Financial Performance - Net loss of $(0.07) per diluted share for Q3 2024, compared to net income of $0.06 in Q3 2023, representing a 217% change[3] - Adjusted Funds from Operations (AFFO) per diluted share for Q3 2024 was $0.32, a 3% increase from $0.31 in Q3 2023[3] - Rental revenue for the three months ended September 30, 2024, was $38,172,000, a 22.5% increase from $31,167,000 in the same period of 2023[25] - Total revenues for the nine months ended September 30, 2024, reached $118,684,000, up 24.9% from $95,042,000 in the same period of 2023[25] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(5,295,000), compared to a net income of $4,215,000 in the same period of 2023[25] - Funds from Operations (FFO) for the three months ended September 30, 2024, was $25,008,000, an increase from $21,130,000 in the same period of 2023, representing a growth of approximately 18%[27] - Core FFO for the three months ended September 30, 2024, was $24,907,000, compared to $21,191,000 for the same period in 2023, reflecting a year-over-year increase of about 17%[27] - Adjusted EBITDA for the three months ended September 30, 2024, was $35,846,000, up from $27,681,000 in the same period of 2023, indicating a growth of approximately 30%[29] - Property-Level Cash NOI for the three months ended September 30, 2024, was $33,282,000, compared to $26,918,000 for the same period in 2023, marking an increase of about 24%[31] Investment Activity - The company completed record gross investment activity of $151.6 million at a blended cash yield of 7.5% in Q3 2024[2] - The company executed 33 investments totaling $151.6 million in Q3 2024, with net investment activity of $118.6 million[5] - The company funded $5.1 million for ongoing development projects during Q3 2024, with total estimated development costs of $21.9 million[6] Guidance and Dividends - The company is maintaining its full year 2024 AFFO per share guidance midpoint, updating the range to $1.26 to $1.27 from the prior range of $1.25 to $1.28[11] - A quarterly cash dividend of $0.21 per share was declared for Q4 2024, representing an increase of $0.02 per share over the prior year[10] Liquidity and Capital Structure - Total liquidity as of September 30, 2024, was $464.1 million, including $249.9 million in unused unsecured revolver capacity[9] - The company reported a net debt of $754,495,000 as of September 30, 2024, after accounting for cash and cash equivalents[30] - Cash, cash equivalents, and restricted cash decreased to $28,750,000 as of September 30, 2024, from $29,929,000 as of December 31, 2023[24] Assets and Liabilities - Total assets increased to $2,185,249,000 as of September 30, 2024, from $1,946,236,000 as of December 31, 2023, representing a growth of 12.3%[24] - Total liabilities rose to $837,925,000 as of September 30, 2024, compared to $672,804,000 as of December 31, 2023, an increase of 24.5%[24] Impairment and Expenses - The company reported a provision for impairment of $9,838,000 for the three months ended September 30, 2024, significantly higher than $1,538,000 in the same period of 2023[25] - Interest expense for the nine months ended September 30, 2024, was $(21,749,000), compared to $(13,412,000) in the same period of 2023, reflecting increased borrowing costs[25] Shareholder Information - The weighted average common shares outstanding for the three months ended September 30, 2024, was 77,610,680, compared to 67,112,587 in the same period of 2023[25] - The weighted average common shares outstanding, diluted, increased to 78,170,544 for the three months ended September 30, 2024, from 68,048,369 in the same period of 2023[27] - The company’s total stockholders' equity increased to $1,340,112,000 as of September 30, 2024, from $1,264,904,000 as of December 31, 2023[24] Governance - Lori Wittman was appointed as Chair of the Board of Directors effective October 1, 2024[14] Non-GAAP Measures - FFO, Core FFO, and AFFO are not alternatives to net income or cash flows from operations as defined by GAAP, and should not be considered reliable measures of operating performance[37] - EBITDAre is defined as EBITDA excluding gains or losses from the sales of depreciable property and impairment charges on depreciable real property[39] - Adjusted EBITDAre excludes non-cash items and other costs, providing a clearer view of operating performance[40] - Net Debt is calculated as total debt outstanding minus cash and cash equivalents, providing an estimate of the net contractual amount of borrowed capital to be repaid[44] - Property-Level NOI is computed as net income excluding various expenses, providing insights into operating results at the property level[45] - Cash Yield is calculated as annualized base rent and interest income divided by the gross investment amount, reflecting the return on investments[47] - Occupancy is expressed as a percentage of economically occupied properties to total properties owned, indicating property utilization[50] - Investment Grade Profile includes investments with strong credit metrics but without a published rating, highlighting financial stability[49] - Annualized Adjusted EBITDAre is calculated by multiplying Adjusted EBITDAre by four, providing a standardized measure of performance over a year[41] - Company emphasizes that these non-GAAP measures should be considered in addition to GAAP financial measures for a comprehensive view of financial health[43]

