NTST - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the NETSTREIT Corp. Fourth Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Amy An, Investor Relations. Please go ahead.

Amy An

joining NETSTREIT's for Earnings Quarter you Call. Conference thank us Fourth for XXXX We

the distributed updated press close, to company's the addition In release of section a can found the package Investor Both Relations we at yesterday supplemental and presentation. an www.netstreit.com. investor website be in posted market after

Reform forward-looking defined in the On today's answers and as remarks XXXX. to your Securities statements Litigation Act call, management's questions of may contain Private

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

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

presented measures, non-GAAP information refer package call financial are why non-GAAP our to certain such the an we measures explanation believe useful earnings of measures and non-GAAP Please for release our addition, on and supplemental most comparable investors. reconciliations financial of measures. to GAAP financial this In to definitions includes

Today's Chief Mark and They for your Executive Financial by hosted Manheimer; then Donlan. conference prepared will Officer, open Officer, Dan remarks, some the call is Chief make and call will NETSTREIT's we questions.

turn I'll to call the Mark? Now Mark. over

Mark Manheimer

commenced basis lease XX X.X% in blended development the in gross earnings first all activity cash activity $XXX thank I outstanding term. you years investments, totaling of were our us million XXXX on transaction of an at this quarter joining quarter. of record a of yield team on accelerated completed that and average $X a as X.X% for Amy, you, Thank our over quarter over to call. quarter congratulate projects on this rent million on fourth X Included weighted we want or the morning with straight-line highest

projects last opportunity Similar X sale-leaseback quarterly cost improved consists channel. our which emerge our portion remaining million. our greater of transactions $XX.X million, a today, estimated pipeline with within includes we to of estimated quarter, a from returns the were as risk-adjusted $X.X set sourcing As seen have of development investments of total of funding

and Conversely, to the have as attractive returns we continue acquired. see investment-grade stickiness pertains less that to it historically we opportunities

credit with improved in While and replaceable of shift fungible non-investment-grade with dynamics risk-adjusted continuing caused with sets, level estate strong performance, are a our we assets all these investment-grade returns. market healthy have real opportunity profiles, to find mix unit and rents great

the industries leased Turning portfolio. in XX leased investment-grade to XX% ended operating of the We XXX properties across quarter in tenants. investment-grade profile tenants or XX ABR a credit XX perspective, were to nearly From with our total states. investments is to that

portfolio for Our average the lease XXXX. weighted of through remaining with years was X.X just expiring X.X% term ABR

and ABR. management Dollar asset real which resulted ABR basis small XXX X.X% offices large which concentration point to points basis broad XX in as reduction strong an ABR, Walgreens in demand, has active institutions. to continued XXXX, to perspective, General including a X.X% our XX.X% facilitated we a was this into XXX our estate From of of a by from declining drop point XXX array were XXXX buyers, in disposition of basis top and activity, evidenced quarter of including level interest record investors, This by family very of

intermediate tenant our year-end. ABR the not having While near mirror we slowing our diversification by goals, of which top the made above concentration efforts. down we includes over sector tremendous are towards term, we XX no strides closely our to to Moreover, expect have more X% average

to accretively proceeds nearly blended X a Additionally, efforts public every of we generated expect coming future million as since we years $XX by cash done and of quarter's recycle quarter have similar at each the dispositions ago. this X.X%, to diversification yield

I Advanced in like XX to net over have Next, focus and would namely that as maximize on tenants, Dollar, therefore, Auto to and higher months Family to to close cycle remained the have have Lots lease Big news on decided portfolio flow. to consumers, the stores pass struggled Walgreens, appropriately CVS, cash a past their they prices few they underperforming

surprising evaluation a relationships to we be our with to during productivity experienced our how diligence we to and level far, closure proven a information, our impact no testament understanding By maintain which, at highly the while dialogue virtually asymmetrical have X-way constructive have we these and credit. complete corporate technology tenants, the underwriting. decipher our the underwriting most process the than in level tenant's of unit we of we the long-term of real includes us, utilizing accurate Thus locations tenant much strength estate. announcements, due from and more is not Notwithstanding

