Broadstone Net Lease adds three build-to-suit projects worth $61.4 million

VICTOR, N.Y. - Broadstone Net Lease, Inc. (NYSE:BNL), a $3.13 billion market cap REIT with impressive gross profit margins of 94.35%, has added three new development projects to its build-to-suit pipeline, representing a total investment of approximately $61.4 million, according to a company press release. InvestingPro analysis shows the company is currently trading near its Fair Value.

The new projects include an industrial distribution warehouse in the Dallas metropolitan area for Palmer Distribution Services, Inc., an industrial distribution warehouse in California’s Central Valley for AGCO Corporation, and a grocery store in the Dallas area for Sprouts Farmers Market, Inc. (NASDAQ:SFM).

Construction has begun on all three projects, which are expected to be completed in the third quarter of 2026. The developments will have lease terms ranging from 12 to 15 years with annual rent escalations between 0.9% and 3.5%.

"We are excited about the continued momentum of our build-to-suit strategy and our differentiated value proposition," said John Moragne, BNL’s Chief Executive Officer, in the statement.

These additions bring BNL’s total in-process development pipeline to eight projects with a combined estimated investment of $371.2 million. The company has invested approximately $102.5 million in these projects to date, with an estimated $268.6 million remaining to be invested. According to InvestingPro data, BNL maintains strong financial health with a current ratio of 1.93, indicating solid liquidity to support its development initiatives. InvestingPro subscribers have access to over 30 additional financial metrics and insights about BNL.

The industrial-focused real estate investment trust’s portfolio consisted of 769 net leased commercial properties as of March 31, 2025, with 762 properties located across 44 U.S. states and seven properties in four Canadian provinces.

The company’s development projects are expected to generate a weighted average estimated cash capitalization rate of 7.5% and an estimated straight-line yield of 8.9%, according to the press release.

In other recent news, Broadstone Net Lease reported its first-quarter 2025 earnings, which fell short of analyst expectations. The company posted an earnings per share (EPS) of $0.09, missing the forecasted $0.18, and generated revenue of $108.69 million, slightly below the anticipated $108.93 million. Despite this, Citizens JMP maintained its Market Outperform rating with a $21.00 price target, citing the company’s expanding development pipeline as a positive factor. Similarly, BMO Capital Markets reaffirmed its Outperform rating, highlighting Broadstone’s commitment to securing an additional $500 million in build-to-suit projects this year.

The company also held its 2025 Annual Meeting of Stockholders, where nine directors were elected, and the compensation of executive officers was approved. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. JMP analysts also maintained a Market Outperform rating and a $21.00 price target, emphasizing Broadstone’s effective handling of tenant credit issues. These recent developments underscore Broadstone Net Lease’s strategic efforts to enhance its portfolio and financial stability.

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