Broadstone Net Lease, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed on October 31, 2018, by Broadstone Net Lease, Inc., a Maryland corporation. The filing primarily addresses the completion of a monthly closing of its ongoing private offering of common stock and references the announcement of financial results for the quarter ended September 30, 2018, which was issued on November 5, 2018.
Key Financial Metrics and Capital Activity
- Capital Raised: On October 31, 2018, the Company sold 235,294.109 shares of common stock at $85.00 per share, generating aggregate proceeds of $20,000,000.00.
- Outstanding Equity: As of October 31, 2018, there were 21,367,936.807 shares of common stock issued and outstanding.
- Subscription Queue: Following the October closing, approximately $6,983,181.70 in subscriptions remained in queue for subsequent closings at a price of $85.00 per share.
- DRIP Activity: On October 15, 2018, 56,070.235 shares were issued via the Distribution Reinvestment Plan (DRIP) at $83.30 per share (a 2% discount to the Determined Share Value), generating $4,670,653.49 in proceeds.
- Operating Company Structure: The Company owns approximately 92.48% of Broadstone Net Lease, LLC, with noncontrolling interests representing approximately 7.52%.
- Financial Results: Specific revenue, profit, cash flow, margin, debt, and liquidity figures for the quarter ended September 30, 2018, are not contained in the text of this 8-K filing. These metrics are referenced as being available in the attached press release (Exhibit 99.1) and quarterly supplemental information (Exhibit 99.2).
Material Changes and Outlook
- Investment Cap Increase: On November 5, 2018, the Company announced an increase in its monthly cap on new and additional investments from $20.0 million to $30.0 million for the months of November 2018 through January 2019.
- Use of Proceeds: Net proceeds from the private offering are intended to be used, supplemented by additional borrowings, to invest in additional net leased properties and for general corporate purposes.
- Regulatory Status: The sale of shares was conducted under the exemption from registration provided by Rule 506(c) under Regulation D.
Investor Verification Checklist
- Review the attached Press Release (Exhibit 99.1) for specific Q3 2018 revenue, FFO, and debt metrics not detailed in this summary.
- Examine the Quarterly Supplemental Information (Exhibit 99.2) for portfolio occupancy rates and property-level performance.
- Verify the impact of the increased $30.0 million monthly investment cap on future capital deployment and dilution.
- Confirm the status of the $6.98 million in queued subscriptions and the timeline for their closing.
- Assess the Company's leverage ratios and liquidity position as disclosed in the referenced exhibits to evaluate the "supplemented with additional borrowings" strategy.