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Broadstone Net Lease, Inc. — Earnings Release Q3 2026 (company IR deck)
Broadstone Net Lease, Inc. (BNL) · 0 slides · Filed Oct 28, 2026
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Slide 1 — guidance and are energized by what lies ahead.”
For Immediate Release October 28, 2026 Company Contact: Brent Maedl Director, Corporate Finance & Business Analytics [email protected] 585.382.8507 Broadstone Net Lease Announces Third Quarter 2026 Results VICTOR, N.Y. – Broadstone Net Lease, Inc. (NYSE: BNL) (“BNL”, the “Company”, “we”, “our”, or “us”), today announced its operating results for the quarter ended September 30, 2026. MANAGEMENT COMMENTARY “We delivered a strong third quarter, generating AFFO growth of 5.4% year-over-year, as our portfolio continued to perform well and our pipeline matured as expected,” said John Moragne, BNL’s Chief Executive Officer. “During the quarter, we were thrilled to return to the public equity markets and complete our $259 million public equity offering - a milestone we are proud of after four years away. Combined with a committed build-to-suit pipeline of $456 million as of today, we have our capital already at work and our path forward clearly defined. With a strengthened balance sheet and the continued confidence of our tenant and developer partners, we believe we remain on track to deliver on our full-year guidance and are energized by what lies ahead.” THIRD QUARTER 2026 HIGHLIGHTS OPERATING RESULTS • Generated net income of $28.1 million, or $0.14 per diluted share, consistent with the same period in the prior year. • Generated AFFO of $77.8 million, or $0.39 per diluted share, representing a 5.4% increase compared to the previous year. • Achieved same store rental revenue growth of 0.7% compared to the same period in the previous year, driven by strong contractual rent increases and leasing activity in prior periods. • Incurred $10.8 million of general and administrative expenses. Incurred core general and administrative expenses of $7.4 million, which primarily excludes stock-based compensation and severance. • As of the date of this release, we collected 99.9% of base rents due for the quarter for all properties under lease. INVESTMENT & DISPOSITION ACTIVITY • Invested $236.6 million, including $63.8 million in new property acquisitions, $137.1 million in build-to-suit developments, $35.1 million in transitional capital, and $0.6 million in redevelopments. The completed acquisition had an initial cash capitalization rate, lease term, and annual rent increase of 7.7%, 15.0 years, and 2.0%, respectively, resulting in a straight-line yield of 8.8%. • Started three build-to-suit developments totaling $325.8 million in estimated total project investments, with a weighted average initial cap rate of 8.4%, and straight-line yield of 11.3% with rent commencement expected in March and June of 2027. For additional information, please reference the Real Estate Portfolio and Investment Update section below. • During the third quarter, we stabilized six build-to-suit developments totaling $95.3 million of estimated total project investment at a weighted average cash capitalization rate of 7.3%. For additional information, please reference the Real Estate Portfolio and Investment Update section below. • Sold three properties for gross proceeds of $12.5 million at a capitalization rate of 6.6% on tenanted properties. • Subsequent to quarter-end, we invested $12.2 million in connection with our in-process build-to-suit investments. As of the date of this release, we have a total of approximately $337.6 million in remaining estimated investments for build-to- suit developments to be funded through the fourth quarter of 2027.
