[PART I](index=5&type=section&id=PART%20I) [Item 1. Business](index=5&type=section&id=Item%201.%20Business) NETSTREIT Corp. is a REIT managing 598 single-tenant retail properties, generating $131.9 million ABR with 100% occupancy and a 9.5-year WALT Portfolio Overview as of December 31, 2023 | Metric | Value | | :--- | :--- | | Properties Owned/Invested In | 598 | | Tenants | 85 | | Retail Sectors | 26 | | States | 45 | | Annualized Base Rent (ABR) | $131.9 million | | Occupancy (exclusive of mortgage loans) | 100% | | Weighted Average Remaining Lease Term (WALT) | 9.5 years | | ABR from Investment Grade Tenants | ~71% | | ABR from Investment Grade Profile Tenants | ~14% | - The company's investment strategy is multi-faceted, including acquiring stabilized leases, blend-and-extend transactions, mortgage loans, build-to-suit projects, and sale-leaseback transactions to build its portfolio opportunistically[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - In 2023, the company entered into a new **$250.0 million** sustainability-linked senior unsecured term loan (2029 Term Loan) and amended its **$175.0 million** term loan (2027 Term Loan) It also established a new **$300.0 million** ATM program, raising approximately **$76.5 million** in net proceeds by year-end[19](index=19&type=chunk)[20](index=20&type=chunk)[23](index=23&type=chunk) - The underwriting and portfolio management process is a three-part strategy focusing on: (1) Tenant Credit Underwriting, (2) Real Estate Valuation, and (3) Unit-Level Profitability analysis[35](index=35&type=chunk)[37](index=37&type=chunk) - As of December 31, 2023, the company had **28 full-time employees** The workforce was approximately **64% male** and **36% female**, with **29% being ethnically diverse**[55](index=55&type=chunk)[56](index=56&type=chunk) [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces multiple risks, primarily related to global economic conditions, commercial real estate ownership, and financing - Macro-economic conditions, such as high inflation and interest rates, have increased acquisition costs and reduced the availability of attractive financing, potentially slowing the company's historical growth rate[59](index=59&type=chunk)[61](index=61&type=chunk) - The business is highly dependent on tenants' financial stability A downturn in a key tenant's business, such as **Dollar General (10.9% of ABR)**, **CVS (7.8%)**, or **Walgreens (6.9%)**, could materially and adversely affect the company[63](index=63&type=chunk)[69](index=69&type=chunk) - The portfolio has significant geographic concentrations, with substantial holdings in **Illinois (8.6% of ABR)**, **Texas (7.6%)**, and **Wisconsin (7.2%)**, making the company susceptible to adverse developments in these markets[68](index=68&type=chunk) - The company relies on external capital to fund growth due to the REIT requirement to distribute at least **90%** of taxable income Inability to access capital on favorable terms could hinder acquisitions and operations[88](index=88&type=chunk) - Failure to qualify as a REIT would result in severe tax consequences, including being subject to corporate income tax and the inability to deduct dividends paid to stockholders, which would substantially reduce funds available for distribution[93](index=93&type=chunk) - Cybersecurity risks, including data breaches from internal systems or third-party vendors, could lead to operational disruptions, financial loss, and reputational harm[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) [Item 1B. Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[137](index=137&type=chunk) [Item 1C. Cybersecurity](index=28&type=section&id=Item%201C.%20Cybersecurity) The company implements an information security program, overseen by its IT Manager and Chief Accounting Officer, with Board audit committee oversight - The company has implemented information security processes to identify, assess, and manage material risks from cybersecurity threats[138](index=138&type=chunk) - Cybersecurity oversight is managed by the IT Manager and Chief Accounting Officer, with ultimate oversight responsibility falling to the Board's audit committee[139](index=139&type=chunk)[144](index=144&type=chunk) - The company utilizes third-party service providers for functions like cybersecurity monitoring and has processes to manage risks associated with these vendors[141](index=141&type=chunk)[142](index=142&type=chunk) [Item 2. Properties](index=29&type=section&id=Item%202.