NETSTREIT Reports Fourth Quarter and Full Year 2024 Financial and Operating Results

-- Net loss of $(0.07) and Adjusted Funds from Operations ("AFFO") of $0.32 Per Diluted Share for Fourth Quarter --

-- Completed Gross Investment Activity of $195.1 Million at 7.4% Blended Cash Yield for Fourth Quarter --

-- Introduces 2025 AFFO Per Share Guidance of $1.27 to $1.30 --

-- Closed $275.0 Million in Additional Financing Commitments in January 2025 --

DALLAS--(BUSINESS WIRE)--February 24, 2025-- 

NETSTREIT Corp. $(NTST)$ (the "Company") today announced financial and operating results for the fourth quarter and year ended December 31, 2024.

"I am pleased to report that NETSTREIT delivered solid 2024 results, which included a Company record $195.1 million of investments at a 7.4% cash yield in the fourth quarter. Furthermore, we accretively recycled capital with record dispositions of $59.3 million in the fourth quarter and made significant progress towards our portfolio diversification goals. While our balance sheet remains well positioned for future growth, we are adopting a measured approach towards capital deployment to start 2025 with a continued focus on quality net lease investments that enhance our tenant diversity and strengthen our internal growth profile, " said Mark Manheimer, Chief Executive Officer of NETSTREIT.

FOURTH QUARTER AND FULL YEAR 2024 HIGHLIGHTS

The following table summarizes the Company's select financial results(1) for the three months and year ended December 31, 2024.

 
                                    Three Months Ended December 31, 
                               ----------------------------------------- 
                                     2024          2023      % Change 
                                   --------       ------  -------------- 
                                              (Unaudited) 
Net (Loss) per Diluted Share    $     (0.07)     $  0.03     (333.3)% 
Funds from Operations per 
 Diluted Share                  $      0.32      $  0.30        6.7% 
Core Funds from Operations 
 per Diluted Share              $      0.32      $  0.30        6.7% 
Adjusted Funds from 
 Operations per Diluted 
 Share                          $      0.32      $  0.31        3.2% 
 
                                        Year Ended December 31, 
                               ----------------------------------------- 
                                     2024          2023      % Change 
                                   --------       ------  -------------- 
                                              (Unaudited) 
Net (Loss) per Diluted Share    $     (0.16)     $  0.11     (245.5)% 
Funds from Operations per 
 Diluted Share                  $      1.20      $  1.18        1.7% 
Core Funds from Operations 
 per Diluted Share              $      1.26      $  1.19        5.9% 
Adjusted Funds from 
 Operations per Diluted 
 Share                          $      1.26      $  1.22        3.3% 
 
 
1.  Funds from operations ("FFO"), core funds from operations ("Core FFO"), 
    and adjusted funds from operations ("AFFO") are non-GAAP financial 
    measures. See "Non-GAAP Financial Measures." 
 

INVESTMENT ACTIVITY

The following tables summarize the Company's investment, disposition, and loan repayment activities (dollars in thousands) for the three months and year ended December 31, 2024.

 
                   Three Months Ended             Year Ended 
                    December 31, 2024          December 31, 2024 
                -------------------------  ------------------------- 
                 Number of                  Number of 
                Investments     Amount     Investments     Amount 
                -----------  ------------  -----------  ------------ 
Investments         52       $195,079          155      $591,574 
Dispositions        30         59,337          56        117,744 
Loan 
 Repayments          6         13,627          11         24,808 
                              -------                    ------- 
   Net 
    Investment 
    Activity                 $122,115                   $449,023 
                              =======                    ======= 
 
Investment 
Activity 
--------------  -----------  ------------  -----------  ------------ 
Cash Yield                        7.4%                       7.5% 
% of ABR 
 derived from 
 Investment 
 Grade 
 Tenants                         34.7%                      46.6% 
% of ABR 
 derived from 
 Investment 
 Grade Profile 
 Tenants                         13.9%                       9.0% 
Weighted 
 Average Lease 
 Term (years)                    14.0                       13.6 
 
Disposition 
Activity 
--------------  -----------  ------------  -----------  ------------ 
Cash Yield                        7.1%                       7.0% 
Weighted 
 Average Lease 
 Term (years)                    11.4                       10.8 
 
Loan 
Repayments 
--------------  -----------  ------------  -----------  ------------ 
Cash Yield                        9.3%                       9.2% 
 

The following table summarizes the Company's ongoing development projects and estimated development costs (dollars in thousands) as of and for the three months ended December 31, 2024.

 
                                                 Three Months Ended 
Developments                                      December 31, 2024 
--------------------------------------------  ------------------------- 
Amount Funded During the Quarter                 $                1,789 
 
                                               As of December 31, 2024 
                                              ------------------------- 
Number of Developments                                                5 
Amount Funded to Date                            $                7,883 
Estimated Funding Remaining on Developments                       6,718 
                                              ----  ------------------- 
   Total Estimated Development Cost              $               14,601 
                                              ====  =================== 
 

PORTFOLIO UPDATE

The following table summarizes the Company's real estate portfolio (weighted by ABR, dollars in thousands) as of December 31, 2024.

 
                                          As of December 31, 2024 
------------------------------------  --------------------------- 
Number of Investments                                    687 
ABR                                    $             165,070 
States                                                    45 
Square Feet                                       12,609,612 
Tenants                                                   98 
Industries                                                26 
Occupancy                                               99.9% 
Weighted Average Lease Term (years)                      9.8 
Investment Grade %                                      55.8% 
Investment Grade Profile %                              15.0% 
 

CAPITAL MARKETS AND BALANCE SHEET

The following tables summarize the Company's leverage, balance sheet, ATM sales, and settlement of our forward equity offerings (dollars in thousands, except per share data) as of and for the three months ended December 31, 2024.

 
Leverage                                               As of December 31, 2024 
---------------------------------------------------  ------------------------- 
Net Debt / Annualized Adjusted EBITDAre                                   5.8x 
Adjusted Net Debt / Annualized Adjusted EBITDAre                          4.5x 
 
Forward Equity Settlement Activity                     As of December 31, 2024 
---------------------------------------------------  ------------------------- 
Shares Settled During Quarter                                               -- 
Weighted Average Price Per Share (Gross)               $                    -- 
Net Value of Settled Forward Equity as of December 
31, 2024                                               $                    -- 
 
ATM Program                                            As of December 31, 2024 
---------------------------------------------------  ------------------------- 
Shares Sold During Quarter                                                  -- 
Weighted Average Price Per Share (Gross)               $                    -- 
ATM Program Total Capacity                             $               300,000 
ATM Capacity Remaining as of December 31, 2024         $               297,387 
 
Unsettled Forward Equity                               As of December 31, 2024 
---------------------------------------------------  ------------------------- 
Shares Unsettled as of December 31, 2024                            10,735,647 
Weighted Average Price Per Share (Gross)               $                 17.93 
Net Value of Unsettled Forward Equity as of 
 December 31, 2024                                     $               185,063 
 

SUBSEQUENT DEBT ACTIVITY

On January 15, 2025, the Company closed on $275.0 million in additional financing commitments and amendments to its existing credit facilities, which includes a new $175.0 million senior unsecured term loan (the "2030 Term Loan B") and an upsized, $500.0 million revolving credit facility (the "Revolving Facility"), increased from $400.0 million. The 2030 Term Loan B and the Revolving Facility initially mature in January 2029 and each include a one-year option to extend the maturity to January 2030 at the Company's discretion. The 2030 Term Loan B was fully funded at close and the Company hedged the entire $175.0 million at an all-in fixed interest rate of 5.12% through January 2030.

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