NTST - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the NETSTREIT Corporation Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Amy An. Amy. you, Thank

begin. You may

Amy An

for full joining fourth you for us XXXX earnings and year quarter conference Thank NETSTREIT's call.

the investor as package In answers may addition close, an found supplemental market site Investor company's and Relations www.netstreit.com. yesterday distributed Act Reform defined can section forward-looking Private updated in contain and of the to the remarks Securities we On questions press posted today's to release management's presentation. in your be Those Litigation statements Web the XXXX. after at a call, of

and statements that differ that Forward-looking matters are address discussed those cause subject to to results risks uncertainties actual today. may from

SEC information prospectus are Form and obligation XX-K filings, to these about December NETSTREIT we factors, for review the more year no any dated encourage XXXX statements the XXXX, forward-looking our XX, date forward-looking ended available. All you the hereof, future. assumes other statements update in including For August XX, made our risk our of as to and

open addition, on non-GAAP Please information we for explanation such includes why GAAP release Executive conference call hosted are call earnings will useful Officer, to measures reconciliations investors. for Today’s Manheimer; call by presented Officer, NETSTREIT’s your and supplemental definition, and of this Blocher. financial to our measures. will the and refer believe financial an non-GAAP financial is In certain and package make we remarks then Chief They Mark questions. Andy Financial Chief some prepared

call will turn the Now to over Mark. I

Mark Manheimer

results, quarter call start brief efforts. balance we acquisition with to families more earnings year management for call. here fourth you pleased joining finds outlook today this fourth NetSTREIT's XXXX on and detail on related and of XXXX. Then overview thank our our be today. and discuss a with quarter full comments for you over year. Good hope activity your ESG are and year will portfolio few a I'll well you and And then Andy close with the our us sheet I'll full morning, everyone. and We and last accomplishments provide for

will NETSTREIT capitalized inception NETSTREIT’s We fortress to with create Since open strategy a retail and a questions. consistent has sheet to quality portfolio, support for high and diversified scalable long conservatively call then cashflow been and balance accretive term platform growth. our the

to many half of deploying capital As and to during helped ultimately spent height collections rule the first peers which from us that our offering. resistant resilient, quarters XXXX, of e-commerce compared have related second aware, raised higher portfolio our are significantly and of you built We of net recession lease third the we the as XXX-A rent a closures. private was COVID-XX XXXX at

out including Trish we made and are team Howe, Blocher, our who this on XX. built Randy In executive Andy from employees addition, to We hires, with several eight call McCartney today. us

IPO been note wouldn't more forward to us of last it our our like place amid moment million by have raising worked last and sharing I where that not who happened here many exercised had to for total $XXX us hired members have our August a a completed over accomplishments pause We diligently successes as Ziglar, are which the of also added team of proceeds, SVP I'm in to member and board option Everett forward. net in We class every Christodolou. of COVID-XX we Shaffer in team underwriters. Credit a our the We take to the I of Chad believe would proud Robin future. lead directors, to We our to them included look with to very Heidi Michael successfully allotment to we of best year's today. pandemic, and everyone Underwriting. three of get

portfolio. our to on Moving

portfolio our comprising roster XX feet XXXX, X.X of XX, tenants XX million tenant with contain in December in industries. a XX of square XXX diversified states properties As

we XX.X their focused are be Based balance is X% as ABR, protection lease have access is sheets business. simply key ability with positioned e-commerce defensive. with as But with on and expiring we their average an who our are expirations for strong XX% has XX% a to their weighted exposure before integral characteristic is defining Our XXX% capital, to additional classified physical we of years tenancy whom term This on COVID both our to until and risks leases investment our and and investment to unrated grade and XXXX proven related cash what XXXX. flow occupied X% locations on no over grade an refer well less industry to than lease profile, for great tenants tenants disruption. focus are and generate against of

these XXXX. throughout our We full construction are validate result, rent that results and Andy acquisitions. disruptions to we believe view further. Throughout a we discuss COVID in rear related XXXX, have payment approach rent XX% grow strategic As collected portfolio our resulting pandemic. COVID mirror. the continued collections of portfolio for our the extremely our been will strong the of But disciplined to now year approximately through

