NETSTREIT Corp. (NTST) Issues Q4 Business Update
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E-mailNETSTREIT Corp. (NYSE: NTST) (the “Company”) today provided an update on the Company's fourth quarter and full year 2023 business activities.
“With the Company completing $431.0 million of net investment activity in 2023, we were pleased to meet our investment objectives for the year and maintain our focus on owning high quality net lease properties leased to tenants with exceptional credit profiles. Coupled with the $76.7 million of equity raised during the fourth quarter, NETSTREIT is well positioned to capitalize on future growth opportunities while continuing to provide a secure cash flow stream to investors. Despite persistent capital markets volatility and lingering economic uncertainty, we are confident in our business plan, and therefore, we are introducing our 2024 AFFO per share guidance range at $1.24 to $1.28,” said Mark Manheimer, Chief Executive Officer of NETSTREIT.
INVESTMENT ACTIVITY
The following tables summarize the Company's investment and disposition activities (dollars in thousands) for the three months and year ended December 31, 2023.
| Three Months Ended |
| Year Ended December 31, 2023 | ||||||||
| Number of |
| Amount |
| Number of |
| Amount | ||||
Investments | 57 |
| $ | 119,128 |
|
| 196 |
| $ | 480,519 |
|
Dispositions1 | 6 |
|
| 15,995 |
|
| 22 |
|
| 49,506 |
|
Net Investment Activity |
|
| $ | 103,133 |
|
|
|
| $ | 431,013 |
|
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|
|
|
|
|
|
| ||||
Investment Activity |
|
|
|
|
|
|
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Cash Yield |
|
|
| 7.2 | % |
|
|
|
| 7.2 | % |
% of ABR derived from Investment Grade Tenants |
|
|
| 94.3 | % |
|
|
|
| 81.4 | % |
% of ABR derived from Investment Grade Profile Tenants |
|
|
| 4.4 | % |
|
|
|
| 11.8 | % |
Weighted Average Lease Term (years) |
|
|
| 10.9 |
|
|
|
|
| 10.7 |
|
|
|
|
|
|
|
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Disposition Activity |
|
|
|
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|
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| ||||
Cash Yield1 |
|
|
| 7.2 | % |
|
|
|
| 6.9 | % |
Weighted Average Lease Term (years) |
|
|
| 11.2 |
|
|
|
|
| 7.8 |
|
1. Includes mortgage loan payoffs. | |||||||||||
CAPITAL MARKETS AND BALANCE SHEET
The following tables summarize the Company's balance sheet, liquidity, ATM issuances, and settlement of our forward equity offerings (dollars in thousands, except per share data) as of and for December 31, 2023.
Liquidity | As of December 31, 2023 | ||
Unused Unsecured Revolver Capacity | $ | 319,850 | |
Cash, Cash Equivalents and Restricted Cash |
| 29,929 |
|
Value of Outstanding Forward Equity1 |
| 98,612 |
|
Total Liquidity | $ | 448,391 |
|
Plus: Remaining Available Principal of 2029 Term Loan |
| 100,000 |
|
Total Proforma Liquidity | $ | 548,391 |
|
|
| ||
ATM Program |
| ||
Shares Issued During Quarter |
| 4,478,539 |
|
Weighted Average Price Per Share | $ | 17.27 |
|
Net Proceeds | $ | 76,667 |
|
|
| ||
Forward Equity |
| ||
Shares Outstanding as of December 31, 2023 |
| 5,983,711 |
|
Weighted Average Price Per Share | $ | 16.48 |
|
Value of Outstanding Forward Equity1 | $ | 98,612 | |
1. Reflects 5,983,711 of unsettled forward equity shares under the ATM program at the December 31, 2023 available net settlement price of $16.48. | |||
2023 GUIDANCE
The Company is reaffirming its full year 2023 AFFO per share guidance range of $1.21 to $1.23.
2024 GUIDANCE
The Company is providing its initial full year 2024 AFFO per share guidance in the range of $1.24 to $1.28 per share. The Company also expects cash G&A to be in the range of $13.5 million to $14.5 million (exclusive of transaction costs).
AFFO is a non-GAAP financial measure. The Company does not provide a reconciliation of such forward-looking non-GAAP measure to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
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