Broadstone Net Lease (BNL) Earnings Transcript | The Motley Fool

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 19, 2026

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Broadstone Net Lease (BNL) reported strong financial performance in 2025, driven by a 4.2% year-over-year increase in AFFO (Adjusted Funds from Operations) per share to $1.49. The company’s portfolio remained highly stable, with a 99% leased rate and nearly all rents collected at year-end. BNL also demonstrated robust investment activity, deploying $748.4 million across new acquisitions, build-to-suit developments, transitional capital, and revenue-generating CapEx. This activity yielded an initial cash cap rate of 7%, with weighted average lease terms of 14.2 years and annual rent increases of 2.6%. The company’s focus on build-to-suit projects continued to pay off, with nine in-process developments totaling $345 million in investments and strong yields. BNL’s financial health was further underscored by its ability to manage risks effectively. Despite a 1.3% exposure to Red Lobster through master leases, the company noted mixed performance from casual dining brands, with some sites struggling. However, BNL maintained disciplined asset management, completing 19 lease rollovers across over 1% of annualized base rent (ABR) and achieving a 110% weighted average recapture rate. The company’s dividend was also increased by 1%, reflecting its confidence in cash flow stability. Looking ahead, BNL reiterated its 2026 AFFO guidance of $1.53 to $1.57 per share, representing a 4% midpoint growth. Investment volume is expected to range between $500 million and $625 million, with a focus on build-to-suit projects. Disposition activity remains modest at $75 million to $100 million, signaling BNL’s commitment to its core investment strategy. The company also highlighted its improved financial flexibility, with $700 million available on its revolver and $43 million raised through ATM equity issuances since November. While BNL’s performance indicates resilience and growth, challenges remain. Management

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Originally published on The Motley Fool on 2/19/2026