NETSTREIT Corp. (NTST) Q4 2024 Earnings Call Transcript

For the period ending December 31, 2024

February 25, 2025 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the NETSTREIT Corp. Fourth Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce, Amy An, Investor Relations. Please go ahead.

Amy An

We thank you for joining us for NETSTREIT’s fourth quarter 2024 earnings conference call. In addition to the press release distributed yesterday after market close, we posted a supplemental package and an updated investor presentation. Both can be found in the Investor Relations section of the company’s website at www. netstreit.com.

On today’s call, management’s remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risk and uncertainties that may cause actual results to differ from those discussed today. For more information about these risk factors, we encourage you to review our Form 10-K for the year ended December 31, 2023 and our other SEC filings. All forward-looking statements are made as of the date hereof and NETSTREIT assumes no obligation to update any forward-looking statements in the future.

In addition, certain financial information presented on this call includes non-GAAP financial measures. Please refer to our earnings release and supplemental package for definitions of our non-GAAP measures, reconciliations to the most comparable GAAP measures, and an explanation of why we believe such non-GAAP financial measures are useful to investors.

Today’s conference call is hosted by NETSTREIT’s Chief Executive Officer, Mark Manheimer; and Chief Financial Officer, Dan Donlan. They will make some prepared remarks and then we will open the call for your questions.

Now, I’ll turn the call over to Mark. Mark?

Mark Manheimer

Thank you, Amy, and thank you all for joining us this morning on our fourth quarter 2024 earnings call. I first want to congratulate the team on an outstanding quarter of accelerated transaction activity as we completed over $195 million of gross investments, our highest quarter on record, at a blended cash yield of 7.4% or 8.1% on a straight line basis, with 14 years of weighted average lease term.

Included in this activity were three development projects totaling over $7 million that commenced rent in the quarter. As of today, our development pipeline consists of five projects with a total estimated cost of $14.6 million, which includes estimated remaining funding of $6.7 million. Similar to last quarter, a greater portion of our quarterly investments were sale leaseback transactions as we have seen improved risk adjusted returns emerge from our opportunity set within this sourcing channel.