Business Context and Reporting Period
This Form 8-K filing by Broadstone Net Lease, Inc. reports on events occurring on October 31, 2017. The Company is a net lease real estate investment trust focused on investing in net leased properties.
Key Financial Metrics and Capital Activity
- Equity Issuance: Sold 185,317.383 shares of common stock at $80.00 per share.
- Proceeds: Generated aggregate sale proceeds of $14,825,390.63 from the October 31 closing.
- Outstanding Shares: 18,491,182.216 shares of common stock issued and outstanding as of October 31, 2017.
- Operating Company Units: 20,079,171.736 units of membership interest in Broadstone Net Lease, LLC outstanding.
- Noncontrolling Interests: Approximately 7.91% of Operating Company units held by noncontrolling interests.
Material Changes and Recent Activity
The filing details the completion of the most recent monthly closing of the Company's ongoing private offering. Additionally, on October 13, 2017, the Company issued 46,142.862 shares under its Distribution Reinvestment Plan (DRIP) at a price of $78.40 per share (a 2% discount to the $80.00 Determined Share Value), generating $3,617,600.38 in proceeds. The filing also notes the issuance of 57,940.244 membership units to a contributing owner in exchange for a property interest.
Guidance, Outlook, and Use of Proceeds
The Company intends to use substantially all net proceeds from this closing and future closings, supplemented by additional borrowings, to invest in additional net leased properties and for general corporate purposes. The securities were sold in reliance on the exemption from registration under Rule 506(c) of Regulation D.
Investor Verification Checklist
- Verify the total capital raised in the ongoing private offering to date.
- Confirm the specific properties acquired with the $14.8 million in proceeds from this closing.
- Review the terms of the "additional borrowings" mentioned as a supplement to equity proceeds.
- Monitor the conversion status of the 20 million+ Operating Company membership units into common stock.