Netstreit Corp (NTST) Q3 2024 Earnings Call Highlights: Record Investments and Strategic Adjustments

GuruFocus.com11-06

Gross Investments: $152 million, highest quarter on record. Blended Cash Yield: 7.5% or 8% on a straight-line basis. Development Projects: Four projects totaling over $18 million commenced rent in the...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetstreit Corp (NTST) Q3 2024 Earnings Call Highlights: Record Investments and Strategic Adjustments\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-06 15:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/netstreit-corp-ntst-q3-2024-072330298.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Gross Investments: $152 million, highest quarter on record.\nBlended Cash Yield: 7.5% or 8% on a straight-line basis.\nDevelopment Projects: Four projects totaling over $18 million commenced rent in the...</p>\n\n<a href=\"https://finance.yahoo.com/news/netstreit-corp-ntst-q3-2024-072330298.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NTST","symbol_name":"NetSTREIT Corp.","start_time":0,"source_url":"https://finance.yahoo.com/news/netstreit-corp-ntst-q3-2024-072330298.html","article_id":"2481647850","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481647850","pubTimestamp":1730877810,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Gross Investments: $152 million, highest quarter on record.Blended Cash Yield: 7.5% or 8% on a straight-line basis.Development Projects: Four projects totaling over $18 million commenced rent in the quarter.Development Pipeline: Eight projects with a total estimated cost of $22 million.Net Loss: $5.3 million or 7 per diluted share.Core FFO: $24.9 million or 32 per diluted share.AFFO: $24.8 million or 32 per diluted share, over 3% increase year-over-year.Total Recurring G&A: Declined 16% year-over-year to $4.3 million.Recurring Cash G&A: Declined 24% year-over-year to $2.9 million.Liquidity: $464 million, including $29 million cash on hand.Adjusted Net Debt to Adjusted EBITDA: 4.0 times.2024 AFFO Guidance: Updated range to $1.26 to $1.27 per share.Quarterly Cash Dividend: 21 per share, payable on December 13th.GuruFocus has detected 7 Warning Signs with NTST.Netstreit Corp  completed $152 million of gross investments, marking their highest quarter on record.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NTST":"NetSTREIT Corp.","WBA":"沃尔格林联合博姿"},"translate_title":"Netstreit Corp(NTST)2024年第三季度收益看涨期权亮点：创纪录的投资和战略调整","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NTST":1,"WBA":0.9},"content_text":"Gross Investments: $152 million, highest quarter on record.\nBlended Cash Yield: 7.5% or 8% on a straight-line basis.\nDevelopment Projects: Four projects totaling over $18 million commenced rent in the quarter.\nDevelopment Pipeline: Eight projects with a total estimated cost of $22 million.\nProperties: Investments in 671 properties, 100% leased.\nNet Loss: $5.3 million or 7 per diluted share.\nCore FFO: $24.9 million or 32 per diluted share.\nAFFO: $24.8 million or 32 per diluted share, over 3% increase year-over-year.\nTotal Recurring G&A: Declined 16% year-over-year to $4.3 million.\nRecurring Cash G&A: Declined 24% year-over-year to $2.9 million.\nTotal Adjusted Net Debt: $569 million.\nWeighted Average Debt Maturity: 3.3 years.\nWeighted Average Interest Rate: 4.46%.\nLiquidity: $464 million, including $29 million cash on hand.\nAdjusted Net Debt to Adjusted EBITDA: 4.0 times.\n2024 AFFO Guidance: Updated range to $1.26 to $1.27 per share.\nQuarterly Cash Dividend: 21 per share, payable on December 13th.\n\n\nWarning! GuruFocus has detected 7 Warning Signs with NTST.\n\nRelease Date: November 05, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nNetstreit Corp (NYSE:NTST) completed $152 million of gross investments, marking their highest quarter on record.\nThe company achieved a blended cash yield of 7.5% or 8% on a straight-line basis for the quarter.\nNetstreit Corp's portfolio remains 100% leased with a weighted average lease term of 9.5 years.\nOver 75% of Netstreit Corp's total ABR is leased to investment-grade or investment-grade profile tenants.\nThe company successfully reduced its Walgreens concentration from 5.9% to 4.8% and plans further reductions.\n\n Negative Points \n\nNetstreit Corp reported a net loss of $5.3 million or 7 cents per diluted share for the quarter.\nThe percentage of investments leased to investment-grade tenants was below the portfolio average this quarter.\nThe company provided short-term rent relief to Big Lots during its bankruptcy process, impacting cash flow.\nNetstreit Corp's weighted average debt maturity is relatively short at 3.3 years.\nThe company faces challenges with tenant concentrations in industries like pharmacies and dollar stores, which have been under scrutiny.\n\n Q & A Highlights \nQ: As you look into the fourth quarter and maybe the first quarter of next year, do you still expect to remain in the creative acquisition spread for your disposition? A: Yes, we do. We expect cap rates to stay close to where they are now, maybe slightly below where we've been for the first three quarters. The dispositions we're looking at currently are at lower cap rates than what we achieved in the third quarter. - Daniel Donlan, CFO\nQ: Can you comment on the quality of your Dollar General locations and how you see this exposure progressing over the next year? A: Our Dollar General portfolio is unique as we partnered with the tenant to extend most leases, leaving us with a weighted average lease term of just under 15 years and 1% annual increases. We plan to reduce concentration below 10% through loan payoffs and selective dispositions. - Daniel Donlan, CFO\nQ: Can you offer comments on the disposition market and the element of seller financing when addressing Walgreens dispositions? A: The disposition market has improved with more interest in our assets. We used seller financing for some transactions in Q3, achieving an interest rate slightly higher than the cap rate. We don't plan to use seller financing much more but reserve the right if it leads to better outcomes. - Daniel Donlan, CFO\nQ: What is the expected acquisition run rate for the next 5-6 quarters, considering the current cost of capital? A: Given our current cost of capital, we're not achieving sufficiently accretive spreads to maintain our current acquisition pace. The team is built to handle net investment activity of $100 to $150 million, but future activity will depend on cost of capital improvements. - Daniel Donlan, CFO\nQ: How do you gauge the health or performance of your Walgreens compared to the entire chain? A: We believe our Walgreens locations are profitable and will remain open. We maintain strong relationships with tenants, allowing us to stay ahead of potential closures. The profitability issues are more related to pharmacy reimbursement rates rather than front-end sales. - Daniel Donlan, CFO\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481647850"}