Broadstone Posts $0.39 Per Share in AFFO and Raises Quarterly Distribution
Key Facts
Broadstone Net Lease announced its operating results on October 28 for the quarter ended September 30, 2026, reporting adjusted funds from operations (AFFO) of $0.39 per diluted share. Funds from operations (FFO) were $0.38 per share, while core funds from operations (Core FFO) were $0.39 per share. These measures differ, so the $0.39 figure is not reported FFO. Year over year, FFO rose from $0.36 to $0.38 per share, and Core FFO increased from $0.35 to $0.39. AFFO rose 5.4% to $0.39 per share, totaling $77.8 million.
The company reported net income of $28.1 million, or $0.14 per diluted share, consistent with the same period a year earlier. Revenue increased to $121.867 million from $114.167 million in the third quarter of 2025. Same-store rental revenue rose 0.7% year over year. The company attributed the growth to contractual rent increases and leasing activity in prior periods. By the date of the release, it had collected 99.9% of base rent due for the quarter on leased properties.
The company made total investments of $236.6 million during the quarter, including $137.1 million for build-to-suit projects and $63.8 million for property acquisitions. During the period, it commenced three such build-to-suit projects, with estimated total investment of $325.8 million. The company expects to begin collecting rent from these projects in March and June 2027. Its active build-to-suit pipeline totaled $456.3 million on October 28. These figures reflect the expansion of development activity alongside acquisition investments, while the company's portfolio comprises 767 net leased properties.
The 767 properties were spread across 44 U.S. states and four Canadian provinces, according to company data as of September 30. In the second quarter, the company raised the low end of its 2026 AFFO guidance per diluted share to $1.55 from $1.53 and kept the high end at $1.57. Management said at the time that existing rent increases averaged 2.1% across the portfolio and that it had raised the midpoint of its annual guidance range to $1.56 per share. In August, the company completed a public offering of 12,650,000 shares at $20.50 per share, with estimated gross proceeds of about $259.3 million. The stock closed at $17.55 on October 22 and then at $17.18 on October 27.
Broadstone announced an increase in its quarterly cash distribution to $0.295 per share from $0.2925. It set December 31, 2026, as the record date for eligible shareholders. Payment is scheduled no later than January 15, 2027. The company also scheduled its third-quarter results call for October 29, 2026, at 11:00 a.m. Eastern time. The call announcement came the day after the results were published, while the company's near-term updates include expected rent commencement for development projects in March and June 2027.