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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