Broadstone Net Lease Q3 2026: AFFO Beats Estimates by 148%

Broadstone Net Lease posted adjusted AFFO per share of $0.39 for Q3 2026, clearing the $0.157 consensus estimate. That gap reflects the maturation of the company's build-to-suit pipeline as previously funded developments reached rent commencement.

The headline project anchoring investor attention is a $303 million advanced technology facility in Colorado being built for a Fortune 20 tenant, part of a committed build-to-suit pipeline. The company also broke ground on three new build-to-suit developments during the quarter. Six earlier developments stabilized, directly feeding the AFFO beat.

The quarter was not without pressure points. Revenue of $121.9 million came in just below the consensus, missing expectations, even as it grew from a year earlier. Net debt leverage rose as revolver borrowings funded development activity, though management noted lower pro forma leverage assuming settlement of the company's forward equity agreements.

On the capital side, the company completed a $259.3 million public equity offering, its first return to the public equity markets in four years, and established a new senior unsecured delayed-draw term loan. The quarterly dividend was raised and full-year AFFO guidance was maintained, with real estate investment assumptions revised upward for the year.

Portfolio fundamentals held at 100.0% occupancy and 99.9% rent collection, with Adjusted EBITDAre and annualized base rent both rising from a year earlier. The remaining build-to-suit funding is expected to deploy through the fourth quarter of 2027, meaning the pipeline's earnings contribution is still largely ahead.