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, 2021 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. Employ ...

Financial Data and Key Metrics Changes - The company reported a net loss of $0.07 per diluted share, with core FFO of $0.18 and AFFO of $0.20 for Q2 2021 [11] - Total ABR increased to $55.3 million, up from $34.5 million, reflecting strong portfolio growth [10] - The net debt to annualized adjusted EBITDA ratio was 2.1x, well below the long-term target of 4.5x to 5.5x [12] Business Line Data and Key Metrics Changes - The company achieved acquisition and development volume of approximately $121 million, the largest quarterly volume since the IPO [5] - Approximately 93% of acquisitions were with investment-grade rated tenants or those with investment-grade profiles [6] - The portfolio consists of 267 leases across 5.2 million square feet, with a 100% occupancy rate [8] Market Data and Key Metrics Changes - The company decreased casual dining exposure from 1.9% to 1.2% through asset dispositions [7] - The weighted average remaining lease term for the portfolio is 9.9 years, with no lease expirations until 2023 [8] Company Strategy and Development Direction - The company focuses on strategic growth with high-quality tenants and seeks opportunities with the best risk-adjusted returns [5] - Plans to maintain a target of at least $360 million in net acquisitions for the full year 2021, up from an original guidance of $320 million [13] - The company aims to enhance portfolio diversification while maintaining a focus on investment-grade tenants [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on external growth strategies, citing a strong pipeline of opportunities [9] - The competitive landscape for high-quality assets remains challenging, but the company is leveraging relationships to maintain cap rates [19] - Management indicated that while there is increased competition, they are still able to source attractive deals [43] Other Important Information - The company declared a regular quarterly cash dividend of $0.20, reflecting an annualized rate of $0.80 per share [12] - The company is preparing for compliance as it transitions to a large accelerated filer status beginning in 2022 [13] Q&A Session Summary Question: Activity in Q3 and pipeline size - Management noted an increase in repeat business and a growing pipeline, maintaining similar cap rates as previous quarters [18] Question: 711 concentration increase - Management acknowledged the increase in 711 concentration but emphasized the quality of the acquisition and plans to manage tenant concentrations over time [22] Question: External growth strategy - Management indicated a steady increase in acquisitions over time, focusing on quality rather than rapid growth [25] Question: ATM usage and shelf eligibility - Management discussed the potential for an ATM program with the upcoming shelf eligibility, providing greater capital options [29] Question: Development yields compared to acquisitions - Management stated that development yields are slightly higher than current acquisitions, with a focus on securing leases before proceeding [31] Question: Best Buy exposure - Management expressed caution regarding further acquisitions with Best Buy, focusing on high-quality locations [32] Question: Sourcing investment opportunities - Management confirmed a limited universe of potential tenants but remains confident in sourcing high-quality assets [36] Question: Development traction and future potential - Management indicated a gradual increase in development activities, aiming for a larger share of future acquisitions [37] Question: Acquisition guidance rationale - Management prefers to under-promise and over-deliver, setting a minimum acquisition target to ensure confidence in achieving it [39]

