Broadstone Net Lease (BNL) AI Stock Analysis

• Market Cap: $3.16B
• Dividend Yield: 6.94%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.74
• Revenue Growth: -2.08%
• EPS Growth: 3.63%
• Country: US
• Employees: 73
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Diversified
• EPS (TTM): 0.85
• Shares Outstanding: 189,051,120
• 10 Day Avg. Volume: 1,880,193
• 30 Day Avg. Volume: 1,461,050
• PEG Ratio: 5.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.37
• Price to Cash Flow (P/CF): 12.50
• P/FCF Ratio: 11.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.67
• Price Target Upside: 17.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Broadstone Net Lease maintains a stable financial foundation with strong cash flows and a robust balance sheet. While technical indicators are favorable, potential profitability issues and tenant risks present challenges. Valuation is reasonable with an attractive dividend yield, and recent corporate events bolster growth prospects. Overall, the stock has a solid outlook but must navigate certain risks.

Positive Factors

Dividend

A dividend of $0.29 has been declared, showing an increase of 1.8% year over year.

Portfolio

Broadstone Net Lease has a high occupancy rate of 99.1% and a rent collection rate of 99.2%.

Strategy

BNL's revised strategy is focused on build-to-suit developments and revenue-generating capex, aiming to create value and solve tenant problems.

Negative Factors

Asset Sales

Broadstone Net Lease sold $56.1 million in assets, which was below the expected $100 million.

Credit Loss

BNL's 2025 guidance includes a 125 bps credit loss, largely due to specific tenants like Zips Car Wash and Stanislaus Surgical.

Tenant Credit

Tenant credit remains an overhang with BNL's exposure to 8 Zips Car Wash, which recently filed Chapter 11.

Broadstone Net Lease Business Overview & Revenue Model

Company Description

BNL is an internally-managed REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. The Company utilizes an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting. As of September 30, 2020, BNL's diversified portfolio consisted of 627 properties in 41 U.S. states and one property in Canada across the industrial, healthcare, restaurant, office, and retail property types, with an aggregate gross asset value of approximately $4.0 billion.

How the Company Makes Money

Broadstone Net Lease generates revenue primarily through rental income from its portfolio of net-leased properties. Under net lease agreements, tenants are responsible for most property-related expenses, such as taxes, insurance, and maintenance, providing BNL with stable and predictable cash flows. The company strategically acquires properties with creditworthy tenants and long lease terms to ensure reliable income. Additionally, BNL may benefit from property appreciation and engage in selective property sales to optimize or rebalance its portfolio. Key factors contributing to its earnings include the occupancy rate of its properties, lease renewals, and the company's ability to effectively manage and expand its property portfolio.

Broadstone Net Lease Financial Statement Overview

Summary

Broadstone Net Lease shows a mixed financial performance. Strong gross profit margin and robust cash flow are offset by a net loss and inconsistent revenue growth. The balance sheet is strong with improved leverage, but the negative return on equity due to net loss is a concern.

Income Statement

Broadstone Net Lease shows a mixed performance in its income statement. The Gross Profit Margin remains strong, indicating efficiency in managing costs relative to revenue. However, the Net Profit Margin has declined significantly, with the company experiencing a net loss in the most recent year, which is concerning. Revenue growth has been inconsistent, with a decline in the most recent period. The EBIT and EBITDA margins demonstrate effective operational management, but the net loss is a critical weakness.

Balance Sheet

The balance sheet of Broadstone Net Lease is relatively robust with a strong equity base and no total debt in the most recent period, which reduces financial risk. The Debt-to-Equity ratio has improved significantly, reflecting a healthier leverage position. Return on Equity has turned negative due to the net loss, which is a concern. The Equity Ratio is strong, indicating a solid capital structure and financial stability.

