Group 1 - The Annual General and Special Meeting of Shareholders of Enthusiast Gaming Holdings Inc. is being recorded [1] - Participants are informed that disclosing personal information will imply consent to the recording and use of that information [1] - The meeting is led by Alex MacDonald, the Chief Executive Officer of the company [2]

Core Insights - NetSTREIT Corp reported better-than-expected third-quarter results, with quarterly FFO of 33 cents per share, surpassing the analyst consensus estimate of 32 cents per share, and quarterly sales of $48.308 million, exceeding the consensus estimate of $46.223 million [1] - The company affirmed its FY2025 FFO guidance of $1.29-$1.31 [1] Financial Performance - The third quarter saw record gross investment volume, supported by an improving cost of capital and over $690 million in recently raised capital [2] - NetSTREIT has a lowly levered balance sheet and over $1.1 billion in available liquidity, positioning the company for increased investments and strong long-term AFFO per share growth [2] Market Reaction - Following the earnings announcement, NetSTREIT shares fell by 3.4% to $18.88 [2] Analyst Ratings - Baird analyst Wesley Golladay maintained an Outperform rating on NetSTREIT and raised the price target from $20 to $21 [5] - Stifel analyst Simon Yarmak also maintained a Buy rating and raised the price target from $20 to $21 [5]

Core Insights - NetSTREIT Corp reported better-than-expected third-quarter results, with quarterly FFO of 33 cents per share, surpassing the analyst consensus estimate of 32 cents per share [1] - The company achieved quarterly sales of $48.308 million, exceeding the analyst consensus estimate of $46.223 million [1] - NetSTREIT affirmed its FY2025 FFO guidance of $1.29-$1.31 per share [1] Financial Performance - The CEO highlighted strong execution in Q3, achieving record gross investment volume and raising over $690 million in capital [2] - The company is ahead of its year-end diversification goals and has a lowly levered balance sheet with over $1.1 billion in available liquidity [2] - Despite positive results, NetSTREIT shares fell 3.4% to $18.88 following the announcement [2] Analyst Ratings and Price Targets - Analysts have adjusted their price targets for NetSTREIT following the earnings announcement [3] - Baird analyst Wesley Golladay maintained an Outperform rating and raised the price target from $20 to $21 [5] - Stifel analyst Simon Yarmak maintained a Buy rating and also raised the price target from $20 to $21 [5]

Financial Data and Key Metrics Changes - The company reported a net income of $621,000 or $0.01 per diluted share for the third quarter [4] - Core FFO for the quarter was $26.4 million or $0.31 per diluted share, while AFFO was $28 million or $0.33 per diluted share, reflecting a 3.1% increase over the previous year [4] - Total recurring G&A expenses increased year over year to $5.1 million due to normalized staffing levels after restructuring [4] Business Line Data and Key Metrics Changes - The company maintains an industry-leading occupancy rate of 99.9% with no material tenant disruptions [2] - The portfolio generates over 62% of its ABR from tenants with investment grade ratings or profiles, with only 2.7% of ABR expiring through 2027 [2] Market Data and Key Metrics Changes - The company completed a follow-on offering of 12.4 million shares in July, raising $209.7 million in net proceeds [5] - Total liquidity at quarter end was over $1.1 billion, consisting of $53 million in cash, $500 million available on the revolving credit facility, and $150 million of undrawn term loan capacity [5] Company Strategy and Development Direction - The company focuses on accretive investments in high-quality, necessity-based retail properties, emphasizing tenant quality and diversification [3] - The company is increasing its net investment activity range to $350 to $400 million from a prior range of $125 to $175 million for 2025 [5] - The company plans to opportunistically sell some assets to address potential credit issues [9] Management's Comments on Operating Environment and Future Outlook - Management noted softness in the lower and middle-income consumer segments and some noise in private credit markets but remains focused on high-quality investments [3] - The company expects to see a robust opportunity set for acquisitions going forward, driven by improved cost of capital and favorable market conditions [39] - Management anticipates that cap rates may compress