NETSTREIT Corp. reported significant financial developments in its recent 10-K filing for the fiscal year ending December 31, 2024. The company generated total revenues of $162.8 million, a 23.4% increase from $131.9 million in the previous year. This growth was primarily driven by a rise in rental revenue, which reached $150.8 million, up from $124.0 million in 2023. However, NETSTREIT also faced increased operating expenses, totaling $144.3 million, compared to $107.8 million in the prior year, leading to a net loss of $12.0 million, a decline from a net income of $6.9 million in 2023.
The company made notable strategic moves during the year, acquiring 115 properties for a total purchase price of $479.0 million, which included $4.6 million in capitalized acquisition costs. As of December 31, 2024, NETSTREIT owned or had investments in 687 properties across 45 states, with a portfolio that was 99.9% occupied. The weighted average remaining lease term (WALT) for the portfolio was 9.8 years, indicating a stable source of recurring cash flow. Approximately 56% of the annualized base rent (ABR) was derived from investment-grade tenants, with an additional 15% from tenants with an investment-grade profile.
Operationally, NETSTREIT's portfolio diversification included 98 different tenants across 26 retail sectors, with no single tenant accounting for more than 9.0% of the ABR. The company reported a strong focus on necessity-based retail sectors, with 87.5% of its ABR coming from defensive retail industries. The company also disposed of 56 properties during the year, generating $110.9 million in sales, which contributed to a net gain of $1.9 million.
Looking ahead, NETSTREIT has amended its credit agreements to enhance its financial flexibility, including a new $175.0 million senior unsecured term loan and an upsized $500.0 million revolving credit facility. The company anticipates that its capital resources, including cash flows from operations and available borrowing capacity, will be sufficient to support ongoing operations and fund future acquisitions. However, the company remains cautious about potential economic fluctuations and their impact on its operations and tenant performance.
About NETSTREIT Corp.
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