Broadstone Net Lease

BNL
Broadstone Net Lease is a publicly reporting, privately offered Real Estate Investment Trust (REIT) that acquires and holds freestanding, single-tenant, net-leased properties. It is focused on generating predictable, tax-sheltered cash flow and attractive total return for Shareholders. The REIT is externally managed by Broadstone Real Estate, LLC, and has no direct employees.

Founded by the Leenhouts and Tait families, who previously founded Home Properties*, a multifamily apartment REIT which went public in 1994 and operated as such until the company’s acquisition for $7.6 billion in October, 2015, Broadstone Net Lease began admitting outside shareholders on December 31, 2007. Today, there are 2,700+ investors whose shares are collectively worth more than $1.5 billion, including the contribution of more than $104 million of properties to the REIT through UPREIT transactions. Since inception, share price has increased from $50 to $83, and distributions have grown from $3.50 to $5.16 per share. Shares are offered via private placement, and new investors are accepted on a monthly basis.

Sportech

Investor Information

Investment grade credit rating (Baa3 with stable outlook) from Moody’s
$83 share price in effect for equity closings in May, June and July 2018
6.2% Annualized Distribution: monthly distribution fully covered by BNL’s current operations; based on $83 share price and dividend of $5.16 declared by the BNL Board of Directors at its May 8, 2018 meeting
Substantial tax sheltering of distributions for taxable investors; 1099 tax reporting
Direct placement of shares, undiluted by brokerage commissions or placement fees
Monthly closings held for new and additional equity investments
More than $76 million of shares held by management team, Board of Directors, and Broadstone Real Estate; all invested on the same terms as other investors
Open to accredited individual and institutional investors
Fee Structure designed to be attractive to institutions, endowments, pension funds, family offices and high net worth individuals
Minimum initial investment (direct): $500,000
Minimum initial investment (via financial advisor): $250,000
BNL is audited by Deloitte & Touche LLP

*Broadstone Real Estate, its principals and affiliated REITs are not currently affiliated with Home Properties

Investment Strategy

Broadstone Net Lease acquires freestanding, single-tenant properties triple-net leased to credit worthy tenants and brands. The portfolio uses conservative leverage and is constructed of long-term leases with contractual rent increases to help withstand economic volatility.

Why triple-net leased properties?

High return relative to risk level assumed
Predictable returns due to tenant responsibilities and long term leases
Opportunity for growth in cash flow and valuation attributable to contractual rent increases
Ability to access favorable debt financing due to predictable cash flows
Growth in rent and ownership of real assets helps to hedge against inflation
Still a very fragmented industry and imperfect market, with opportunities for astute buyers
Opportunity to add value at time of acquisition through proper negotiation and underwriting