NetSTREIT(US:NTST)2025-10-27 20:42Property Portfolio and Revenue - As of September 30, 2025, the company owned or had investments in 723 properties, generating an annualized base rent (ABR) of $183.2 million, with a portfolio occupancy rate of 99.9%[149] - The company acquired 87 properties for a total purchase price of $368.3 million during the nine months ended September 30, 2025, with a weighted average remaining lease term (WALT) of approximately 13.1 years[157] - During the three months ended September 30, 2025, rental revenue increased by $6.9 million to $48.3 million compared to the same period in 2024, primarily due to an increase in operating leases[162] - Rental revenue increased by $22.5 million to $132.8 million for the nine months ended September 30, 2025, compared to $110.3 million for the same period in 2024[169] - Total revenues for the nine months ended September 30, 2025, increased by $23.8 million to $142.5 million from $118.7 million for the same period in 2024[169] Financial Performance - Net income increased by $5.9 million to $0.6 million for the three months ended September 30, 2025, from a net loss of $5.3 million for the same period in 2024[167] - Net income for Q3 2025 was $621, compared to a loss of $5,322 in Q3 2024[208] - FFO for Q3 2025 was $24,948, slightly down from $25,008 in Q3 2024, while nine-month FFO increased to $74,651 from $66,172[203] - Core FFO for Q3 2025 was $26,355, up from $24,907 in Q3 2024, with nine-month Core FFO rising to $76,540 from $70,744[203] - AFFO for Q3 2025 reached $28,049, compared to $24,825 in Q3 2024, with nine-month AFFO increasing to $81,757 from $71,502[203] - EBITDA for Q3 2025 was $34,476, significantly higher than $22,648 in Q3 2024, with nine-month EBITDA rising to $105,896 from $71,121[208] Expenses and Impairments - Total operating expenses decreased by $2.8 million to $36.3 million for the three months ended September 30, 2025, compared to $39.1 million for the same period in 2024[164] - General and administrative expenses increased by $0.5 million to $15.8 million for the nine months ended September 30, 2025, from $15.3 million for the same period in 2024[170] - Total operating expenses increased by $4.9 million to $106.8 million for the nine months ended September 30, 2025, compared to $101.9 million for the same period in 2024[170] - The company recognized provisions for impairment of $5.5 million during the three months ended September 30, 2025, compared to $9.8 million in the same period in 2024[162] - Provisions for impairment decreased to $13.5 million for the nine months ended September 30, 2025, from $17.3 million for the same period in 2024[178] Debt and Financing - The company entered into a Term Loan Agreement on September 25, 2025, providing for a $200 million senior unsecured term loan and a $250 million senior unsecured term loan, with fixed interest rates of 4.59% and 4.92% respectively[151] - As of September 30, 2025, the company had $200.0 million outstanding under the 2028 Term Loan and $250.0 million under the 2029 Term Loan[177] - The company amended its PNC Credit Agreement to include a new $175.0 million 2030 Term Loan B and an upsized $500.0 million Revolver, with the Term Loan B fully funded at a fixed interest rate of 5.02%[180] - Total indebtedness as of September 30, 2025, amounted to $1.1 billion, with various term loans including $200 million under the 2028 Term Loan and $250 million under the 2029 Term Loan, all of which are floating rate debt[219] - The company reported a weighted average interest rate of 5.47% on $199.0 million borrowed during the nine months ended September 30, 2025[183] Cash Flow and Investments - Net cash provided by operating activities increased by $18.6 million to $80.7 million for the nine months ended September 30, 2025, primarily due to increased rental receipts of $19.3 million[188] - Net cash used in investing activities decreased by $79.9 million to $(239.5) million for the nine months ended September 30, 2025, attributed to increased proceeds from real estate sales and reduced development costs[189] - Net cash provided by financing activities decreased by $58.3 million to $197.8 million for the nine months ended September 30, 2025, mainly due to increased net repayments of $309.0 million under the Revolver[190] - The company has commitments totaling $6.3 million for property developments and $11.4 million for mortgage loans receivable, expected to be funded through the end of 2026[186] Risk Management - The company hedged the entire $200.0 million 2031 Term Loan at a fixed interest rate of 4.59% and partially hedged $200.0 million of the 2032 Term Loan at 4.92%[181] - The company has entered into interest rate derivative contracts to hedge market risk associated with term loans, converting variable rate debt to fixed interest rates[220] - The interest rate on the Revolver as of September 30, 2025, was determined by either SOFR plus a margin of 1.00% to 1.45% or a Base Rate plus a margin of 0.00% to 0.45%[221] - Estimated market risk exposure from a 1% adverse change in interest rates as of September 30, 2025, was approximately $1.2 million[221] Operational Commitments - The company anticipates that proceeds from debt, cash flows from operations, and available borrowing capacity will be adequate to support operations and fund capital expenditures for at least the next 12 months[182] - The company had two property developments under construction as of September 30, 2025, with investments of $2.2 million during the nine months ended September 30, 2025[158]