%20Properties) NETSTREIT's portfolio consists of 598 single-tenant retail properties, 100% occupied, diversified across 85 tenants and 26 sectors Portfolio Summary (as of Dec 31, 2023) | Metric | Value | | :--- | :--- | | Properties | 598 | | Square Feet | 10.6 million | | Occupancy | 100% | | Annualized Base Rent (ABR) | $131.9 million | | WALT | 9.5 years | | Investment Grade Tenants (by ABR) | ~71% | | Investment Grade Profile Tenants (by ABR) | ~14% | [Tenant and Industry Diversification](index=31&type=section&id=Tenant%20and%20Industry%20Diversification) Top 5 Tenants by % of ABR | Tenant | % of ABR | | :--- | :--- | | Dollar General Corporation | 10.9% | | CVS Health Corporation | 7.8% | | Walgreen Co. | 6.9% | | Dollar Tree / Family Dollar | 5.0% | | Home Depot U.S.A, Inc. | 4.7% | Top 5 Industries by % of ABR | Tenant Industry | % of ABR | | :--- | :--- | | Dollar Stores | 15.8% | | Grocery | 15.4% | | Drug Stores & Pharmacies | 14.6% | | Home Improvement | 11.6% | | Convenience Stores | 7.3% | - Defensive retail industries, defined as necessity-based, service-oriented, and discount-focused, account for **87.7%** of the portfolio's ABR[153](index=153&type=chunk)[154](index=154&type=chunk) [Geographic Diversification and Lease Expirations](index=33&type=section&id=Geographic%20Diversification%20and%20Lease%20Expirations) Top 5 States by % of ABR | State | % of ABR | | :--- | :--- | | Illinois | 8.6% | | Texas | 7.6% | | Wisconsin | 7.2% | | New York | 6.5% | | North Carolina | 5.9% | - The portfolio has a well-staggered lease expiration schedule, with no single year before 2033 accounting for more than **9.5%** of total ABR expirations[156](index=156&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently subject to any material lawsuits, claims, or other legal proceedings - The company states it is not currently subject to any lawsuits, claims, or other legal proceedings[159](index=159&type=chunk) [Item 4. Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[160](index=160&type=chunk) [PART II](index=35&type=section&id=PART%20II) [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE under "NTST", with regular quarterly dividends, totaling $0.810 per share in 2023 - As of February 12, 2024, there were **73,221,810 shares** of common stock outstanding[161](index=161&type=chunk) Dividends Per Share | Year | Dividend Per Share | | :--- | :--- | | 2023 | $0.810 | | 2022 | $0.800 | Total Stockholder Return Performance (from 8/13/2020 to 12/31/2023) | Index | 12/31/2023 Value (assuming $100 initial investment) | | :--- | :--- | | NETSTREIT Corp. | $115.61 | | S&P 500 | $149.14 | | NAREIT US EQUITY REIT Index | $125.23 | [Item 6. Reserved](index=36&type=section&id=Item%206.%20Reserved) This item is reserved [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, revenues increased 37% to $131.9 million, but net income decreased to $6.9 million due to higher interest and impairment expenses - During 2023, the company acquired **103 properties** for **$345.1 million**, invested **$81.0 million** in property developments, and sold **19 properties** for **$40.3 million**[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) - The company invested **$72.3 million** in fully collateralized mortgage loans receivable with interest rates ranging from **6.89% to 10.25%**[180](index=180&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Comparison of Operating Results (Years Ended Dec 31, in thousands) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Total revenues | $131,905 | $96,279 | | Total operating expenses | $107,805 | $82,776 | | Interest expense, net | ($19,058) | ($9,181) | | Net income | $6,890 | $8,205 | - Revenue increased by **$35.6 million (37.0%)** in 2023 compared to 2022, primarily due to the growth in the number of operating leases and properties securing mortgage loans[183](index=183&type=chunk) - Total operating expenses increased by **$25.0 million**, driven by higher depreciation and amortization (**$13.6 million** increase), property expenses (**$4.7 million** increase), and provisions for impairment (**$6.0 million** increase)[184](index=184&type=chunk)[190](index=190&type=chunk) - Net income decreased by **$1.3 million**, primarily due to higher interest expense, depreciation, and impairment charges, which offset the significant revenue growth from portfolio expansion[191](index=191&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) - As of December 31, 2023, the company had **$525.0 million** outstanding under its term loans and **$80.0 million** outstanding under its **$400.0 million** revolver[192](index=192&type=chunk) Historical Cash Flow Summary (Years Ended Dec 31, in thousands) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $80,155 | $50,647 | | Net cash used in investing activities | ($451,953) | ($468,361) | | Net cash provided by financing activities | $331,184 | $480,654 | - As of December 31, 2023, the company had commitments to fund **$35.7 million** for properties under development and **$13.7 million** for mortgage notes receivable, expected to be funded over the next 12 months[198](index=198&type=chunk) [Non-GAAP Financial Measures](index=44&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliation of Net Income to AFFO (Years Ended Dec 31, in thousands) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Net income | $6,890 | $8,205 | | FFO | $76,177 | $54,669 | | Core FFO | $76,684 | $55,391 | | AFFO | $79,070 | $58,517 | Reconciliation of Net Income to EBITDAre (Years Ended Dec 31, in thousands) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Net income | $6,890 | $8,205 | | EBITDA | $89,128 | $67,056 | | EBITDAre | $95,036 | $64,022 | - As of December 31, 2023, the company's Adjusted Net Debt was **$484.8 million**, resulting in an Adjusted Net Debt to Annualized Adjusted EBITDAre ratio of **4.1x**[228](index=228&type=chunk)[231](index=231&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on variable-rate debt, mitigated by derivative contracts - The company's principal market risk exposure is related to interest rate fluctuations on its floating-rate debt, which totaled **$605.0 million** as of December 31, 2023 (excluding the mortgage note)[236](index=236&type=chunk) - The company has hedged its interest rate risk associated with the 2027, 2028, and 2029 Term Loans by entering into interest rate derivative contracts that convert the variable-rate debt to a fixed interest rate[237](index=237&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2023, with an unqualified opinion from KPMG LLP - The independent auditor, KPMG LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of the company's internal control over financial reporting as of December 31, 2023[242](index=242&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk) - The auditor identified two Critical Audit Matters: (1) the evaluation of indicators for potential impairment of long-lived asset groups, and (2) the evaluation of the fair value of land and buildings in certain real estate asset acquisitions[253](index=253&type=chunk)[254](index=254&type=chunk)[257](index=257&type=chunk) Consolidated Balance Sheet Highlights (as of Dec 31, in thousands) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Total real estate held for investment, net | $1,538,693 | $1,262,500 | | Total assets | $1,946,236 | $1,605,692 | | Total liabilities | $672,804 | $547,269 | | Total equity | $1,273,432 | $1,058,423 | Consolidated Statement of Operations Highlights (Year Ended Dec 31, in thousands) | (in thousands) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total revenues | $131,905 | $96,279 | $59,140 | | Net income | $6,890 | $8,205 | $3,150 | | Diluted EPS | $0.11 | $0.16 | $0.08 | [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=84&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - None[420](index=420&type=chunk) [Item 9A. Controls and Procedures](index=84&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures are effective[421](index=421&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023, which was audited by KPMG LLP[424](index=424&type=chunk) [Item 9B. Other Information](index=85&type=section&id=Item%209B.%20Other%20Information) This item is not applicable - Not applicable[426](index=426&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=85&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable - Not applicable[427](index=427&type=chunk) [PART III](index=85&type=section&id=PART%20III) [Item 10. Directors, Executive Officers and Corporate Governance](index=85&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[428](index=428&type=chunk) [Item 11. Executive Compensation](index=85&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2024 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[430](index=430&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=85&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the 2024 Proxy Statement, with 1,014,906 securities available for future issuance - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[431](index=431&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2023) | Plan Category | Securities to be Issued Upon Exercise | Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 587,045 | 1,014,906 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=86&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2024 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[433](index=433&type=chunk) [Item 14. Principal Accountant Fees and Services](index=86&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement; KPMG LLP is the auditor - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[434](index=434&type=chunk) - The company's independent registered public accounting firm is KPMG LLP[434](index=434&type=chunk) [PART IV](index=86&type=section&id=PART%20IV) [Item 15. Exhibit and Financial Statement Schedules](index=86&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K - This item lists all documents filed as part of the Form 10-K, including financial statements, schedules (Schedule III - Real Estate and Accumulated Depreciation; Schedule IV - Mortgage Loans on Real Estate), and exhibits[435](index=435&type=chunk) [Item 16. Form 10-K Summary](index=88&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[440](index=440&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 001-39443 NETSTREIT