NTST - Earnings call transcript Q3 2021

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Operator

Greetings. Welcome to NETSTREIT Corp.

Third Quarter 2021 Earnings Call. [Operator instructions] Please note this conference is being recorded. I will now turn the conference over to Amy An, Investor Relations. you. Thank

begin. may You

Amy An

for call. for you XXXX third earnings conference joining thank NETSTREIT’s us quarter We

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

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

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

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

related recent for and more in companies aware, are you to As years. many of been has governance push to social disclosures environmental, provide there

company’s environmental webpage as together to social good governance. showcase a responsibility putting are commitment to our well as stewardship, We

you announcing website. release our We and welcome webpage we coming launch press of to put out to ESG all visit in a the the weeks expect our

Mark? quarter will discuss the our Mark activity. over call to to turn I Now, third

Mark Manheimer

welcome activity to begin will and earnings sheet. results everyone investment call. the morning, I quarter a detail provide portfolio then XXXX our quarter. Andy and on conference for NETSTREIT’s Good our third and balance with metrics of further will review And

strategic For consistent believe mix the high-quality the returns base diversifying industry our best our We publicly generating growing that tenants, shareholders. stated third we and with plans. geographical portfolio adjusted while with to growth our is were further quarter, risk for our tenant critical and

of As grow best-in-class we of The to and credit an quarter and the lease volume into NETSTREIT million in we beyond. at quarter, space quality of endeavor an In third X.X%, rate of all end, XX.X capitalization of the $XX $XX to completed or our development quarter costs million investment for of years. grade acquisitions, acquisitions a Nearly, quarter end. by were of many past third remaining the impacted quarters, cash and with tenants profiles. timing results of which financial rated grade quarter were portfolio $X for this spending. quarter and with term Similar closing year highest will had the as next investment tenants were near acquisitions the a of closed lease the gross create inclusive to weighted our one initial XX% net of acquisition has average of portfolios continue additional few million

rent a that and expected due assets criteria, to expect provided quarter, portfolio, results. million. of of quality we diligence the projects of not of first projects sacrifice But grow to we diminished we total which X cost where these two of the financial included we end With by of a collect half quarterly will development with anticipate pipeline, on the development quarter-to-quarter in we XXXX. portfolio, add funding, approximately $X we projects X a have our remained we million of $X.X As paramount. Also underwriting from timing which our in our will to the total impact acquisitions be that to our begin development the new

the X a in $XX quarter, assets for rate of cash average capitalization at million we Finally, sold X.X%. weighted

we dispositions, and will than these attractive no a sales. curating of part our that meet call assets we have but more our executed casual exposure investment is With have to NETSTREIT typical, integral pricing. an longer than at objectives few quarter long-term decreased to didn’t exposure exposure strategy, The bank our reflecting continued this dining what of opportunities dispositions decreased remain X%, RV branches less we portfolio to attractive the to

from quarter, result activity and portfolio tenant Tool a Northern was to up which quarter. X.X% made previous total up Walgreens portfolio XX ABR, top Equipment, list. acquisition of X.X% of & our disposition our ABR, in As of third our during X.X% entered the exposure our our the

our While remains X.X%. XXX exposure XXX top was ABR from tenant, to X.X%, down our

XXX the portfolio. as time we our decrease continue exposure grow to We will to over see continue

our XXXX. volume net At to were Based portfolio XX, as square ABR, our over Moving tendency portfolio Subsequent of average metrics, grade $XX earnings and contained classified with investment XX.X% no dispositions less million profile. completed million. before term expiring tenants occupied $XXX and million diversified increased is grade to a driver, additional quarter roster ABR, no XXXX the on including ABR lease through closing end in acquisitions, with than costs states, acquisition comprised to of tenant bringing million, X.X an a XX until of XX year-to-date our with company XX.X% October properties X% lease investment expirations additional primary our quarter on with in of $XX.X to XXX of XX Total end, a our weighted quarter XXX% we XX end years. feet industries.