Slide 2 — September 30,
2 CAPITAL MARKETS ACTIVITY • In August 2026, we completed a public offering to sell an aggregate of 12,650,000 shares of common stock at a price of $20.50 per share for estimated gross proceeds of approximately $259.3 million, in connection with forward sale agreements. We expect to settle the common equity offering program by the September 2027 maturity date. • During the third quarter, we sold, on a forward basis, 1.8 million shares of our common stock at a weighted average gross price per share of $21.43 for estimated gross proceeds of approximately $38.9 million under our at-the-market common equity offering (“ATM Program”), none of which has settled. Inclusive of the forward equity offering, the total outstanding expected net proceeds from forward sale agreements, if settled as of September 30, 2026, are approximately $409.3 million. • During the third quarter, we entered into a new $300 million senior unsecured delayed-draw term loan with an initial maturity date of January 30, 2030. Please reference the Balance Sheet Capital Markets Activities section below for additional details. • As of September 30, 2026, the treasury stock method resulted in a diluted share impact from our outstanding forward sale agreements of approximately 945,000 shares given current forward sale prices relative to market pricing during the quarter; as these agreements are settled, their full share count will be reflected in our diluted weighted average shares outstanding. • Declared an increase in our quarterly dividend from $0.2925 to $0.295 per share, or a 0.9% increase over the prior period. SUMMARIZED FINANCIAL RESULTS For the Three Months Ended For the Nine Months Ended (in thousands, except per share data) September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Revenues $ 121,867 $ 122,309 $ 114,167 $ 365,577 $ 335,843 Net income, including non-controlling interests $ 28,139 $ 40,255 $ 27,065 $ 114,786 $ 64,388 Net earnings per share – diluted $ 0.14 $ 0.21 $ 0.14 $ 0.58 $ 0.33 FFO $ 76,654 $ 79,832 $ 70,969 $ 237,183 $ 217,291 FFO per share $ 0.38 $ 0.40 $ 0.36 $ 1.18 $ 1.10 Core FFO $ 79,422 $ 78,528 $ 70,386 $ 237,201 $ 222,816 Core FFO per share $ 0.39 $ 0.39 $ 0.35 $ 1.18 $ 1.12 AFFO $ 77,805 $ 78,211 $ 74,314 $ 232,867 $ 220,434 AFFO per share $ 0.39 $ 0.39 $ 0.37 $ 1.16 $ 1.11 Diluted Weighted Average Shares Outstanding 201,119 200,261 197,632 200,474 197,476 FFO, Core FFO, and AFFO are measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See the Reconciliation of Non-GAAP Measures later in this press release. REAL ESTATE PORTFOLIO AND INVESTMENT UPDATE As of September 30, 2026, we owned a diversified portfolio of 767 individual net leased commercial properties with 760 properties located in 44 U.S. states and seven properties located in four Canadian provinces, comprising approximately 42.3 million rentable square feet of operational space. As of September 30, 2026, all but one of our properties were subject to a lease, and our properties were occupied by 206 different commercial tenants, with no single tenant accounting for more than 3.7% of our annualized base rent (“ABR”). Properties subject to a lease represent approximately 100.0% of our portfolio’s rentable square footage. The ABR weighted average lease term and ABR weighted average annual rent increase, pursuant to leases on properties in the portfolio as of September 30, 2026, was 9.3 years and 2.1%, respectively. During the quarter, we started three new build-to-suit developments totaling $325.8 million in new commitments, including two retail projects and the continued funding of our previously announced $303 million advanced technology facility in Colorado for a Fortune 20 Investment-Grade Company. Combined with projects already underway, our total in-process build-to-suit pipeline now stands at $456.3 million as of the date of this release, reflecting the depth of our developer relationships and the continued execution of our differentiated strategy. During the third quarter, we stabilized six build-to-suit developments totaling $95.3 million of estimated total project investment at a weighted average cash capitalization rate of 7.3%. Additionally, subsequent to quarter end, our $115.4
Slide 3 — capitalization rate of 7.8%.
3 million, 1.2 million-square-foot facility in Bremen, Georgia, reached stabilization this month at an initial cash capitalization rate of 7.8%. BALANCE SHEET AND CAPITAL MARKETS ACTIVITIES As of September 30, 2026, we had total outstanding debt of $2.9 billion, Net Debt of $2.9 billion, Pro Forma Net Debt of $2.5 billion, and a Pro Forma Net Debt to Annualized Adjusted EBITDAre ratio of 5.4x. We had $428.8 million of available capacity on our unsecured revolving credit facility and $200.0 million available on our delayed draw term loan as of quarter end. In August 2026, we completed a public offering to sell an aggregate of 12,650,000 shares of common stock at a price of $20.50 per share for estimated gross proceeds of approximately $259.3 million, in connection with forward sale agreements. We expect to settle the forward sale agreements by the September 2027 maturity date. We sold on a forward basis, 1.8 million shares of common stock at a weighted average gross price per share of $21.43 for estimated gross proceeds of approximately $38.9 million under our ATM Program, none of which has been settled. Since the fourth quarter of 2025, we have sold, on a forward basis, 8.3 million shares of common stock at a weighted average gross price per share of $20.00 for estimated gross proceeds of approximately $166.9 million. These sales may be settled, at our discretion, any time before twelve-months of each respective sale date. Inclusive of the forward equity offering, the total outstanding expected net proceeds from forward sale agreements, if settled as of September 30, 2026, are approximately $409.3 million. As of the date of this release, we have approximately $200.0 million of capacity remaining under our $400 million ATM Program. We entered into a new $300 million senior unsecured delayed draw term loan facility (the "Term Loan"). The Term Loan has a twelve-month delayed draw period and an initial maturity of January 30, 2030, with two twelve-month extension options. We expect to use proceeds from the Term Loan for investment activity and general corporate purposes. DISTRIBUTIONS At its October 22, 2026 meeting, our board of directors declared a quarterly dividend of $0.295 per common share and OP Unit to holders of record as of December 31, 2026, payable on or before January 15, 2027.