Group 1 - The estimated size of America's commercial real estate market is significant, making it the fourth-largest asset market behind equities, residential real estate, and treasuries according to the Federal Reserve [1] - The commercial real estate market is a key area of focus for investors, indicating potential opportunities and trends within the sector [1] Group 2 - The article emphasizes the importance of in-depth research on various income alternatives, including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - Seeking Alpha offers a free trial for investors to access detailed research, which may enhance investment decision-making [1]

I am a self-taught value investor focusing on equity REITs and factor investing. When it comes to REITs, I'm interested in either those with high dividend growth potential and a long history of value creation through active capital recycling or high-yielding ones with sustainable distributions trading at a large discount to NAV. And regarding factor-based strategies, I am mostly interested in small-cap value ones. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the ...

Adam Gault Brief Intro & Previous Thesis For Context NETSTREIT (NYSE:NTST) is a relatively small retail/service-oriented triple-net lease REIT with 649 investments (incl. 77 properties that secure mortgage loans receivable). The properties are spread across 45 states and leased to 90 tenants. The Company is not as popular as some of its larger peers, such as: NNN REIT (NNN) Agree Realty (ADC) Essential Properties Realty Trust (EPRT) Realty Income (O) National Footprint in Attractive Markets ≥5% and <10% ABR ...

Gwengoat Is the Fed going to cut rates? The market seems to think so. Currently, the Federal fûnds rate target range is 5.25% to 5.50%. Market participants believe the odds of a >5.00% rate on December 18, 2024, are zero. That's down from 60% TARGET RATE PROBABILITY HISTORY FOR FEDERAL RESERVE MEETING ON 18 DEZ 2024 -525-550 = 500-525 1000 ��� 6000 475 2004 Jan 2024 Apr 2024 Feb 2024 Jon 2024 May 2024 III 2024 Aug 2024 Mar 202-4 CME Group The chances of a rate below 4.25% are just 30%. However, note the ste ...

This quarterly report represents an FFO surprise of 3.23%. A quarter ago, it was expected that this company would post FFO of $0.30 per share when it actually produced FFO of $0.31, delivering a surprise of 3.33%. NETSTREIT, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $39.57 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.65%. This compares to year-ago revenues of $31.63 million. The company has topped consensus revenue estimate ...

