Broadstone Net Lease : Q3 2023 Supplemental

Q3 2023 QUARTERLY SUPPLEMENTAL INFORMATION

Broadstone Net Lease, Inc. (NYSE: BNL) is an industrial- focused, diversified Real Estate Investment Trust (REIT) that acquires, owns, and manages single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants.

www.broadstone.com

Q12023 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net Lease, Inc. (NYSE: BNL) is a Real Estate Investment Trust (REIT) that acquires, owns, and manages single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. www.broadstone.com

Table of Contents

Section	Page
About the Data	3
Company Overview	4
Quarterly Financial Summary	5
Balance Sheet	6
Income Statement Summary	7
Funds From Operations (FFO), Core Funds
From Operations (Core FFO), and Adjusted
Funds From Operations (AFFO)	8
EBITDA, EBITDAre, and Other Non-GAAP
Operating Measures	9
Lease Revenues Detail	10
Capital Structure	11
Equity Rollforward	12
Debt Outstanding	13
Net Debt Metrics	14
Covenants	15
Debt Maturities	16
Investment Activity	17
Dispositions	18
Portfolio at a Glance: Key Metrics	19
Diversification: Tenants and Brands	20-23
Diversification: Property Type	24-25
Key Statistics by Property Type	26
Diversification: Tenant Industry	27
Diversification: Geography	28
Lease Expirations	29
Portfolio Occupancy	30
Definitions and Explanations	31-32

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2023 Broadstone Net Lease, LLC. All rights reserved.

2

About the Data

This data and other information described herein are as of and for the three months ended September 30, 2023 unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with Broadstone Net Lease, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2022, including the financial statements and the management's discussion and analysis of financial condition and results of operations sections.

Forward Looking Statements

Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "projects," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, and property acquisitions and the timing of these investments and acquisitions. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC's website at www.sec.gov.

You are cautioned not to place undue reliance on any forward-looking statements included herein. All forward-looking statements are made as of the date of this document and the risk that actual results, performance, and achievements will differ materially from the expectations expressed or referenced herein will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2023 Broadstone Net Lease, LLC. All rights reserved.

3

Company Overview

Broadstone Net Lease, Inc. (NYSE:BNL) (the "Company," "BNL," "us," "our" and "we") is an industrial-focused, diversified net lease real estate investment trust ("REIT") that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Since our inception, we have selectively invested in real estate across the industrial, healthcare, restaurant, retail, and office property types. We target properties with credit worthy tenants in industries characterized by positive business drivers and trends, where the properties are an integral part of the tenants' businesses and there are opportunities to secure long-term net leases. Through long- term net leases, our tenants are able to retain operational control of their strategically important locations, while allocating their debt and equity capital to fund core business operations rather than real estate ownership.

Executive Team

John D. Moragne

Chief Executive Officer and Member, Board of Directors

Ryan M. Albano

President and Chief Operating Officer

Kevin M. Fennell

Executive Vice President and Chief Financial Officer

John D. Callan, Jr.

Senior Vice President, General Counsel, and Secretary

Michael B. Caruso

Senior Vice President, Corporate Strategy & Investor Relations

Timothy D. Dieffenbacher

Senior Vice President, Chief Accounting Officer, and Treasurer

Jennie L. O'Brien

Senior Vice President, Accounting, and Controller

Roderick A. Pickney

Senior Vice President, Acquisitions

Molly Kelly Wiegel

Senior Vice President, Human Resources & Administration

Andrea T. Wright

Senior Vice President, Property Management

Company Contact Information

Michael Caruso

SVP, Corporate Strategy & Investor Relations [e-mail] 585-402-7842

Transfer Agent

Computershare Trust Company, N.A.

150 Royall Street

Canton, Massachusetts 02021 800-736-3001

Board of Directors

Laurie A. Hawkes

Chairman of the Board

John D. Moragne

Chief Executive Officer

Denise Brooks-Williams

Michael A. Coke

Jessica Duran

Laura Felice

David M. Jacobstein

Shekar Narasimhan

James H. Watters

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2023 Broadstone Net Lease, LLC. All rights reserved.

