NetSTREIT(NTST) - 2024 Q3 - Quarterly Results

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