was driven by strong demand in the company’s core industrial and logistics segments, high occupancy rates, and the ability to maintain pricing power in a market that has seen modest rent growth. The company’s disciplined cost structure and efficient capital allocation helped it generate a higher FFO per share than expected, reflecting both operational leverage and the successful execution of its build‑to‑suit pipeline. The EPS beat of $0.01 per share was largely attributable to these cost controls and the fact that the company’s portfolio continues to generate stable cash flows from long‑term, credit‑worthy tenants.
Broadstone invested $430 million in stabilized acquisitions during 2025, a figure that aligns with the company’s strategy of expanding its portfolio through relationship‑based acquisitions and build‑to‑suit development. The 771‑property portfolio remains highly diversified, with no single tenant accounting for more than 3.9 % of annualized base rent, and the average lease term of 9.6 years supports long‑term cash‑flow stability. The company’s build‑to‑suit pipeline is expected to add additional income streams in the coming years, reinforcing its growth trajectory.
Management reaffirmed its 2026 AFFO guidance of $1.53 to $1.57 per share and announced a 0.9 % increase in the quarterly dividend to $0.2925 per share, underscoring confidence in continued cash‑flow generation. Net debt to annualized adjusted EBITDA remains at 6.0×, a level the company has managed through extended credit facility maturities and a lack of material maturities until 2027, providing financial flexibility. CEO John Moragne highlighted that 2025 was an important year marked by consistent execution and a return to growth, and expressed confidence in entering 2026 with strong momentum.
Shares of BNL have risen about 14.3 % since the beginning of the year and are near 52‑week highs, although after‑hours trading was muted. Analysts noted that the revenue beat, the reaffirmation of 2026 guidance, and the build‑to‑suit pipeline were key drivers of the positive reaction, while the elevated leverage ratio remains a point of concern for some investors.
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