NETSTREIT Investor Presentation July 2021 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, retail commercial ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements detail the company's financial position, performance, equity changes, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets | Metric | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | Total assets | $913,014 | $725,815 | | Real estate, net | $699,590 | $537,622 | | Cash, cash equivalents and restricted cash | $88,140 | $92,643 | | Total liabilities | $203,538 | $197,742 | | Total equity | $709,476 | $528,073 | - Total assets increased by **$187,199 thousand (25.8%)** from December 31, 2020, to June 30, 2021, primarily driven by an increase in real estate held for investment[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) Condensed Consolidated Statements of Operations | Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Rental revenue (including reimbursable) | $13,798 | $7,117 | $25,730 | $12,625 | | Total operating expenses | $16,031 | $7,440 | $26,267 | $13,051 | | Net loss | $(2,630) | $(405) | $(1,889) | $(1,957) | | Net loss attributable to common shareholders | $(2,536) | $(300) | $(1,835) | $(1,427) | | Basic EPS | $(0.07) | $(0.03) | $(0.06) | $(0.13) | - Rental revenue significantly increased by **93.8%** for the three months and **103.8%** for the six months ended June 30, 2021, due to portfolio growth, while net loss increased for the quarter but decreased for the six-month period[12](index=12&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Condensed Consolidated Statements of Changes in Equity | Metric | December 31, 2020 (in thousands) | June 30, 2021 (in thousands) | | :--- | :--- | :--- | | Total Stockholders' Equity | $494,098 | $683,705 | | Total Equity | $528,073 | $709,476 | - Total equity increased by **$181,403 thousand**, primarily due to the issuance of common stock in a public offering, partially offset by dividends and net loss[14](index=14&type=chunk)[110](index=110&type=chunk)[116](index=116&type=chunk) - Noncontrolling interests decreased from **$33,975 thousand to $25,771 thousand**, largely due to OP Units converted to common stock[14](index=14&type=chunk)[117](index=117&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | | Operating activities | $13,758 | $1,796 | | Investing activities | $(198,156) | $(216,186) | | Financing activities | $179,895 | $53,056 | | Net change in cash | $(4,503) | $(161,334) | | Cash at end of period | $88,140 | $7,985 | - Net cash from operating activities increased by **$11,962 thousand**, while net cash from financing activities increased by **$126,839 thousand** driven by common stock offerings[19](index=19&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Note 1 – Organization and Description of Business](index=11&type=section&id=Note%201%20%E2%80%93%20Organization%20and%20Description%20of%20Business) NETSTREIT Corp operates as an internally managed UPREIT with a diversified portfolio of single-tenant retail properties - The Company operates as an internally managed UPREIT and elected **REIT status** for U.S. federal income tax purposes beginning December 31, 2019[21](index=21&type=chunk)[22](index=22&type=chunk) - As of June 30, 2021, the Company owned **267 properties** (including three under development) in 39 states[22](index=22&type=chunk) Capital Raising Activities | Offering Type | Date | Shares Sold | Net Proceeds (millions) | | :--- | :--- | :--- | :--- | | Private Offering | Dec 2019 | 8,860,760 | $219.0 | | Over-allotment | Feb 2020 | 2,936,885 | $54.6 | | Initial Public Offering | Aug 2020 | 12,244,732 | $227.3 | | April 2021 Offering | Apr 2021 | 10,915,688 | $194.2 | [Note 2 – Summary of Significant Accounting Policies](index=12&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's accounting policies, including GAAP compliance, estimates, and the non-material impact of COVID-19 - The Company's interim condensed consolidated financial statements are prepared in accordance with **U.S. GAAP** and SEC rules[30](index=30&type=chunk)[31](index=31&type=chunk) - COVID-19 has **not materially impacted** the Company's operations or cash flows, with **100% of rent payments collected** and no rent deferrals since August 1, 2020[36](index=36&type=chunk) Estimated Useful Lives of Assets | Asset Type | Estimated Useful Life | | :--- | :--- | | Buildings | 13 – 35 years | | Building improvements | 15 years | | Tenant improvements | Shorter of lease term or useful life | | Acquired in-place leases | Remaining terms of respective leases | | Assembled workforce | 3 years | | Computer equipment | 3 years | Impairment Provisions | Impairment Provision | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total provision for impairment | $3,469 | $1,410 | $3,539 | $1,410 | | Number of properties impaired (held for sale) | 2 | 2 | 2 | 2 | | Number of properties impaired (disposed) | — | — | 1 | — | [Note 3 – Leases](index=18&type=section&id=Note%203%20%E2%80%93%20Leases) The Company's portfolio of 266 single-tenant retail properties generates fixed and variable lease income under operating leases - As of June 30, 2021, the Company owned **266 single-tenant retail net leased properties** across 39 states, with remaining lease terms ranging from 2-33 years[71](index=71&type=chunk) Lease Income Breakdown | Lease Income Type | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Fixed lease income | $12,497 | $6,633 | $23,450 | $11,858 | | Variable lease income | $1,067 | $354 | $1,856 | $645 | | Total Rental Revenue | $13,798 | $7,117 | $25,730 | $12,625 | Future Minimum Base Rental Receipts | Period | Future Minimum Base Rental Receipts (in thousands) | | :--- | :--- | | Remainder of 2021 | $26,948 | | 2022 | $54,308 | | 2023 | $54,354 | | 2024 | $54,324 | | 2025 | $54,122 | | Thereafter | $308,366 | | **Total** | **$552,422** | [Note 4 – Real Estate Investments](index=19&type=section&id=Note%204%20%E2%80%93%20Real%20Estate%20Investments) The Company acquired 66 properties for $205.2 million and sold five properties for $12.3 million in the first half of 2021 Real Estate Activity Summary | Activity | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Properties Acquired | 66 | 68 | | Total Purchase Price | $205.2 million | $224.7 million | | Properties Sold | 5 | 2 | | Total Sales Price, net | $12.3 million | $9.9 million | | Gain on Sales | $0.5 million | $1.0 million | - The Company invested **$1.9 million** in a development project in Yuma, Arizona, and **$3.4 million** in two build-to-suit projects in Fond Du Lac, Wisconsin[79](index=79&type=chunk)[80](index=80&type=chunk) [Note 5 – Intangible Assets and Liabilities](index=20&type=section&id=Note%205%20%E2%80%93%20Intangible%20Assets%20and%20Liabilities) Net intangible assets totaled $99.6 million as of June 30, 2021, primarily consisting of in-place and above-market leases Net Carrying Amount of Intangibles | Intangible Asset/Liability | June 30, 2021 Net Carrying Amount (in thousands) | December 31, 2020 Net Carrying Amount (in thousands) | | :--- | :--- | :--- | | In-place leases | $83,884 | $65,324 | | Above-market leases | $15,087 | $9,126 | | Assembled workforce | $427 | $574 | | Lease incentives | $222 | $0 | | Total Intangible assets | $99,620 | $75,024 | | Below-market leases | $22,186 | $16,930 | Weighted Average Amortization Period | Intangible Asset/Liability | June 30, 2021 Weighted Average Amortization Period (Years) | December 31, 2020 Weighted Average Amortization Period (Years) | | :--- | :--- | :--- | | In-place leases | 10.3 | 11.1 | | Above-market leases | 13.5 | 12.6 | | Below-market leases | 12.6 | 13.4 | | Assembled workforce | 1.5 | 2.0 | | Lease incentives | 13.2 | — | Amortization and Revenue Adjustments | Amortization Type | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Amortization expense | $2,206 | $936 | $3,999 | $1,676 | | Net adjustment to rental revenue | $234 | $130 | $423 | $122 | [Note 6 – Debt](index=22&type=section&id=Note%206%20%E2%80%93%20Debt) The Company's debt consists of a $175.0 million Term Loan and a $250.0 million Revolving Credit Facility, with all covenants met Debt Summary | Debt Component | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | Term Loan, net | $174,217 | $174,105 | | Total debt, net | $173,220 | $172,907 | - The Term Loan matures on December 23, 2024, and the Revolver matures on December 23, 2023, with interest rates tied to **LIBOR plus a margin**[89](index=89&type=chunk) - An interest rate derivative fixed the Term Loan's interest rate to **1.36%** effective September 28, 2020[92](index=92&type=chunk) - The Company was in **compliance with all debt covenants** as of June 30, 2021[99](index=99&type=chunk) [Note 7 – Derivative Financial Instruments](index=23&type=section&id=Note%207%20%E2%80%93%20Derivative%20Financial%20Instruments) The Company uses interest rate swaps with a notional amount of $175.0 million to hedge its variable rate Term Loan - The Company uses interest rate swaps as cash flow hedges for its variable rate Term Loan, with a notional amount of **$175.0 million** as of June 30, 2021[101](index=101&type=chunk)[104](index=104&type=chunk) - Derivative valuations are classified as **Level 2** in the fair value hierarchy, reflecting observable market-based inputs[108](index=108&type=chunk) Fair