AlphaMadera

BNL Broadstone Net Lease, Inc.

$21.09

Real Estate Investment Trust 85%

P/FFO × Diversified REIT Multiple

Mild · Conviction

Fair Value

Trading 5.3% below fair value

You pay $21.09

Bear $18.50

Fair $22.28

Bull $26.06

Bear $18.50 -12.3% $1.39 FFO × 14x

Fair $22.28 +5.6% $1.39 FFO × 17x

Bull $26.06 +23.6% $1.39 FFO × 20x

Adjust Assumptions

P/FFO Multiple

17.0x

FFO per Share

1.39$

Key Value Driver

FFO/share ($1.39) × diversified P/FFO multiple

Terminal Value % of EV

Implied Market Multiple 15.1x

Market is pricing in (growth)

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (13 analysts) $23.57

Divergence from AlphaVal 5%

Summary

At $1.39 FFO/share with a 17x diversified REIT multiple, the base-case value is $22.28 per share. Dividend yield: 5.5%. DDM cross-check: $19.04.

Warnings

⚠ Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.

⚠ Dividend yield of 5.5% is unusually high — make sure the company generates enough cash to keep paying it.

Key Risks

P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
Interest rate sensitivity: REIT multiples compress when rates rise
FFO approximation (NI + D&A) may include gains on property sales — verify