Broadstone Net Lease Reports Q2 2025 Financial Results with Decreased Net Income

Broadstone Net Lease, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $19.8 million, a decrease from $35.9 million in the same period last year. For the first half of 2025, net income totaled $37.3 million, down from $104.1 million in the prior year. The company’s lease revenues increased to $113.0 million for the quarter, up from $105.9 million year-over-year, and $221.7 million for the six months, compared to $211.3 million in 2024. The decline in net income was attributed to a significant drop in gains from real estate sales, which fell to $1.0 million from $62.5 million, alongside increased depreciation and interest expenses.

In terms of operational metrics, Broadstone's total assets rose to $5.3 billion as of June 30, 2025, compared to $5.2 billion at the end of 2024. The company’s investment in rental properties increased to $4.5 billion, reflecting ongoing acquisitions and development activities. During the first half of 2025, Broadstone completed $161.3 million in property acquisitions, with a weighted average cash capitalization rate of 7.1%. The company also recognized impairment charges of $28.1 million, primarily due to changes in its long-term hold strategy regarding certain properties.

Broadstone's portfolio consisted of 766 properties, with 759 located across 44 U.S. states and seven in Canada. The company reported a 99.1% occupancy rate and an average remaining lease term of approximately 9.7 years. The leases generally include contractual rent escalations, with about 97.5% of leases providing for annual increases averaging 2.0%. The company’s diversified tenant base includes 205 different commercial tenants across various industries, with no single tenant accounting for more than 4.0% of annual base rent.

Looking ahead, Broadstone aims to leverage its strong liquidity position and diversified acquisition pipeline to drive future growth. The company has $802.1 million of available capacity under its revolving credit facility and expects to meet its short-term liquidity needs through cash flows from operations and borrowings. Despite the challenging macroeconomic environment characterized by rising interest rates, Broadstone remains focused on its core strategies, including revenue-generating capital expenditures and build-to-suit developments, to enhance its portfolio and financial performance.