Value of Derivatives | Derivative Type | June 30, 2021 Fair Value (in thousands) | December 31, 2020 Fair Value (in thousands) | | :--- | :--- | :--- | | Interest rate swaps | $2,311 | $253 | [Note 8 – Supplemental Detail for Certain Components of the Condensed Consolidated Balance Sheets](index=25&type=section&id=Note%208%20%E2%80%93%20Supplemental%20Detail%20for%20Certain%20Components%20of%20the%20Condensed%20Consolidated%20Balance%20Sheets) This note provides a detailed breakdown of other assets and other liabilities on the balance sheet Other Assets, Net | Other Assets, Net Component | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | Earnest money deposits | $285 | $634 | | Deferred financing costs, net | $997 | $1,198 | | Accounts receivable, net | $2,215 | $1,489 | | Deferred rent receivable | $1,648 | $1,407 | | Fair value of interest rate swaps | $2,311 | $253 | | Other assets | $1,508 | $743 | | **Total Other Assets, Net** | **$8,964** | **$5,724** | Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities Component | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | Accrued expenses | $2,861 | $2,035 | | Accrued bonus | $908 | $1,561 | | Prepaid rent | $1,688 | $1,551 | | Accounts payable | $715 | $916 | | Other liabilities | $561 | $245 | | **Total Accounts Payable, Accrued Expenses and Other Liabilities** | **$6,733** | **$6,308** | [Note 9 – Shareholders' Equity, Partners' Capital and Preferred Equity](index=25&type=section&id=Note%209%20%E2%80%93%20Shareholders'%20Equity,%20Partners'%20Capital%20and%20Preferred%20Equity) The Company issued 10.9 million common shares for $194.2 million and declared dividends totaling $0.40 per share - On April 12, 2021, the Company issued **10,915,688 shares** of common stock in a public offering, generating net proceeds of **$194.2 million**[110](index=110&type=chunk) - During the six months ended June 30, 2021, **396,517 OP Units were redeemed** into common stock on a one-for-one basis[117](index=117&type=chunk) Common Stock Dividends | Declaration Date | Dividend Per Share | Total Amount (in thousands) | Payment Date | | :--- | :--- | :--- | :--- | | March 3, 2021 | $0.20 | $5,687 | March 30, 2021 | | April 27, 2021 | $0.20 | $7,890 | June 15, 2021 | | **Total** | **$0.40** | **$13,577** | | [Note 10 – Stock-Based Compensation](index=26&type=section&id=Note%2010%20%E2%80%93%20Stock-Based%20Compensation) The Company recognized $1.6 million in stock-based compensation expense for the six months ended June 30, 2021 - Total stock-based compensation costs recognized in general and administrative expense were **$1.0 million** for the three months and **$1.6 million** for the six months ended June 30, 2021[119](index=119&type=chunk) - As of June 30, 2021, the remaining unamortized stock-based compensation expense totaled **$9.1 million**[121](index=121&type=chunk)[124](index=124&type=chunk)[127](index=127&type=chunk) Restricted Stock Unit (RSU) Activity | RSU Type | Unvested Grants as of Dec 31, 2020 | Granted During Period | Vested During Period | Unvested Grants as of Jun 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Performance-Based | 207,803 | — | (15,190) | 192,613 | | Service-Based | 169,793 | 161,185 | — | 330,978 | | Market-Based | — | 135,766 | — | 135,766 | [Note 11 – Earnings Per Share](index=28&type=section&id=Note%2011%20%E2%80%93%20Earnings%20Per%20Share) The Company reported a basic and diluted net loss per common share of $(0.06) for the six months ended June 30, 2021 Earnings Per Share Calculation | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net loss attributable to common shares, basic | $(2,536) (in thousands) | $(300) (in thousands) | $(1,835) (in thousands) | $(1,427) (in thousands) | | Weighted average common shares outstanding | 38,018,588 | 11,797,645 | 33,236,262 | 11,105,709 | | Basic EPS | $(0.07) | $(0.03) | $(0.06) | $(0.13) | | Diluted EPS | $(0.07) | $(0.03) | $(0.06) | $(0.13) | - For the periods presented, diluted net loss per common share did not assume the conversion of OP Units or unvested RSUs because such conversion would be **antidilutive**[130](index=130&type=chunk)[131](index=131&type=chunk) [Note 12 – Commitments and Contingencies](index=29&type=section&id=Note%2012%20%E2%80%93%20Commitments%20and%20Contingencies) The Company has no material litigation and has commitments to fund $10.4 million for