Slide 4 — Build-to-suit developments
4 DEVELOPMENT PROJECTS The following tables summarize our in-process and stabilized build-to-suit ("BTS") projects as of the date of this release October 28, 2026. Build-to-suit developments Property Projecte d Rentable Square Start Date Target Stabilization Date/Stabilize d Date Lease Term (Years) Annual Rent Escalations Estimated Total Project Investment Cumulativ e Investment Estimated Remaining Investment Estimated Cash Capitalization Rate Estimated Straight- line Yield (1) In-process retail BTS: Academy Sports (Magnolia, TX) 55 Feb. 2026 Nov. 2026 15.0 0.5 % $ 12,975 $ 10,262 $ 2,713 7.3 % 7.5 % Tesla, Inc. (Las Vegas, NV) 60 Jun. 2026 Nov. 2027 15.0 3.0 % 39,794 19,573 20,221 6.7 % 8.3 % Hobby Lobby (Manor, TX) 55 Aug. 2026 Jun. 2027 15.0 0.5 % 10,339 1,759 8,580 7.1 % 7.4 % Academy Sports (Manor, TX) 55 Aug. 2026 Jun. 2027 15.0 0.4 % 12,437 2,321 10,116 7.1 % 7.3 % In-process industrial BTS: Amazon.com Services, LLC (Sarasota, FL) 230 Feb. 2026 May. 2027 15.0 2.3 % 46,790 30,413 16,377 7.5 % 8.8 % Tesla, Inc. (Austin, TX) 130 Apr. 2026 Oct. 2027 12.0 3.0 % 30,983 8,963 22,020 6.7 % 7.9 % Fortune 20 Investment-Grade Company (Colorado) 112 Jul. 2026 Mar. 2027 15.0 3.0 % 303,000 76,751 226,249 8.5 % 11.6 % 697 14.8 2.7 % $ 456,318 $ 150,042 $ 306,276 8.0 % 10.4 % Stabilized industrial BTS: Sierra Nevada (Dayton, OH) 122 Oct. 2024 Nov. 2025 15.0 3.0 % 53,625 53,625 — 7.5 % 9.3 % Sierra Nevada (Dayton, OH) 122 Oct. 2024 Mar. 2026 15.0 3.0 % 52,203 52,203 — 7.6 % 9.4 % Fiat Chrysler Automobile (Forsyth, GA) 422 Apr. 2025 May. 2026 15.0 3.0 % 72,215 70,402 1,813 6.6 % 8.2 % AGCO (Visalia, CA) 115 Jun. 2025 Aug. 2026 12.0 3.5 % 19,010 17,340 1,670 7.0 % 8.5 % Palmer Logistics (Midlothian, TX) (2) 270 Jul. 2025 Aug. 2026 12.3 3.5 % 31,723 31,723 — 7.6 % 9.2 % Southwire (Bremen, GA) 1,178 Dec. 2024 Oct. 2026 10.0 2.6 % 115,411 100,495 14,916 7.8 % 8.8 % Stabilized retail BTS: 7Brew (Jacksonville, FL) 1 Jun. 2025 Nov. 2025 15.0 1.9 % 2,005 2,005 — 8.0 % 8.8 % Sprouts (Bedford, TX) 22 Jul. 2025 Sep. 2026 15.0 0.9 % 9,533 7,003 2,530 7.2 % 7.7 % Hobby Lobby (Granbury, TX) 55 Oct. 2025 Sep. 2026 15.0 0.7 % 8,129 5,472 2,657 7.1 % 7.4 % Academy Sports (Granbury, TX) 55 Oct. 2025 Sep. 2026 15.0 0.6 % 12,393 9,068 3,325 7.1 % 7.4 % Academy Sports (Waco, TX) 68 Dec. 2025 Sep. 2026 15.0 0.6 % 14,488 10,063 4,425 7.2 % 7.5 % Total / weighted average 3,127 14.0 2.7 % $ 847,053 $ 509,441 $ 337,612 7.7 % 9.6 % 1 Represents our pro-rata share of the estimated first year yield to be generated on a real estate investment, which was computed at the time of investment based on the estimated annual straight-line rental income computed in accordance with GAAP, divided by the estimated total project investment. 2 Development represents our common and preferred equity investments in a consolidated joint venture, and excludes amounts attributed to non- controlling interest holders.
