Citizens analyst Mitch Germain downgraded Broadstone Net Lease (NYSE: BNL) from Market Outperform to Market Perform.

The analyst comments: “We upgraded BNL in December 2024 as we felt the investment community was underappreciating the development funding program. At that time, the development funding pipeline included just three projects, one of which was substantially completed, with total projected spend of $318M. Today, the company has ~$900M of projects completed or in process, which we view as an impressive feat; we note, this excludes a project added to the pipeline, as announced by the company after market close on June 11, 2026. Many of these projects are relationship-based, suggesting the potential for repeat business, while construction lending costs associated with more traditional banks and financing partners remain elevated, making BNL’s capital screen favorably. Despite our favorable sentiment toward BNL’s development funding platform, leverage is sitting toward the high end of management’s range, and barring a significant amount of equity capital raising or asset sales, it is expected to remain elevated. At the time of our December 2024 upgrade, shares were trading at mid-11x, a two-turn discount to the net-lease REIT sector, though today the valuation discount has narrowed, as the stock basically trades in line with the sector. Further, the shares are now trading just below our previous price target of $21. As such, we see shares as fairly valued, prompting our downgrade to Market Perform.”

For an analyst ratings summary and ratings history on Broadstone Net Lease click here. For more ratings news on Broadstone Net Lease click here.

Shares of Broadstone Net Lease closed at $20.90 yesterday.