properties under development - The Company is **not currently subject to any material lawsuits**, claims, or regulatory matters[133](index=133&type=chunk) - As of June 30, 2021, the Company had commitments to fund properties under development totaling **$10.4 million**, with **$5.3 million** already funded[136](index=136&type=chunk) - The Alignment of Interest Program, a liability-classified award for employees, has an estimated fair value of approximately **$1.0 million** as of June 30, 2021[137](index=137&type=chunk) [Note 13 – Related-Party Transactions](index=30&type=section&id=Note%2013%20%E2%80%93%20Related-Party%20Transactions) The Company incurred approximately $0.1 million in related expenses for office rent and shared expenses for the six-month period Related-Party Expenses | Related Expense | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Office rent and related expenses | <$0.1 | <$0.1 | ~$0.1 | ~$0.1 | [Note 14 – Subsequent Events](index=30&type=section&id=Note%2014%20%E2%80%93%20Subsequent%20Events) The Board of Directors declared a cash dividend of $0.20 per share for the third quarter of 2021 - On July 27, 2021, the Company declared a cash dividend of **$0.20 per share** for Q3 2021, payable on September 15, 2021[140](index=140&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial conditions, operating results, portfolio growth, liquidity, and non-GAAP financial measures [Special Note Regarding Forward-Looking Statements](index=31&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) - The report contains **forward-looking statements** subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[142](index=142&type=chunk) - The risks identified, including those related to COVID-19, are heightened, and the Company disclaims any obligation to update these statements[143](index=143&type=chunk) [Overview](index=31&type=section&id=Overview) - NETSTREIT Corp is an internally-managed REIT focused on a diversified portfolio of **264 single-tenant, retail commercial real estate properties** across 39 states[144](index=144&type=chunk) - The portfolio focuses on necessity goods and essential services in **defensive, e-commerce resistant retail industries**[144](index=144&type=chunk) Portfolio Snapshot (as of June 30, 2021) | Metric | Value | | :--- | :--- | | Annualized Base Rent (ABR) | $55.3 million | | Occupancy | 100% | | Weighted Average Lease Term (WALT) | 9.9 years | | Investment Grade Tenants (by ABR) | ~70% | | Investment Grade Profile Tenants (by ABR) | ~14% | [COVID-19](index=32&type=section&id=COVID-19) - The Company's operations and cash flows were **not materially impacted** by COVID-19 for the three and six months ended June 30, 2021 and 2020[145](index=145&type=chunk) - The Company collected **100.0% of all rent payments** for the three and six months ended June 30, 2021, and has not provided any rent abatements or deferrals since August 1, 2020[36](index=36&type=chunk) [Recent Developments](index=32&type=section&id=Recent%20Developments) - The Company deployed all **$227.3 million** of its initial public offering proceeds for acquisitions by March 31, 2021[146](index=146&type=chunk) - On April 12, 2021, the Company completed a public offering of 10,915,688 shares of common stock, generating net proceeds of **$194.2 million**[146](index=146&type=chunk) - Net proceeds from the April 2021 offering were used to repay **$13.0 million** of outstanding borrowings under the Revolver[146](index=146&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) [Overall](index=32&type=section&id=Overall) - The Company increased its asset base from **203 properties** as of December 31, 2020, to **267 properties** as of June 30, 2021[147](index=147&type=chunk) - Since December 23, 2019, the Company has raised **$640.5 million** of net equity capital through private and public offerings[147](index=147&type=chunk) - The Company committed to three real estate development projects with a total projected capital spend of **$10.4 million**[147](index=147&type=chunk) [Acquisitions](index=32&type=section&id=Acquisitions) Acquisition Summary | Period | Properties Acquired | Total Purchase Price (inclusive of capitalized acquisition costs) | Weighted Average Lease Term (WALT) | Underwritten Weighted-Average Capitalization Rate | | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30, 2021 | 35 | $116.8 million | ~9.7 years | ~6.5% | | Six Months Ended June 30, 2021 | 66 | $205.2 million | ~9.3 years | ~6.6% | [Development](index=32&type=section&id=Development) - The Company invested **$1.9 million** in a development project in Yuma, Arizona, during the six months ended June 30, 2021[150](index=150&type=chunk) - The Company invested **$3.4 million** in two build-to-suit projects in Fond Du Lac, Wisconsin, during the three months ended June 30, 2021[151](index=151&type=chunk) [Dispositions](index=33&type=section&id=Dispositions) Disposition Summary | Period | Number of Properties Sold | Sales Price, Net of Disposal Costs (in thousands) | Gain on Sale (in thousands) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30, 2021 | 5 | $12,319 | $497 | | Six Months Ended June 30, 2021 | 5 | $12,319 | $497 | [Three Months Ended June 30, 2021 Compared with Three Months Ended June 30, 2020](index=33&type=section&id=Three%20Months%20Ended%20June%2030,%202021%20Compared%20with%20Three%20Months%20Ended%20June%2030,%202020) - The increase in rental revenue is primarily due to the **growth of the real estate portfolio** from 94 to 264 properties[153](index=153&type=chunk) - Operating expenses increased due to portfolio growth, higher provisions for impairment (**$3.5M vs $1.4M**), and increased stock-based compensation (**$1.0M**)[154](index=154&type=chunk)[155](index=155&type=chunk)[159](index=159&type=chunk) Q2 2021 vs Q2 2020 Performance | Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Rental revenue | $13,798 | $7,117 | $6,681 | 93.9% | | Total operating expenses | $16,031 | $7,440 | $8,591 | 115.5% | | Interest expense, net | $(894) | $(1,098) | $204 | -18.6% | | Gain on sales of real estate, net | $497 | $1,016 | $(519) | -51.1% | | Net loss | $(2,630) | $(405) | $(2,225) | 549.4% | [Six Months Ended June 30, 2021 Compared with Six Months Ended June 30, 2020](index=34&type=section&id=Six%20Months%20Ended%20June%2030,%202021%20Compared%20with%20Six%20Months%20Ended%20June%2030,%202020) - Rental revenue increased by **$13.1 million**, driven by the expansion of the real estate portfolio from 94 to 264 properties[160](index=160&type=chunk) - Operating expenses increased due to portfolio growth, higher provisions for impairment (**$3.5M vs $1.4M**), and increased stock-based compensation (**$1.6M**)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) H1 2021 vs H1 2020 Performance | Metric | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Rental revenue | $25,730 | $12,625 | $13,105 | 103.8% | | Total operating expenses | $26,267 | $13,051 | $13,216 | 101.3% | | Interest expense, net | $(1,799) | $(2,797) | $998 | -35.7% | | Gain on sales of real estate, net | $497 | $1,016 | $(519) | -51.1% | | Net loss | $(1,889) | $(1,957) | $68 | -3.5% | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary capital requirements include **property acquisitions, interest payments, and operating expenses**[165](index=165&type=chunk) - Capital resources consist of cash from operations, sales of equity securities (including **$194.2 million** from the April 2021 public offering), and borrowings[165](index=165&type=chunk) - As of June 30, 2021, the Company had a **$175.0 million Term Loan** and no outstanding borrowings under its **$250.0 million Revolver**[165](index=165&type=chunk) - Management believes current resources are **adequate to support operations** for at least the next 12 months[165](index=165&type=chunk) [Contractual Obligations](index=37&type=section&id=Contractual%20Obligations) - The Company has commitments to fund properties under development totaling **$10.4 million**, with the remainder expected within eight months[168](index=168&type=chunk) Debt and Fee Obligations | Contractual Obligations | Total (in thousands) | From July 1, 2021 to December 31, 2021 (in thousands) | 1 – 3 Years (in thousands) | 3 – 5 Years (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Term Loan – Principal | $175,000 | $0 | $0 | $175,000 | | Term Loan – Variable interest | $8,264 | $1,188 | $4,752 | $2,324 | | Unutilized borrowing fees on Revolver | $1,549 | $313 | $1,236 | $0 | | **Total** | **$184,813** | **$1,501** | **$5,988** | **$177,324** | [Credit Facility](index=37&type=section&id=Credit%20Facility) - The Credit Facility consists of a **$175.0 million Term Loan** (matures Dec 2024) and a **$250.0 million Revolver** (matures Dec 