Broadstone Net Lease slips after starting stock offering

Broadstone Net Lease BNL.N shares were down 3.1% to $20.50 post-market after news of an equity offering.

The commercial REIT kicked off an 11 million share offering and expects to enter into forward sale agreements with bookrunners Morgan Stanley and JPMorgan.

Upon settlement of the agreements, which is expected to occur no later than Sept. 30, 2027, the company intends to use the net proceeds to fund investments, repay its revolver, among other purposes.

BNL finished down 0.2% at $21.16 on Thursday and was up 22% year to date.

The company has about 191.9 million shares outstanding for a $4 billion market cap. Seven of 10 analysts rate the stock 'strong buy' or 'buy', while three rate it 'hold'; the median price target is $23, according to LSEG data.