As a result, $XXX our we to are million. guidance XXXX net acquisitions least raising at

meet We criteria. target our continue to that source opportunities attractive

We are including blend sale stabilized development wide a opportunities, extend of opportunities, and reviewing leaseback and properties, and investments range transactions projects.

real our access strategic on focus estate tenants true While stay fundamentals. great with to attractive quarterly volumes capital vary may will and quarter-to-quarter, acquisitions high-quality we to

overall earnings limited very enhance continue portfolio, I our discuss the believe tenant the produce activities. markets now in best credit Andy continue to over diversification Andy? risk this with years. of that capital the to our to is balance the growth, will we sector the turn call sheet we coming way to and While to leading

Andy Blocher

And once you thank Mark. Thanks us for all with again, morning. your time this

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

equity were the second as full of the well our completed quarter. results As the Mark quarter, affected closings weighted noted, offering in in by timing as share third impact the acquisition quarter of the average

million balance cash Moving from hedged XX, our and as September debt $XXX of $XX with sheet, outstanding had on of loan term we the which fully of to from $XXX million million, total remainder credit. a line our is in revolving of

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

Our EBITDA target. ratio X.Xx to at net annualized long-term X.Xx debt quarter was adjusted our end to below X.Xx

with giving with efficient our to to we capital more filed early sources. broader SEC, us September, Finally, sheet, in access the and the universal multiple shelf-registration respect balance

shareholders market in million on subject valuable ATM access of $XXX did fund $X.XX any a conditions third record on volumes rate the ATM issue to ATM, a forward. going expect we to this of a of December be week, gaining to cash the Based portion that the to $X.XX to program timing X, Board share. With earlier put the per quarter, as shares not an quarterly of our be XX we regular addition, to tool payable dividends, dividend respect but a acquisition in to declared the December reflecting program In of place. largely dividend annualized under

adjusting regards quarter as a $X.XX range to completed the per AFFO guidance, are we and the dispositions of share, of full primarily discussed. our year XXXX timing guidance in to third higher Finally, to due $X.XX acquisitions with to

We a have in are that It’s the to to limited expected important our results, late and note XXXX net acquisitions increasing on very earnings to growth that support solid this foundation but strong guidance in meet is XXXX investment deals year least should XXXX to increase million, the for at a criteria. $XXX financial access in XXXX reflecting beyond. acquisition impact our

consistent continue recent G&A with expect the of our end million to top the cap rates to $XX most million. cash activity. be previously to $XX of We now at expect We range provided

we previously accelerated some large As are disclosed, incremental expense status filer compliance as from pulling internal ensure our of perspective. control forward a to upcoming a SOX and result

financial costs, million are expected cash which recurring our item. in line to as at listed expense the As of previously million. is Non-cash always, provided a of statements the range midpoint compensation to separate transaction be G&A $X $X our includes

the fee at of to of and $XXX,XXX lower cash to line an our of previously unused expect fees million interest amortization. provided We $X facility be credit non-cash including of the expense, million deferred financing $X.X additional range end

expected we look sometime strong quarter first to To XXXX, top incur increase purposes, pleased XX to result third in XXXX $XXX,XXX in during are our moving provided very year. new million quarter taxes Also, G&A. the XXXX, XX of lease to with range of range diluted previously expect shares be to wrap the of space, with And we of to an up, date shares planning office the weighted fully will for into we lastly, which We average expect $XXX,XXX. million the for we for an signed a our near as the outstanding end activity.

are with pipeline We sufficient for attractive well-positioned growth. opportunities a consistent capital of and

this entire want to remarks. to so far our team our for and year. excellent As work hard our This concludes results always, contributions prepared acknowledge we their

questions. open for Operator? now the will We line

Operator

[Operator Crossett Markets. you. Berenberg proceed. Instructions] Thank with from is Capital Please question Our first Nate

Unidentified Analyst

morning. on the Do Nate. quarter? It’s in total large any size? the you there any pipeline. deals for the deals total during kind deal the volume Appreciate the mind the quarter portfolios of terms of as in part and color or Hey, Good expanding guys. on Were the on that of Eric

Mark Manheimer

Yes, sure.

years. transaction as out past. third the with we properties think debt during well as was I assets involved in the look granular acquired larger But those to us all similar that we their Walgreens we and portfolio been in extension portfolio rest getting the defeat the extending that seller that quarter, buying actually the do more a transaction of a one on the have helping So did to Walgreens were what lease XX

Unidentified Analyst

increased the in into going right your know pipeline And then size then end can but think guidance XXXX? you. kind about talk you should about terms of Thank headed how year, kind the of acquisitions of of now? into you acquisitions – And I the the we of Perfect. what’s