and fundamentals the pace no tenant activity credit which opportunity In market acquisitions This parent the reminder, our productive our slowdown pipeline projects, kept highly set. stabilized to due with of fungible seek of demonstrates we locations estate year development properties $XXX a transactions a underwrite acquisitions. tenant. assets, COVID. blend opportunities, throughout depth extend depth and of investments million steady in are leaseback strong with included we meant completed and that sale and As with we acquire and and breadth that of the The real XXXX, for strong underlying

occupied we of weighted capitalization average of XX% additional million completed properties grade X.X%. $XX the acquisitions tenants tenants, and investment occupied at For a profile. the quarter, with XX.X% by These cash lease initial years investment fourth of an grade acquisitions with term X.X rated remaining an by had of rate

quarter, back the be case in these Finally, most to the to the which loaded acquisitions in quarters. tends were with respect timing,

During and year a our rentals our Best to we XX Buy, Chick-fil-A few added Sunbelt fourth the ground new lease. first portfolio quarter, including tenants roster,

added we We Target XXX of subject has A just lease rate, the first a begun on a community parcel in at moving of that value the per the we acre demolished apartment has acquired also cap the that Boston luxury bargain foot. at half but are The been encouraged customers year increasing to with new south was to of next three X.X% couple land rent square and a our former we be that and box $X.XX ground in just seven Massachusetts feel Not by door construction place. in unit years, what on its Crow also by will Trammell in only Sears our price. we a expect Class adjacent portfolio next

near to geographies an presented our exposure term quality. to and credit XXXX, We the XX portfolio of our we rather the for properties sold than despite absolute quarter their industries, our risk. tenants, opportunity later closed market drove conditions sooner and attractive This also overall eliminate these fourth fourth felt continue impact on properties and which assets In that earnings. sell quarter. to to XX $XX decision lessen $XX.X consider quality reduce to improved improve and in We in strategic dispositions million or were million certain

but time. to goal category, we fourth potential quarter, been reduce in our an believe X.X% stated risks has ours. in addressed we'll from which a to decrease casual reduced during This credit exposure immediate opportunity to this over of we have exposure to XXXX. dining, category the now took X.X% exposure We During was that the this continue

look so geographic creative. We a to in way exposure, and also refine to date that have our a was done

in a ally cap replaced During in cash it rate. with and acquisition fourth of X.X% remaining term rate the Indiana at Texas we an an cap quarter, sold another similar with a X.X% lease at ally

our adding XX of new transformed recycling XXXX, assets, quality active total new capital enhancing states XX tenants, and We existing As new diversity. in and our a acquired we and XXX credit industries. management portfolio its portfolio, improving four result

our exposure which average BBB grade CVS December AA XX.X% term at minus XXXX Importantly, same our ABR to X-Eleven At as of rated from reduced tenant, grew XX% at years. to to from lease was on grew X.X% XX.X and the rated time, XX, we weighted of our investment of XX, XX.X% ABR XX.X largest percentage XXXX. to tenants December

with acquisitions, to of top tenants. including evaluate many future continue our We XX

over concentration our However, tenant as to denominator we time, expect decrease to effect grow. due portfolio to the continues

early me we tenant remind let childhood education to health zero that tenants and that held our of generally estate. weaker their or these underlying club reflecting view fungibility tenants, of real lack credit long exposure Finally, profiles have theater, have you

dispositions of in targeting acquisition million As we inclusive look we're XXXX. that ahead, of $XXX activity

our of a industry be unrated will and of that high We portfolio current tenants expect investment similar is activity our the that grade bulk of the reflect to and current mix quality this mix, concentrations. mix

sheer move leased us Given industry size, we needle the a of opportunities sector that size meaningful the growth believe us. relationships, of have we relative way. the And growth and smaller acquisitions of plenty to we in our in know ahead net our earnings due future deep can terms for of

acquisitions forward to our were no our weighted or and lease high and opportunities goals diversification growing erosion look pipeline quality going average quality robust in improve we with of We portfolio continue properties. rates cash by our with cap reaching We encouraged term. and XXXX as to

of let call, quarter take our brief important would cover the topic me market When of that indicated time moment fourth an a at ESG part we our a is and this we to here, came processes. As to ESG. be strategy our IPO,

committed we time today's designed standards are governance. board the fit First, to From that governance. IPO, of was to our we for strong our ensured

real board the and and have markets estate, NETSTREIT three These an are independent pillars same that and expertise, including We mix of strong support a backgrounds financial with itself. human capital. diverse

education remains our Second, that wellbeing a perspective, Andy to me. offers professional continuing flexible and to from we and sure benefits very make From has been social parental the important and reimbursement, beginning, NETSTREIT competitive employees. leave training, employee and engagement

annually. in to is employees personal stake satisfaction have our of our success. every our employee employees a NETSTREIT, all meaning collective shareholder say proud that I'm in of one survey also We a

