NetSTREIT(US:NTST)2025-10-27 20:30Financial Performance - Net income for Q3 2025 was $0.01 per diluted share, compared to a loss of $0.07 in Q3 2024[4] - Adjusted Funds from Operations (AFFO) per diluted share increased by 3.1% to $0.33, up from $0.32 in the same quarter last year[4] - Total revenues for the three months ended September 30, 2025, were $48.308 million, a 16.5% increase from $41.444 million in the same period of 2024[30] - Rental revenue, including reimbursable, was $45.026 million for the three months ended September 30, 2025, compared to $38.172 million in 2024, reflecting a 17.5% growth[30] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $618,000, a significant recovery from a net loss of $5.295 million in the same period of 2024[30] - Net income for the three months ended September 30, 2025, was $621,000, a significant improvement from a net loss of $5,322,000 in the same period of 2024[38] - Funds from Operations (FFO) for the three months ended September 30, 2025, were $24.948 million, slightly down from $25.008 million in 2024[32] - Core FFO for the three months ended September 30, 2025, was $26.355 million, an increase from $24.907 million in the same period of 2024[32] - EBITDA for the period was reported at $34,476,000, with Adjusted EBITDAre reaching $41,778,000, leading to an annualized Adjusted EBITDAre of $167,112,000[34][47] Investment Activity - The company achieved record gross investment activity of $203.9 million at a blended cash yield of 7.4%[1] - The company increased its 2025 net investment guidance to a range of $350.0 million to $400.0 million, up from $125.0 million to $175.0 million[16] - The company raised over $690 million in capital recently, positioning it for increased investments[3] Real Estate Portfolio - The real estate portfolio consisted of 721 investments with an occupancy rate of 99.9% and an average lease term of 9.9 years[10] - The weighted average lease term for new investments was 13.4 years, compared to 13.1 years for the previous year[6] Liquidity and Debt - Total liquidity as of September 30, 2025, was $1.13 billion, including $499.85 million in unused unsecured revolver capacity[12] - The company's Net Debt as of September 30, 2025, stood at $1,054,760,000, with Adjusted Net Debt at $623,514,000 and Pro Forma Adjusted Net Debt at $593,832,000[34][35] - The total principal amount of debt outstanding was $1,108,084,000, with cash and cash equivalents totaling $53,324,000[34] - Interest expense for the period was $12,636,000, an increase from $7,965,000 in the same period of 2024[38] Assets and Liabilities - The total assets increased to $2.468 billion as of September 30, 2025, up from $2.259 billion at the end of 2024, marking an 9.2% growth[28] - Total liabilities rose to $1.162 billion as of September 30, 2025, compared to $921.214 million at the end of 2024, indicating a 26.2% increase[28] - The company reported a total stockholders' equity of $1.299 billion as of September 30, 2025, down from $1.331 billion at the end of 2024[28] Operational Performance - Property-Level Cash NOI for the three months ended September 30, 2025, was $39,416,000, up from $33,282,000 in the same period of 2024, indicating a growth of approximately 18.5%[38] - The company reported a Property-Level NOI of $40,577,000 for the three months ended September 30, 2025, compared to $34,201,000 in 2024, reflecting a year-over-year increase of approximately 18.5%[38] - The leverage ratio, calculated as Net Debt to Annualized Adjusted EBITDAre, was 6.3x, while the Pro Forma Adjusted Net Debt to Annualized Adjusted EBITDAre was 3.6x[35] Dividend and Shareholder Returns - The company declared a quarterly cash dividend of $0.215 per share for Q4 2025, representing an annualized increase of $0.02 per share over the previous year[15] - The weighted average common shares outstanding for the three months ended September 30, 2025, were 83,472,089, compared to 77,610,680 in 2024[32] Impairment and Provisions - The company recognized provisions for impairment amounting to $4,134,000 during the quarter[34] Future Outlook - The company anticipates continued growth in rental revenue and overall performance, despite macroeconomic uncertainties[26] - The weighted average net settlement price for unsettled forward equity shares was $16.98, with 25,393,242 shares unsettled as of September 30, 2025[36]