slightly, with a potential decrease of 10 basis points expected [10][43] Other Important Information - The company had no credit losses in the quarter, maintaining best-in-class credit loss statistics [2] - The board declared a dividend on October 24, although specific details were not provided in the call [6] Q&A Session Summary Question: Insights on the most attractive opportunity set - Management indicated they are focusing on convenience stores, quick service restaurants, and grocery assets, with expectations for increased dispositions in the future [8] Question: Factors affecting 2025 AFFO per share outlook - Management explained that the timing of investment activities and treasury stock dilution uncertainty impacted the guidance, despite significant activity in the quarter [14] Question: Competition from private equity - Management noted that while private equity is entering the market, their focus on larger transactions does not significantly impact the company's strategy [32] Question: Update on auto parts exposure - Management reassured that recent bankruptcies in the auto parts sector are not expected to impact their tenants significantly [51] Question: Changes in lease structures due to competition - Management stated that there have been no significant changes in lease structures, with institutional capital seeking similar terms as public peers [55] Question: Strategic plans for reducing dollar store exposure - Management confirmed that they have made significant progress in reducing exposure to dollar stores and are being selective with pricing in the pharmacy sector [34]

Financial Data and Key Metrics Changes - The company reported a net income of $621,000 or $0.01 per diluted share for Q3 2025, with core FFO at $26.4 million or $0.31 per diluted share, and AFFO at $28 million or $0.33 per diluted share, reflecting a 3.1% increase year-over-year [10][12] - Total recurring G&A increased to $5.1 million, representing 10.6% of total revenues, down from an 11.1% average last year, indicating improved efficiency [10][12] - The company’s adjusted net debt was $623.5 million, with a pro forma adjusted net debt to annualized adjusted EBITDAre ratio of 3.6 times, below the targeted range of 4.5 to 5.5 times [11][12] Business Line Data and Key Metrics Changes - The company closed $203.9 million in investments across 50 properties at a blended cash yield of 7.4%, with an average lease term of 13.4 years [5][6] - Disposition activity included the sale of 24 properties for $37.8 million at a 7.2% cap rate, allowing reinvestment into higher yielding opportunities [6][12] - The portfolio consisted of 721 investments with 114 tenants across 28 industries, generating over $183 million in ABR [6][7] Market Data and Key Metrics Changes - The company noted that over 62% of its ABR comes from tenants with investment grade ratings, with only 2.7% of ABR expiring through 2027, ensuring stable cash flows [7][12] - The company experienced a decline in its top five tenancy from 28.9% to 22.9% year-to-date, indicating successful diversification efforts [4][6] Company Strategy and Development Direction - The company is increasing its 2025 net investment guidance to a range of $350 million to $400 million, up from $125 million to $175 million, reflecting confidence in market opportunities [4][12] - The focus remains on acquiring high-quality, necessity-based retail properties, with a strategy to maintain a diversified tenant base [9][12] - The company aims to return to normal disposition volumes focused on credit risk and opportunistic sales after a period of elevated activity [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current investment landscape, noting it is the most attractive opportunity set seen since going public [9][12] - The company anticipates continued growth in 2026, driven by improved cost of capital and a robust acquisition pipeline [12][54] - Management acknowledged some softness in the lower and middle-income consumer segments but remains focused on resilient sectors [9][12] Other Important Information - The board declared a quarterly cash dividend of $0.215 per share, payable on December 15 to shareholders of record as of December 1 [12] - The company has over $1.1 billion in total liquidity, including cash, available credit, and undrawn term loan capacity [12] Q&A Session Summary Question: Can you elaborate on the attractive opportunity set mentioned? - Management indicated they are focusing on convenience stores, quick service restaurants, and grocery