The following is a summary of the NETSTREIT Corp. (NTST) Q3 2024 Earnings Call Transcript:

Financial Performance:

• NETSTREIT reported a net loss of $5.3 million, or $0.07 per diluted share for Q3 2024.

• Core FFO for the quarter was $24.9 million or $0.32 per diluted share, marking an over 3% increase versus last year.

• Recorded a quarterly cash dividend of $0.21 per share, payable on December 13, with an AFFO payout ratio for the third quarter of 66%.

Business Progress:

• Completed $152 million of gross investments, marking the highest quarter on record, at a blended cash yield of 7.5% or 8%.

• Executed eight strategic asset sales totaling $24 million at a weighted cash yield of 7.3%.

• Increased focus on sale-leasebacks, sourcing more volume from this channel with a longer weighted-average lease term at 12.5 years.

• Portfolio remained 100% leased with a weighted-average lease term remaining on the portfolio of 9.5 years.

• Development pipeline consists of eight projects with a total estimated cost of $22 million.

Opportunities:

• Continued robust investments and strategic asset sales suggest a strong capability of recycling capital into better yielding opportunities.

• Reinvestment of proceeds from dispositions into investments with longer leases and better rent escalations indicates a strategic optimization of the portfolio.

Risks:

• Tenant credit issues with some notable tenants like Big Lots and Walgreens indicating potential challenges, however, due to strategic restructuring efforts, minimal disruption to cash flows is anticipated.

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