Mark Manheimer

sure. Yes,

I million quarter yes, able $XX this were mean, guidance. we of to So to close prior acquisitions this call. did We increase

So obviously, the past two than we in a little done have timing bit better quarters. on

a do think have, pickup a little you a them forward encouraging. relationship good up to high bit pretty which some acquisitions, bit little give certainly a that’s of well where least So, more the we of are alpha that as bit confidence tenants extend we that have for But what for blend million the pushed more guidance and sellers of is a beta $XXX the pretty we with and taking. development on that then as think rest I little us side repeat more year. think business level as the do side, see can worked closing and we I the with indication will of on look you ahead at the to And we we

Unidentified Analyst

couple we any going touch competition? be norm that? I kind that then but changes seeing think you could bit, down months? just pricing competition And Any of perfect. and of of increase maybe the kind last in a little or And you forward pricing? about should on in know that came the how Okay, should Are

Andy Blocher

mean, across there sure. capital Yes, come lot I all I asset a really been in of classes. has think that’s

been wouldn’t there we So, really come I immune that that’s competitor too worse. much but completely changed think really to one really don’t I things, that, in tangible and say are has

do rate bit lease with that past, got when have little bit think but more think the a little the we closed that’s term. on lower bit the I I and a more quality the we assets in of little a than done cap to this quarter,

this Looking last at of to back last a year, year, we like X.X% time quarter third are cap.

X.X% cap a So, we at are rate. now

quarter. We on we bit term have maybe little that this a a higher assets bit and more got closed quality little

Looking seeing at expect quarter, rate so for inch fourth would I what bit. cap a to the far the backup are little we

Unidentified Analyst

the can infrastructure, already end kind me, on of know Okay, some of perfect. give most And G&A of how then for XXXX? one us the last you will out built you of and for look you maybe in kind moved XXXX into color I the offices.

your may So, kind going of on that forward? you thoughts give can us how ramp

Andy Blocher

guidance think that and couple we for of are do third end of thanks. and are quarter consistent straight One a we with taxes, We is, with expenses of seasonal line audit, one-time able expenses fees. probably that we pure going and including XXXX attributable probably to $XXX,XXX, dealing largely provided, to $XXX,XX, we that up, have of some three audit off right, are end the basis in items. not the the on the Yes, G&A, kind Yes, a year nature. run-rate go to

So, is dive compliance, they the end, and SOX we with as year as year fourth those talking to got quarter. is right. closing actually Two about deeper fees the hit have audit out the respect the have in been

We are filer to accelerated XXXX. with be a going large starting

controls the the testing our we third a $XXX,XXX much hiring the part of the smaller well. folks personnel documentation type with is, getting G&A. extent But $XXX there. of to shape us that And great then really thing. really, a about in of to That’s a margin, help talk per all right and really in is of are as on We million

We are for we searching that have of acquisition folks now. couple got a right

now. of office, are increased the guidance of our building NAP we office our and We expense. XXXX. the are when go not when that we new February minimis And got XXXX, recruiting will should in in are it new through have Based will de be that for we start an on the timing, about we for details a we details right provide out you that our have impact. thinking supervisor Then

Unidentified Analyst

care. Take guys. Thanks

Mark Manheimer

Thanks.

Operator

Our Truist Securities. proceed. Please Kim next is from question Ki Bin with

Ki Bin Kim

Thanks.

XQ, Just is that should versus you much in to follow-up mentioned be $XXX,XXX question, on that of last G&A one-time how higher $XXX,XXX recurring? to

Andy Blocher

the when depends to Yes. I SOX at it I referred Well, just – up fees, $XXX,XXX call on on more it what of the When everything seasonal on compliance, the you that’s right. of looking to a about nature, it’s you are the on you probably one-time, mean, gear hiring – audit would you maybe, then right. Probably say, as kind $XXX,XXX, – on think $XXX,XXX and high-end. a margin,

lease will I just we very, a for that’s like we would we consider said So, we year. office we into moving all are are about, What really signed what new be space next a that in wanted the with of same all a during the our the we suburban not location to office of them. if to space come hiring have currently. would day, on occurring And bulk COVID, for our employees enough

type moving deserve. are the market. that, space uptown the employees So, we to We think our that’s that of

there space, time. accommodate very I will that lined it’s be retaining growth next think kind that cash XX is going over able into that right. to and to the rents stuff it’s and going our employees attracting the be we we years, to be our as Obviously, our be straight for but space issue all is helpful small grow of for will

