Oct 29, 2026 earnings call — Build-to-suit pipeline and Triborough update
Company reaffirmed full year AFFO guidance of $1.55 to $1.57 per share.
Revenue $0.1B (est $0.1B) · EPS $0.14 (est $0.16)
Key quotes
"We started 3 new build to suit developments totaling 326 million and 6 others reaching stabilization during the quarter."
"We have approximately $154 million invested in the project as of September 30."
"Between the August offering that John already highlighted, and our ATM activity, our total outstanding expected net proceeds from unsettled forward sale agreements were approximately $409 million as of September 30."
Analyst Q&A 11
Triborough zoning vs power vs tenant
Q (Eric Borden · BMO): Which remaining item matters most for the Triborough decision: zoning, power agreements, or tenant commitment? And what are main offsets to AFFO growth for 2027?
A: Management said zoning is the top priority now; they cannot move on power or tenant conversations until zoning is confirmed. For AFFO drivers, management said interest rates and G&A are key, and interest-rate moves remain the most variable factor.
"So most important thing for us is to have that tenant, excuse me, the zoning squared away." — John D. Moragne (CEO)
capital sources and disposition plans
Q (Anthony Paolone · JPMorgan): How have cap rates and yields moved for developments and acquisitions, and what would green-light a new project? Has the rate move changed plans to self-fund via dispositions like UNFI?
A: Management said transaction activity slowed and yields moved modestly higher, but they still see attractive build-to-suit opportunities and are focused on long-term accretive deals. They also said they have over $500 million of dry powder now and can fund accretive investments without immediate need to sell assets, while remaining willing to sell when appropriate.
"We have got $500 million or more of dry powder in hand right now that we can deploy into good, attractive, accretive investments" — John D. Moragne (CEO)
Colorado second building timing and equity settlement
Q (Jay Kornreich · Cantor Fitzgerald): Has tenant discussion progressed on a second Colorado building, and will unsettled forward equity settle at completion or ratably during construction?
A: Management said the tenant is still deciding and that a second Colorado building is likely a 2027 decision; they are cautiously optimistic. On equity settlement, management said match funding at completion is a reasonable assumption, with a mid-quarter convention being typical.
"I think that is probably a 2027 decision at some point for that tenant, and we are cautiously optimistic that they will move forward with it." — John D. Moragne (CEO)
build-to-suit pipeline and guidance
Q (Caitlin Burrows · Goldman Sachs): Has rate volatility slowed build-to-suit discussions and are tenant plans changing? Also, what drove recent stabilization and why did AFFO guidance stay unchanged despite lower bad debt?
A: Management said tenants are taking more time because financing and rates changed, and the company has paused deals that no longer work; the pipeline remains robust. They also said timing of project completions is project-specific and the treasury stock impact on guidance is under half a penny, helping explain why the AFFO range held.
debt hedges and Triborough tenant demand
Q (Upal Rana · Key): How will you manage upcoming maturities and swaps—refinance early, extend hedges, or retain floating exposure? And what tenant concerns arise for Triborough?
A: Management said they are being opportunistic, keeping shorter duration now and that floating rate exposure is currently about 20 to 30% of total debt. On Triborough, they said preliminary tenant conversations show demand remains strong and that the horizontal site work already done positions the asset well for 2028 delivered power.
"the thing that we have heard and we continue to see is that demand is not dropping." — John D. Moragne (CEO)
best outcome and funding for Triborough
Q (Linda Tsai · Truist): Has your ideal outcome for Triborough changed with higher cost of capital? Would you use public equity to fund it?
A: Management said they still have a strong industrial backstop and can pivot to industrial build-to-suit if needed. They added that raising public equity to fund a multibillion-dollar data center is off the table now; they would either sell the project or find private capital to fund it.
"the idea that there might be public equity that we can raise around this off our balance sheet to be able to fund this, I think that is kind of off the table at this point." — John D. Moragne (CEO)
rental income write-off and lease recapture
Q (Michael Goldsmith · UBS): Explain the $2.9 million net write-off of accrued rental income and whether it’s tied to one tenant; and is 111% recapture sustainable for next year?
A: Management said the rental income write-off relates to shortening the lease term at a small industrial asset and is unrelated to the bad debt guidance; they expect little impact this year or next. On recapture, management said 111% is great but historically low- to mid-102% to 105% is more reasonable to expect.
"The accounting around that rental income write off is more about situation where we have some small industrial assets." — Kevin Fennell (CFO)
future data center appetite
Q (Ryan Caviola · Green Street): Will Broadstone do more data center developments given higher complexity, and are onshoring tailwinds evolving?
A: Management said appetite is focused now on Colorado 2.0 and Triborough, and any further role will be project dependent because these are very large capital commitments. On onshoring, they said there are both political and secular tailwinds as companies rethink supply chains since COVID.
"These are very large capital commitments. They are very large projects. And so the ability for us to play a role will be very project dependent on any of those things," — John D. Moragne (CEO)
pipeline size and construction cost trends
Q (Ronald Kamdem · Morgan Stanley): Are there larger advanced manufacturing or data center deals in discussion and what is the trend in construction costs or shortages?
A: Management said their current focus is Colorado and Triborough, with other larger build-to-suit prospects under review but not secured. They said construction costs are up, roughly 10% to 15% on project budgets, which requires careful pricing and rent-setting decisions.
"construction costs are certainly up but that is just provided an opportunity to make sure that we are pricing things appropriately and that rents are getting set at the right levels." — John D. Moragne (CEO)
portfolio exposure to large tech projects
Q (Michael Gorman · US Bancorp / BTIG): How do you manage portfolio concentration as Colorado or Triborough scale from income? How do tenant financing changes affect other growth avenues?
A: Management said a Colorado tenant representing 6%–7% of ABR is acceptable given tenant quality and they could tolerate higher if Colorado 2.0 moves forward. For Triborough, they treat it differently and plan either to sell it or fund it via private capital so it would not add the same on-balance-sheet concentration risk.
"Project Triborough is its own thing. it is a bit of a supernova." — John D. Moragne (CEO)
industrial option while keeping data center plan
Q (Eric Borden · BMO): Can you build an industrial pad now at Dryboro while preserving the option for a later data center? If you pivot to industrial, would you build spec or need a tenant first?
A: Management said they would not put industrial on the site if data center approvals, power, and tenant interest exist because hyperscale tenants want the whole site. If they pivot to industrial, they prefer tenants in hand but said they could move forward, even vertically, given strong local demand.
"The only way that we are gonna be putting industrial on those 550 acres is if, you know, we end up having to pivot towards the industrial path." — John D. Moragne (CEO)