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VICTOR, N.Y., November 18, 2024--(BUSINESS WIRE)--Broadstone Net Lease, Inc. (NYSE: BNL) ("Broadstone," "BNL," the "Company," "we," "our," or "us"), today announced it has updated its pipeline of build-to-suit development commitments. Additionally, the Company announced that BNL’s CEO, John Moragne, CFO, Kevin Fennell, and Director of Corporate Finance and Investor Relations, Brent Maedl, will be participating in the Nariet REITworld 2024 Annual Conference in Las Vegas, NV, on November 19 and November 20, 2024.
DEVELOPMENT FUNDING COMMITMENTS
As of the date of this release, we have a total of $246.5 million in estimated build-to-suit development commitments to be funded through the second quarter of 2026. Since our October 30, 2024, release, in which we previously announced a total of $418.8 million remaining estimated build-to-suit development commitments, we were notified that a prospective tenant for a large build-to-suit transaction in our pipeline shifted its strategy in connection with an unanticipated change in its executive leadership, and determined not to proceed with certain initiatives, including our transaction.
"We are steadfast in our commitment to scaling a robust and resilient pipeline of build-to-suit developments as part of our core building blocks of growth," said John Moragne, BNL’s Chief Executive Officer. "We are focused on laddering additional build-to-suit opportunities that provide visibility to embedded growth in future years while maintaining a strong appetite for accretive regular-way acquisitions to optimize near-term results and generate sustainable, long-term growth."
As of today, the $246.5 million in total estimated build-to-suit commitments includes $125.4 million of commitments for developments that are actively under construction and $121.1 million in additional development commitments. The following table summarizes developments that are actively under construction:
| (unaudited, in thousands) |
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| Property |
| Property Type |
| Projected Rentable Square Feet |
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| Start Date |
| Target Completion Date |
| Estimated Total Project Investment |
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| Cumulative Investment at 11/18/2024 |
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| Estimated Remaining Funding Commitment |
| Estimated Cash Capitalization Rate |
| Estimated Straight-line Yield1 |
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| Sierra Nevada |
| Industrial |
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| 122 |
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| 10/2024 |
| 12/2025 |
| $ | 58,563 |
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| $ | 1,619 |
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| $ | 56,944 |
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| 7.6 | % |
| 9.5 | % |
| Sierra Nevada |
| Industrial |
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| 122 |
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| 10/2024 |
| 5/2026 |
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| 55,525 |
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| 1,644 |
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| 53,881 |
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| 7.7 | % |
| 9.7 | % |
| UNFI |
| Industrial |
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| 1,016 |
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| 05/2023 |
| Substantially Completed |
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| 204,833 |
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| 190,239 |
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| 14,594 |
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| 7.2 | % |
| 8.6 | % |
| Total |
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| 1,260 |
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| $ | 318,921 |
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| $ | 193,502 |
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| $ | 125,419 |
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| 1 Represents 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. | ||||||||||||||||||||||||||||
As of the date of this release, we have an aggregate of $264.4 million in total investment commitments, which is comprised of the aforementioned $246.5 million in total remaining estimated build-to-suit developments, $9.9 million of acquisitions under control, and $8.0 million of commitments to fund revenue generating capital expenditures with existing tenants.