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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-K

 

(Mark One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 001-39529

 

BROADSTONE NET LEASE, INC.

(Exact name of registrant as specified in its charter)

 

 

Maryland

26-1516177

(State or other jurisdiction of

 incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

207 High Point Drive Suite 300 Victor, New York

14564

(Address of principal executive offices)

(Zip Code)

 

(585) 287-6500

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.00025 par value

 

BNL

 

The New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.00025 per share

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. Yes No ☒

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). Yes ☐ No ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No

As of June 30, 2023 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of the registrant’s shares of common stock, $0.00025 par value, held by non-affiliates of the registrant, was $2.9 billion based on the last reported sale price of $15.44 per share on the New York Stock Exchange on June 30, 2023.

There were 187,707,247 shares of the Registrant’s common stock, $0.00025 par value per share outstanding as of February 20, 2024.

Documents Incorporated by Reference

Part III, Items 10, 11, 12, 13, and 14 of this annual report incorporate by reference certain specific portions of Broadstone Net Lease, Inc.’s definitive proxy statement for its 2023 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year. Only those portions of the proxy statement that are specifically incorporated by reference herein shall constitute a part of this Annual Report on Form 10-K.

 

1


 

BROADSTONE NET LEASE, INC.

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

 

 

 

 

Cautionary Note Regarding Forward-Looking Statements

 

3

 

 

 

 

 

 

 

PART I

 

 

 

 

 

 

 

Item 1.

 

Business

 

4

 

 

 

 

 

Item 1A.

 

Risk Factors

 

18

 

 

 

 

 

Item 1B.

 

Unresolved Staff Comments

 

38

 

 

 

 

 

Item 1C.

 

Cybersecurity

 

38

 

 

 

 

 

Item 2.

 

Properties

 

39

 

 

 

 

 

Item 3.

 

Legal Proceedings

 

39

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

39

 

 

 

 

 

 

 

PART II

 

 

 

 

 

 

 

Item 5.

 

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer of Purchases of Equity Securities

 

40

 

 

 

 

 

Item 6.

 

Selected Financial Data

 

41

 

 

 

 

 

Item 7.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

42

 

 

 

 

 

Item 7A.

 

Quantitative and Qualitative Disclosures About Market Risk

 

57

 

 

 

 

 

Item 8.

 

Financial Statements and Supplementary Data

 

58

 

 

 

 

 

Item 9.

 

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

93

 

 

 

 

 

Item 9A.

 

Controls and Procedures

 

93

 

 

 

 

 

Item 9B.

 

Other Information

 

95

 

 

 

 

 

Item 9C.

 

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

 

95

 

 

 

 

 

 

 

PART III

 

 

 

 

 

 

 

Item 10.

 

Directors, Executive Officers and Corporate Governance

 

96

 

 

 

 

 

Item 11.

 

Executive Compensation

 

96

 

 

 

 

 

Item 12.

 

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

96

 

 

 

 

 

Item 13.

 

Certain Relationships and Related Transactions, and Director Independence

 

96

 

 

 

 

 

Item 14.

 

Principal Accountant Fees and Services

 

96

 

 

 

 

 

 

 

PART IV

 

 

 

 

 

 

 

Item 15.

 

Exhibits and Financial Statement Schedules

 

97

 

 

 

 

 

Item 16.

 

Form 10-K Summary

 

97

2


 

Cautionary Note Regarding Forward-Looking Statements

This Annual Report on Form 10-K contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends, that are intended to be made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements included in this Annual Report on Form 10-K are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements.

Important factors that could cause results to differ materially from the forward-looking statements are described in Item 1. “Business,” Item 1A. “Risk Factors,” and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K. The “Risk Factors” section should not be construed as exhaustive and should be read in conjunction with other cautionary statements included elsewhere in this Annual Report on Form 10-K.

You are cautioned not to place undue reliance on any forward-looking statements included in this Annual Report on Form 10-K. All forward-looking statements are made as of the date of this Annual Report on Form 10-K and the risk that actual results, performance, and achievements will differ materially from the expectations expressed in or referenced by this Annual Report on Form 10-K will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

Regulation FD Disclosures

We use any of the following to comply with our disclosure obligations under Regulation FD: U.S. Securities and Exchange Commission (“SEC”) filings, press releases, public conference calls, or our website. We routinely post important information on our website at www.broadstone.com, including information that may be deemed material. We encourage our shareholders and others interested in our company to monitor these distribution channels for material disclosures. Our website address is included in this Annual Report on Form 10-K as a textual reference only and the information on the website is not incorporated by reference in this Annual Report on Form 10-K.

