On October 25, 2023, Netstreit Corp (NTST, Financial) announced its financial and operating results for the third quarter ended September 30, 2023. The company reported a net income of $0.06 per diluted share and Adjusted Funds from Operations (AFFO) of $0.31 per diluted share. The company also completed $117.5 million of investment activity at a 7.0% blended cash yield.
Financial Highlights
Netstreit Corp (NTST, Financial) reported a 100% increase in net income per diluted share from $0.03 in Q3 2022 to $0.06 in Q3 2023. The company's Funds from Operations per diluted share and Core Funds from Operations per diluted share both increased by 11% from $0.28 in Q3 2022 to $0.31 in Q3 2023. The Adjusted Funds from Operations per diluted share increased by 3% from $0.30 in Q3 2022 to $0.31 in Q3 2023.
Investment Activity
The company reported net investment activity of $103.9 million in Q3 2023. The cash yield from investment activity was 7.0%, and 75.1% of ABR was derived from Investment Grade Tenants. The company also reported that it had 32 ongoing development projects with an estimated development cost of $68.3 million as of September 30, 2023.
Portfolio Update
As of September 30, 2023, the company's real estate portfolio consisted of 547 investments with an ABR of $124.3 million. The portfolio had 100% occupancy and a weighted average lease term of 9.3 years.
Capital Markets and Balance Sheet
The company reported a net debt adjusted for outstanding forward equity of 4.2x Annualized Adjusted EBITDAre. The company had a total liquidity of $464.6 million, which included unused unsecured revolver capacity of $358 million, cash, cash equivalents and restricted cash of $7.9 million, and the value of outstanding forward equity of $98.7 million.
Dividend
The company's Board of Directors declared a quarterly cash dividend of $0.205 per share for the fourth quarter of 2023. The annualized dividend of $0.82 per share of common stock represents an increase of $0.02 per share over the prior year annualized dividend.
2023 Guidance
Netstreit Corp (NTST, Financial) is increasing its full year 2023 AFFO per share guidance range to $1.21 to $1.23 from $1.20 to $1.23. The company now expects 2023 net investment activity to be around $450.0 million.
Explore the complete 8-K earnings release (here) from Netstreit Corp for further details.
