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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