Explanatory Note and Certain Defined Terms

Except where the context suggests otherwise, as used in this Annual Report on Form 10-K, the terms “BNL,” “we,” “us,” “our,” and “our company” refer to Broadstone Net Lease, Inc., a Maryland corporation incorporated on October 18, 2007, and, as required by context, Broadstone Net Lease, LLC, a New York limited liability company, which we refer to as the or our “OP,” and to their respective subsidiaries. The membership units not owned by our company are referred to as “OP Units” or non-controlling interests.

Unless the context otherwise requires, the following terms and phrases are used throughout this Annual Report on Form 10-K as described below:

“annualized base rent” or “ABR” means the annualized contractual cash rent due for the last month of the reporting period, excluding the impacts of short-term rent deferrals, abatements, or free rent, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for investments made during the month;
“investments” or amounts “invested” include real estate investments in new property acquisitions, revenue generating capital expenditures, whereby we agree to fund certain expenditures in exchange for increased rents that often include rent escalations and terms consistent with that of the underlying lease, development funding opportunities, and real estate lending opportunities, and exclude capitalized costs;
“cash capitalization rate” represents either (1) for acquisitions and developments, the estimated first year cash yield to be generated on a real estate investment, which was estimated at the time of investment based on the contractually specified cash base rent for the first full year after the date of the investment, divided by the purchase price for the property excluding capitalized costs, or (2) for disposition properties, the estimated first year cash yield to be generated subsequent to disposition based on contractually specified cash base rent divided by the disposition price;
“CPI” means the Consumer Price Index for All Urban Consumers (CPI-U): U.S. City Average, All Items, as published by the U.S. Bureau of Labor Statistics, or other similar index which is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services;
“occupancy” or a specified percentage of our portfolio that is “occupied” or “leased” means as of a specified date the quotient of (1) the total rentable square footage of our properties minus the square footage of our properties that are vacant and from which we are not receiving any rental payment, and (2) the total square footage of our properties; and
“Revolving Credit Facility” means our $1.0 billion unsecured revolving credit facility, dated January 28, 2022, with J.P. Morgan Chase Bank, N.A., as an administrative agent and the other lenders party thereto.

3


 

Part I.

Item 1. Business

The Company

We are an industrial-focused, diversified net lease real estate investment trust (“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. As of December 31, 2023, our portfolio includes 796 properties, with 789 properties located in 44 U.S. states and seven properties located in four Canadian provinces.

We focus on investing in real estate that is operated by creditworthy single tenants in industries characterized by positive business drivers and trends. We target properties that are an integral part of the tenants’ businesses and are therefore opportunities to secure long-term net leases through which our tenants are able to retain operational control of their strategically important locations, while allocating their debt and equity capital to fund core business operations rather than real estate ownership.

Diversified Portfolio. As of December 31, 2023, our portfolio comprised approximately 38.3 million rentable square feet of operational space, was highly diversified based on property type, geography, tenant, and industry, and was cross-diversified within each (e.g., property-type diversification within a geographic concentration):

Property Type: We are diversified across industrial, healthcare, restaurant, retail, and office property types. Within these sectors, we have meaningful concentrations in manufacturing, distribution and warehouse, food processing, casual dining, clinical, quick service restaurants, and general merchandise.

Geographic Diversification: Our properties are located in 44 U.S. states and four Canadian provinces, with no single geographic concentration exceeding 9.7% of our ABR.

Tenant and Industry Diversification: Our properties are occupied by approximately 220 different commercial tenants who operate 208 different brands that are diversified across 53 differing industries, with no single tenant accounting for more than 4.1% of our ABR.

Strong In-Place Leases with Significant Remaining Lease Term. As of December 31, 2023, our portfolio was approximately 99.4% leased with an ABR weighted average remaining lease term of approximately 10.5 years, excluding renewal options.
Standard Contractual Base Rent Escalation. Approximately 97.3% of our leases have contractual rent escalations, with an ABR weighted average minimum increase of 2.0%.
Extensive Tenant Financial Reporting. Approximately 93.8% of our tenants, based on ABR, provide financial reporting, of which 86.0% are required to provide us with specified financial information on a periodic basis, and an additional 7.8% of our tenants report financial statements publicly, either through SEC filings or otherwise.