Corp. (Exact name of registrant as specified in its charter) Maryland 84-3356606 (State or other jurisdicti ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents NETSTREIT Corp.'s unaudited condensed consolidated financial statements, covering balance sheets, operations, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.75 billion** and total equity grew to **$1.20 billion** by June 30, 2023, driven by real estate and equity raises Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,747,758** | **$1,605,692** | | Real estate held for investment, net | $1,374,370 | $1,262,500 | | Mortgage loans receivables, net | $107,758 | $46,378 | | Cash, cash equivalents and restricted cash | $13,140 | $70,543 | | **Total Liabilities** | **$543,163** | **$547,269** | | Term loans, net | $372,686 | $373,296 | | Revolving credit facility | $106,000 | $113,000 | | **Total Equity** | **$1,204,595** | **$1,058,423** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q2 2023 reported a **net loss of $0.8 million** despite revenue growth; H1 2023 net income fell to **$0.7 million** Key Operating Results (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $31,630 | $22,634 | $61,081 | $43,967 | | Total Operating Expenses | $27,488 | $20,903 | $51,390 | $39,171 | | Interest Expense, net | ($5,521) | ($1,522) | ($9,465) | ($2,691) | | Net (Loss) Income | ($792) | $2,010 | $689 | $3,976 | | Diluted EPS | ($0.01) | $0.04 | $0.01 | $0.08 | [Condensed Consolidated Statements of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to **$1.20 billion** by June 30, 2023, primarily from **$167.4 million** in stock issuances, offset by dividends - Total equity increased to **$1,204.6 million** at June 30, 2023, up from **$1,058.4 million** at December 31, 2022[15](index=15&type=chunk)[16](index=16&type=chunk) - Key drivers of the equity increase were net proceeds from public offerings of common stock (**$52.9 million** in Q1 and **$114.5 million** in Q2)[15](index=15&type=chunk)[16](index=16&type=chunk) - Dividends and distributions declared on common stock and OP Units totaled **$24.0 million** for the six months ended June 30, 2023[15](index=15&type=chunk)[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash increased to **$34.4 million**, investing used **$226.5 million**, and financing provided **$134.7 million**, leading to a **$57.4 million** cash decrease Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $34,395 | $22,250 | | Net cash used in investing activities | ($226,525) | ($289,253) | | Net cash provided by financing activities | $134,727 | $279,250 | | **Net change in cash, cash equivalents and restricted cash** | **($57,403)** | **$12,247** | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's REIT structure, accounting policies, real estate investments, debt, derivatives, equity, and commitments - The company is an internally managed REIT focused on single-tenant, retail commercial real estate. As of June 30, 2023, it owned or had investments in **525 properties** in **45 states**[26](index=26&type=chunk) - For the six months ended June 30, 2023, the company acquired **48 properties** for **$163.9 million** and sold **ten properties** for **$19.3 million**[54](index=54&type=chunk)[61](index=61&type=chunk) - Total debt outstanding was **$489.4 million** as of June 30, 2023, consisting primarily of term loans and a revolving credit facility. The company uses interest rate swaps to hedge its variable-rate debt[70](index=70&type=chunk)[91](index=91&type=chunk) - Subsequent to the quarter end, the company entered into a new **$250.0 million** 2029 Term Loan and declared a Q3 2023 dividend of **$0.205 per share**[147](index=147&type=chunk)[149](index=149&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business overview, operations, liquidity, and capital resources, highlighting portfolio growth and non-GAAP reconciliations [Business Overview](index=28&type=section&id=Business%20Overview) The company is an internally managed REIT with **525 single-tenant retail properties**, **100% occupancy**, and **$116.9 million ABR** - As of June 30, 2023, the portfolio included **525 properties** leased to **87 different tenants** across **25 retail sectors** in **45 states**[154](index=154&type=chunk) Portfolio Statistics as of June 30, 2023 | Metric | Value | | :--- | :--- | | Annualized Base Rent (ABR) | $116.9 million | | Occupancy (excluding mortgage loans) | 100% | | Weighted Average Remaining Lease Term (WALT) | 9.4 years | | ABR from Investment Grade Tenants | ~68% | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q2 2023 revenues increased to **$31.6 million** but resulted in a **$0.8 million net loss**; H1 2023 revenues grew to **$61.1 million**, with net income falling to **$0.7 million** Comparison of Three Months Ended June 30 (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenues | $31,630 | $22,634 | | Total Operating Expenses | $27,488 | $20,903 | | Interest