sectors, expecting to maintain a high acquisition pace [16][18] Question: Why didn't the guidance for 2025 AFFO per share change despite high activity? - The timing of investments was heavily weighted towards the end of the quarter, impacting revenue recognition, and there is uncertainty regarding treasury stock dilution [21][22] Question: What are the expectations for investment grade acquisitions? - Management noted a 50 basis point difference in cap rates between investment grade and non-investment grade assets, with a focus on risk-adjusted returns [32][33] Question: How is competition from private equity affecting the company? - Management stated that while there is competition, it primarily targets larger transactions, which do not directly impact the company's strategy [38][39] Question: What is the outlook for cap rates and spreads? - Management expects cap rates to remain stable, with potential slight compression, and believes the current spreads are healthy for future growth [48][50]

Portfolio Highlights - The company's portfolio has a high credit quality, with 62% Investment Grade (IG) and Investment Grade Profile (IGP) tenants[9] - The portfolio maintains a high occupancy rate of 999%[9] - The weighted average lease term (WALT) is 99 years[9] - A significant portion of the tenants, 87%, are in necessity, discount, and service-oriented sectors[9] Financial Performance - The weighted average cash yield since 3Q'20 is 70%[10] - The weighted average cash yield Year-To-Date (YTD) is 76%[10] - The company has experienced a low annualized credit loss of 4bps in 55 years[9] - The company has a total pro forma liquidity of $12 billion[12] Balance Sheet - The Pro Forma (PF) Adjusted Net Debt to Annualized Adjusted EBITDAre is 36x[12] - The company has secured $450 million in new term loans in September 2025[12]

Core Insights - NETSTREIT (NTST) reported $48.31 million in revenue for Q3 2025, a 16.6% year-over-year increase, with an EPS of $0.33 compared to -$0.07 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $48.73 million, resulting in a surprise of -0.87%, while the EPS met the consensus estimate [1] - The stock has returned +7.2% over the past month, outperforming the Zacks S&P 500 composite's +2.5% change, and currently holds a Zacks Rank 2 (Buy) [3] Revenue Breakdown - Interest income on loans receivable was reported at $3.28 million, slightly above the estimated $3.12 million, reflecting a 0.3% increase year-over-year [4] - Rental revenue, including reimbursable, was $45.03 million, compared to the average estimate of $45.56 million, marking an 18% year-over-year increase [4] - Net Earnings Per Share (Diluted) was $0.01, below the average estimate of $0.07 from two analysts [4]

Core Viewpoint - NETSTREIT (NTST) reported quarterly funds from operations (FFO) of $0.33 per share, matching the Zacks Consensus Estimate and showing a year-over-year increase from $0.32 per share [1] Financial Performance - The company posted revenues of $48.31 million for the quarter ended September 2025, which was 0.87% below the Zacks Consensus Estimate, compared to $41.44 million in the same quarter last year [2] - Over the last four quarters, NETSTREIT has exceeded consensus FFO estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance - NETSTREIT shares have increased approximately 36.1% since the beginning of the year, outperforming the S&P 500's gain of 15.5% [3] - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.33 on revenues of $49.22 million, and for the current fiscal year, it is $1.30 on revenues of $192.09 million [7] - The estimate revisions trend for NETSTREIT was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Property Portfolio and Revenue - As of September 30, 2025, the company owned or had investments in 723 properties, generating an annualized base rent (ABR) of $183.2 million, with a portfolio occupancy rate of 99.9%[149] - The company acquired 87 properties for a total purchase price of $368.3 million during the nine months ended September 30, 2025, with a weighted average remaining lease term (WALT) of approximately 13.1 years[157] - During the three months ended September 30, 2025, rental revenue increased by $6.9 million to $48.3 million compared to the same period in 2024, primarily due to an increase in operating leases[162] - Rental revenue increased by $22.5 million to $132.8 million for the nine months ended September 30, 2025, compared to $110.3 million for the same period in 2024[169] - Total revenues for the nine months