 

4


 

2023 Highlights

Operating Highlights

Invested $165.6 million, including $97.2 million in three development funding opportunities, and $68.4 million in four property acquisitions and revenue generating capital expenditures in eight existing properties at a weighted average initial cash capitalization rate of 7.2%, with a weighted average remaining lease term of 15.5 years and minimum annual rent increases of 1.8%.
Sold 14 properties at a weighted average cash capitalization rate of 6.0%, for gross proceeds of $200.1 million, recognizing a $35.0 million gain over original purchase price.
Maintained strong occupancy throughout the year, ending with 99.4%.
Collected 99.8% of base rents due during the year.
Generated net income of $163.3 million or $0.83 per diluted share.
Generated funds from operations (“FFO”) of $298.6 million or $1.52 per diluted share.
Generated core funds from operations (“Core FFO”) of $298.9 million or $1.52 per diluted share.
Generated adjusted funds from operations (“AFFO”) of $277.7 million or $1.41 per diluted share.
Ended the year with total outstanding debt and Net Debt of $1.9 billion and a Net Debt to Annualized Adjusted EBITDAre ratio (“Leverage Ratio”) of 5.0x.

FFO, Core FFO, AFFO, Net Debt, and Annualized Adjusted EBITDAre are performance measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We present these non-GAAP measures as we believe certain investors and other users of our financial information use them as part of their evaluation of our historical operating performance. See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report on Form 10-K under the heading Non-GAAP Measures, which includes discussion of the definition, purpose, and use of these non-GAAP measures as well as a reconciliation of each to the most comparable GAAP measure.

 

5


 

Our Real Estate Investment Portfolio

The following charts summarize our portfolio diversification by property type, tenant, brand, industry, and geographic location as of December 31, 2023. The percentages below are calculated based on our ABR of $392.2 million as of December 31, 2023.

Diversification by Property Type

img145178443_0.jpg 

 

6


 

Property Type

 

# Properties

 

 

ABR (’000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet (’000s)

 

 

SF as a % of Total Portfolio

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

 

80

 

 

$

65,675

 

 

 

16.8

%

 

 

12,178

 

 

 

31.8

%

Distribution & Warehouse

 

 

45

 

 

 

51,859

 

 

 

13.2

%

 

 

9,212

 

 

 

24.1

%

Food Processing

 

 

33

 

 

 

46,630

 

 

 

11.9

%

 

 

5,442

 

 

 

14.2

%

Flex and R&D

 

 

6

 

 

 

16,061

 

 

 

4.1

%

 

 

1,157

 

 

 

3.0

%

Industrial Services

 

 

23

 

 

 

11,877

 

 

 

3.0

%

 

 

607

 

 

 

1.6

%

Cold Storage

 

 

4

 

 

 

9,978

 

 

 

2.5

%

 

 

724

 

 

 

1.9

%

Untenanted

 

 

1

 

 

 

 

 

 

0.0

%

 

 

122

 

 

 

0.3

%

Industrial Total

 

 

192

 

 

 

202,080

 

 

 

51.5

%

 

 

29,442

 

 

 

76.9

%

Healthcare

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical

 

 

52

 

 

 

27,570

 

 

 

7.0

%

 

 

1,090

 

 

 

2.9

%

Healthcare Services

 

 

29

 

 

 

11,853

 

 

 

3.0

%

 

 

478

 

 

 

1.2

%

Animal Health Services

 

 

27

 

 

 

11,054

 

 

 

2.8

%

 

 

405

 

 

 

1.1

%

Surgical

 

 

12

 

 

 

10,675

 

 

 

2.7

%

 

 

329

 

 

 

0.9

%

Life Science

 

 

9

 

 

 

8,011

 

 

 

2.1

%

 

 

550

 

 

 

1.4

%

Healthcare Total

 

 

129

 

 

 

69,163

 

 

 

17.6

%

 

 

2,852

 

 

 

7.5

%

Restaurant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casual Dining

 

 

100

 

 

 

27,167

 

 

 

7.0

%

 

 

662

 

 

 

1.7

%

Quick Service Restaurants

 

 

148

 

 

 

