The following is a summary of the NETSTREIT Corp. (NTST) Q1 2024 Earnings Call Transcript:
Financial Performance:
NETSTREIT Corp. reported a Q1 net income of $1 million or $0.01 per diluted share.
Core FFO for Q1 was $22.5 million or $0.3 per diluted share, with AFFO at $22.9 million or $0.31 per diluted share, representing a 3.3% increase year over year.
The company has raised $230 million of equity year to date.
Total expenses, excluding severance payments, decreased 1% year over year to $4.85 million.
Liquidity at the end of the quarter stood at $638.1 million.
Projected net debt to annualized adjusted EBITDAre ratio of 3.1 times at the quarter end for 2024.
Business Progress:
NETSTREIT Corp. was one of two rigs to raise follow-on equity in January.
The company is investing in properties with strong tenants in defensive retail sectors due to reduced competition.
Over $129 million of gross investment activity at a blended cash yield of 7.5% was completed in Q1.
Portfolio comprised 628 investments with an ABR of $140.3 million at quarter end.
A lease set to expire in 2024 was renewed with a 12.5% increase in rent.
NETSTREIT Corp. continues collaboration with Dollar Tree, a key tenant, to minimize risk and maximize cash flows.
The company expects similar growth as the 7.5% in Q1 during the next quarter.
Deflationary issues from lower-income consumer demographic factors might influence certain tenants' abilities to pass costs on.
Future investment will account for market volatility and potential cap rate increases.
Disposition pricing is moving slightly higher, but could fall below 7% depending on sold assets.
More details: Netstreit IR
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