Broadstone Net Lease, Inc.

hello and welcome to broadstone net leases first quarter 2026 earnings conference call my name is emily and i'll be your operator today please note that today's call is being recorded i will now turn the call over to brent madel director of corporate finance and investor relations at broadstone please go ahead thank you everyone for joining us today for broadstone net lease's first quarter 2026 earnings call on today's call

You will hear prepared remarks from Chief Executive Officer John Marana, President and Chief Operating Officer Brian Albano, and Chief Financial Officer Kevin Funnell. All three will be available for the Q&A portion of this call. As a reminder, the following discussion and answers to your questions contain forward-looking statements that are subject to risk and uncertainties that can cause actual results to differ materially due to a variety of factors. We caution you not to place under-reliance on these forward-looking statements. For a more detailed discussion of risk factors that may cause such differences, please refer to our SEC filings, including our Form 10-K for the year ended December 31st, 2025. And note that such risk factors may be updated in our quarterly SEC filings. Any forward-looking statements provided during this conference call are only made as of the date of this call. With that, I'll turn the call over to John.

Thank you, Brent. Good morning, everyone. After a strong finish to 2025, we carried that momentum into the first quarter of 2026, delivering 5.6% AFFO growth year-over-year, continuing to execute on our investment strategy and driving strong operational outcomes across our in-place portfolio. We advanced our committed Build the Suite platform through both existing and new relationships, adding over $90 million in new development projects year-to-date, invested over $60 million in a compelling acquisition, realized no bad debt during the quarter and addressed nearly half of our 2026 lease maturities with a recapture rate of 119%, a strong start to the year. Collectively, our results reflect the progress we have made executing on our core building blocks and underscore the strength of our high-quality, mission-critical portfolio and the increasing visibility we are providing to long-term, sustainable growth. In total, we deployed 171.9 million during the quarter, including 61.2 million in new property acquisitions, 99.4 million in build-to-suit developments, and 10.4 million in incremental investments in existing transitional capital projects. As previously announced earlier in the quarter, we added two additional build-to-suits, including a new state-of-the-art sub-same-day distribution center located in Sarasota, Florida for Amazon, sourced through an existing developer relationship. We also added a retail development for Academy Sports in Magnolia, Texas, a rapidly growing suburb of Houston that was directly sourced through the tenant and delivered in partnership with a new developer relationship. Continuing our momentum, subsequent to quarter end, and as we announced in our earnings release last night, we closed on the land and started funding a new pre-sort battery recycling facility for Tesla that will be located approximately three miles from the Gigafactory in Austin, Texas. Together, these three build-to-suit investments represent high-quality real estate paired with top-tier investment-grade quality tenants that blend to a first-year initial cash cap rate of 7.2%, with attractive straight-line yields of 8.3%, a weighted average lease term of 14 years, and valuations on each asset that are likely at least 75 to 100 basis points below our development yields, further demonstrating the value creation of our build-to-suit strategy. As anticipated, on April 1st, the second of two maintenance repair and overall hangars for Sierra Nevada Corporation rent commenced, supporting its continued work with the U.S. Air Force, replacing an aging fleet of night watch planes. We are proud to be a part of this effort, and I couldn't be more pleased to have both projects reach stabilization on time and under our budgeted project investments, underscoring our team's ability to execute on our strategy and create value for our shareholders, regardless of broader macroeconomic uncertainty and frequent market-moving headlines. With the completion of Sierra Nevada and the three new projects I just walked through, our build-a-suit pipeline remains in a strong position, with approximately 382 million of high-quality developments scheduled to reach stabilization throughout 2026 and into 2027, providing visibility to over 28 million of new incremental ABR. Additionally, our opportunity set remains robust, driven largely by existing relationships, and Ryan will go into more detail on our active build-a-suit pipeline in a few moments. During the quarter, we invested $61.2 million in a 60-acre campus approximately 20 miles north of Boston, Massachusetts, tenanted by Charles River Laboratories, a leading global pharmaceutical and biotechnology contract research organization. The sale-leaseback investment includes a long-term 12-year net lease with initial cash rents of $1.5 million and annual rent increases of 3% and a short-term one-year net lease with cash rents of $4 million for a blended 9% initial cash cap rate and four years of weighted average lease term. We intend to redevelop approximately 48 acres of the 60-acre campus that are subject to the short-term lease in partnership with the Sansone Group as part of our growing build-to-suit development program. We think this transaction is yet another great example of creatively driving additional value. Turning to Project Triborough. As I said during our last call, our goal for 2026 is to advance three key work streams related to a potential data center development. zoning, power, and tenant identification. All three of these work streams continue to advance and our goals and timelines for each have not changed. To date, we have invested approximately $106 million in the project through our transitional capital platform, maintaining meaningful optionality as we evaluate the best path forward. The highest and best use for this site remains a hyperscale data center campus and our backup option for a multi-building industrial build-to-suit development also remains intact. We continue to be immensely excited by this opportunity, and by the end of the year, we expect we'll be able to decide our best path forward for this project, whether that be a powered land sale, a commitment to stay involved on a powered shell development, or a decision to pursue multi-building industrial development, and communicate the same to our investors. And I'm confident in our ability to deliver. Ryan will provide a more detailed update in his remarks, and you can expect we will provide relevant updates as we have them. Finally, to cap off a strong quarter of results in execution, I also want to highlight an important milestone for Broadstone Net Lease, our inclusion in the S&P 600 index. We view our inclusion as providing incremental support for our improving cost of equity capital and believe it will help expand our investor base over time with the increased amount daily liquidity is helped provide. More broadly, we've been encouraged by improving market sentiment around REITs and the progress we've seen in our equity multiple. As our cost of equity improves, it expands our opportunity set and enhances our ability to fund growth in a disciplined and a creative manner. As you saw in our earnings release last night, we raised $71 million of equity under our ATM during the quarter at a weighted average price of $19.13, bringing total gross proceeds to approximately $82.5 million on a forward basis at a weighted average price of $19.02. Going forward, we expect issuances to remain measured and opportunistic as we evaluate our cost of capital alongside our investment opportunities. With that, I'll hand the call over to Ryan and Kevin to take you through some of these topics in greater detail.