Broadstone Net Lease Announces Two Additional Build-to-Suit Developments for $62.1 million

Key Terms

build-to-suit financial

Build-to-suit is a process where a property is custom-designed and constructed specifically to meet the needs of a particular tenant or user. It’s like ordering a custom-made suit instead of buying one off the rack—tailored to fit exactly what the tenant requires. For investors, build-to-suit properties can offer stable, long-term income because they are designed to attract and retain specific tenants who often sign long-term agreements.

lease term financial

Length of time a lease agreement stays in force, from its start date until the agreed end date or renewal point. Like the length of a rental contract for an apartment or equipment, it determines when payments stop, when the asset must be returned or can be bought, and how fixed future costs or income will be; investors care because lease length affects predictable cash flow, balance-sheet obligations, and the timing of financial risk or opportunities.

annual rent escalations financial

Annual rent escalations are scheduled increases in the rent a tenant pays each year under a lease, often expressed as a fixed percentage, a set dollar amount, or tied to inflation. For investors, these escalations act like a built-in raise for future rental income, helping predict cash flow, protect against rising costs, and influence a property’s value and yield much like an automatic pay raise affects personal budgeting.

straight-line yield financial

Straight-line yield is a way of reporting the return on a fixed-income security by spreading any premium or discount evenly over the life of the instrument so each reporting period shows the same amount of interest income or expense. For investors, it matters because this simple, even allocation can make reported income smoother but may differ from the true economic yield calculated using the time-value-of-money, so comparisons between securities or accounting methods can be misleading.

pro-rata financial

Pro-rata means an amount is allocated to each party in proportion to their existing share or stake — each person receives the same percentage of the total as they already hold. For investors this matters because pro-rata rules determine how much additional stock, dividends, or voting power someone gets during new issuances or distributions, helping protect an investor’s relative ownership; think of it as slicing a cake so everyone keeps the same-sized slice relative to others.

non-controlling interest financial

Non-controlling interest represents the portion of ownership in a company held by investors who do not have a controlling stake, meaning they do not have enough voting power to make major decisions. It is similar to owning a minority share of a business partner’s company—while they benefit from profits, they cannot control how the company is run. This matters to investors because it shows how much of the company's value is owned by outside shareholders and affects overall financial reporting.

joint venture financial

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

VICTOR, N.Y.--(BUSINESS WIRE)-- Broadstone Net Lease, Inc. (NYSE: BNL) (“BNL”, the “Company”, “we”, “our”, or “us”), today announced it has added two new development projects to its pipeline of build-to-suit commitments. These projects represent an aggregate estimated total project investment of approximately $62.1 million.

“We are excited to announce two new build-to-suit developments that demonstrate the depth of our tenant and developer relationships, the continuing demand for high-quality industrial and retail facilities, and the strength of our differentiated growth strategy," said John Moragne, BNL's Chief Executive Officer.

As of the date of this release, we have secured the land and started construction on two additional build-to-suit developments as outlined below. The projects include (i) a new state-of-the-art sub-same-day (SSD) industrial warehouse and distribution center located in Sarasota, FL, sourced through an existing developer relationship, and (ii) a retail development in Magnolia, TX - a rapidly growing suburb of Houston, TX - sourced through a direct tenant relationship and delivered in partnership with a new developer relationship. The following table summarizes our in-process and stabilized developments:

