Broadstone Net Lease stock maintains Market Outperform rating at JMP

Published 28/07/2025, 09:52
Broadstone Net Lease stock maintains Market Outperform rating at JMP

Investing.com - JMP Securities reiterated its Market Outperform rating and $21.00 price target on Broadstone Net Lease (NYSE:BNL) on Monday, citing the company’s expanding build-to-suit development program. Currently trading at $15.88, BNL maintains a GOOD financial health score according to InvestingPro data, with analyst targets ranging from $14 to $22.

The build-to-suit program has grown to approximately $575 million since inception, following the announcement of three new additions. The new projects are relatively small, averaging around $20 million each, but JMP notes that new development relationships could lead to repeat business over time.

Broadstone has completed or has underway 11 development funding projects, which typically generate higher yields compared to traditional acquisitions. This development strategy appears to be a key factor in JMP’s positive outlook on the company.

BNL shares currently trade at approximately 11 times 2025 estimated AFFO per share, representing a 2.5-turn discount compared to the net-lease REIT peer average. According to JMP, this discount exceeds historical levels of 1.0x-1.5x.

JMP highlighted that Broadstone’s portfolio quality has improved following its exit from clinical healthcare, resulting in better cash flow quality and duration, a more flexible deployment strategy, and a highly diverse portfolio.

In other recent news, Broadstone Net Lease has announced the addition of three new build-to-suit projects, representing a total investment of approximately $61.4 million. These projects include industrial distribution warehouses in the Dallas metropolitan area and California’s Central Valley (NASDAQ:CVCY), as well as a grocery store in the Dallas area. In the company’s latest earnings report, Broadstone’s performance aligned with expectations, and its development pipeline has been expanding. Analysts at JMP maintained their Market Outperform rating with a $21.00 price target, noting the company’s effective management of tenant credit issues. BMO Capital Markets also reaffirmed an Outperform rating, highlighting Broadstone’s strategy to secure an additional $500 million in build-to-suit projects this year. During Broadstone’s 2025 Annual Meeting of Stockholders, nine directors were elected, and the compensation of executive officers was approved on a non-binding basis. Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These developments underscore Broadstone’s ongoing efforts to enhance its property portfolio and financial stability.

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