Ki to at you I that, with very was it of I that to roll missing respect the note, the may kind thought the biggest Bin, G&A. been the When detailed. respect it in that look that’s So, kind I was piece pieces read forward, think have of with was your G&A. the And

ATM count in part utilize while that quarter, funding the other as kind in in acquisitions, result And order ATM. we of right, online. potential The the of the utilizing is interest get increases NOI the to didn’t the expense third the share of a

Ki Bin Kim

my Thank you for question. answering second

the be think funding on debt about – So, strategy? about balance think how quick sheet we how yes, your forward, should should going question on your

Andy Blocher

great Yes, question.

we to adjusted our kind maintain X.Xx to to if generally debt think of we kind our net of going of roll So, X.Xx are assets through, EBITDA. as we

funding are We equity, our round numbers assets talking debt. really two-thirds just about one-third

That’s So billion, where going over get agencies be go go size to and rating. time, to to the to are we probably able think going are a be get that $X a rating to able we and right. we to

as at credit more WE from either thinking away what’s start about look couple So, accordion we likely now. probably facility, existing to we could looking potentially our to happen to private XXXX least are go but the for ability likely years of or is that, of liabilities duration we with a to do better duration a doing assets, but job obviously, we over matching market. if at are the of that our And cost. placement comes the because smart the company, a

marginal So, probably – did But X.X the rate deal. to credit that, of like be are that to a call the currently. half a type XXXX talking mid-Xs a the to that we on I about think second something points mid line the of extent would currently would that probably borrowing it looks you of

well, with there is a that. decision, that along smart So, comes a cost – that

Ki Bin Kim

thank Okay, you.

Operator

Our with Markets. KeyBanc Thomas next Please question is proceed. from Capital Todd

Todd Thomas

Hi, that to and extend. existing relationships thanks. just and Mark, Good Can morning. going a for deals? strategy acquisitions talk maybe bit source more some forward blend mentioned you and the about you on expand little

Mark Manheimer

sure. Yes,

So, I in extend. our blend and quarter the most XX% were I transactions to think, recent mean, XX% of

I of of those think kind do, we have the better. I always said more the can

time now. second that with tenant, we you with extended are do easier. of LOI second tenant it a secure it lease and and get a lease lot And it short-term with the a third doing and gets you more that, The time a then a get extend kind tenants more under

already really I will a the is then do on to deal. agreement we relationships chunk and And developers. course, much takes then first, your with development place, it’s going with And form development yes, time of be those hash be a then building on a kind of have think to of some out involve, So, piece to easier working you time. on those that big when second developer kind is to which side, expand a over going the in more what having bigger second, and of of that that relationships

do they chunk us future. more sales. the So, expect some marketing And just properties a bought assets that the success then those of to and kind some we a have that on past have of just sellers have in some bit of we come back bigger with the some we we quickly from and do moving that what little in to become had

in we encouraged already XXXX think like evidence going what seeing and fourth the about quarter. to little a here bit of in So, more look that that’s

Todd Thomas

development the that of terms in to in to up What’s we for big Okay, I Could that that potential grow ramp more see XX? bucket could be? how development side, near-term? guess in the the size

Mark Manheimer

sure. Yes,

look, So, to But expect to little it actually I kind team I a to more we going a are bit, doing time as get and us running I now. little it with the would take that comfortable up grow place, are in think we much thought think as of was bit with $XX do the mean of in I the is, deals doing million way are to to sense going set per kind $XX million vertical look makes more one that we And at get our that. aggressive acquisitions opportunity it that’s to year. we then development opportunity wherever than of if is

XXXX. we we that doing. with a source good a if to of a types $XX many we wouldn’t team I for million the transactions So, bigger going can that, on current in for But you of current people, place. anticipate that limit is do But are with it what like the million think kind those to felt be staff. $XX bring was feeling could of to of I more potentially do there how can with what is certainly we a

