Business Context and Reporting Period
This Form 8-K filing by Broadstone Net Lease, Inc. reports on events occurring on September 29, 2017. The Company is a net lease real estate investment trust focused on acquiring and managing net leased properties.
Key Financial Metrics and Capital Activity
- Capital Raised: The Company sold 295,952.489 shares of common stock at $80.00 per share, generating aggregate proceeds of $23,676,199.07.
- Share Count: As of September 29, 2017, there were 18,259,721.971 shares of common stock issued and outstanding.
- DRIP Activity: On September 15, 2017, the Distribution Reinvestment Plan (DRIP) issued 45,194.294 shares at $78.40 per share (a 2% discount to the $80.00 Determined Share Value), generating $3,543,234.20 in proceeds.
- Operating Company Structure: There were 19,789,771.247 units of membership interest in the Operating Company outstanding. The Company owns approximately 92.27%, while noncontrolling interests hold approximately 7.73%.
Material Changes
The primary material change reported is the completion of the monthly closing of the Company's ongoing private offering of common stock. This transaction increased the total number of outstanding shares and provided new capital for deployment.
Guidance, Outlook, and Use of Proceeds
Management intends to use substantially all net proceeds from this closing and future closings, supplemented by additional borrowings, to:
- Invest in additional net leased properties.
- Fund general corporate purposes.
The offering was conducted under the exemption from registration provided by Rule 506(c) under Regulation D.
Investor Verification Checklist
- Verify the current Determined Share Value and any subsequent changes to the $80.00 price point.
- Confirm the deployment timeline for the $23.7 million in proceeds into new net leased properties.
- Review the impact of the 7.73% noncontrolling interest on future earnings per share calculations.
- Check for any new borrowings mentioned in subsequent filings to supplement the equity raised.