ended September 30, 2025, increased by $23.8 million to $142.5 million from $118.7 million for the same period in 2024[169] Financial Performance - Net income increased by $5.9 million to $0.6 million for the three months ended September 30, 2025, from a net loss of $5.3 million for the same period in 2024[167] - Net income for Q3 2025 was $621, compared to a loss of $5,322 in Q3 2024[208] - FFO for Q3 2025 was $24,948, slightly down from $25,008 in Q3 2024, while nine-month FFO increased to $74,651 from $66,172[203] - Core FFO for Q3 2025 was $26,355, up from $24,907 in Q3 2024, with nine-month Core FFO rising to $76,540 from $70,744[203] - AFFO for Q3 2025 reached $28,049, compared to $24,825 in Q3 2024, with nine-month AFFO increasing to $81,757 from $71,502[203] - EBITDA for Q3 2025 was $34,476, significantly higher than $22,648 in Q3 2024, with nine-month EBITDA rising to $105,896 from $71,121[208] Expenses and Impairments - Total operating expenses decreased by $2.8 million to $36.3 million for the three months ended September 30, 2025, compared to $39.1 million for the same period in 2024[164] - General and administrative expenses increased by $0.5 million to $15.8 million for the nine months ended September 30, 2025, from $15.3 million for the same period in 2024[170] - Total operating expenses increased by $4.9 million to $106.8 million for the nine months ended September 30, 2025, compared to $101.9 million for the same period in 2024[170] - The company recognized provisions for impairment of $5.5 million during the three months ended September 30, 2025, compared to $9.8 million in the same period in 2024[162] - Provisions for impairment decreased to $13.5 million for the nine months ended September 30, 2025, from $17.3 million for the same period in 2024[178] Debt and Financing - The company entered into a Term Loan Agreement on September 25, 2025, providing for a $200 million senior unsecured term loan and a $250 million senior unsecured term loan, with fixed interest rates of 4.59% and 4.92% respectively[151] - As of September 30, 2025, the company had $200.0 million outstanding under the 2028 Term Loan and $250.0 million under the 2029 Term Loan[177] - The company amended its PNC Credit Agreement to include a new $175.0 million 2030 Term Loan B and an upsized $500.0 million Revolver, with the Term Loan B fully funded at a fixed interest rate of 5.02%[180] - Total indebtedness as of September 30, 2025, amounted to $1.1 billion, with various term loans including $200 million under the 2028 Term Loan and $250 million under the 2029 Term Loan, all of which are floating rate debt[219] - The company reported a weighted average interest rate of 5.47% on $199.0 million borrowed during the nine months ended September 30, 2025[183] Cash Flow and Investments - Net cash provided by operating activities increased by $18.6 million to $80.7 million for the nine months ended September 30, 2025, primarily due to increased rental receipts of $19.3 million[188] - Net cash used in investing activities decreased by $79.9 million to $(239.5) million for the nine months ended September 30, 2025, attributed to increased proceeds from real estate sales and reduced development costs[189] - Net cash provided by financing activities decreased by $58.3 million to $197.8 million for the nine months ended September 30, 2025, mainly due to increased net repayments of $309.0 million under the Revolver[190] - The company has commitments totaling $6.3 million for property developments and $11.4 million for mortgage loans receivable, expected to be funded through the end of 2026[186] Risk Management - The company hedged the entire $200.0 million 2031 Term Loan at a fixed interest rate of 4.59% and partially hedged $200.0 million of the 2032 Term Loan at 4.92%[181] - The company has entered into interest rate derivative contracts to hedge market risk associated with term loans, converting variable rate debt to fixed interest rates[220] - The interest rate on the Revolver as of September 30, 2025, was determined by either SOFR plus a margin of 1.00% to 1.45% or a Base Rate plus a margin of 0.00% to 0.45%[221] - Estimated market risk exposure from a 1% adverse change in interest rates as of September 30, 2025, was approximately $1.2 million[221] Operational Commitments - The company anticipates that proceeds from debt, cash flows from operations, and available borrowing capacity will be adequate to support operations and fund capital expenditures for at least the next 12 months[182] - The company had two property developments under construction as of September 30, 2025, with investments of $2.2 million during the nine months ended September 30, 2025[158]

