NETSTREIT Corp. Provides Update on Third Quarter Business Activities and Announces Dates for Third Quarter Earnings Release and Conference Call

Nachrichtenquelle: Business Wire (engl.)
01.10.2020, 23:12  |  110   |   |   

NETSTREIT Corp. (NYSE: NTST), a nationwide owner of high-quality, single-tenant net lease properties (the “Company”), today provided an update on the Company’s third quarter business activities. The Company also announced that it will release its third quarter 2020 financial results on Thursday, October 29, 2020 after the close of trading on the New York Stock Exchange. A conference call will be held on Friday, October 30, 2020 at 10:00 AM ET.

Third Quarter Business Update

Operating Activity:

  • Prior to giving any consideration to deferral or abatement arrangements granted as a result of COVID, the Company collected 99.5% of September rent payments, bringing total third quarter rent collections to 98.0%
  • Maintained portfolio occupancy of 100% as of September 30, 2020

Portfolio Construction:

  • Completed $103 million of acquisitions at an initial cash capitalization rate of 6.5%. Acquisitions completed during the quarter had a weighted-average remaining lease term of 10.9 years, and 100% of the properties are occupied by investment grade rated tenants
  • Completed one disposition at a contractual sale price of $1.9 million, which equates to a 10.4% cash capitalization rate
  • As of September 30, 2020, the NETSTREIT portfolio was comprised of 189 leases, contributing $38.9 million of annualized base rent1, with a weighted-average remaining lease term of 11.1 years, of which 68.0% were investment grade rated tenants and 6.4% were tenants with investment grade profiles (unrated tenants with more than $1.0 billion in annual sales and a debt to adjusted EBITDA ratio of less than 2.0x)

Balance Sheet, Financing and Dividend:

  • Completed an initial public offering (“IPO”) and, inclusive of the partial exercise of the underwriters’ over-allotment option, issued 13,936,829 shares of common stock at a price of $18.00 per share, for total net proceeds to the Company of approximately $227.3 million
  • Repaid $50 million under the Company’s line of credit, resulting in no outstanding line of credit borrowings at quarter end
  • Declared an inaugural common stock cash dividend of $0.10 per share for the third quarter of 2020, which was prorated to reflect the period of time from the Company’s initial public offering on August 13, 2020 to quarter end, representing an annualized dividend rate of $0.80 per share
  • Completed a $175 million LIBOR swap to hedge floating rate exposure on the entire balance of the Company’s Term Loan at an effective rate of 21 bps

“Our third quarter execution represents strong momentum for NETSTREIT in our first quarter as a public company. Our strong rent collections reflect the high-quality nature of our existing portfolio, and our acquisition and disposition activities further enhance those attributes by increasing our exposure to investment grade tenants, maintaining our long weighted-average remaining lease term and improving our portfolio diversification,” said Mark Manheimer, Chief Executive Officer of NETSTREIT. “In addition to our IPO, which reduced our debt and provided significant capital to fund future growth, we hedged the floating rates on our outstanding debt to reduce our interest rate risk.”

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