Todd Thomas

you Andy just then debt acquisitions. like little looks on are a leverage the a a bit, annualized adjusted it debt EBITDA the ticked your little bit net to strategies, sort of October commented after up of for under closing on the act Xx And Okay. you

capital here, mentioned what the your move little You a what’s to What’s plan X.Xx – as raise target. you I bit are permanently X.Xx forward your equity? to the guess acquisitions as long-term de-lever or thoughts on finance and

Andy Blocher

shelf universal place Yes. huge getting a the our in I September to mean testament business. in obviously, was

market ATM provides us we say, extent and with think we to It much large I flexibility, lot other of So, that with aware pleased become Needless very more of capital, doing that. sources capital. very that. the just a including were would the to were amounts the of

two-thirds not the prefer is over kind would equity, I the to debt. view with one-third exception the on specifics our of comment So, generally long-term of

Todd Thomas

Thank alright. Okay, you.

Operator

Tsai next proceed. Please Linda with is question from Jefferies. Our

Linda Tsai

morning. Hi, good

In in terms solid timing support XXXX reasonable a you seems to your continuing? transaction to of just delays ‘XX context of XXXX. comment Do foundation still XX% in the think growth that for earnings XX%

Andy Blocher

of we as I as is totally order get up impact to to idea the right. we on associated focus, ABR and as I do Mark, we say, for support in well. so, Randy going business together you the read discussions Linda, support of per operational of the those mean is period with to a that get more company specifics to everybody and as understand the that team growth in quarter of Tricia, I don’t and growth provide been are, XXXX, to, one, of frustration mean But put are and fashion, I talked on low is the of growth have frustrated that that you think time. building have I I most I on it referring sector our last been used the less positioning risk a we and and which the guidance. are into AFFO think that formal until the the absolutely Yes. share leading around foundation where side can timing I we Mark think inter-quarter for and acquisitions Look, is the going and all notes, I have kind are Amy the focus right. it, we that really the about base solid that –

number we sheet to can. as number too. deals an eat the that we cake want cases, But at want and to on market pretty and example in dealing two world, in ideal get transactions it have a look been provide of these everything our doing and But them control we even as that and we So, have a But balance those cannot this. are We a want can. with. we quickly we have get good we cases of to parties

Mark Manheimer

mean, focus the the are going day, of we the on that at to right. are Yes. think first adding of Andy to I portfolio. quality was mean, I assets end exactly we I the

are We have we to what of proud really been else add. able

we the Walgreens transaction, we that complexities really purchase agreement deal which Second, want getting to the with. we seller try defeasance we extended pricing where means have not get not a others the to helping possible oftentimes and to best going we to Walgreens to are that can, and And some to with leases with work mentioned seller. party that through with is sale are our prefer

you the that chunkier was trouble a parties with the We was transaction dealing forward that seller multiple clean that really, to up in October move made have are this to in order have there. to REA close closing with a having ended we in the comfortable we getting we with changes transaction. So, expected of to needed did August to quarter, get

a that so quarter. share the And penny deal particular a cost us third in

have long-term. for we building this when are we But larger a the are transaction this can one one individual on platform kind impact So, small, quarter. of really

are we the is understand much on building. we the what certainly the We focus really more are portfolio – happens that on the but quarter-to-quarter, long-term –

Linda Tsai

color. your one to leases until possible extends? And due blend only out and schedule, four nothing on then lease and that it Is it’s you XXXX. have then for additional only could all got of that expiration XXXX. you Thanks through push these in continue you And have

Mark Manheimer

Yes.

like a just think basis. we a expiration mean kind got comes extended don’t very here are next try a But is I we the big But won’t is or have the I early, really the rent, those either due, renew due the yes, of in case-by-case where to think level replace that have those less years. incentive one little that wanting that tenant get we by the something high get feel we leases renew of to have that we can bit a they early. to event do focus. couple to have conversations. little of we each If Probably when tenant confidence going a such be of to approached if in happy always I coming the we

Linda Tsai

Thanks.