Slide 5 — 2026 GUIDANCE
5 2026 GUIDANCE For 2026, BNL expects to report AFFO of between $1.55 to $1.57 per diluted share. The guidance is based on the following key assumptions: (i) investments in real estate properties between $700 and $800 million, revised up from $600 and $800 million (ii) dispositions of real estate properties between $150 and $200 million, revised up from $100 and $150 million (iii) total core general and administrative expenses between $30 million and $31 million. Additionally, the Company's full year AFFO per share guidance now includes less than $0.005 per share of estimated dilution from approximately 350 to 600 thousand weighted average shares outstanding due to the impact of outstanding forward equity calculated in accordance with the treasury stock method. Our per share results are sensitive to both the timing and amount of real estate investments, property dispositions, and capital markets activities that occur throughout the year. The Company does not provide guidance for the most comparable GAAP financial measure, net income, or a reconciliation of the forward-looking non-GAAP financial measure of AFFO to net income computed in accordance with GAAP, because it is unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measure, including items that are not indicative of the Company’s ongoing operations, including, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses, and stock-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on the Company’s GAAP results for the guidance periods. CONFERENCE CALL AND WEBCAST The Company will host its earnings conference call and audio webcast on Thursday, October 29, 2026, at 11:00 a.m. Eastern Time. To access the live webcast, which will be available in listen-only mode, please visit: https://events.q4inc.com/attendee/263549073. If you prefer to listen via phone, U.S. participants may dial: 1-833-461-5787 (toll free) or 1-585-542-9983 (local), meeting ID: 263 549 073. Analysts may pre-register with the following link: https://events.q4inc.com/analyst/263549073?pwd=dCiOjN8z. A unique code will be provided to use when dialing in. A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. To listen to a replay of the call via the web, which will be available for one year, please visit: https://investors.bnl.broadstone.com. About Broadstone Net Lease, Inc. BNL is an industrial-focused, diversified net lease REIT that invests in primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Utilizing an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting, as of September 30, 2026, BNL’s diversified portfolio consisted of 767 individual commercial properties with 760 properties located in 44 U.S. states and seven properties located in four Canadian provinces across the industrial, retail, and other property types.
Slide 6 — Forward-Looking Statements
6 Forward-Looking Statements This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “outlook,” “potential,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “expect,” “intends,” “anticipates,” “estimates,” “plans,” “would be,” “believes,” “continues,” or the negative version of these words or other comparable words. Forward-looking statements, including our 2026 guidance and assumptions, rent commencement timing, and build-to-suit developments, involve known and unknown risks and uncertainties, which may cause BNL’s actual future results to differ materially from expected results, including, without limitation, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or fluctuation of interest rates, local real estate conditions, tenant financial health, property investments and acquisitions, and the timing and uncertainty of completing these property investments and acquisitions, and uncertainties regarding future distributions to our stockholders. These and other risks, assumptions, and uncertainties are described in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 19, 2026 which you are encouraged to read, and is available on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward- looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company assumes no obligation to, and does not currently intend to, update any forward-looking statements after the date of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise. Notice Regarding Non-GAAP Financial Measures In addition to our reported results and net earnings per diluted share, which are financial measures presented in accordance with GAAP, this press release contains and may refer to certain non-GAAP financial measures, including Funds from Operations (“FFO”), Core Funds From Operations (“Core FFO”), AFFO, Net Debt, and Net Debt to Annualized Adjusted EBITDAre. We believe the use of FFO, Core FFO, and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO, Core FFO, and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure, and should be considered in addition to, and not in lieu of, GAAP financial measures. We believe presenting Net Debt to Annualized Adjusted EBITDAre is useful to investors because it provides information about gross debt less cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using Annualized Adjusted EBITDAre. You should not consider our Annualized Adjusted EBITDAre as an alternative to net income or cash flows from operating activities determined in accordance with GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measure and statements of why management believes these measures are useful to investors are included below.