4

Quarterly Financial Summary

(unaudited, dollars in thousands, except per share data)

Financial Summary		Q3 2023		Q2 2023		Q1 2023			Q4 2022		Q3 2022
Investment in rental property	$	4,939,598		$	4,981,430		$	5,002,330		$	5,035,846		$	4,775,460
Less accumulated depreciation		(601,895)		(578,616)		(558,410)			(533,965)		(505,456)
Property under development		49,819			37,449			-			-		-
Investment in rental property, net		4,387,522			4,440,263			4,443,920				4,501,881			4,270,004
Cash and cash equivalents		35,061			20,763			15,412				21,789			75,912
Restricted cash		15,436			15,502			3,898				38,251			6,449
Total assets		5,335,043			5,368,150			5,335,868				5,457,609			5,239,192
Unsecured revolving credit facility		74,060			122,912			108,330				197,322			219,537
Mortgages, net		79,613			80,141			85,853				86,602			94,753
Unsecured term loans, net		895,633			895,319			895,006				894,692			894,378
Senior unsecured notes, net		845,121			844,932			844,744				844,555			844,367
Total liabilities		2,059,570			2,106,553			2,103,551				2,195,104			2,231,045
Total Broadstone Net Lease, Inc.
stockholders' equity		3,120,776			3,107,536			3,079,207				3,092,918			2,840,692
Total equity (book value)		3,275,473			3,261,597			3,232,317				3,262,505			3,008,147
Revenues		109,543			109,353			118,992				112,135			103,524
General and administrative -
other		8,603			7,944			8,924				7,814			8,439
Stock based compensation		1,540			1,539			1,492				1,503			1,503
General and administrative		10,143			9,483			10,416				9,317			9,942
Total operating expenses		54,383			53,502			59,559				61,320			59,133
Interest expense		19,665			20,277			21,139				23,773			20,095
Net income		52,145			62,996			41,374				36,773			28,709
Net earnings per common share,
diluted	$	0.26		$	0.32		$	0.21		$	0.20		$	0.16
FFO		75,478			72,524			81,177				71,718			72,169
FFO per share, diluted	$	0.39		$	0.37		$	0.41		$	0.39		$	0.39
Core FFO		74,754			74,381			74,473				70,527			66,677
Core FFO per share, diluted	$	0.38		$	0.38		$	0.38		$	0.38		$	0.36
AFFO		69,958			69,004			67,485				65,584			63,386
AFFO per share, diluted	$	0.36		$	0.35		$	0.34		$	0.36		$	0.35
Net cash provided by operating
activities		73,888			62,228			74,376				60,440			77,515
Net cash used in investing
activities		42,528			1,713			29,633				(274,485)		(205,187)
Net cash provided by financing
activities		(102,184)		(46,986)		(144,739)			191,724			181,057
Distributions declared		54,274			55,419			54,887				45,824			46,242
Distributions declared per diluted
share	$	0.280		$	0.280		$	0.275		$	0.275		$	0.270

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2023 Broadstone Net Lease, LLC. All rights reserved.

5

Balance Sheet

(unaudited, in thousands)