2023)[169](index=169&type=chunk)[170](index=170&type=chunk) - Interest rates are variable, based on LIBOR plus a margin, and the Term Loan's variable cash flows are **hedged by an interest rate derivative**[170](index=170&type=chunk)[171](index=171&type=chunk) [Historical Cash Flow Information](index=38&type=section&id=Historical%20Cash%20Flow%20Information) [Six Months Ended June 30, 2021 Compared with Six Months Ended June 30, 2020](index=38&type=section&id=Six%20Months%20Ended%20June%2030,%202021%20Compared%20with%20Six%20Months%20Ended%20June%2030,%202020) - Net cash provided by operating activities increased by **$12.0 million**, primarily due to higher rental receipts from a larger real estate portfolio[173](index=173&type=chunk) - Net cash used in investing activities decreased by **$18.0 million**, mainly due to less spent on real estate acquisitions[174](index=174&type=chunk) - Net cash provided by financing activities increased by **$126.8 million**, driven by additional net proceeds from the April 2021 public offering[175](index=175&type=chunk) Cash Flow Summary | Cash Flow Activity | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | | Operating activities | $13,758 | $1,796 | | Investing activities | $(198,156) | $(216,186) | | Financing activities | $179,895 | $53,056 | [Income Taxes](index=38&type=section&id=Income%20Taxes) - The Company elected **REIT status** for U.S. federal income tax purposes beginning December 31, 2019, and generally will not be subject to corporate income tax[176](index=176&type=chunk) - NETSTREIT TRS, a taxable REIT subsidiary, may be subject to U.S. federal, state, and local income taxes[177](index=177&type=chunk) [Recent Accounting Pronouncements](index=38&type=section&id=Recent%20Accounting%20Pronouncements) - A discussion of new accounting standards and their possible effects is included in **Note 2 – Summary of Significant Accounting Policies**[179](index=179&type=chunk) [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The preparation of financial statements requires management to make judgments, estimates, and assumptions, which are continually evaluated[180](index=180&type=chunk) - There have been **no material changes** to the critical accounting policies and estimates disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020[180](index=180&type=chunk) [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) [FFO, Core FFO and AFFO](index=39&type=section&id=FFO,%20Core%20FFO%20and%20AFFO) - FFO, Core FFO, and AFFO are non-GAAP measures used by analysts and investors to compare REIT operating performance[181](index=181&type=chunk)[185](index=185&type=chunk) Reconciliation of Net Loss to FFO, Core FFO, and AFFO | Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(2,630) | $(405) | $(1,889) | $(1,957) | | FFO | $7,339 | $3,029 | $14,002 | $3,748 | | Core FFO | $7,339 | $3,599 | $14,002 | $4,777 | | AFFO | $8,066 | $2,747 | $15,012 | $3,932 | [EBITDA, EBITDAre and Adjusted EBITDAre](index=40&type=section&id=EBITDA,%20EBITDAre%20and%20Adjusted%20EBITDAre) - EBITDA, EBITDAre, and Adjusted EBITDAre are non-GAAP measures providing supplemental information on operating performance[190](index=190&type=chunk) Reconciliation of Net Loss to EBITDA, EBITDAre, and Adjusted EBITDAre | Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(2,630) | $(405) | $(1,889) | $(1,957) | | EBITDA | $5,105 | $3,679 | $12,540 | $6,180 | | EBITDAre | $8,077 | $4,073 | $15,582 | $6,574 | | Adjusted EBITDAre | $8,896 | $3,766 | $16,717 | $6,573 | [NOI and Cash NOI](index=41&type=section&id=NOI%20and%20Cash%20NOI) - NOI and Cash NOI are non-GAAP measures used to assess operating results, reflecting property-level income and expenses on an unlevered basis[193](index=193&type=chunk) Reconciliation of Net Loss to NOI and Cash NOI | Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(2,630) | $(405) | $(1,889) | $(1,957) | | NOI | $12,483 | $6,683 | $23,465 | $11,906 | | Cash NOI | $12,027 | $5,676 | $22,578 | $10,754 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company is exposed to interest rate risk from its floating rate debt, which is partially hedged by an interest rate derivative - The Company's **$175.0 million Term Loan and Revolver** are floating rate debt, exposing it to interest rate fluctuations[196](index=196&type=chunk) - An interest rate derivative hedges the Term Loan, converting its