Finally, fund eye projects XX level, component. has top tenants diligence At of have the environmental to towards an XX and asset respect an programs, acquisition with due with the ESG process look to our environment, improvement capital sustainability. we sustainability and our corporate

that operating supported We leverage low proud portfolio while growth, we've platform grown quality, by improving sheet. in and built our designed having XXXX, its accomplished balance all very of significantly are for a an

meaningfully performance collections unforeseen, peer our we Finally, durability of our on strategy year. as our past outperformed set economic that strong the environment over the in uncertain objectively an proves

we future turn we excited I'll are we extremely we and XXXX the the believe As Andy? a now to result, call for over are NETSTREIT. enter positioned well Andy. as at

Andy Blocher

with time this your for all you thank us morning. and Mark, Thanks,

results Yesterday, Let me year in our press and and of AFFO $X.XX, release, our FFO $X.XX $X.XX quarter. we the XXXX. full diluted fourth begin income with quarter for per of share fourth of for core net the reported

For the per reported income full year, $X.XX, $X.XX we FFO core and of diluted AFFO share. of $X.XX of net

of was tenants, zero any quarter. From of we're payments Further, recognize a the fourth full and our collected quarter COVID, deferral fourth of portfolio rent bad and place XX, based reflects rent year XXXX, Prior important generating in of to our result XXX% metric the we on quarter year a consideration as pleased rent. XXXX. history has effect in the have dispositions granted reserves full $XX.X of we and collected completed ABR of for collections portfolio December in debt zero perspective, giving performance. the time debt As very of for acquisitions of which bad with the million payment XX.X% currently abatement base fourth or or to the annualized the and arrangements,

based fourth rent since collections and deferrals so Finally, quarter, have abatements did on provide not not our in we or any done the XXX% August.

loan. and our sheet NETSTREIT. our outstanding and proceeds completed markets raised XXXX $XXX line The million capital respect equity set IPO future of to million we for access net and to exposure work credit, sheet activity. our the We completed hedge We very with LIBOR balance balance was of retired through our balance the our outstanding term of markets entire our on for shares and Series the approximately August. important growth swap Turning in A floating stage preferred rate our in repaid $XXX

our million XXst, remain $XX As million cash in revolving cash, undrawn line had exchange restricted of on we credit. accounts, held of XX/XX includes December $XX and which million of fully $XXX of

drawn December term no debt XXXX which year of maturities fully maturity which December We the our is maturity until our loan. revolver the have to subject a XXXX, of match extension would in option, one

In be addition, to to target. our regular per on this earlier declared XXth, times times long EBITDA of our $X.XX an dividends times With respect to the dividend March week, net board on below annualized is debt X.X payable to of ratio of share. to term March X.X adjusted $X.XX record X.X dividend annualized cash shareholders a reflecting XXth rate well

Let starting our rent. couple me million in discuss place the to outlook now XX.X We're take on a some of items annulized few and of minutes guidance perspective. forward with base looking provide year a

Mark As XXX expect activity. for cap end each back this net comparable mentioned, acquisitions we in year employ fourth year, full rate and dispositions of quarter to XXXX a million quarter weighted and of

financing additional expect from timing amortization. if interest $X on of to on of fee revolving draws, noncash credit expense an deferred our and cash to the expect range any, We depending million million XXX,XXX $X.X line

of We own in of expect line report growth amounts on expect and geographic to the to and $XXX,XXX tax XXXX, to item and diversity $XXX,XXX our franchise their portfolio. incur those increasing reflecting states