Slide 7 — Land
7 Broadstone Net Lease, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except per share amounts) September 30, 2026 December 31, 2025 Assets Accounted for using the operating method: Land $ 827,700 $ 781,117 Land improvements 405,038 373,405 Buildings and improvements 4,257,756 4,118,578 Equipment 11,810 15,281 Total accounted for using the operating method 5,502,304 5,288,381 Less accumulated depreciation (849,551) (772,589) Accounted for using the operating method, net 4,652,753 4,515,792 Accounted for using the direct financing method 24,911 25,497 Accounted for using the sales-type method 14,369 14,405 Property under development 484,117 265,812 Investment in rental property, net 5,176,150 4,821,506 Cash and cash equivalents 12,189 30,540 Accrued rental income 189,975 178,880 Tenant and other receivables, net 3,799 4,404 Prepaid expenses and other assets 66,183 55,910 Interest rate swap, assets 36,026 18,248 Goodwill 339,769 339,769 Intangible lease assets, net 248,222 268,010 Total assets $ 6,072,313 $ 5,717,267 Liabilities and equity Unsecured revolving credit facility $ 555,438 $ 266,036 Mortgages, net 40,262 56,689 Unsecured term loans, net 1,095,298 994,219 Senior unsecured notes, net 1,191,962 1,190,738 Interest rate swap, liabilities — 1,501 Accounts payable and other liabilities 74,376 60,081 Dividends payable 60,257 59,513 Accrued interest payable 21,136 13,502 Intangible lease liabilities, net 36,346 41,527 Total liabilities 3,075,075 2,683,806 Commitments and contingencies (Note 16) Equity Broadstone Net Lease, Inc. equity: Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued or outstanding — — Common stock, $0.00025 par value; 500,000 shares authorized, 191,951 and 191,423 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively 48 48 Additional paid-in capital 3,507,541 3,502,380 Cumulative distributions in excess of retained earnings (677,162) (620,221) Accumulated other comprehensive income 38,400 19,788 Total Broadstone Net Lease, Inc. equity 2,868,827 2,901,995 Non-controlling interests 128,411 131,466 Total equity 2,997,238 3,033,461 Total liabilities and equity $ 6,072,313 $ 5,717,267
Slide 8 — 121,867 $
8 Broadstone Net Lease, Inc. and Subsidiaries Condensed Consolidated Statements of Income and Comprehensive Income (in thousands, except per share amounts) For the Three Months Ended For the Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2026 September 30, 2025 Revenues Lease revenues, net $ 121,867 $ 122,309 $ 365,577 $ 335,843 Operating expenses Depreciation and amortization 50,785 49,102 141,413 122,318 Property and operating expense 7,341 5,817 19,339 16,688 General and administrative 10,777 11,897 33,023 29,216 Provision for impairment of investment in rental properties 1,474 3,546 5,019 35,067 Total operating expenses 70,377 70,362 198,794 203,289 Other income (expenses) Interest income 118 135 304 403 Interest expense (26,738) (25,785) (77,783) (69,416) Gain on sale of real estate 3,596 12,990 23,707 4,230 Income taxes (256) (346) (914) (763) Other income (expenses) (71) 1,314 2,689 (2,620) Net income 28,139 40,255 114,786 64,388 Net income attributable to non-controlling interests (1,022) (456) (1,505) (1,019) Net income attributable to Broadstone Net Lease, Inc. $ 27,117 $ 39,799 $ 113,281 $ 63,369 Weighted average number of common shares outstanding Basic 190,820 190,692 190,650 188,002 Diluted 201,119 200,261 200,474 197,476 Net earnings per share attributable to common stockholders Basic $ 0.14 $ 0.21 $ 0.59 $ 0.33 Diluted $ 0.14 $ 0.21 $ 0.58 $ 0.33 Comprehensive income Net income $ 28,139 $ 40,255 $ 114,786 $ 64,388 Other comprehensive income Change in fair value of interest rate swaps 12,754 3,934 19,279 (35,336) Realized loss on interest rate swaps 22 22 75 6,091 Comprehensive income 40,915 44,211 134,140 35,143 Comprehensive income (loss) attributable to non-controlling interests (1,545) (620) (2,301) 232 Comprehensive income attributable to Broadstone Net Lease, Inc. $ 39,370 $ 43,591 $ 131,839 $ 35,375
