Broadstone Net Lease Inc (NYSE:BNL) Reports Solid Q4 2025, Beats Key Funds From Operations Estimates
Broadstone Net Lease Inc, a diversified net lease real estate investment trust (REIT), closed its fiscal 2025 with a fourth-quarter performance that exceeded analyst expectations on a key profitability metric, while revenue came in largely as anticipated. The company's results, detailed in a press release dated February 18, 2026, highlight steady operational execution and a return to growth through strategic investments.
Earnings and Revenue Versus Estimates
For the quarter ended December 31, 2025, Broadstone reported revenue of $118.3 million. This figure slightly surpassed the analyst consensus estimate of approximately $117.9 million, demonstrating stable top-line performance from its portfolio of single-tenant properties.
The more critical metric for REIT investors, Adjusted Funds From Operations (AFFO) per share, came in at $0.38. This result significantly exceeded the analyst estimate of $0.1515 per share. AFFO is a non-GAAP measure that adds depreciation and amortization back to earnings and adjusts for other non-cash and one-time items, providing a clearer picture of the cash generated by the core real estate portfolio. The strong beat on this key profitability measure underscores the company's effective cost management and operational efficiency.
- Reported Q4 Revenue: $118.3 million
- Estimated Q4 Revenue: ~$117.9 million
- Reported Q4 AFFO/Share: $0.38
- Estimated Q4 AFFO/Share: $0.1515
Market Reaction and Forward Outlook
The immediate market reaction to the earnings release appears muted in after-hours trading. However, the company's reaffirmed guidance for 2026 may provide a focal point for investors. Management expects full-year 2026 AFFO per share in the range of $1.53 to $1.57. This outlook can be compared to the current analyst sales estimate of $486.0 million for 2026, though a direct EPS consensus was not provided in the context. The guidance is predicated on continued disciplined investment, with assumptions including:
- Real estate investments between $500 million and $625 million.
- Property dispositions between $75 million and $100 million.
- Core general and administrative expenses revised slightly downward to a range of $30 million to $31 million.
Key Highlights from the 2025 Report
Beyond the quarterly comparisons, Broadstone's full-year 2025 results paint a picture of a company executing on a focused strategy.
- Portfolio Strength: The portfolio ended the year 99.8% leased, with a 99.8% rent collection rate for the full year. The company successfully navigated a tenant bankruptcy (American Signature) with all six affected sites assumed by Gardner White with no rent loss.
- Growth Investments: The company invested $748.4 million in 2025, with a heavy emphasis on industrial properties ($663.4 million). This includes a growing pipeline of build-to-suit developments, which provide visibility into future revenue growth.
- Balance Sheet Management: Broadstone extended its credit facility maturity to 2029, issued $350 million in senior notes, and ended the year with a Net Debt to Annualized Adjusted EBITDAre ratio of 6.0x (5.8x pro forma). The company also increased its quarterly dividend by 0.9% to $0.2925 per share.
- Operational Metrics: Full-year AFFO grew 4.2% to $1.49 per share, while same-store rental revenue increased by 2.0%, driven by contractual rent escalations.
Conclusion
Broadstone Net Lease's fourth-quarter results showcase a REIT meeting its revenue targets and handily beating cash flow expectations. The strong AFFO performance, coupled with a highly occupied portfolio and a clear, industrial-focused growth strategy through build-to-suit projects, provides a solid foundation as the company moves into 2026. Investors will likely focus on the execution of the company's investment pipeline and its ability to meet the reiterated AFFO guidance in the coming year.
For a detailed look at Broadstone's historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