	September 30,		June 30,		March 31,		December 31,	September 30,
Assets		2023			2023			2023			2022			2022
Accounted for using the operating method:
Land	$	752,708		$	754,402		$	760,142		$	768,667		$	755,206
Land improvements		330,214			332,757			337,296			340,385			331,858
Buildings and improvements		3,819,745			3,857,236			3,866,952			3,888,756			3,650,275
Equipment		9,608			9,608			10,422			10,422			10,422
Total accounted for using the
operating method		4,912,275			4,954,003			4,974,812			5,008,230			4,747,761
Less accumulated depreciation		(601,895)		(578,616)		(558,410)		(533,965)		(505,456)
Accounted for using the
operating method, net		4,310,380			4,375,387			4,416,402			4,474,265			4,242,305
Accounted for using the direct
financing method		26,751			26,855			26,947			27,045			27,128
Accounted for using the sales-type
method		572			572			571			571			571
Property under development		49,819			37,449			-		-		-
Investment in rental property, net		4,387,522			4,440,263			4,443,920			4,501,881			4,270,004
Cash and cash equivalents		35,061			20,763			15,412			21,789			75,912
Accrued rental income		152,268			148,697			142,031			135,666			129,579
Tenant and other receivables, net		1,372			1,895			2,004			1,349			791
Prepaid expenses and other assets		42,309			42,322			29,764			64,180			34,221
Interest rate swap, assets		79,086			65,143			45,490			63,390			66,602
Goodwill		339,769			339,769			339,769			339,769			339,769
Intangible lease assets, net		297,656			309,298			317,478			329,585			322,314
Total assets	$	5,335,043		$	5,368,150		$	5,335,868		$	5,457,609		$	5,239,192
Liabilities and equity
Unsecured revolving credit facility	$	74,060		$	122,912		$	108,330		$	197,322		$	219,537
Mortgages, net		79,613			80,141			85,853			86,602			94,753
Unsecured term loans, net		895,633			895,319			895,006			894,692			894,378
Senior unsecured notes, net		845,121			844,932			844,744			844,555			844,367
Accounts payable and other liabilities		44,886			44,147			46,090			47,547			52,594
Dividends payable		55,770			55,640			54,515			54,460			49,886
Accrued interest payable		9,186			5,889			9,654			7,071			10,559
Intangible lease liabilities, net		55,301			57,573			59,359			62,855			64,971
Total liabilities		2,059,570			2,106,553			2,103,551			2,195,104			2,231,045
Equity
Broadstone Net Lease, Inc.
stockholders' equity:
Preferred stock, $0.001 par value		-		-		-		-		-
Common stock, $0.00025 par value		47			47			47			47			43
Additional paid-in capital		3,430,725			3,430,692			3,434,534			3,419,395			3,148,075
Cumulative distributions in excess of
retained earnings		(393,571)		(391,631)		(398,890)		(386,049)		(369,260)
Accumulated other comprehensive
Income		83,575			68,428			43,516			59,525			61,834
Total Broadstone Net Lease, Inc.
stockholders' equity		3,120,776			3,107,536			3,079,207			3,092,918			2,840,692
Non-controlling interests		154,697			154,061			153,110			169,587			167,455
Total equity		3,275,473			3,261,597			3,232,317			3,262,505			3,008,147
Total liabilities and equity	$	5,335,043		$	5,368,150		$	5,335,868		$	5,457,609		$	5,239,192

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2023 Broadstone Net Lease, LLC. All rights reserved.

6

Income Statement Summary

(unaudited, in thousands, except per share data)

							Three Months Ended
		September 30,		June 30,			March 31,		December 31,		September 30,
		2023			2023				2023			2022			2022
Revenues
Lease revenues, net	$	109,543		$	109,353		$	118,992		$	112,135		$	103,524
Operating expenses
Depreciation and amortization		38,533			39,031				41,784			45,606			39,400
Property and operating
expense		5,707			4,988				5,886			6,397			5,636
General and administrative		10,143			9,483				10,416			9,317			9,942
Provision for impairment of
investment in rental
properties		-		-			1,473			-		4,155
Total operating expenses		54,383			53,502				59,559			61,320			59,133
Other income (expenses)
Interest income		127			82				162			40			4
Interest expense		(19,665)		(20,277)			(21,139)		(23,773)		(20,095)
Gain on sale of real estate		15,163			29,462				3,415			10,625			61
Income taxes		(104)		(448)			(479)		(106)		(356)
Other (expenses) income		1,464			(1,674)			(18)		(828)		4,704
Net income		52,145			62,996				41,374			36,773			28,709
Net income attributable to
non-controlling interests		(2,463)		(2,982)			(2,070)		(2,041)		(1,600)
Net income attributable to
Broadstone Net Lease, Inc.	$	49,682		$	60,014		$	39,304		$	34,732		$	27,109
Weighted average number of
common shares outstanding
Basic1		186,766			186,733				186,130			173,283			172,578
Diluted1		196,372			196,228				196,176			183,592			182,971
Net earnings per common
share2
Basic	$	0.27		$	0.32		$	0.21		$	0.20		$	0.16
Diluted	$	0.26		$	0.32			$	0.21		$	0.20		$	0.16