Slide 9 — Net income
9 Reconciliation of Non-GAAP Measures The following is a reconciliation of net income to FFO, Core FFO, and AFFO for the three months ended September 30, 2026 and June 30, 2026 and for the nine months ended September 30, 2026 and 2025. Also presented is the weighted average number of shares of our common stock and OP Units used for the diluted per share computation: For the Three Months Ended For the Nine Months Ended (in thousands, except per share data) September 30, 2026 June 30, 2026 September 30, 2026 September 30, 2025 Net income $ 28,139 $ 40,255 $ 114,786 $ 64,388 Real property depreciation and amortization 50,703 49,021 141,167 122,066 Gain on sale of real estate (3,596) (12,990) (23,707) (4,230) Provision for impairment of investment in rental properties 1,474 3,546 5,019 35,067 FFO adjustment allocable to joint venture noncontrolling interests (66) — (82) — FFO $ 76,654 $ 79,832 $ 237,183 $ 217,291 Net write-offs of accrued rental income 2,881 — 2,881 2,987 Other non-core income from real estate transactions 1 (703) (25) (728) (137) Non-capitalized demolition and other costs 328 24 352 — Cost of debt extinguishment — — — 166 Severance and employee transition costs 191 11 202 55 Other (income) expenses 2 71 (1,314) (2,689) 2,454 Core FFO $ 79,422 $ 78,528 $ 237,201 $ 222,816 Straight-line rent adjustment (5,432) (5,567) (16,629) (16,452) Adjustment to provision for credit losses — (14) (14) (13) Amortization of debt issuance costs 1,629 1,641 4,897 3,922 Non-capitalized transaction costs 1 1,632 1,640 383 Realized gain or loss on interest rate swaps and other non-cash interest expense 36 36 117 6,126 Amortization of lease intangibles (1,014) (1,017) (3,046) (3,453) Stock-based compensation 3,163 2,972 8,701 7,105 AFFO $ 77,805 $ 78,211 $ 232,867 $ 220,434 Diluted weighted average shares outstanding 3 201,119 200,261 200,474 197,476 Net earnings per diluted share 4 $ 0.14 $ 0.21 $ 0.58 $ 0.33 FFO per diluted share 4 0.38 0.40 1.18 1.10 Core FFO per diluted share 4 0.39 0.39 1.18 1.12 AFFO per diluted share 4 0.39 0.39 1.16 1.11 1 Amount includes $0.3 million associated with the return of funds held in escrow for property work not completed, $0.2 million associated with end of lease activities, and $0.2 million from lease assignment activities, all of which are not core to our business operations for the three and nine months ended September 30, 2026. 2 Amount includes $(0.1) million and $1.3 million of unrealized foreign exchange (loss) gain for the three months ended September 30, 2026 and June 30, 2026, respectively, and $2.7 million and $(2.4) million of unrealized foreign exchange gain (loss) for the nine months ended September 30, 2026 and September 30, 2025, respectively, primarily associated with our Canadian dollar denominated revolving borrowings. 3 Excludes 1,099,586 and 1,102,192 weighted average shares of unvested restricted common stock for the three months ended September 30, 2026 and June 30, 2026, respectively. Excludes 1,095,453 and 1,053,536 weighted average shares of unvested restricted common stock for the nine months ended September 30, 2026 and September 30, 2025, respectively. 4 Excludes $0.3 million from the numerator for the three months ended September 30, 2026 and June 30, 2026. Excludes $1.0 million and $0.9 million from the numerator for the nine months ended September 30, 2026 and September 30, 2025, respectively.