We range of committee finalized to with in G&A an agreements executive XXXX that $X million million, expect recently $XX reflects compensation compensation million been expense, cash of process. to our compensation which $X have noncash the through million additional $XX

overall we've and effectively as and as and public compensation size continue cost largely stabilized our our benefits of the efficiently grow. of relatively execute As we the to will strategy requirements service structure and scale outside a perform team, expect our we our to we that fixed gain company, structure a

platform day I'm pandemic revenue expected a allowed decrease is what to and our for result, team that to comments echo I'll portfolio. is their in as work assets of Their XXXX. us G&A Mark's over each say time. establish great a to our through we percentage believe contributions grateful a exceptional entire truly and and a As hard and build

This we to remarks, start we prepared open grow shareholder we Operator? the creating to now we'll question. XXXX, portfolio our continue concludes momentum on and significant significant and believe value. focused As earnings have both remain for line our

Operator

Thank you [Operator Instructions].

Tsia Jefferies. with Our first Linda comes from question

LindaTsia

to rent collected January there collections You of rent December, didn't press and XXX% Is February in anything but highlight November release. payments of we for see here? your and mention for October,

MarkManheimer

discussion the second quarter But since rent, have Yes, we relief, any that have hoped had tenants our resolved did collect we any not had relates received preface it to check XXX% it. fully we January. documented to February, still quarter. COVID we of and rent and last to requesting question, in we COVID and/or But year just had rent as grade tenant that as impacts we never a paying with but an any portfolio all the about believe us tenant the second going back investment send this to rent

from got all continue ACH, on we be is so the them And move collect rent, we we've the their the XXX% all trying And day rest rent going a canceled week but transparency tenant the they to and our And then that check the really which wires. that be when of to to to we're and tenant all do that confidence it the to February that wanted for so to maintaining with the receiving comes we'll our not which we're released of credibility. only tenants. hyper of Tuesday, quarter. first for But careful of

one that to to rent. payment receiving consecutive would rent on get waiting we're of of technically, sixth in every month February, XXX% penny and So of our $XX,XXX make

So your question. hopefully that answered

LindaTsia

the the space center also high shopping JV transactions announcing then growing are now you right net we viewing a with should multitenant a sounds investment like landscape competitive acquire cap occur about difficulty your This we're lease center yesterday grade REIT tenants. of concerned shopping be and or more sandbox. compression XXXX? net quality greater rate And sourcing in in seeing number smaller How lease deals

MarkManheimer

assets And I there just would capital directly be very, first, particular XXXA we I years. few prove But that quality market, to pricing specific ability that the think yields that as a also unlikely the it's very we'd today that able of which very to to at attractive shows think we entrant few for we'd to quarters. When just a that very quality big fact entrants is it continue in it them. raised I over we think have mention was a this the the couple the pretty a make the still last it it's been compete new we in. able really we the competing was with seen forward we more topic how in today. capital still than in and more attractive look at and deploy that hit approach But topic. And So have, has again, be the that robust has of and bringing really that we're have acquisitions it spaces the we to it's IPO our time past pipeline, the do fragmented think that be

LindaTsia

you How higher Just or this last dilution acquisition volume? one are one. best dispositions tenant through addressed concentration, through approaching is

MarkManheimer

mean, obviously a I point. portfolio we're smaller this at

I And going we quarter that caps pretty increasing the in we outsized leases, the pricing majority did you shorter of said, similar dispositions. XXX term of to one assets accretively, out move tenant, at selectively like we portfolio to to great that come but longer term back sense made will than to from you We did quarter the we size. can move couple sell so cap expect opportunity felt have and thought five had With see one forward some getting really basis. But X-Eleven leases. a through little where in one fourth typically which at go and of in a that the fourth the were credits work continue just on dispositions a we if more us think bit through tenant some is particular to being what an is denominator

we felt that our to lease expiration like improve So was schedule. for helpful us

Operator

Thank you.

next Our Nate question Berenberg. with from Crossett comes

NateCrossett

is on of in was you QX, this pipeline's you within terms? it size help the we're two was it been And since that a of activity you mostly the already is if the had own in mix in comment you've that dollar And could than I us bigger it's mentioned concepts wondering of quarters. the I of so current? could just far or if you quarter. terms wondering last pipeline, new kind and approaching end already