25,966

 

 

 

6.6

%

 

 

502

 

 

 

1.3

%

Restaurant Total

 

 

248

 

 

 

53,133

 

 

 

13.6

%

 

 

1,164

 

 

 

3.0

%

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Merchandise

 

 

132

 

 

 

25,018

 

 

 

6.4

%

 

 

1,865

 

 

 

4.9

%

Automotive

 

 

64

 

 

 

11,790

 

 

 

3.0

%

 

 

757

 

 

 

1.9

%

Home Furnishings

 

 

13

 

 

 

7,265

 

 

 

1.9

%

 

 

797

 

 

 

2.1

%

Child Care

 

 

2

 

 

 

726

 

 

 

0.1

%

 

 

20

 

 

 

0.1

%

Retail Total

 

 

211

 

 

 

44,799

 

 

 

11.4

%

 

 

3,439

 

 

 

9.0

%

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategic Operations

 

 

6

 

 

 

10,450

 

 

 

2.7

%

 

 

632

 

 

 

1.7

%

Corporate Headquarters

 

 

7

 

 

 

8,527

 

 

 

2.2

%

 

 

409

 

 

 

1.1

%

Call Center

 

 

2

 

 

 

4,049

 

 

 

1.0

%

 

 

287

 

 

 

0.7

%

Untenanted

 

 

1

 

 

 

 

 

 

0.0

%

 

 

46

 

 

 

0.1

%

Office Total

 

 

16

 

 

 

23,026

 

 

 

5.9

%

 

 

1,374

 

 

 

3.6

%

Total

 

 

796

 

 

$

392,201

 

 

 

100.0

%

 

 

38,271

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7


 

Diversification by Tenant

Tenant

 

Property Type

 

# Properties

 

 

ABR
(’000s)

 

 

ABR as a %
of Total
Portfolio

 

 

Square Feet
(’000s)

 

 

SF as a %
of Total
Portfolio

 

Roskam Baking Company *

 

Food Processing

 

 

7

 

 

$

15,917

 

 

 

4.1

%

 

 

2,250

 

 

 

5.9

%

AHF, LLC *

 

Distribution & Warehouse/ Manufacturing

 

 

8

 

 

 

9,378

 

 

 

2.4

%

 

 

2,284

 

 

 

6.0

%

Joseph T. Ryerson & Son, Inc

 

Distribution & Warehouse

 

 

11

 

 

 

7,780

 

 

 

2.0

%

 

 

1,599

 

 

 

4.2

%

Jack’s Family Restaurants LP*

 

Quick Service Restaurants

 

 

43

 

 

 

7,456

 

 

 

1.9

%

 

 

147

 

 

 

0.3

%

J. Alexander’s, LLC *

 

Casual Dining

 

 

16

 

 

 

6,207

 

 

 

1.6

%

 

 

131

 

 

 

0.3

%

Axcelis Technologies, Inc.

 

Flex and R&D

 

 

1

 

 

 

6,126

 

 

 

1.6

%

 

 

417

 

 

 

1.1

%

Salm Partners, LLC*

 

Food Processing

 

 

2

 

 

 

6,062

 

 

 

1.5

%

 

 

368

 

 

 

1.0

%

Red Lobster Hospitality & Red Lobster Restaurants LLC*

 

Casual Dining

 

 

18

 

 

 

6,060

 

 

 

1.5

%

 

 

147

 

 

 

0.4

%

Hensley & Company*

 

Distribution & Warehouse

 

 

3

 

 

 

5,989

 

 

 

1.5

%

 

 

577

 

 

 

1.5

%

Dollar General Corporation

 

General Merchandise

 

 

60

 

 

 

5,977

 

 

 

1.5

%

 

 

562

 

 

 

1.5

%

Total Top 10 Tenants

 

 

 

 

169

 

 

 

76,952

 

 

 

19.6

%

 

 

8,482

 

 

 

22.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BluePearl Holdings, LLC**

 

Animal Health Services

 

 

13

 

 

 

5,693

 

 

 

1.4

%

 

 

165

 

 

 

0.4

%

Krispy Kreme Doughnut Corporation

 

Quick Service Restaurants/
Food Processing

 

 

27

 

 

 

5,538

 

 

 

1.4

%

 

 

156

 

 

 

0.4

%

Outback Steakhouse of Florida LLC*1

 