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents NETSTREIT Corp.'s unaudited condensed consolidated financial statements for Q2 and H1 2024, including balance sheets, operations, cash flows, and notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $2.10 billion by June 2024, driven by real estate investments, with liabilities and equity also increasing Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,097,986** | **$1,946,236** | | Real estate held for investment, net | $1,659,886 | $1,538,693 | | **Total Liabilities** | **$780,124** | **$672,804** | | Term loans, net | $621,869 | $521,912 | | Revolving credit facility | $98,000 | $80,000 | | **Total Equity** | **$1,317,862** | **$1,273,432** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net loss increased for Q2 and H1 2024, driven by higher operating expenses, depreciation, impairment, and interest costs Statement of Operations Summary (in thousands) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $39,567 | $31,630 | $77,240 | $61,081 | | Total Operating Expenses | $31,677 | $27,488 | $62,819 | $51,390 | | Interest Expense, net | $(7,604) | $(5,521) | $(13,784) | $(9,465) | | **Net (Loss) Income** | **$(2,306)** | **$(792)** | **$(1,254)** | **$689** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was $37.0 million, investing used $203.9 million, and financing provided $150.7 million, leading to a net cash decrease Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $37,018 | $34,395 | | Net cash used in investing activities | $(203,923) | $(226,525) | | Net cash provided by financing activities | $150,702 | $134,727 | | **Net change in cash** | **$(16,203)** | **$(57,403)** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail financial position, including H1 2024 real estate acquisitions, total debt, interest rate hedges, equity offerings, and a Q3 2024 dividend - During the six months ended June 30, 2024, the Company acquired 46 properties for a total purchase price of **$190.8 million**[260](index=260&type=chunk) - As of June 30, 2024, total debt outstanding was **$731.3 million**, consisting of term loans, a revolving credit facility, and a mortgage note[269](index=269&type=chunk) - The Company uses interest rate derivative contracts, designated as cash flow hedges, to manage its exposure to interest rate changes on its variable rate debt. As of June 30, 2024, it held 12 interest rate swaps with a notional value of **$650.0 million**[108](index=108&type=chunk)[285](index=285&type=chunk) - In January 2024, the Company completed a public offering of **11,040,000 shares** at **$18.00 per share**, entering into forward sale agreements for the full amount[4](index=4&type=chunk) - On July 23, 2024, the Board of Directors declared a cash dividend of **$0.21 per share** for the third quarter of 2024[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business overview, financial results, liquidity, and capital resources, including portfolio growth, operational analysis, and non-GAAP reconciliations [Business Overview and Recent Activities](index=46&type=section&id=Business%20Overview%20and%20Recent%20Activities) The company's portfolio reached 649 properties with 100% occupancy by June 2024, driven by acquisitions, and faced a significant loss from a business email compromise - As of June 30, 2024, the portfolio was **100% occupied** with a weighted average remaining lease term (WALT) of **9.5 years**[365](index=365&type=chunk) - In the first half of 2024, acquired **46 properties** for **$190.8 million** and sold **18 properties** for **$32.5 million**[25](index=25&type=chunk)[371](index=371&type=chunk) - The Company was a victim of a criminal scheme involving a business email compromise, resulting in a **$2.8 million loss**, net of insurance recoveries[41](index=41&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) H1 2024 revenues grew 26.4%, but rising operating and interest expenses led to a net loss, reversing H1 2023's net income Comparison of Six Months Ended June 30 (in thousands) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $77,240 | $61,081 | +26.4% | | Total Operating Expenses | $62,819 | $51,390 | +22.2% | | Interest Expense, net | $(13,784) | $(9,465) | +45.6% | | **Net (Loss) Income** | **$(1,254)** | **$689** | **-282.0%** | - The increase in net loss was primarily due to higher interest expense, depreciation, provisions for impairment, and a transfer fraud loss, which offset increased rental revenues from portfolio growth[51](index=51&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company's capital sources include operations, equity sales, and debt facilities, with significant net debt and unsettled forward equity, supporting operations for the next 12 months - As of June 30, 2024, the company had **$98.0 million** outstanding on its **$400.0 million** revolver and **$625.0 million** outstanding across its term loans[53](index=53&type=chunk) - The company had **$222.7 million** of remaining gross proceeds available under its 2023 ATM Program and **$190.4 million** of unsettled forward equity from its January 2024 offering[53](index=53&type=chunk) Contractual Obligations as of June 30, 2024 (in thousands) | Period | Amount | | :--- | :--- | | Remainder of 2024 | $32,855 | | 2025 - 2026 | $596,935 | | 2027 - 2028 | $218,185 | | Thereafter | $2,622 | | **Total** | **$850,597** | [Non-GAAP Financial Measures](index=60&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles key non-GAAP metrics, with H1 2024 Core FFO, AFFO, and EBITDAre showing significant growth over the prior year Reconciliation of Net (Loss) Income to FFO, Core FFO, and AFFO (in thousands) | Metric | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | | Net (loss) income | $(1,254) | $689 | | Adjustments for FFO | $42,418 | $33,193 | | **FFO** | **$41,164** | **$33,882** | | Adjustments for Core FFO | $4,673 | $390 | | **Core FFO** | **$45,837** | **$34,272** | | Adjustments for AFFO | $840 | $1,864 | | **AFFO** | **$46,677** | **$36,136** | Reconciliation of Net (Loss) Income to EBITDAre (in thousands) | Metric | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | | Net (loss) income | $(1,254) | $689 | | EBITDA Adjustments | $49,727 | $39,844 | | **EBITDA** | **$48,473** | **$40,533** | | EBITDAre Adjustments | $6,492 | $2,540 | | **EBITDAre** | **$54,965** | **$43,073** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuation on its floating-rate debt, mitigated by interest rate hedges, with a 1% rate change impacting revolver borrowings - As of June 30, 2024, the company had approximately **$723.0 million** in floating-rate debt outstanding across its term loans and revolver[101](index=101&type=chunk) - The company has hedged its market interest risk for the 2027, 2028, and 2029 Term Loans by using interest rate derivative contracts to convert the variable rate debt to a fixed interest rate[98](index=98&type=chunk) - A sensitivity analysis assuming a **1% adverse change** in interest rates as of June 30, 2024, estimated a market risk exposure of approximately **$0.8 million** related to the revolver[102](index=102&type=chunk) [Item 4. Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective as of June 2024, despite a material weakness from a business email compromise loss, prompting strengthened fund transfer controls - Management concluded that disclosure controls and procedures were effective as of June 30, 2024[392](index=392&type=chunk) - During the quarter, the company was the victim of a business email compromise that led to two fraudulent transfers totaling **$3.3 million**, resulting in a **$2.8 million loss**, net of insurance recoveries[393](index=393&type=chunk) - Following the fraud incident, the company strengthened its processes and controls related to fund transfers and vendor information, and reinforced existing policies and procedures[393](index=393&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material lawsuits, claims, or other legal proceedings - The company is not currently subject to any lawsuits, claims, or other legal proceedings[395](index=395&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K[396](index=396&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales reported; employees surrendered 71,000 RSUs valued at $1.2 million for tax withholding in H1 2024 - During the six months ended June 30, 2024, employees surrendered approximately **71,000 RSUs** valued at **$1.2 million** to pay for statutory tax withholding obligations[348](index=348&type=chunk) [Item 6. Exhibits](index=72&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the report, including CEO and CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[400](index=400&type=chunk)

