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, 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 i ...

Financial Data and Key Metrics Changes - For Q4 2021, the company reported net income of $0.05, core FFO of $0.25, and AFFO of $0.27 per diluted share. For the full year 2021, net income was $0.08, core FFO was $0.87, and AFFO was $0.94 per diluted share [19][24] - The balance sheet at year-end showed total debt of $239 million, with a net debt to annualized adjusted EBITDA ratio of 4.2x, below the targeted leverage range of 4.5x to 5.5x [20][21] Business Line Data and Key Metrics Changes - The portfolio's annual base rent (ABR) grew to over $71 million, up from $42 million at the end of 2020, with 327 properties across 41 states and 67 tenants in 23 different industries [9][10] - The weighted average lease term remaining at year-end was 9.9 years, with a combined investment grade and investment grade profile tenancy of 81.6% [11] Market Data and Key Metrics Changes - The company completed a record high quarterly net investment activity of $160 million in Q4 2021, including $151 million of acquisitions and over $9 million in ongoing development funding [11][13] - The largest state concentration is in Texas at approximately 11%, with the largest industry being home improvement at 15% [9] Company Strategy and Development Direction - The company aims to grow its portfolio with high-quality assets and diversify holdings, targeting no state or industry to exceed 15% of total ABR and no tenant to exceed 5% [9][16] - Future asset sales will occur to improve credit quality and diversification, with a focus on maintaining a strong tenant base [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for acquisitions and development, with expectations to achieve at least $480 million in net acquisition activity for 2022 [24][46] - The company is committed to enhancing its ESG disclosures and maintaining a strong operational environment as employees return to the office [17][26] Other Important Information - The Board declared a $0.20 regular quarterly cash dividend, payable on March 30, 2022 [24] - The company has established 2022 AFFO per share guidance in the range of $1.13 to $1.17 [25] Q&A Session Summary Question: Update on investment activity and acquisition pipeline - Management indicated a strong pipeline with expectations to add new tenants and maintain a comfortable acquisition pace in Q1 [29] Question: Plans for issuing debt this year - Management is considering turning out some of the credit facility balance towards the end of the year, depending on market conditions [30][32] Question: 2022 goals for portfolio diversification - Management aims to reduce tenant concentration below 5% by the end of 2023, with current exposure to Walgreens at 7.3% [36][38] Question: Expected cap rates for 2022 investments - Management expects cap rates to range between 6.2% to 7%, with a blended expectation around 6.5% [41][42] Question: Development projects and partnership opportunities - Management is optimistic about development projects, expecting to bring two or three online per quarter, enhancing the growth strategy [53] Question: Dividend outlook - Management indicated that while the decision on dividends lies with the board, there is potential for increases in the future based on portfolio performance [72]

1 Investor Presentation February 2022 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 real ...

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, 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) Maryland 84-3356606 (State or other jurisdiction of (I. ...

NETSTREIT Corp. (NYSE:NTST) Q3 2021 Earnings Conference Call October 29, 2021 10:00 AM ET Company Participants Amy An - Investor Relations Mark Manheimer - Chief Executive Officer Andy Blocher - Chief Financial Officer Conference Call Participants Ki Bin Kim - Truist Securities Todd Thomas - KeyBanc Capital Markets Linda Tsai - Jefferies Katy McConnell - Citi Operator Greetings. Welcome to NETSTREIT Corp. Third Quarter 2021 Earnings Call. [Operator instructions] Please note this conference is being recorded ...

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 ...