Broadstone Net Lease: 2Q AFFO In Line w/ JPMc/Street; 2026 Guidance Raised, But Real Upside Exists In 2027/2028 Given BTSs

Research evidence excerpt

Broadstone Net Lease: 2Q AFFO In Line w/ JPMc/Street; 2026 Guidance Raised, But Real Upside Exists In 2027/2028 Given BTSs

J P M O R G A N North America Equity Research

29 July 2026

Broadstone Net Lease

2Q AFFO In Line w/ JPMe/Street; 2026 Guidance Overweight

Raised, But Real Upside Exists In 2027/2028 Given BNL, BNL US

BTSs Price (29 Jul 26):$22.15

REITs & Real Estate Services

BNL reported 2Q AFFO/share of $0.39 (+2.6% y/y), in line with both JPMe and Anthony Paolone, CFA AC

Bloomberg. The variances relative to our model were minor (about a penny in both (1-212) 622-6682

directions, discussed below). BNL's portfolio performed well in 2Q, with 99.9% anthony.paolone@jpmorgan.com

of base rent collected and the total portfolio at full occupancy. Its same-store cash Michael W. Mueller, CFA

revenue growth was 2.2%, which benefitted from its above-average rent bumps (1-212) 622-6689

(2.1%) compared to peers and strong credit performance. On the investment side, michael.w.mueller@jpmorgan.com

it completed $91.5 million of investments with no acquisitions during the quarter, Nahom Tesfazghi

which was below our $110.0 million assumption. (1-212) 622 4884

nahom.tesfazghi@jpmchase.com

Daniella De Armas RosalesThe more important item, in our view, occurred post the end of the quarter, which

(1-212) 622-0050

was the $303 million investment into a BTS joint venture that is set to deliver a daniella.dearmasrosales@jpmchase.com

powered data center shell in Colorado to a Fortune 20 IG-rated tenant in early 2027. J.P. Morgan Securities LLC

The yield is a significant 8.5% going in, with it moving to 9.7% in year two as the

full power is delivered, as we understand it. The JV still has the ability to deliver

another similarly powered shell on the site, which could create future