MarkManheimer

So I again, I the of similar be of be should today couple is fourth quarter next know early likely assets to mean, a bit back this either think to neighborhood million of the a loaded. closed quarter I closing We so far. week. end $XX or that there's in

a of assets bit have through are contract under investment $XXX through over moving closing committee million We that the process. little and approved

anywhere XX days. take to XX can So that from

So will be the of into some in pretty as of have probably leak that that we the April. quarter, some a good And there will will robust thing is first well. think April I

adding grade that as a done attractive with we're the We that you’ve little tenant profile, few stuff a first acquisitions in the average look term prepared more pretty bit the that here being are quarter. consistent tenants tenants new remarks, did loaded have and that quarter to less in pretty XXXX. to in Target couple in a an lot we the that saw thing it what and see an do attractive the heard my seeing. We in tenants add one. that, new pretty we'll likely the portfolio investment with investment we've like yes, first end back will first fourth I of terms yields to lease So grade think quarter. But make kind assets you in relates quarter in are the weighted quality it's that that high gonna be But a grade what investment of saw

NateCrossett

or is present you quarter. was remind grow portfolio us themselves ground to just that over did kind and leases to could ground leases wondering if I the did -- how of time, how some you? mentioned You is of where much you opportunities your those going in

MarkManheimer

to think, several not are there you all I mean, ground equal. that ground see they're -- but I leases, acquire. So some there those of when million tenants are And leases out dollars created [Indiscernible] are to us and

look much versus when difference. simple So the you at on a ground fee there's not rent lease, really

what advantage is really of worth get an picking and don't we Those think of than rents some are out are But I land to losing a are you're depreciation. when do that out of reflective very to Typically, much those the types less. up priced on So going just see other of on -- we're get those transactions. lot going or attractive. really

coming inside the rents it’s a the going lease. few We want pretty I that a grow Target, of the the Chik-fil-A, real us. that effective which be those. if asset, a X.X We we're they’re cap and those we’ve that's of be that we in we ground cash cap think the was similar pay to more ground inside of others, in going and I simple acquired don't marketing portfolio. to really a think have portfolio. few ground rate think to leases a rate But leases. low I mean priced Obviously, attractive at do find that Lowe’s for I really deals event mentioned are up the but them in would meaningfully. to I handful got in got is think don't to X% going significantly and of we've

Operator

Thank you.

Our next Scotiabank. Greg McGinnis comes from question with

GregMcGinnis

to from remarks, this stopped you expecting opening an you you I just year, forward? apologize prevented we this share what be call year per AFFO seconds. Andy, of what or kind be guidance curious should expect for covered But few and that abnormality this a my providing if whether going in your

AndyBlocher

we that make it capital on you a of timing, you at based know, pricing certainly, raises, is extent assumptions that ordinary XXXX the point. this in to talked provide The mean have But size, users. have Yes, around I around, additional things we to know, meaningless phenomenon, think our had the that current I been would been our to would we business. past range and course lesser wide, about would have so expectations it size, a that

So dictate we knowing expect capital capital the that our corporate with we really key going think our respect we provided XXXX. XXXX the to to I raising we're is we are performance size that going did to what rough as the did be access around operational guidance items to and opportunistic throughout to

So I result didn't things, and mean per share produce think in for it $X.XX to $X.XX those high to us provide was XXs then the to just AFFO a users. guidance range of meaningful as we

GregMcGinnis

to the In though, raises there this any thinking funding you're of kind in you terms updates regards are acquisitions year? capital about can provide how of

AndyBlocher

my talked a I as mean $XX of million worth as we're I got very robust pipeline working we've balance remarks, the mean, that end. year sheet of I on cash had about March in prepared through.

fully a at debt X.X to net have times We EBITDA. undrawn were facility. We $XXX credit million

opportunistic respect a got we’ve as room. you have capital. result, the with to like feel be And we we to So ability know the

Operator

next Our question comes with Wells Todd Stender Fargo. from

ToddStender

You seems touched comment a to exposure. buy quick bucket, your in COVID. your reduced Can casual on necessity of it you QSRs? see on service, a but in your specific during to don't tenant comes guys But portfolios way central sure just we or it that when dining appetite top list. Not names

