Broadstone Net Lease (BNL) Financials

Broadstone Net Lease (NYSE: BNL) showed solid operating cash generation in Q1 2026, but the quarter also highlighted rising leverage, another impairment charge, and continued pressure on cash after dividends.

For the quarter ended March 31, 2026, BNL reported net income of $46.4 million, up from $35.0 million in Q4 2025 and $17.5 million in Q1 2025. Operating cash flow also improved to $76.1 million from $71.5 million in the prior-year quarter. However, the company used substantial cash on investing activities and ended the quarter with a net cash decline of $12.0 million.

Revenue trends were also constructive. Q1 2026 total revenue came in at $103.3 million, up modestly from $101.6 million in Q4 2025 and well ahead of $89.1 million in Q1 2025. A large share of revenue still came from non-interest income, while interest expense remained heavy at $25.3 million for the quarter.

One of the more important takeaways is that BNL’s asset base and cash position remained large, but the balance sheet also carried meaningful debt. As of March 31, 2026, the company had $20.3 million in cash, $397.6 million of short-term debt, and $2.24 billion of long-term debt. Total liabilities were $2.82 billion against $5.85 billion of assets, with common equity of $2.89 billion.

Looking at the last several years, BNL has generally produced dependable operating cash flow in the $60 million to $80 million range each quarter, but it has also consistently paid out sizeable dividends and relied on debt to fund growth. That mix supports income investors, but it leaves less room for error if acquisition activity slows or financing costs stay elevated.

• Q1 2026 operating cash flow improved to $76.1 million, showing the business continues to generate meaningful cash from operations.
• Net income rose to $46.4 million in Q1 2026, up from $35.0 million in Q4 2025 and $17.5 million in Q1 2025.
• Total revenue increased to $103.3 million in Q1 2026, topping both the prior quarter and the year-ago quarter.
• The company ended Q1 2026 with $20.3 million in cash, providing near-term liquidity.
• BNL’s quarterly dividends remain well supported by recurring operations, with cash dividends per share at $0.2925 in Q1 2026.
• Depreciation remains a large non-cash add-back at $40.5 million, which is typical for a real estate-heavy business but makes earnings less comparable to cash flow.
• AOCI and equity balances remained sizable, and total common equity stood at $2.89 billion at quarter-end.
• Investing cash outflows were elevated because of portfolio activity, including $59.0 million in investment purchases and $112.9 million in other investing activities, net.
• BNL carried a heavy debt load, including $397.6 million of short-term debt and $2.24 billion of long-term debt.
• Impairment charges reappeared in Q1 2026 at $0.0 million, but they had been $4.7 million in Q4 2025 and $7.0 million in Q3 2025, signaling some asset-level pressure in recent quarters.

From a trend perspective, BNL has been able to maintain steady cash generation since 2023, but earnings quality is mixed because results are influenced by large non-interest income swings, acquisition activity, and financing costs. The most encouraging sign is that operating cash flow remains consistently positive. The main risk is leverage: with rates still high, interest expense and debt refinancing will likely remain key factors to watch.

Bottom line: Broadstone Net Lease looks like a stable cash-generating REIT with continued dividend support, but investors should balance that against leverage, impairment risk, and reliance on external capital to keep growing.