Property		Projected Rentable Square Feet		Start Date		Target Stabilization Date/Stabilized Date		Lease Term (Years)		Annual Rent Escalations		Estimated Total Project Investment		Cumulative Investment		Estimated Remaining Investment		Estimated Cash Capitalization Rate		Estimated Straight-line Yield 1
In-process retail:
Sprouts (Bedford, TX)		22		Jul. 2025		Aug. 2026		15.0		0.9 %		$ 9,533		$ 1,573		$ 7,960		7.2 %		7.7 %
Hobby Lobby (Granbury, TX)		55		Oct. 2025		Sep. 2026		15.0		0.7 %		8,129		2,030		6,099		7.1 %		7.4 %
Academy Sports (Granbury, TX)		55		Oct. 2025		Nov. 2026		15.0		0.6 %		12,393		4,084		8,309		7.1 %		7.4 %
Academy Sports (Waco, TX)		68		Dec. 2025		Sep. 2026		15.0		0.6 %		14,488		5,824		8,664		7.2 %		7.5 %
Academy Sports (Magnolia, TX)		55		Feb. 2026		Nov. 2026		15.0		0.5 %		12,408		2,116		10,292		7.3 %		7.5 %
In-process industrial:
Sierra Nevada (Dayton, OH)		122		Oct. 2024		Mar. 2026		15.0		3.0 %		55,525		46,989		8,536		7.7 %		9.6 %
Southwire (Bremen, GA)		1,178		Dec. 2024		Nov. 2026		10.0		2.8 %		115,411		52,280		63,131		7.8 %		8.8 %
Fiat Chrysler Automobile (Forsyth, GA)		422		Apr. 2025		Aug. 2026		15.0		2.8 %		78,242		40,354		37,888		6.9 %		8.3 %
AGCO (Visalia, CA)		115		Jun. 2025		Aug. 2026		12.0		3.5 %		19,567		15,754		3,813		7.0 %		8.5 %
Palmer Logistics (Midlothian, TX) 2		270		Jul. 2025		Jul. 2026		12.3		3.5 %		32,063		17,022		15,041		7.6 %		9.2 %
Amazon.com Services, LLC (Sarasota, FL)		230		Feb. 2026		May. 2027		15.0		2.3 %		49,705		18,564		31,141		7.5 %		8.8 %
		2,592						13.2		2.6 %		407,464		206,590		200,874		7.4 %		8.6 %
Stabilized industrial:
UNFI (Sarasota, FL)		1,016		Jan. 2023		Sep. 2024		15.0		2.5 %		200,958		200,958		—		7.2 %		8.6 %
Sierra Nevada (Dayton, OH)		122		Oct. 2024		Nov. 2025		15.0		3.0 %		53,625		53,625		—		7.5 %		9.3 %
Stabilized retail:
7Brew (High Point, NC)		1		Dec. 2024		Feb. 2025		15.0		1.9 %		1,975		1,975		—		8.0 %		8.8 %
7Brew (Charleston, SC)		1		Feb. 2025		Apr. 2025		15.0		1.9 %		1,729		1,729		—		7.9 %		8.8 %
7Brew (Jacksonville, FL)		1		Jun. 2025		Nov. 2025		15.0		1.9 %		2,005		2,005		—		8.0 %		8.8 %
Total / weighted average		3,733						13.9		2.6 %		$ 667,756		$ 466,882		$ 200,874		7.4 %		8.7 %
1 Represents our pro-rata share of 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.
2 Development represents our common and preferred equity investments in a consolidated joint venture, and excludes amounts attributed to non-controlling interest holders.

About Broadstone Net Lease, Inc.

BNL is an industrial-focused, diversified net lease REIT that invests in primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Utilizing an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting, as of December 31, 2025, BNL’s diversified portfolio consisted of 771 individual net leased commercial properties with 764 properties located in 44 U.S. states and seven properties located in four Canadian provinces across the industrial, retail, and other property types.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “outlook,” “potential,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “expect,” “intends,” “anticipates,” “estimates,” “plans,” “would be,” “believes,” “continues,” or the negative version of these words or other comparable words. Forward-looking statements, including our 2026 guidance and assumptions, involve known and unknown risks and uncertainties, which may cause BNL’s actual future results to differ materially from expected results, including, without limitation, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or fluctuation of interest rates, local real estate conditions, tenant financial health, property investments and acquisitions, and the timing and uncertainty of completing these property investments and acquisitions, and uncertainties regarding future distributions to our stockholders. These and other risks, assumptions, and uncertainties are described in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which the Company filed with the SEC on February 19, 2026, which you are encouraged to read, and will be available on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company assumes no obligation to, and does not currently intend to, update any forward-looking statements after the date of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.

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Company Contact:

Brent Maedl

Director, Corporate Finance & Investor Relations

brent.maedl@broadstone.com

585.382.8507

Source: Broadstone Net Lease, Inc.