Broadstone Net Lease: One Notch Above BBB- — How Safe Is Safe?

The article analyzes the financial health of Broadstone Net Lease (BNL), arguing that while the company is not in immediate distress, its financial flexibility has decreased. The author highlights the increase in the Net Debt to Annualized Adjusted EBITDAre ratio to 5.7x and a high AFFO payout ratio of 78% as points of concern. The author suggests that BNL's situation is a 'narrowing corridor' rather than a 'cliff', and the key metric to monitor is the upcoming Q4 leverage ratio to see if the company's financial health is improving or deteriorating.