ROCHESTER, NY—Broadstone Net Lease—a private REIT managed by Broadstone Real Estate—experienced record growth in 2015. BNL announced Monday fourth quarter acquisitions of just over $285 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, seven lease assumptions, and two 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 almost $22 million.
BNL enjoyed a successful year on the capital-raising front as well, raising nearly $388 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 yielding a 6.6% annualized dividend for new shareholders.
“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,” says Amy Tait, chairman and CEO of Broadstone Real Estate. “Our pipeline remains strong and we look forward to announcing more exciting news in 2016.”