NETSTREIT Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>NETSTREIT Corp. has filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

NETSTREIT Corp. (NTST) filed a Annual Report (10-K) with the SEC on February 14, 2024. NETSTREIT Corp. filed its annual report for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 2021 McKinney Avenue, Suite 1150, Dallas, TX 75201. The filing was made on February 14, 2024. NETSTREIT Corp. is classified under Standard Industrial Classification code 6798 for Real Estate Investment Trusts.

Why It Matters

For investors and stakeholders tracking NETSTREIT Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of NETSTREIT's financial health, operational activities, and strategic direction for the past fiscal year, crucial for investors to assess performance and future prospects. As a Real Estate Investment Trust (REIT), the detailed financial information in this report is vital for understanding the company's asset base, revenue streams, and profitability within the real estate sector.

Risk Assessment

Risk Level: low — NETSTREIT Corp. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative news or events, indicating a stable, ongoing operational status.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand NETSTREIT's performance and potential challenges for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (The report covers the fiscal year ending on this date.)
• 2024-02-14 — Filing Date (The date the 10-K was filed with the SEC.)
• 0001798100-24-000011 — Accession Number (Unique identifier for the filing.)
• 001-39443 — SEC File Number (SEC's file number for NETSTREIT Corp.)

Key Players & Entities

• NETSTREIT Corp. (company) — Filer of the 10-K report.
• 2023-12-31 (date) — Fiscal year end date covered by the report.
• 2024-02-14 (date) — Filing date of the 10-K report.
• 2021 MCKINNEY AVENUE SUITE 1150 DALLAS TX 75201 (address) — Business and mailing address of NETSTREIT Corp.
• 6798 (industry_code) — Standard Industrial Classification for Real Estate Investment Trusts.

FAQ

Industry Context

NETSTREIT Corp. operates as a Real Estate Investment Trust (REIT), a company that owns, operates, or finances income-generating real estate. REITs are a significant part of the real estate investment landscape.

Regulatory Implications

As a publicly traded company and a REIT, NETSTREIT Corp. is subject to regulations from the Securities and Exchange Commission (SEC) and specific tax laws governing REITs.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue, net income, and asset growth.
2. Review any disclosed risk factors to understand potential challenges to NETSTREIT's operations and profitability.
3. Compare key financial metrics to previous years to identify trends and performance changes.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-14: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the annual report for the fiscal year ended December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.01 — ich Registered Common stock, par value $0.01 per share NTST The New York Stock Excha
• $0 — 1,810 shares of common stock, par value $0.01, outstanding. DOCUMENTS INCORPORAT
• $131.9 million — 023, our investments generated ABR 1 of $131.9 million. Approximately 71% of our ABR is from i
• $250.0 million — 2029 Term Loan Agreement") related to a $250.0 million sustainability-linked senior unsecured
• $400.0 million — ent, be increased to an amount of up to $400.0 million at our request. The 2029 Term Loan cont
• $150.0 million — ins a 12-month delayed draw feature and $150.0 million was drawn on July 3, 2023. The 2029 Ter
• $175.0 million — e entered into an agreement governing a $175.0 million senior unsecured term loan that was sch
• $1.0 billion — ts as tenants with metrics of more than $1.0 billion in annual sales and a debt to adjusted
• $18.00 — mon stock at a public offering price of $18.00 per share. In connection with the offer
• $300.0 million — On October 25, 2023, we entered into a $300.0 million at-the-market equity program (the "2023
• $17.27 — on stock at a weighted average price of $17.27 per share, from which we received net p
• $76.5 million — received net proceeds of approximately $76.5 million. As of December 31, 2023, we had $222.7
• $222.7 million — illion. As of December 31, 2023, we had $222.7 million in remaining gross proceeds available f
• $1 million — roperties with a purchase price between $1 million and $10 million, a segment of the marke
• $10 m — a purchase price between $1 million and $10 million, a segment of the market that we

