Broadstone Net Lease announced strong full-year portfolio activity in 2018, including the acquisition of 113 properties via 26 distinct transactions for approximately $606.8 million.
In the fourth quarter, BNL acquired 43 properties for approximately $241.5 million. The REIT also disposed of 20 properties in 2018, realizing approximately $57.3 million in gross proceeds. As of Dec. 31, 2018, BNL owned 621 properties in 42 states, with a total market value of nearly $3.5 billion.
BNL’s 2018 acquisitions were funded through a combination of cash from operations and proceeds from capital markets activities. The REIT raised approximately $283.7 million in new equity investments in 2018, including $81.5 million during the fourth quarter, through a combination of new and additional cash investments as well as reinvestments through the company’s distribution reinvestment plan and property contributed in exchange for membership units in BNL’s operating company, Broadstone Net Lease, through UPREIT transactions. At year-end, the REIT had more than 3,100 stockholders.
Equity investment activity was supplemented by the issuance of a previously disclosed July 2018 debt private placement, pursuant to which BNL’s operating company issued an aggregate principal amount of $325 million of unsecured, fixed-rate, interest-only senior notes guaranteed by BNL. The offering comprised two series of senior notes: $225 million of 10-year Series B Notes bearing interest at 5.09 percent per year and $100 million of 12-year Series C Notes bearing interest at 5.19 percent per year.
“I am pleased to report another strong year of operating performance and portfolio growth for BNL,” says Chris Czarnecki, BNL’s CEO. “Our continued access to capital through strong relationships with both our stockholders and debt financing partners allowed us to further build our portfolio of high-quality, diversified, commercial, net-leased assets while selectively disposing of noncore assets to reap and reinvest gains. As a result, we were able to provide a strong 13.1 percent total return to our stockholders for the year, assuming dividend reinvestment. We continue to identify and pursue attractive, accretive acquisition targets, and anticipate 2019 will build upon 2018’s momentum.”