variable rate to a **fixed rate of 0.21% plus a 1.15% margin** as of June 30, 2021[197](index=197&type=chunk) - The discontinuation of **USD LIBOR after June 30, 2023**, presents risks related to transitioning contracts to an alternative rate[198](index=198&type=chunk)[199](index=199&type=chunk)[201](index=201&type=chunk)[203](index=203&type=chunk) - A 1% adverse change in the Revolver's interest rate would result in an estimated market risk exposure of **less than $0.1 million** for 2021[197](index=197&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) The Company's disclosure controls and procedures were deemed effective, with no material changes in internal control identified - The Company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[206](index=206&type=chunk) - **No material changes** in internal control over financial reporting were identified during the reporting period[207](index=207&type=chunk) [PART II – OTHER INFORMATION](index=44&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=44&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 that could have a **material adverse effect** on its business[209](index=209&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the 'Risk Factors' in the Company's Annual Report, noting no material changes since its filing - For a discussion of significant risk factors, refer to the **Annual Report on Form 10-K** for the year ended December 31, 2020[210](index=210&type=chunk) - There have been **no material changes** to the risk factors disclosed in the Annual Report[210](index=210&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - None[211](index=211&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company for the reporting period - Not applicable[211](index=211&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company for the reporting period - Not applicable[211](index=211&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) There is no other information to report for the period - Not applicable[212](index=212&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL-related documents - Exhibits include certifications (31.1, 31.2, 32.1, 32.2) and XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Label Linkbase, Presentation Linkbase, and Definition Linkbase documents[214](index=214&type=chunk) [Signatures](index=45&type=section&id=Signatures) The report is duly signed on July 29, 2021, by the company's principal executive, financial, and accounting officers - The report was signed on July 29, 2021, by **Mark Manheimer** (President, CEO, and Director), **Andrew Blocher** (CFO, Treasurer, and Secretary), and **Patricia McBratney** (SVP and Chief Accounting Officer)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&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 March 31, 2021 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 2020 Earnings Conference Call March 5, 2021 10:00 AM ET Company Participants Amy An - Investor Relations Mark Manheimer - Chief Executive Officer Andy Blocher - Chief Financial Officer Conference Call Participants Linda Tsia - Jefferies Nate Crossett - Berenberg Greg McGinnis - Scotiabank Todd Stender - Wells Fargo Todd Thomas - KeyBanc Capital Markets Operator Greetings, and welcome to the NETSTREIT Corporation Fourth Quarter 2020 Earnings Conference Call. At this time, all p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 5910 N. Central Expressway Suite 1600 Dallas, Texas 75206 (Address of principal executive offices) (Zip Code) Maryland 84-3356606 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, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193 ...

NETSTREIT Investor Presentation January 2021 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, retail commerci ...

NetSTREIT Corp (NYSE:NTST) Q3 2020 Earnings Conference Call October 30, 2020 10:00 AM ET Company Participants Randy Haugh - Senior Vice President of Finance Mark Manheimer - Chief Executive Officer Andy Blocher - Chief Financial Officer Conference Call Participants Nate Crossett - Berenberg Todd Thomas - KeyBanc Linda Tsia - Jefferies Katy McConnell - Citi Todd Stender - Wells Fargo Alexander Pernokas - Bank of America Operator Greetings, and welcome to the NetSTREIT Corp Third Quarter 2020 Earnings Call. ...

NETSTREIT Investor Presentation October 2020 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, retail commerci ...