Casual Dining

 

 

22

 

 

 

5,454

 

 

 

1.4

%

 

 

140

 

 

 

0.4

%

Tractor Supply Company

 

General Merchandise

 

 

21

 

 

 

5,360

 

 

 

1.4

%

 

 

417

 

 

 

1.1

%

Big Tex Trailer Manufacturing, Inc.*

 

Automotive/ Distribution &
Warehouse/ Manufacturing/ Corporate Headquarters

 

 

17

 

 

 

5,056

 

 

 

1.3

%

 

 

1,302

 

 

 

3.4

%

Nestle’ Dreyer’s Ice Cream Company2

 

Cold Storage

 

 

1

 

 

 

4,611

 

 

 

1.2

%

 

 

309

 

 

 

0.8

%

Carvana, LLC*

 

Industrial Services

 

 

2

 

 

 

4,590

 

 

 

1.2

%

 

 

230

 

 

 

0.6

%

Arkansas Surgical Hospital

 

Surgical

 

 

1

 

 

 

4,588

 

 

 

1.2

%

 

 

129

 

 

 

0.3

%

Klosterman Bakery*

 

Food Processing

 

 

11

 

 

 

4,568

 

 

 

1.1

%

 

 

549

 

 

 

1.4

%

Chiquita Holdings Limited

 

Food Processing

 

 

1

 

 

 

4,420

 

 

 

1.1

%

 

 

335

 

 

 

0.9

%

Total Top 20 Tenants

 

 

 

 

285

 

 

$

126,830

 

 

 

32.3

%

 

 

12,214

 

 

 

31.9

%

1 Tenant’s properties include 20 Outback Steakhouse restaurants and two Carrabba’s Italian Grill restaurants.

2 Nestle’s ABR excludes $1.6 million of rent paid under a sub-lease for an additional property, which will convert to a prime lease no later than August 2024.

* Subject to a master lease.

** Includes properties leased by multiple tenants, some, not all, of which are subject to master leases.

Diversification by Industry

Tenant Industry

 

# Properties

 

 

ABR (’000s)

 

 

ABR as a %
of Total
Portfolio

 

 

Square Feet
(’000s)

 

 

SF as a %
of Total
Portfolio

 

Healthcare Facilities

 

 

104

 

 

$

54,973

 

 

 

14.0

%

 

 

2,062

 

 

 

5.4

%

Restaurants

 

 

251

 

 

 

53,973

 

 

 

13.8

%

 

 

1,207

 

 

 

3.2

%

Packaged Foods & Meats

 

 

29

 

 

 

41,046

 

 

 

10.5

%

 

 

4,713

 

 

 

12.3

%

Distributors

 

 

27

 

 

 

17,477

 

 

 

4.5

%

 

 

2,757

 

 

 

7.2

%

Auto Parts & Equipment

 

 

44

 

 

 

15,599

 

 

 

4.0

%

 

 

2,710

 

 

 

7.1

%

Specialty Stores

 

 

31

 

 

 

14,362

 

 

 

3.7

%

 

 

1,338

 

 

 

3.5

%

Food Distributors

 

 

8

 

 

 

14,206

 

 

 

3.6

%

 

 

1,712

 

 

 

4.5

%

Home Furnishing Retail

 

 

18

 

 

 

12,914

 

 

 

3.3

%

 

 

1,858

 

 

 

4.9

%

Specialized Consumer Services

 

 

45

 

 

 

11,842

 

 

 

3.0

%

 

 

709

 

 

 

1.9

%

Metal & Glass Containers

 

 

8

 

 

 

10,229

 

 

 

2.6

%

 

 

2,206

 

 

 

5.8

%

General Merchandise Stores

 

 

96

 

 

 

9,716

 

 

 

2.5

%

 

 

880

 

 

 

2.3

%

Industrial Machinery

 

 

20

 

 

 

9,654

 

 

 

2.5

%

 

 

1,949

 

 

 

5.1

%

Forest Products

 

 

8

 

 

 

9,378

 

 

 

2.4

%

 

 

2,284

 

 

 

6.0

%

Healthcare Services

 

 

18

 

 

 

9,371

 

 

 

2.4

%

 

 

515

 

 

 

1.3

%

Internet & Direct Marketing Retail

 

 

3

 

 

 

7,057

 

 

 

1.8

%

 

 

447

 