MarkManheimer

of names focused well. period when a mean, the Going and how entirely the extraordinarily be really, you disruption we hit, we're the COVID great restaurants performed hit short comfortable time. quick we're there's first similar back to going a And with. COVID see XX probably for on recession I credit to brakes acquisitions saw, and on that about service list of very still to very

and sure restaurant we that large make got quick we've drive thru As to to it got hadn't even we’re had some model. and service or that to directors, historically a a operators going -- parcel seeing that enough relates thru we've drive service quick restaurants to want enough accommodate

an we think, back, sure can below the expect is you mentioned, year that casual little that down I So see to us assets in to fungible you're as but X%, see some want the And it that's to future. to to creep make think I acquire very by be likely again, over area, a end. X% dining going you

ToddStender

added you maybe to of Burlington’s like appear like terribly kind grocery You least stores At location, quarter. maybe on -- credit, these? glance, at some the touch Best speak doesn't just appear fungible, maybe these and in it some Buy, the things? Can first don't

MarkManheimer

think boxes mean, to really decreasing BestBuy, box. size of size the I Burlington I specific kind and they've their the been of

at of So those committed with we were very generating in those pretty to attendance close how assets long are strong they and term, on particular communication sales each them.

fairly So said, that boxes we are tenants of particular initial in remain foot their But lease of in those lot range. XX,XXX to a confident there beyond that square those tenants likely are kind term. are being that to XX,XXX

either actually rent tenant. re-pat to replace in we the be position or us rent are feel a so for should to fairly increase the easy those And put we that

ToddStender

for you're be of a to do leasebacks? you or more that'll there’s widely strategy, one year sale increased your there think just on M&A space? part commentary Last kind guys Where you going marketed think stand me, doing of this out Do a of with backdrop, just highly potential. there's activity be you

MarkManheimer

development be leasebacks. be side, we sales space, that hopefully to different I it's on how asked do of So whether was attractive. the like because that buyer and a with really bit awfully we even extends, leasebacks. related they’d questions we being whether or sale blend a not in lease, I acquisitions. or pricing less many at and lot widely side expect really marketed competitive We I doing ways year acquisition a where and pull multitenant of a lot partnering last said, have the approach net that feel not source did the the up time different But the little gets to

credit we've doesn't quality in As that some that real put -- of to seen a like That tied performers. grade profile. of you and capital, of the of tenants maybe leveraging don't leaseback have an resource a themselves number typically the have position within just being large a selling want kind those long and opportunities up that their have real to capital increasing great great and list are tenant access term estate, high that not to think see said, strong really those we tenants as investment seen really on and their being estate, to

what have we go there's that even done a bit pipeline. I we little of in more some forward than and So expected, our think

Operator

you. Thank

with Our next Citi. question McConnell comes from Katy

UnidentifiedAnalyst

was of, weeks, just sort of for keeping [Indiscernible] past Katy. competitive curious how how inflation least sort up topic a some thinking key thinking in is I versus mind about at sort the I escalators peers? I think from it's that's you're where guess a This are you're about are at, come just been over your guys of of few and standpoint you

MarkManheimer

better and kind cash forward credits. being we flow, as leases, you'd typically, profile, basis. I to said, think we're really I be our view it right. mean, also going the that maybe go you're I should leasebacks, But than a bit sales those are little through little to think flatter I your credit leases peers kind are a with some that bit be going mean, and on financing smaller have higher of of a of as expect of a other predictability

little mean, leases. a X% I than on rent maybe close So in bit yes, our escalators to within our getting less But loss. we're

going our a permanently. high could I that But situation you into yes, little temporary inflation if think be less not if Powell. inflation Mr. be to It the listen to bit And mean where maybe going a market think leases attractive. a very so, you're anticipating it to are portfolio, I is I be then comes here

UnidentifiedAnalyst

other one guess sort as I I you recently this cap terms as just well sort you're one, of sort seeing targeting? then rates movement, for just of have year of that are in and within And IG any the guys category of

MarkManheimer

not, I quarter. only have per the XX or good a really I fact million acquire mean, think looking to We to we're that so there's advantage

rates. tail really the more kind of to that, is pretty think and So little the us really attractive that allows and significantly to curve, chop of bit store bell on where assets focus that we really that us less has efficient get than cap pricing then allowed a really off and

As a couple of in shown seeing we're and rates. the quarter a we've first last as private similar even of company, public in types company the quarters, that cap

Operator

Thank you.

with from Capital last comes question KeyBanc Thomas Our Markets. Todd

ToddThomas

just Andy, wanted to I follow-up.