Expense, net | ($5,521) | ($1,522) | | Net (Loss) Income | ($792) | $2,010 | Comparison of Six Months Ended June 30 (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenues | $61,081 | $43,967 | | Total Operating Expenses | $51,390 | $39,171 | | Interest Expense, net | ($9,465) | ($2,691) | | Net Income | $689 | $3,976 | - The increase in revenues was attributed to the growth in operating leases and properties securing mortgage loans. The decrease in net income was primarily due to higher interest expense from increased borrowings and rates, as well as higher depreciation and impairment charges related to the larger portfolio[172](index=172&type=chunk)[176](index=176&type=chunk)[179](index=179&type=chunk)[187](index=187&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Primary capital sources include cash from operations, equity sales, and debt facilities, with **$481.0 million** outstanding debt and a new **$250 million** term loan - Primary capital resources consist of cash from operations, sales of equity securities (including a **$250 million** ATM Program with **$127.3 million** remaining), and borrowing facilities[188](index=188&type=chunk) - Subsequent to quarter-end, the company entered into a new **$250.0 million** 2029 Term Loan, enhancing liquidity[188](index=188&type=chunk) Contractual Obligations as of June 30, 2023 (in thousands) | Obligation Type | Total | < 1 Year | 1 – 3 Years | 3 – 5 Years | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | Debt (Principal & Interest) | $585,282 | $9,019 | $37,198 | $304,465 | $204,600 | | Property developments | $27,935 | $27,935 | $0 | $0 | $0 | | Corporate office lease | $6,172 | $285 | $1,253 | $1,323 | $3,311 | | **Total** | **$600,850** | **$37,439** | **$48,059** | **$311,150** | **$204,202** | [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) Provides definitions and reconciliations for key non-GAAP financial measures, including FFO, Core FFO, AFFO, and EBITDAre FFO and AFFO Reconciliation (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net (Loss) Income | ($792) | $2,010 | $689 | $3,976 | | **FFO** | **$17,198** | **$12,864** | **$33,882** | **$25,531** | | **Core FFO** | **$17,587** | **$12,828** | **$34,272** | **$25,495** | | **AFFO** | **$18,747** | **$13,738** | **$36,136** | **$26,877** | EBITDAre Reconciliation for Q2 (in thousands) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Net (Loss) Income | ($792) | $2,010 | | **EBITDA** | **$20,516** | **$15,223** | | **EBITDAre** | **$22,737** | **$14,479** | | **Adjusted EBITDAre** | **$25,620** | **$17,285** | | **Annualized Adjusted EBITDAre** | **$102,480** | N/A | - The company's Net Debt to Annualized Adjusted EBITDAre ratio was **4.6x** as of June 30, 2023[221](index=221&type=chunk)[223](index=223&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate fluctuation on variable-rate debt, largely mitigated by derivatives, with a **$1.2 million** risk on the Revolver - The principal market risk is from interest rate fluctuations on its floating-rate debt, totaling **$481.0 million** as of June 30, 2023[228](index=228&type=chunk) - The company uses interest rate derivative contracts to hedge the market interest risk on its **$175.0 million** 2027 Term Loan and **$200.0 million** 2028 Term Loan, effectively converting them to fixed-rate debt[229](index=229&type=chunk) - The remaining significant exposure is on the Revolver. A sensitivity analysis indicates that a **1%** adverse change in interest rates would result in an estimated market risk exposure of approximately **$1.2 million**[230](index=230&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The company's principal executive and financial officers concluded that disclosure controls and procedures are effective[231](index=231&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[232](index=232&type=chunk) [PART II – OTHER INFORMATION](index=43&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material lawsuits, claims, or other legal proceedings - As of the report date, the company is not a party to any material legal proceedings[234](index=234&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2022 Form 10-K - No material changes have been made to the risk factors disclosed in the company's 2022 Form 10-K[235](index=235&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or company stock repurchases during the period - There were no unregistered sales of equity securities or company stock repurchases[236](index=236&type=chunk) [Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) Not applicable [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including corporate governance documents, credit agreements, and CEO/CFO certifications - Key exhibits filed include an Amended and Restated Credit Agreement dated June 15, 2023, a new Term Loan Agreement dated July 3, 2023, and CEO/CFO certifications[241](index=241&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $0.03, core FFO