 

 

1.2

%

Other (38 industries)

 

 

84

 

 

 

100,404

 

 

 

25.4

%

 

 

10,700

 

 

 

27.7

%

Untenanted properties

 

 

2

 

 

 

 

 

 

 

 

 

224

 

 

 

0.6

%

Total

 

 

796

 

 

$

392,201

 

 

 

100.0

%

 

 

38,271

 

 

 

100.0

%

 

8


 

Diversification by Geographic Location

img145178443_1.jpg 

State

 

#
Properties

 

 

ABR
(’000s)

 

 

ABR as a
% of Total
Portfolio

 

 

Square Feet (’000s)

 

 

SF as a %
of Total
Portfolio

 

 

 

State

 

#
Properties

 

 

ABR
(’000s)

 

 

ABR as a
% of Total
Portfolio

 

 

Square Feet (’000s)

 

 

SF as a %
of Total
Portfolio

 

TX

 

 

69

 

 

$

38,110

 

 

 

9.7

%

 

 

3,603

 

 

 

9.4

%

 

 

WA

 

 

15

 

 

$

4,384

 

 

 

1.1

%

 

 

150

 

 

 

0.4

%

MI

 

 

55

 

 

 

33,060

 

 

 

8.4

%

 

 

3,810

 

 

 

10.0

%

 

 

LA

 

 

4

 

 

 

3,407

 

 

 

0.9

%

 

 

194

 

 

 

0.5

%

IL

 

 

32

 

 

 

24,383

 

 

 

6.2

%

 

 

2,424

 

 

 

6.3

%

 

 

MS

 

 

11

 

 

 

3,370

 

 

 

0.9

%

 

 

430

 

 

 

1.1

%

WI

 

 

35

 

 

 

23,096

 

 

 

5.9

%

 

 

2,163

 

 

 

5.7

%

 

 

NE

 

 

6

 

 

 

3,286

 

 

 

0.8

%

 

 

509

 

 

 

1.3

%

CA

 

 

13

 

 

 

19,617

 

 

 

5.0

%

 

 

1,718

 

 

 

4.5

%

 

 

SC

 

 

13

 

 

 

2,986

 

 

 

0.8

%

 

 

308

 

 

 

0.8

%

FL

 

 

42

 

 

 

16,319

 

 

 

4.2

%

 

 

840

 

 

 

2.2

%

 

 

IA

 

 

4

 

 

 

2,819

 

 

 

0.7

%

 

 

622

 

 

 

1.6

%

OH

 

 

47

 

 

 

16,308

 

 

 

4.2

%

 

 

1,582

 

 

 

4.1

%

 

 

NM

 

 

9

 

 

 

2,779

 

 

 

0.7

%

 

 

107

 

 

 

0.3

%

IN

 

 

32

 

 

 

16,240

 

 

 

4.1

%

 

 

1,906

 

 

 

5.0

%

 

 

CO

 

 

4

 

 

 

2,545

 

 

 

0.6

%

 

 

126

 

 

 

0.3

%

MN

 

 

21

 

 

 

15,668

 

 

 

4.0

%

 

 

2,500

 

 

 

6.5

%

 

 

UT

 

 

3

 

 

 

2,492

 

 

 

0.6

%

 

 

280

 

 

 

0.7

%

TN

 

 

49

 

 

 

15,225

 

 

 

3.9

%

 

 

1,093

 

 

 

2.9

%

 

 

MD

 

 

3

 

 

 

2,174

 

 

 

0.6

%

 

 

205

 

 

 

0.5

%

NC

 

 

36

 

 

 

12,491

 

 

 

3.2

%

 

 

1,135

 

 

 

3.0

%

 

 

CT

 

 

2

 

 

 

1,837

 

 

 

0.5

%

 

 

55

 

 

 

0.1

%

AL

 

 

53

 

 

 

12,418

 

 

 

3.2

%

 

 

873

 

 

 

2.3

%

 

 

ND

 

 

3

 

 

 

1,726

 

 

 

0.4

%

 

 

48

 

 

 

0.1

%

AZ

 

 

9

 

 

 

11,929

 

 

 

3.0

%

 

 

909

 

 

 

2.4

%

 

 

MT

 

 

7

 

 

 

1,582

 

 

 

0.4

%

 

 

43

 

 

 

0.1

%

GA

 

 

33