Cash Flow

Cash flow analysis reveals a positive outlook for Broadstone Net Lease. The company has maintained strong Free Cash Flow and Operating Cash Flow, which supports sustainability. However, the Free Cash Flow Growth Rate has shown some volatility. The Free Cash Flow to Net Income ratio is high due to the net loss, indicating reliance on cash flow generation rather than profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
431.80M	442.89M	407.51M	382.88M	321.64M
	Gross Profit
407.06M	420.31M	385.74M	364.42M	304.16M
	EBIT
393.81M	380.89M	199.29M	195.91M	139.77M
	EBITDA
400.42M	380.89M	354.10M	328.01M	272.45M
	Net Income Common Stockholders
-6.55M	155.48M	122.11M	102.43M	51.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.36B	19.49M	21.79M	21.67M	100.49M
	Total Assets
5.22B	5.27B	5.46B	4.62B	4.26B
	Total Debt
1.91B	1.91B	2.02B	1.69B	1.54B
	Net Debt
1.90B	1.89B	2.00B	1.67B	1.44B
	Total Liabilities
2.07B	2.07B	2.20B	1.88B	1.78B
	Stockholders Equity
3.00B	3.05B	3.09B	2.58B	2.30B
Cash Flow		Free Cash Flow
276.25M	224.82M	224.54M	243.34M	168.22M
	Operating Cash Flow
276.25M	271.07M	255.91M	244.94M	179.03M
	Investing Cash Flow
-59.70M	24.34M	-859.64M	-582.30M	-60.24M
	Financing Cash Flow
-221.19M	-334.82M	636.00M	254.41M	-28.38M

Broadstone Net Lease Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNL, the sentiment is Negative. The current price of 16.72 is below the 20-day moving average (MA) of 16.74, above the 50-day MA of 16.17, and above the 200-day MA of 16.47, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNL.

Broadstone Net Lease Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
O	80 Outperform	$50.88B	58.13	2.40%	5.49%	29.49%	-22.38%
NNN	79 Outperform	$7.88B	19.46	9.32%	5.50%	4.97%	-0.26%
EPR	78 Outperform	$3.71B	30.43	6.11%	7.03%	-1.01%	-18.46%
BNL	74 Outperform	$3.16B	19.47	5.37%	6.94%	-2.08%	3.63%
ADC	72 Outperform	$8.24B	43.15	3.53%	3.93%	14.90%	5.28%
WPC	72 Outperform	$13.44B	29.37	5.38%	5.73%	-9.09%	-36.58%
Sector *	61 Neutral	$4.72B	17.64	-3.07%	10.89%	5.99%	-21.86%

Broadstone Net Lease Corporate Events

Broadstone Net Lease Closes $1.5 Billion Credit Agreement

On February 28, 2025, Broadstone Net Lease, Inc. announced the closing of a $1.5 billion Amended and Restated Credit Agreement, which includes a $1 billion revolving credit facility and a $500 million term loan. The new credit facilities, which replace the existing $400 million term loan due in February 2026, enhance the company’s financial flexibility by providing increased liquidity, improved borrowing rates, and favorable adjustments to financial covenants. This move is expected to support Broadstone’s growth objectives and strengthen its financial position, with no near-term debt maturities until April 2027.

Broadstone Net Lease Appoints New Directors for 2025

On February 13, 2025, Broadstone Net Lease, Inc. announced that Shekar Narasimhan and Denise Brooks-Williams would not stand for re-election as directors, ending their terms at the 2025 Annual Meeting. The board, effective the same day, appointed Richard Imperiale and Joseph Saffire as new directors, bringing substantial experience in the REIT industry. These changes mark a strategic evolution for the company as it continues to implement its differentiated investment strategy and build long-term stockholder value.

Broadstone Net Lease Expands with New Development Projects

Broadstone Net Lease announced the addition of $117.4 million in new build-to-suit development commitments, enhancing its growth strategy by securing significant projects like a state-of-the-art distribution facility for Southwire Company. The company also scheduled its Q4 2024 earnings release and appointed Sam DeLemos as VP of Build-to-Suit Development, leveraging his extensive experience to further strengthen its development pipeline.