1. Excludes 506,172, 504,161, 431,392, 396,924, and 395,441, weighted average shares of unvested restricted common stock for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.
2. Excludes $0.1 million from the numerator for the three months ended September 30, 2023, and June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, related to dividends declared on shares of unvested restricted stock.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2023 Broadstone Net Lease, LLC. All rights reserved.

7

Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO)

(unaudited, in thousands, except per share data)

						Three Months Ended
	September 30,		June 30,		March 31,	December 31,	September 30,
Net income		2023			2023			2023			2022			2022
$	52,145		$	62,996		$	41,374		$	36,773		$	28,709
Real property depreciation and
amortization		38,496			38,990			41,745			45,570			39,366
Gain on sale of real estate		(15,163)		(29,462)		(3,415)		(10,625)		(61)
Provision for impairment of investment
in rental properties		-		-		1,473			-		4,155
FFO	$	75,478		$	72,524		$	81,177		$	71,718		$	72,169
Net write-offs of accrued rental income		-		-		297			-		-
Lease termination fees		-		-		(7,500)		(1,678)		(791)
Cost of debt extinguishment		-		3			-		77			231
Gain on insurance recoveries		-		-		-		(341)		-
Severance and executive transition costs1		740			183			481			-		3
Other (income) expenses2		(1,464)		1,671			18			751			(4,935)
Core FFO	$	74,754		$	74,381		$	74,473		$	70,527		$	66,677
Straight-line rent adjustment		(6,785)		(7,276)		(7,271)		(6,826)		(5,175)
Adjustment to provision for credit
losses		-		(10)		-		-		(4)
Amortization of debt issuance costs		983			986			986			988			948
Amortization of net mortgage
premiums		-		(52)		(26)		(26)		(26)
Loss on interest rate swaps and
other non-cash interest expense		522			521			522			522			639
Amortization of lease intangibles		(1,056)		(1,085)		(2,691)		(1,308)		(1,176)
Stock-based compensation		1,540			1,539			1,492			1,503			1,503
Deferred taxes		-		-		-		204			-
AFFO	$	69,958		$	69,004		$	67,485		$	65,584		$	63,386
Diluted weighted average shares
outstanding3		196,372			196,228			196,176			183,592			182,971
Net earnings per diluted share4	$	0.26		$	0.32		$	0.21		$	0.20		$	0.16
FFO per diluted share4		0.39			0.37			0.41			0.39			0.39
Core FFO per diluted share4		0.38			0.38			0.38			0.38			0.36
AFFO per diluted share4		0.36			0.35			0.34			0.36			0.35

1. Amount includes $0.7 million and $ 0.2 million of employee severance costs and executive transition costs during the three months ended September 30, 2023 and the three months ended June 30, 2023. Amounts include a combined $0.5 million of executive transition costs and accelerated amortization of stock-based compensation for the three months ended March 31, 2023, related to the departure of our previous chief executive officer.
2. Amount includes $(1.4) million, $1.7 million, $18 thousand, $0.8 million, and ($4.9) million of unrealized and realized foreign exchange (gain) loss for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively, primarily associated with our Canadian dollar denominated revolver borrowings.
3. Excludes 506,172, 504,161, 431,392, 396,924, and 395,441, weighted average shares of unvested restricted common stock for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.
4. Excludes $0.1 million from the numerator for the three months ended September 30, 2023, and June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, related to dividends declared on shares of unvested restricted stock.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2023 Broadstone Net Lease, LLC. All rights reserved.