Filing Documents

• ntst-20231231.htm (10-K) — 7457KB
• consent.htm (EX-23.1) — 4KB
• ntstformfy23xex311x302xmark.htm (EX-31.1) — 10KB
• ntstformfy23xex312x302xdan.htm (EX-31.2) — 10KB
• ntstformfy23xex321x906xmark.htm (EX-32.1) — 6KB
• ntstformfy23xex322x906xdan.htm (EX-32.2) — 6KB
• netstreit-clawbackpolicyfi.htm (EX-97) — 40KB
• ntst-20231231_g1.jpg (GRAPHIC) — 42KB
• ntst-20231231_g2.jpg (GRAPHIC) — 135KB
• 0001798100-24-000011.txt (&nbsp;) — 33015KB
• ntst-20231231.xsd (EX-101.SCH) — 195KB
• ntst-20231231_cal.xml (EX-101.CAL) — 120KB
• ntst-20231231_def.xml (EX-101.DEF) — 681KB
• ntst-20231231_lab.xml (EX-101.LAB) — 1631KB
• ntst-20231231_pre.xml (EX-101.PRE) — 963KB
• ntst-20231231_htm.xml (XML) — 7389KB

Business

Business 5 Item1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 28 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 29 Item 3.

Legal Proceedings

Legal Proceedings 34 Item 4. Mine Safety Disclosures 34 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35 Item 6. Reserved 36 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 50 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 82 Item 9A.

Controls and Procedures

Controls and Procedures 82 Item 9B. Other Information 83 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 83 PART III Item 10. Directors, Executive Officers and Corporate Governance 83 Item 11.

Executive Compensation

Executive Compensation 83 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 83 Item 13. Certain Relationships and Related Transactions, and Director Independence 84 Item 14. Principal Accountant Fees and Services 84 PART IV Item 15. Exhibit and Financial Statement Schedules 84 Item 16. Form 10-K Summary 86

SIGNATURES

SIGNATURES 86 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Unless the context otherwise requires, references in this Annual Report on Form 10-K to the terms "registrant," the "Company," "NETSTREIT," "we," "our" or "us" refer to NETSTREIT Corp. and all of its consolidated subsidiaries, including NETSTREIT L.P. (the "operating partnership").

Forward-Looking Statements

Forward-Looking Statements This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). NETSTREIT intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "anticipate," "estimate," "should," "expect," "believe," "intend," "may," "will," "seek," "could," "project," or similar expressions. Forward-looking statements in this report include information about possible or assumed future events, including, among other things, discussion and analysis of our future financial condition, results of operations, our strategic plans and objectives, occupancy and leasing rates and trends, liquidity and ability to refinance our indebtedness as it matures, anticipated expenditures of capital, and other matters. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially adversely affect actual results, performances or achievements. Factors which may cause actual results to differ materially from current expectations, include, but are not limited to: global market and economic conditions; risks inherent in the real estate business, including tenant defaults, illiquidity of real estate investments, potential liability relating to environmental matters and potential damages from natural disasters; our ability to successfully execute our property acquisition or development strategie

Business

Item 1. Business Business Overview We are an internally managed real estate company that acquires, owns, invests in and manages a diversified portfolio of single-tenant, retail commercial real estate subject to long-term net leases with high credit quality tenants across the United States. As of December 31, 2023, we owned or had investments in 598 single-tenant retail net leased properties that were diversified by tenant, industry and geography, including 85 different tenants, across 26 retail sectors in 45 states. We focus on tenants in industries where a physical location is critical to the generation of sales and profits, with a focus on necessity goods and essential services in the retail sector, including home improvement, auto parts, drug stores and pharmacies, general retail, grocers, convenience stores, discount stores, and quick-service restaurants, all of which we refer to as defensive retail industries. As of December 31, 2023, our investments generated ABR 1 of $131.9 million. Approximately 71% of our ABR is from investment grade 2 credit rated tenants and an additional 14% of our ABR is derived from tenants with an investment grade profile 3 . Exclusive of mortgage loans receivable, our portfolio was 100% occupied with a weighted average remaining lease term ("WALT") of 9.5 years, which we believe provides us with a strong, stable source of recurring cash flow from our portfolio. We were formed as a Maryland corporation on October 11, 2019 and our common stock began trading on the New York Stock Exchange ("NYSE") under the symbol "NTST" on August 13, 2020. We are structured as an umbrella partnership real estate investment trust (a "REIT"), meaning that we own our properties and conduct our business through our operating partnership, directly or through limited partnerships, limited liability companies or other subsidiaries. NETSTREIT GP, LLC, a wholly-owned subsidiary of the Company, is the sole general partner of our operating partnership. As o

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