Private REIT Raised $387+ Million in Equity and Acquired 117 Properties for $551+ Million in 2015
ROCHESTER, N.Y., Jan. 11, 2016 (GLOBE NEWSWIRE) -- Broadstone Net Lease (BNL), a private real estate investment trust (REIT) managed by Broadstone Real Estate (BRE), experienced record growth in 2015. Today, BNL announced fourth quarter acquisitions of $285.3 million, as the REIT acquired 66 properties in seven transactions. The REIT acquired 117 properties through 28 transactions for $551.6 million during 2015. BNL's portfolio includes 340 properties in 34 states that are 100% leased, with a total asset value of approximately $1.6 billion.
BNL's 2015 acquisitions averaged 17.3 years of remaining lease terms, and average contractual rent increases in excess of 2%, annually. The 28 completed transactions included 19 sale leasebacks, 7 lease assumptions, and 2 UPREIT transactions. UPREITs (where "UPREIT" stands for Umbrella Partnership REIT), provide a tax deferred exit strategy for owners of real estate who would otherwise recognize a significant taxable gain in a cash sale of a highly appreciated property with a low tax basis. By contributing properties into the operating partnership of Broadstone Net Lease‚ BNL's counterparties were able to exchange low cost-basis real estate for an interest in a professionally managed portfolio that is diversified by geography, property type, tenant and lease duration. During 2015, BNL also executed strategic dispositions of six properties, totaling $21.8 million.
BNL enjoyed a successful year on the capital-raising front as well, raising $387.7 million in equity during 2015 ($113.5 million during the fourth quarter), including an equity investment from BRE, and the two aforementioned UPREIT transactions. The REIT posted an 11.5% total return in 2015. BNL is currently yielding a 6.6% annualized dividend for new shareholders1.
"2015 was an exciting year on multiple fronts, as BNL achieved new heights on both the acquisitions and fundraising sides of the house, while maintaining excellent operating results for the entire portfolio," said Amy Tait, Chairman and CEO of Broadstone Real Estate. "Our team is proud of our portfolio quality and investment performance for our nearly 1,500 shareholders on three continents. BNL's pipeline remains strong, and we look forward to announcing more exciting news in 2016."
About Broadstone Net Lease:
Broadstone Net Lease (BNL) invests in freestanding, single-tenant, triple-net leased properties located throughout the United States, primarily via sale and leaseback transactions. With a diversified portfolio of 340 medical, industrial and retail properties in 34 states, the REIT targets individual or portfolio acquisitions within the $10 to $200+ million range.
There are currently 1,470+ shareholders in BNL, which is externally managed by Broadstone Real Estate, LLC. BNL remains open for new investment by accredited investors on a monthly basis, with a minimum investment of $500,000. Shares are offered via private placement. Accredited investors are invited to download an investor kit: http://www.broadstone.com/J16/.
1: The annualized dividend yield is based on the current DSV of $74.00 per share as of 12/31/2015. Dividends are not guaranteed and are determined at the discretion of the Broadstone Net lease, Inc. Board of Directors. The 2015 Total Return assumes reinvestment of dividends since inception (after December 31, 2009 dividends reinvest at 98% of determined share value). Total Return includes all dividends paid and reinvested during 2015, including those that have been earned in the prior period. For example, dividends earned for the month of December 2014 were paid and reinvested in January 2015, and are included in the calculation of the Total Return for 2015. For 2008 and 2009, BNL's share price (Determined Share Value – DSV) was fixed at $50 per share under its initial private placement memorandum. Performance data represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data presented. BNL is not required by law to follow any standard methodology when calculating and representing performance data. The performance of BNL may not be directly comparable to the performance of other private or registered REITs. All performance data above is presented net of fees. View our website, www.broadstone.com for further information including important definitions and calculations.