said you that Was guess back or it the would growing. weighted. end the like year? quarter for acquisitions for think pipeline's the I be And I seems

flow So that's would current of slow sort the curious pace of the deal if I'm why it, case? just from

AndyBlocher

the second of impact a we've going indicated since change quarter at year, any to us our prepared the would don't think pushing, meaningful mean, go way, that to just end the as has average Mark slow I that of could modeling modeling as try been impact. you perspective, But the just nature you And if that But Mark be our is into was it meaningful. first it what that. like that remarks, I of somewhat for I tell the we a what of deal average, pushing that's perspective, I have you quarter flow day on can if last look into look we're beast third been from to second material of a of of indicated, think like And to quarter. that they're I the from execution the be the timing in acquisitions, company that as we're a size I for his month seen. at typical it said, our of in

ToddThomas

looking of the that nature away move terms in the that COVID a about retail pandemic? resistant to market bit categories some away around thinking moving the And hopefully which looking maybe the benefit there Would credits to from to about continue the then we look potentially some benefited during drugstores. of Is from the are you a extent, you tenants, shift sell? essential from tenant either you How Mark, of edges, little assets auto, the recycling could acquisitions pandemic, forward, as froth and the some to you might be company standpoint? bit talked newer or a company's you're convenience, at a in bit of capital

MarkManheimer

that and strategy XXXX, when same the the back raise trying back venture about, guess in was those well, those retailers. And on was really I was you working think really essential half working sectors I very are where are defensive as on pre-COVID and Ones what's this capital for as the first focused today, what of was and -- it retail we is it started, when really to today Andy focus names.

to strategy. their And capital think to available pre-COVID. the We that's in we evolve. to were in is going we so going to capital it in think back think a was be and going retail. retail that have to reinvest late a But XXXX continue is shown being continue said, ones that to management We and are that's that popular XXXX our little early be left when less way bit having invest are appropriate business, into what standing. really the And to teams propensity raising

that the it of first so very shouldn't held that in bit And up surprise disruption. you well

come sooner I over but comes see to disruption later, or as going it the prepared next think disruption for to we're be come more may want years. may XX, that XX we

we're is us going aggressive looking and which would to and selling pay with And very that essential the But theaters are our the our evaluate. bread market anticipate will off is, to cap butter back to, always is retail. so think capital. of asset, our not margin, look buying if on going movie But rate opportunistically recycle to what or assets into outside a I I things for redeploying going really be a be we us we'd specific

ToddThomas

What is development just area last the And from can some credit XX-K? growth talk project if is about that an see of tenant Just you disclosed that where was that asset that? and one missed me, opportunities? in apologies But kind this. you I

MarkManheimer

projects yield really team. think takes way. an at going Yes, in getting the time drive in got more about that something roadshow the the really a I area a those mean on, spoke little the IPO. fruits see acquisitions few to a really development It of we're labor the of the I of But we've the try starting is works. going we're that that bit to focus we to It's some time lot now and

do that little a bit is see active. be us you'll more an I think area that So

ToddThomas

targeting What kind of yield that project expectations general? for for you in are or developments

MarkManheimer

to a with to be that process buy going in to development not get go hand a a building lease only involved in we've developers event going the and and land not a and hope build we're spec tenant. we're got in going the So someone We're comes.

surprising we far be be the that pretty with be I -- up pretty risk. shouldn't points. the don't much to and going take we're tenant and again, And the lease in that to we overruns pick approach development. going need of conservative we hand, to maybe like. tight and basis a going we're terms think to pretty to into think developer keep way too the the we I site need cost get So And we'll XX not box need to it's in

a And so quarter. to we really percentage we're deploy million looking not because a think what it could we $XXX meaningful be of do, several

in million, $XX really can do think million area, our that can a on help year $XX that we if yields. the So needle move we

Operator

Mark to turn over further at like back Manheimer I There comments. no closing would floor the to are this for questions time.

Mark Manheimer

are opportunities for you everyone a We're about for in excited of joining hopefully, if you, REIT to week, the NETSTREIT. chance next us thank interest got we'll really ahead attending your and the NETSTREIT. Again, talk. conference Well, growth

So care take everyone.

Operator

conference. That concludes today's

for great participation. lines this your a at Thank disconnect day. may Have You you your time.

NETSTREIT (NTST) 6 Mar 212020 Q4 Earnings call transcript