– Increased Quarterly Dividend by 2.4% to $0.21 Per Share – Six Months Ended June 30, NETSTREIT REPORTS SECOND QUARTER 2024 FINANCIAL AND OPERATING RESULTS – 2024 AFFO Per Share Guidance Range of $1.25 to $1.28 Maintained – SECOND QUARTER 2024 HIGHLIGHTS Three Months Ended June 30, – Net loss of $(0.03) and Adjusted Funds from Operations ("AFFO") of $0.32 Per Diluted Share – – Completed $115.7 Million of Gross Investment Activity at 7.5% Blended Cash Yield – Dallas, TX – July 29, 2024 – NETSTREIT Corp. (NYS ...

E4C/E+ via Getty Images NETSTREIT (NYSE:NTST) is worth holding as the Company operates within the resilient property sector and has: Introduction refer to the link provided below to get a better grasp on the development of my take on NTST. Without further ado, let's review its business - enjoy the read! Netstreit: There Are More Attractive Opportunities Given Its Valuation NTST - The Bright Side Of A Coin As of March 2024, NTST owned 628 properties, which is ~3 times less than the smallest of the above enti ...

Netstreit Corp. has, despite its comparatively small size, one of the better, conservative portfolios out there. We keep both aforementioned triple-net REITs at a maximum allocation almost at all times. NTST, along with companies like VICI (VICI) and a few more businesses and REITs, are companies that we put capital into when we can't put it in other REITs due to allocation rules. Not because these companies are bad, but because the other ones are simply higher rated, and sometimes even come with a higher y ...