Operator

with Citi. Please question proceed. Our next McConnell Katy is from

Katy McConnell

Thank Great. you.

rates sector that compression you for you targeting? acquisition terms driven rate that you of on are cap more extent seeing cap you assets lower well? are bit quality So, of largely what But you by were And the in mentioned buying. a expand to the as what are can just the

Mark Manheimer

Yes. Sure.

think So than and I little have in we had. this quarter term we what had a bit lease more

maybe would credit to really previous over been bit around Over mid the rate bit more one, a bouncing quality cap term, kind past quarters. several a the little several quarters, we we in more high-X% set little of range the past than quarters. this And

far what they would a we the quarter, to was closer to that in our looking have more expect had move it just And mix I we to think I was we and what are do we been up lot that really with what at were so the fourth the quarter acquiring. the rates to going have past. fourth close in cap think in closed

Katy McConnell

you Thank revised or additional assuming side, say, dispositions, guidance? much. asset within very sales are on bulk quarter you represented And the third would acquisition distribution the net you of then the

Mark Manheimer

Yes. Good question.

third we opportunistic potentially if or the dining reduced reason. dispositions, strategic are casual exposure. looking is So, we In quarter, always assets there have our a selling at looking at

we on the of by calls the I wanted we X% year. that end think said exposure previous to get that below

accomplished now have to ABR. we of just our that down So, X.X% inside

another had that been we is we an really X.XX%, that’s a quarter. one area of COVID. buying And exposure would that kind tenant, to they exposure time, had reduced cyclical renting business. one, really was so think bit a over have people then number COVID, banks, with more RVs – we really which turned diversification. one sold have With have think of to That asset highlighted We of area Camping we really fairly off at an like been area we reduce that sold our World little have I lot during of winners RV, A that’s as the and of the where that RV.

is big done view sell they good box aggressive well to rate. have COVID. And had during cap a pretty So, a opportunity asset at really a a that we

of X.XX%. kind sell we acquired able at cap and ago So, asset we that a are few rate range to and years high-X% now the it

Andy Blocher

the net go reasons to important note, why provide form that in it’s Katy acquisitions, extent them. the us replace and of one right we of assets, on it’s is the that that’s to And of to dispose guidance acquisition such we our

Katy McConnell

Okay. Thank you.

Operator

And [indiscernible] question Bank proceed. from our is America. Please of with final

Unidentified Analyst

Hi, closed around wanted higher that closed comments to cap good really they that? It Camping rate. I drove this that dispositions. it around the more asset just box Dennerlein. Libby Was This get a to hear at to on Josh that because that I in morning. cap expand would is – like big around the quarter, particularly just higher curious on rate, color for more Thank you. just four

Mark Manheimer

rate. Sure. to believe a blended they And I X.X% cap

sold we But what think portfolio and adding I what versus considering for are it we will the future. we recycling cap in are we that’s are will – I aggressive to considerably inside be the expect certainly accretively inside versus pretty what then be cap I would better quality to we a so I generally, year. be the of compared what assets assets. we assets. the so rates But, where disposition viewed kind we We selling. are buying. rate acquiring still yes, we yes, of It’s And that maybe that do think are acquiring So of as lower mean, buying to capital

Unidentified Analyst

And then you impact Okay. around G&A you second are tenants the question specific your this XXXX? as labor, just Are kind And is are Thank you with any industries my to expanding, guys of pressure for regards versus like might what have to with outlook you. challenges beyond how others? this? facing grappling to

Mark Manheimer

Do to this take you want Andy?

Andy Blocher

I properties some have on that development moving see are own. a in projects margin mean we with areas little we is restaurant looking but something that really we we yes, bit are attention seen it From at a the be would are an whether expansion have forward to more, perspective, I could it to. tenant Alright. that we actually with. it expected restaurants, the that think paying There do And impact

Our that now, we development with the been cost don’t have agreements the that we overruns. we have deals pay for live of any right

go little are little rents on higher, end with deals that those future up, impact borne developer. pause an of being bit expenses might us could the a those But of I development on could and associated those kind bit think if by up which make the have whether a do transactions. those So, some

Unidentified Analyst

Got you. helpful. Thank it. That’s

Operator

would back We turn like question-and-answer closing have end our Manheimer to session. comments. of for to conference I the reached the over Mark

Mark Manheimer

joining weeks. We for you couple joining discussing Well, of those thank again. to everyone look for today. forward our you of Thanks NAREIT a progress in

Operator

does you. This conclude Thank today’s conference.

participation. You thank your this for may disconnect time lines you your and at

NETSTREIT (NTST) 29 Oct 212021 Q3 Earnings call transcript