NetSTREIT(US:NTST)2024-04-29 20:14Property Investments - As of March 31, 2024, the company owned or had investments in 628 single-tenant retail net leased properties, generating an annualized base rent (ABR) of $140.3 million, with 71% from investment grade credit rated tenants[136]. - The company acquired 28 properties for a total purchase price of $95.2 million during the three months ended March 31, 2024, with a weighted average lease term (WALT) of approximately 10.6 years[142]. - The company had 13 property developments under construction as of March 31, 2024, with $11.0 million invested in property developments during the same period[143]. Financial Performance - Total revenues for the three months ended March 31, 2024, increased by $8.2 million to $37.7 million compared to $29.5 million for the same period in 2023, attributed to an increase in operating leases and properties securing mortgage loans[148]. - Total operating expenses rose by $7.2 million to $31.1 million for the three months ended March 31, 2024, primarily due to increased depreciation, amortization, and provisions for impairment[149]. - Net income decreased by $0.4 million to $1.1 million for the three months ended March 31, 2024, from $1.5 million in the same period in 2023, primarily due to increased provisions for impairment and interest expense[155]. - The Company reported a net income of $1,052,000 for the three months ended March 31, 2024, compared to $1,481,000 for the same period in 2023, representing a decrease of approximately 28.9%[178]. - Funds From Operations (FFO) for the first quarter of 2024 was $21,179,000, an increase of 27.4% from $16,684,000 in the first quarter of 2023[178]. - Core FFO for the same period was $22,450,000, up 34.4% from $16,685,000 in the prior year[178]. - Adjusted Funds From Operations (AFFO) increased to $22,863,000 in Q1 2024, compared to $17,419,000 in Q1 2023, marking a growth of 31.3%[178]. - EBITDA for the first quarter of 2024 was reported at $24,734,000, compared to $20,146,000 in the same quarter of 2023, reflecting a rise of 22.5%[183]. - The Company’s Adjusted EBITDAre for Q1 2024 was $31,676,000, with an annualized figure of $126,704,000[184]. Debt and Financing - The company entered into a $300.0 million at-the-market equity program on October 25, 2023, with $222.7 million in remaining gross proceeds available for future issuances as of March 31, 2024[138]. - As of March 31, 2024, the principal amount of total debt was $708,322,000, resulting in a Net Debt of $685,988,000 after accounting for cash and equivalents[187]. - Adjusted Net Debt stood at $395,080,000 after excluding the value of unsettled forward equity, which amounted to $290,908,000[187]. - The company hedged the entire $250.0 million of the 2029 Term Loan at a fixed interest rate of 4.99% through January 2029[140]. - Interest expense increased by $2.3 million to $6.2 million for the three months ended March 31, 2024, compared to $3.9 million for the same period in 2023[153]. - The company anticipates funding its long-term capital needs through cash from operations, borrowings under the Revolver, and issuances of common stock[158]. - The company reported total indebtedness of approximately $175.0 million under the 2027 Term Loan, $200.0 million under the 2028 Term Loan, and $250.0 million under the 2029 Term Loan, all of which are floating rate debt[193]. - Average daily outstanding borrowings on the Revolver for the three months ended March 31, 2024, were $59.6 million[193]. - The company entered into interest rate derivative contracts to hedge market interest risk associated with its term loans, converting variable rate debt to fixed rates[194]. - The estimated market risk exposure from a 1% adverse change in interest rates as of March 31, 2024, was approximately $0.6 million[195]. Cash Flow - Net cash provided by operating activities decreased by $3.1 million to $11.7 million for the three months ended March 31, 2024, compared to $14.8 million in the same period in 2023[163]. - Net cash used in investing activities decreased by $5.2 million to $97.2 million for the three months ended March 31, 2024, compared to $102.4 million in the same period in 2023[164]. - Net cash provided by financing activities increased by $54.3 million to $78.0 million for the three months ended March 31, 2024, compared to $23.7 million in the same period in 2023, primarily due to a $100.0 million draw on the 2029 Term Loan[165]. Operating Metrics - For the three months ended March 31, 2024, the Property-Level NOI was $31,087,000, an increase from $24,538,000 in the same period of 2023, representing a growth of approximately 26.5%[191]. - The Property-Level Cash NOI for the same period was $30,450,000, up from $24,014,000 in 2023, indicating a year-over-year increase of about 27.0%[192]. - Total Cash NOI - Estimated Run Rate for the three months ended March 31, 2024, was $34,403,000, reflecting a significant increase from the previous year[192]. - General and administrative expenses for the three months ended March 31, 2024, were $5,707,000, compared to $4,909,000 in the same period of 2023[191]. - Depreciation and amortization expenses increased to $17,541,000 in Q1 2024 from $14,949,000 in Q1 2023[191]. - Provisions for impairment were reported at $3,662,000 for the three months ended March 31, 2024, with no provisions in the same period of the previous year[191]. - Provisions for impairment recorded were $3.7 million on 12 properties for the three months ended March 31, 2024, compared to no provisions in the same period in 2023[156]. Economic Environment - The average inflation rate for the three months ended March 31, 2024, was 3.5%, down from 5.0% for the prior year period, indicating a potential easing economic environment[146]. - The Company intends to make sufficient distributions during 2024 to qualify for a full dividends paid deduction as a REIT[166]. - The Company’s taxable REIT subsidiary may be subject to U.S. federal, state, and local income taxes on its taxable income, which could impact overall financial performance[168].