of $0.28, and AFO of $0.30 per diluted share for Q1 2023 [19] - The AFO payout ratio for the first quarter was 67% based on a declared quarterly cash dividend of $0.20 [20] Business Line Data and Key Metrics Changes - The company completed net investments of $112.7 million, including the acquisition of 20 properties for $67.7 million at a weighted average cash yield of 6.9% [89] - Two senior loan investments secured by 49 properties amounted to $46.1 million at a weighted average cash yield of 9.3% [89] Market Data and Key Metrics Changes - The portfolio was 100% occupied with 488 investments and 83 tenants, contributing $108.9 million of annualized base rent [77] - 95% of first quarter investments were with investment-grade and investment-grade profile tenants [30] Company Strategy and Development Direction - The company aims to scale its portfolio of high-quality tenants while managing its balance sheet and liquidity prudently [102] - The current market conditions have created opportunities for the company to maintain growth strategy momentum despite stress in the regional banking sector [16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the durable cash flow stream and attractive growth profile, offering compelling total return potential for investors [102] - The company noted that the net lease industry transaction market remains less active than the previous year, but there are healthy opportunities at attractive prices [30] Other Important Information - The company has a total debt of approximately $480 million with a weighted average contractual interest rate of 3.4% [104] - The loan-to-value of the underlying collateral is approximately 60%, with a first lien position and a 3-year term at a weighted average interest rate of 9.3% [17] Q&A Session Summary Question: Can you provide more detail on external growth opportunities? - Management indicated that they are looking to acquire tenants similar to those in their existing portfolio, with some new names in grocery and quick service restaurants [1] Question: What does the interest coverage look like from Speedway? - The company collects all cash flow from a transaction with a cap rate of about 5.6% to 5.7%, with uncapped CPI bumps expected in about 2.5 years [6] Question: How does the company view the appetite for loans versus acquisitions? - Management noted that the transaction market is currently in flux, and they are building relationships with future sellers while seeking strong risk-adjusted returns [21] Question: What is the competition for investment-grade assets? - Management stated that competition has diminished, making it difficult for 1031 buyers to achieve necessary yields [46] Question: How does the company plan to manage its loan portfolio? - The company aims to keep its loan book below 10% of total volume to minimize replacement risk [52]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 001-39443 NETSTREIT Corp. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer i ...

NETSTREIT Corp. (NYSE:NTST) Q4 2022 Earnings Conference Call February 24, 2023 10:00 AM ET Company Participants Randy Haugh - Capital Markets Mark Manheimer - Chief Executive Officer Lori Wittman - Interim Chief Financial Officer Conference Call Participants Nick Joseph - Citi Josh Dennerlein - Bank of America Ki Bin Kim - Truist Securities Greg McGinniss - Scotiabank Wes Golladay - Baird Linda Tsai - Jefferies Operator Ladies and gentlemen, greetings, and welcome to the NETSTREIT Corp. Fourth Quarter 2022 ...

| --- | |------------------------------------------------------------| | | | | | | | | | High-Quality, Diversified, and Defensive Net Lease Retail | Conservative Capitalization to Support Accretive Growth Investment Highlights 61% 68% 63% 33% 20% 18% 0% ADC NTST FCPT O SRC NNN EPRT | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|------------------------------------------------------|-------|-------|-------|-------------| | 13.9 | 9.5 | 8.3 | Lease Rollover \nLease Rollover % ('23- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 001-39443 NETSTREIT Corp. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorp ...

NETSTREIT Corp. (NYSE:NTST) Q3 2022 Earnings Conference Call October 28, 2022 10:00 AM ET Company Participants Amy An - Investor Relations Manager Mark Manheimer - Chief Executive Officer Andy Blocher - Chief Financial Officer Conference Call Participants R.J. Milligan - Raymond James Nick Joseph - Citi Ki Bin Kim - Truist Wes Golladay - Baird Joshua Dennerlein - Bank of America Todd Thomas - KeyBanc Nick Yulico - Scotiabank Linda Tsai - Jefferies Operator Greetings. And welcome to the NETSTREIT Corp. Third ...

NETSTREIT Investor Presentation October 2022 PHARMACY PHOTO Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements concerning our business and growth strategies, investment, financing and leasing activities and trends in our business, including trends in the market for single-tenant, ...