Financial Performance - Net income for Q3 2025 was $0.01 per diluted share, compared to a loss of $0.07 in Q3 2024[4] - Adjusted Funds from Operations (AFFO) per diluted share increased by 3.1% to $0.33, up from $0.32 in the same quarter last year[4] - Total revenues for the three months ended September 30, 2025, were $48.308 million, a 16.5% increase from $41.444 million in the same period of 2024[30] - Rental revenue, including reimbursable, was $45.026 million for the three months ended September 30, 2025, compared to $38.172 million in 2024, reflecting a 17.5% growth[30] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $618,000, a significant recovery from a net loss of $5.295 million in the same period of 2024[30] - Net income for the three months ended September 30, 2025, was $621,000, a significant improvement from a net loss of $5,322,000 in the same period of 2024[38] - Funds from Operations (FFO) for the three months ended September 30, 2025, were $24.948 million, slightly down from $25.008 million in 2024[32] - Core FFO for the three months ended September 30, 2025, was $26.355 million, an increase from $24.907 million in the same period of 2024[32] - EBITDA for the period was reported at $34,476,000, with Adjusted EBITDAre reaching $41,778,000, leading to an annualized Adjusted EBITDAre of $167,112,000[34][47] Investment Activity - The company achieved record gross investment activity of $203.9 million at a blended cash yield of 7.4%[1] - The company increased its 2025 net investment guidance to a range of $350.0 million to $400.0 million, up from $125.0 million to $175.0 million[16] - The company raised over $690 million in capital recently, positioning it for increased investments[3] Real Estate Portfolio - The real estate portfolio consisted of 721 investments with an occupancy rate of 99.9% and an average lease term of 9.9 years[10] - The weighted average lease term for new investments was 13.4 years, compared to 13.1 years for the previous year[6] Liquidity and Debt - Total liquidity as of September 30, 2025, was $1.13 billion, including $499.85 million in unused unsecured revolver capacity[12] - The company's Net Debt as of September 30, 2025, stood at $1,054,760,000, with Adjusted Net Debt at $623,514,000 and Pro Forma Adjusted Net Debt at $593,832,000[34][35] - The total principal amount of debt outstanding was $1,108,084,000, with cash and cash equivalents totaling $53,324,000[34] - Interest expense for the period was $12,636,000, an increase from $7,965,000 in the same period of 2024[38] Assets and Liabilities - The total assets increased to $2.468 billion as of September 30, 2025, up from $2.259 billion at the end of 2024, marking an 9.2% growth[28] - Total liabilities rose to $1.162 billion as of September 30, 2025, compared to $921.214 million at the end of 2024, indicating a 26.2% increase[28] - The company reported a total stockholders' equity of $1.299 billion as of September 30, 2025, down from $1.331 billion at the end of 2024[28] Operational Performance - Property-Level Cash NOI for the three months ended September 30, 2025, was $39,416,000, up from $33,282,000 in the same period of 2024, indicating a growth of approximately 18.5%[38] - The company reported a Property-Level NOI of $40,577,000 for the three months ended September 30, 2025, compared to $34,201,000 in 2024, reflecting a year-over-year increase of approximately 18.5%[38] - The leverage ratio, calculated as Net Debt to Annualized Adjusted EBITDAre, was 6.3x, while the Pro Forma Adjusted Net Debt to Annualized Adjusted EBITDAre was 3.6x[35] Dividend and Shareholder Returns - The company declared a quarterly cash dividend of $0.215 per share for Q4 2025, representing an annualized increase of $0.02 per share over the previous year[15] - The weighted average common shares outstanding for the three months ended September 30, 2025, were 83,472,089, compared to 77,610,680 in 2024[32] Impairment and Provisions - The company recognized provisions for impairment amounting to $4,134,000 during the quarter[34] Future Outlook - The company anticipates continued growth in rental revenue and overall performance, despite macroeconomic uncertainties[26] - The weighted average net settlement price for unsettled forward equity shares was $16.98, with 25,393,242 shares unsettled as of September 30, 2025[36]