Broadstone Net Lease Raises AFFO Guidance and Announces Major Colorado Build-to-Suit Project
Broadstone Net Lease (NYSE:BNL) reported a 2.6% year-over-year increase in second-quarter adjusted funds from operations (AFFO), reaching $78.2 million, or $0.39 per share. The company raised its full-year AFFO guidance to between $1.55 and $1.57 per diluted share, reflecting strong performance driven by rent growth and stabilized build-to-suit investments. Following the quarter's end, Broadstone announced a joint venture for a $303 million powered-shell development in Colorado on behalf of an unnamed Fortune 20 investment-grade tenant. The project is expected to generate significant returns with initial cash yields around 8.5% and straight-line yields near 11.6%. Rent from the facility, under a 15-year triple-net lease, will begin by March 2027. The Colorado development expands Broadstone's committed build-to-suit pipeline to approximately $645 million with an average initial cash yield of about 7.9% and straight-line yields near 9.9%. The company also raised its investment outlook for the year to between $600–$800 million while expecting up to $150 million in dispositions.