Slide 10 — Our reported results and net earnings per diluted share are presented in accordance with GAAP. We also disclose FFO,
10 Our reported results and net earnings per diluted share are presented in accordance with GAAP. We also disclose FFO, Core FFO, and AFFO, each of which are non-GAAP measures. We believe the use of FFO, Core FFO, and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO, Core FFO, and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute FFO in accordance with the standards established by the Board of Governors of Nareit, the worldwide representative voice for REITs and publicly traded real estate companies with an interest in the U.S. real estate and capital markets. Nareit defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, and impairment charges related to certain previously depreciated real estate assets. FFO is used by management, investors, and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers, primarily because it excludes the effect of real estate depreciation and amortization and net gains (losses) on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We compute Core FFO by adjusting FFO, as defined by Nareit, to exclude certain GAAP income and expense amounts that we believe are infrequently recurring, unusual in nature, or not related to its core real estate operations, including write-offs or recoveries of accrued rental income, cost of debt extinguishment, lease termination fees and other non-core income from real estate transactions, non-capitalized demolition and other redevelopment costs, unrealized and realized gains or losses on foreign currency transactions, gain on insurance recoveries, severance and employee transition costs, and other extraordinary items. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Core FFO provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. We compute AFFO, by adjusting Core FFO for certain revenues and expenses that are non-cash or unique in nature, including straight-line rents, adjustment to provision for credit losses, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, non-capitalized transaction costs such as acquisition costs related to deals that failed to transact, (gain) loss on interest rate swaps and other non-cash interest expense, deferred taxes, stock-based compensation, and other specified non-cash items. We believe that excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors. We use AFFO as a measure of our performance when we formulate corporate goals, and is a factor in determining management compensation. We believe that AFFO is a useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by non-cash revenues or expenses. Specific to our adjustment for straight-line rents, our leases include cash rents that increase over the term of the lease to compensate us for anticipated increases in market rental rates over time. Our leases do not include significant front-loading or back-loading of payments, or significant rent-free periods. Therefore, we find it useful to evaluate rent on a contractual basis as it allows for comparison of existing rental rates to market rental rates. FFO, Core FFO, and AFFO may not be comparable to similarly titled measures employed by other REITs, and comparisons of our FFO, Core FFO, and AFFO with the same or similar measures disclosed by other REITs may not be meaningful. Neither the SEC nor any other regulatory body has passed judgment on the acceptability of the adjustments to FFO that we use to calculate Core FFO and AFFO. In the future, the SEC, Nareit or another regulatory body may decide to standardize the allowable adjustments across the REIT industry and in response to such standardization we may have to adjust our calculation and characterization of Core FFO and AFFO accordingly.
Slide 11 — Net income
11 The following is a reconciliation of net income to EBITDA, EBITDAre, Adjusted EBITDAre, and Pro Forma Adjusted EBITDAre, debt to Net Debt and Pro Forma Net Debt, Net Debt to Annualized Adjusted EBITDAre, and Pro Forma Net Debt to Annualized Adjusted EBITDAre as of and for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025: For the Three Months Ended (in thousands) September 30, 2026 June 30, 2026 September 30, 2025 Net income $ 28,139 $ 40,255 $ 27,065 Depreciation and amortization 50,785 49,102 40,246 Interest expense 26,738 25,785 28,230 Income taxes 256 346 208 EBITDA $ 105,918 $ 115,488 $ 95,749 Provision for impairment of investment in rental properties 1,474 3,546 6,999 Gain on sale of real estate (3,596) (12,990) (3,259) EBITDAre $ 103,796 $ 106,044 $ 99,489 Adjustment for current quarter investment activity1 2,620 540 1,797 Adjustment for current quarter disposition activity2 (70) (327) (257) Adjustment to exclude non-recurring and other expenses3 510 36 (177) Adjustment to exclude net write-offs of accrued rental income 2,881 — 755 Adjustment to exclude realized / unrealized foreign exchange (gain) loss 71 (1,288) (1,312) Adjustment to exclude other income from real estate transactions4 (703) (25) (43) Adjusted EBITDAre $ 109,105 $ 104,980 $ 100,252 Estimated revenues from developments5 5,696 3,766 2,544 Pro Forma Adjusted EBITDAre $ 114,801 $ 108,746 $ 102,796 Annualized EBITDAre 415,184 424,176 397,956 Annualized Adjusted EBITDAre 436,420 419,920 401,008 Pro Forma Annualized Adjusted EBITDAre 459,204 434,984 411,184 1 Reflects an adjustment to give effect to all investments during the quarter, including developments that have reached rent commencement, as if they had been made as of the beginning of the quarter. 2 Reflects an adjustment to give effect to all dispositions during the quarter as if they had been sold as of the beginning of the quarter. 3 Amount includes $0.3 million of non-capitalized demolition costs recognized in connection with demolition of a property being redeveloped and $0.2 million of severance and employee transition costs for the three months ended September 30, 2026. Amount includes less than $0.2 million of accelerated lease intangible amortization for the three months ended September 30, 2025. 4 Amount includes $0.3 million associated with the return of funds held in escrow for property work not completed, $0.2 million associated with end of lease activities, and $0.2 million from lease assignment activities, all of which are not core to our business operations for the three months ended September 30, 2026. 5 Represents estimated contractual revenues based on in-process development spend to-date.
