• Gross Investments: $152 million, highest quarter on record.

• Blended Cash Yield: 7.5% or 8% on a straight-line basis.

• Development Projects: Four projects totaling over $18 million commenced rent in the quarter.

• Development Pipeline: Eight projects with a total estimated cost of $22 million.

• Properties: Investments in 671 properties, 100% leased.

• Net Loss: $5.3 million or 7 per diluted share.

• Core FFO: $24.9 million or 32 per diluted share.

• AFFO: $24.8 million or 32 per diluted share, over 3% increase year-over-year.

• Total Recurring G&A: Declined 16% year-over-year to $4.3 million.

• Recurring Cash G&A: Declined 24% year-over-year to $2.9 million.

• Total Adjusted Net Debt: $569 million.

• Weighted Average Debt Maturity: 3.3 years.

• Weighted Average Interest Rate: 4.46%.

• Liquidity: $464 million, including $29 million cash on hand.

• Adjusted Net Debt to Adjusted EBITDA: 4.0 times.

• 2024 AFFO Guidance: Updated range to $1.26 to $1.27 per share.

• Quarterly Cash Dividend: 21 per share, payable on December 13th.

• Warning! GuruFocus has detected 7 Warning Signs with NTST.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Netstreit Corp (NYSE:NTST) completed $152 million of gross investments, marking their highest quarter on record.

• The company achieved a blended cash yield of 7.5% or 8% on a straight-line basis for the quarter.

• Netstreit Corp's portfolio remains 100% leased with a weighted average lease term of 9.5 years.

• Over 75% of Netstreit Corp's total ABR is leased to investment-grade or investment-grade profile tenants.

• The company successfully reduced its Walgreens concentration from 5.9% to 4.8% and plans further reductions.

Negative Points

• Netstreit Corp reported a net loss of $5.3 million or 7 cents per diluted share for the quarter.

• The percentage of investments leased to investment-grade tenants was below the portfolio average this quarter.

• The company provided short-term rent relief to Big Lots during its bankruptcy process, impacting cash flow.

• Netstreit Corp's weighted average debt maturity is relatively short at 3.3 years.

• The company faces challenges with tenant concentrations in industries like pharmacies and dollar stores, which have been under scrutiny.

Q & A Highlights

Q: As you look into the fourth quarter and maybe the first quarter of next year, do you still expect to remain in the creative acquisition spread for your disposition? A: Yes, we do. We expect cap rates to stay close to where they are now, maybe slightly below where we've been for the first three quarters. The dispositions we're looking at currently are at lower cap rates than what we achieved in the third quarter. - Daniel Donlan, CFO