8

EBITDA, EBITDAre, and Other-Non GAAP Operating Measures

(unaudited, in thousands)

						Three Months Ended
	September 30,		June 30,		March 31,	December 31,	September 30,
Net income		2023			2023			2023			2022			2022
$	52,145		$	62,996		$	41,374		$	36,773		$	28,709
Depreciation and amortization		38,533			39,031		41,784			45,606			39,400
Interest expense		19,665			20,277		21,139			23,773			20,095
Income taxes		104			448		479			105			356
EBITDA	$	110,447		$	122,752		$	104,776		$	106,257		$	88,560
Provision for impairment of investment in
rental properties		-		-		1,473			-		4,155
Gain on sale of real estate		(15,163)		(29,462)		(3,415)		(10,625)		(61)
EBITDAre	$	95,284		$	93,290		$	102,834		$	95,632		$	92,654
Adjustment for current quarter investment activity 1		26			342		406			1,283			2,358
Adjustment for current quarter disposition activity 2		(400)		(444)		(365)		(440)		-
Adjustment to exclude non-recurring and other
expenses 3		740			183		(1,023)		-		-
Adjustment to exclude gain on insurance recoveries		-		-		-		(341)		-
Adjustment to exclude net write-offs of accrued
rental income		-		-		297			-		-
Adjustment to exclude realized / unrealized foreign
exchange (gain) loss		(1,433)		1,681		18			796			(4,934)
Adjustment to exclude cost of debt extinguishments		-		3		-		77			231
Adjustment to exclude lease termination fees		-		-		(7,500)		(1,678)		(791)
Adjusted EBITDAre	$	94,217		$	95,055		$	94,667		$	95,329		$	89,518
General and administrative		9,404			9,300		9,935			9,318			9,942
Adjusted Net Operating Income ("NOI")	$	103,621		$	104,355		$	104,602		$	104,647		$	99,460
Straight-line rental revenue, net		(6,744)		(7,277)		(7,425)		(7,315)		(5,750)
Other amortization and non-cash charges		(1,087)		(1,095)		(1,668)		(1,353)		(1,177)
Adjusted Cash NOI	$	95,789		$	95,983		$	95,509		$	95,979		$	92,533
Annualized EBITDAre	$	381,136		$	373,160		$	411,336		$	382,528		$	370,616
Annualized Adjusted EBITDAre		376,868			380,220		378,668			381,315			358,072
Annualized Adjusted NOI		414,483			417,420		418,411			418,585			397,834
Annualized Adjusted Cash NOI		383,157			383,932		382,043			383,914			370,128

1. Reflects an adjustment to give effect to all investments during the quarter as if they had been made as of the beginning of the quarter.
2. Reflects an adjustment to give effect to all dispositions during the quarter as if they had been sold as of the beginning of the quarter.
3. Amount includes $0.7 million and $ 0.2 million of employee severance costs and executive transition costs during the three months ended September 30, 2023 and the three months ended June 30, 2023. Amounts include a combined $0.5 million of executive transition costs and accelerated amortization of stock-based compensation for the three months ended March 31, 2023, related to the departure of our previous chief executive officer. Additionally amount includes $(1.5) million of accelerated amortization of lease intangibles during

the three months ended March 31, 2023.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2023 Broadstone Net Lease, LLC. All rights reserved.

9

Lease Revenues Detail

(unaudited, in thousands)

			Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
Contractual rental amounts billed for	2023	2023	2023	2022	2022
operating leases	$96,333	$96,456	$98,102	$96,208	$91,208
Adjustment to recognize contractual
operating lease billings on a straight-
line basis	6,891	7,380	7,370	6,898	5,344
Net write-offs of accrued rental income	-		-	(105)		-		-
Variable rental amounts earned	513	452	341	721	309
Earned income from direct financing
leases	687	689	691	693	719
Interest income from sales-type
leases	14	15	14	15	14
Operating expenses billed to tenants	5,181	4,594	5,075	5,720	5,061
Other income from real estate
transactions	19	3	7,392	2,019	874
Adjustment to revenue recognized for
uncollectible rental amounts billed, net	(95)	(236)	112	(139)	(5)
Total Lease revenues, net	$109,543		$109,353		$118,992		$112,135		$103,524

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