Slide 12 — Unsecured term loans, net
12 (in thousands) September 30, 2026 June 30, 2026 September 30, 2025 Debt Unsecured revolving credit facility $ 555,438 $ 447,376 $ 95,824 Unsecured term loans, net 1,095,298 995,423 994,550 Senior unsecured notes, net 1,191,962 1,191,552 1,190,315 Mortgages, net 40,262 40,640 57,168 Debt issuance costs 12,740 13,025 15,171 Gross Debt 2,895,700 2,688,016 2,353,028 Cash and cash equivalents (12,189) (11,095) (81,966) Restricted cash (1,588) (1,822) (1,354) Net Debt $ 2,881,923 $ 2,675,099 $ 2,269,708 Estimated net proceeds from forward sale agreements1 (409,329) (124,313) (37,257) Pro Forma Net Debt $ 2,472,594 $ 2,550,786 $ 2,232,451 Leverage Ratios: Net Debt to Annualized EBITDAre 6.9x 6.3x 5.7x Net Debt to Annualized Adjusted EBITDAre 6.6x 6.4x 5.7x Pro Forma Net Debt to Annualized Adjusted EBITDAre 5.4x 5.9x 5.4x 1 Represents pro forma adjustment for estimated net proceeds from forward sale agreements that have not settled as if they have been physically settled for cash as of the period presented.
Slide 13 — We define Net Debt as gross debt (total reported debt plus debt issuance costs and original issuance discount) less cash and
13 We define Net Debt as gross debt (total reported debt plus debt issuance costs and original issuance discount) less cash and cash equivalents and restricted cash. We believe that the presentation of Net Debt to Annualized EBITDAre and Net Debt to Annualized Adjusted EBITDAre is useful to investors and analysts because these ratios provide information about gross debt less cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using EBITDAre. We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our performance that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. We compute EBITDAre in accordance with the definition adopted by Nareit, as EBITDA excluding gains (losses) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. EBITDA and EBITDAre are not measures of financial performance under GAAP, and our EBITDA and EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. We are focused on a disciplined and targeted investment strategy, together with active asset management that includes selective sales of properties. We manage our leverage profile using a ratio of Net Debt to Annualized Adjusted EBITDAre, and Pro Forma Net Debt to Annualized Adjusted EBITDAre, each discussed further below, which we believe is a useful measure of our ability to repay debt and a relative measure of leverage, and is used in communications with our lenders and rating agencies regarding our credit rating. As we fund new investments using our unsecured Revolving Credit Facility, our leverage profile and Net Debt will be immediately impacted by current quarter investments. However, the full benefit of EBITDAre from new investments will not be received in the same quarter in which the properties are acquired. Additionally, EBITDAre for the quarter includes amounts generated by properties that have been sold during the quarter. Accordingly, the variability in EBITDAre caused by the timing of our investments and dispositions can temporarily distort our leverage ratios. We adjust EBITDAre (“Adjusted EBITDAre”) for the most recently completed quarter (i) to recalculate as if all investments and dispositions had occurred at the beginning of the quarter, (ii) to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishment, realized or unrealized gains and losses on foreign currency transactions, or gains on insurance recoveries, or that we believe are one time, or unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, and (iii) to eliminate the impact of lease termination fees and other items that are not a result of normal operations. While investments in build-to-suit developments have an immediate impact to Net Debt, we do not make an adjustment to EBITDAre until the quarter in which the lease commences. We define our Pro Forma Adjusted EBITDAre as Adjusted EBITDAre adjusted to show the impact of estimated contractual revenues based on in-process development spend to-date. Our Pro Forma Net Debt is defined as Net Debt adjusted for estimated net proceeds from forward sale agreements that have not settled as if they have been physically settled for cash as of the period presented. We then annualize quarterly Adjusted EBITDAre and Pro Forma Adjusted EBITDAre by multiplying them by four (“Annualized Adjusted EBITDAre” and “Annualized Pro Forma Adjusted EBITDAre”). You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our Annualized Adjusted EBITDAre. Adjusted EBITDAre and Annualized Adjusted EBITDAre are not measurements of performance under GAAP, and our Adjusted EBITDAre and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our Adjusted EBITDAre and Annualized Adjusted EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.