CVS have Dollar, Advance Family Auto announced and specifically, aggregate. stores closed the of Walgreens, have XX% nearly of closure or in More their

these given these we termination a properties investment foresee smaller expected our asset the X that generates to do asset projection X just which of currently X remaining around $XXX,XXX term. concentrations, However, have more tenants, dark small lease retenanting on ABR is years any lease leased not to we owning than Based in despite XXX our with for store the assessment, fee. and our loss among

acquisition. outcome Nexus with acquisition concentration, as bankruptcy We whereby stores our this buyer, the an expected tenant the stores. emerged was to further variety After to failed the relates XXX wholesalers as similar new to XXX subsequently Big entered it was that XXX stores, to Lots which reduced reduced roughly and X,XXX proposed a Capital saw under

of rent. and prior assumed just rent a we above pay As today, we sit we rejected, to where wholesalers stores X Bowie, expect new have store tenant X or here expect by variety X in our Maryland at to the original

difference experience an and underwriting this points relationships, this aforementioned resulted our by when of we of has consistently credit and to is since just basis inception. discipline loss making long-term average the stark told, investments. aptitude believe when we portfolio All in driven in broader team our X our comparing exercise market outcome Again, the

risk of have basis From also as just ABR expiration XXX expiring through concentrations. very our points tenants with perspective, is lease from aforementioned low we risk the a these XXXX derived

locations similar properties to While leased accretive minimis these the strength date in experienced market gain store given of to underlying in the impact our the portfolio to these tenants assets our conviction our de and from sell proven we should remained our manner. believe ability closures steadfast, an comfort our and in has

I of maximize over discipline. strive a grow sheet we the reiterate we seeing to sake for includes that aggressively, to shareholder the robust will have will and with that more and the balance in maintaining wanted and capital. consistently provided remain opportunity call a to set thoughtful message Despite pursue our of patient handing in return, to our not total remain Before opportunistic mission Dan, past. we we to that prefer growth, would cost We

hand to open and With the then over financials questions. call over fourth your the our quarter go I'll that, up to for Dan call

Daniel Donlan

Thank you, Mark.

$X.XX we a or X.X% $X.XX reported per $XX.X million year. $X.XX was diluted or a which and net over diluted was at $X.X share, per our earnings, loss per share, $XX.X quarter fourth Looking million or increase the FFO diluted million for AFFO last quarter share. Core of was

we and year over full core reported growth the $X.XX share, per diluted of X.X% diluted net per FFO For represented share of $X.XX XXXX. a diluted loss which per XXXX, of $X.XX AFFO share,

declined G&A X% recurring million. the million, Total front. in year-over-year expense the to to year-over-year Turning $X.X $X.X to declined cash XX% recurring G&A quarter while

In to XX% addition, XXXX, our revenues revenue steadily base. total XX% with XXXX our for relative representing in continues recurring G&A of rationalize to our G&A total versus

unsecured capital swapped revolving January credit which million XX, all-in rate an term a January an drawn financing $XXX on closed $XXX X.XX% markets. XXXX million facility, in fully final commitments. $XXX the million to This On loan, Turning was which upsized through million. was fixed maturity we new and XXXX, from to additional of included of increased $XXX senior

to existing investment-grade when million certain our and loan targets. rating extended of provide We for date XXXX credit meet all to and agreements term amended various covenants pricing also January $XXX and our leverage remove existing from XXXX maturity the we January improved of financial

weighted which can our the the impact includes the forma accounting $XXX weighted until When interest XXXX. debt at the to February sheet. average our which basis, for was was our have Including all no be debt pro years, was options, million. material equity, rate balance transactions, extension debt pro debt, of forward exercised aforementioned discretion, and X.X impact Turning of X.XX%. adjusted we net maturing total maturity a our of On average forma

million annualized $XX was In $XXX and debt of addition, revolving X.X year-end, hand, X.Xx. $XXX X.Xx From on availability unsettled at of million on forward facility which of our range of a $XXX to forma our end, million cash our which liquidity credit million adjusted net of consisted equity. our EBITDAre pro leverage was at leverage perspective, well to targeted within remains quarter adjusted

Moving on to guidance.

share We $X.XX guidance XXXX our range are at introducing AFFO $X.XX. per to

million as net expect range, loss cash severance range our which roughly investment to unknown to exclusive of transaction which million, we and believe Additionally, range XXX between midpoint basis million for to a prove our G&A our guidance at conservative is points $XX.X activity perspective, assumes the $XX.X year the payments. unfolds. rent From to of rent $XX loss million between our of should we $XXX and costs year the

to Board record XX%. XX. for share. AFFO will on as the a dividend dividend ratio our Lastly, amount, XX on of payout $X.XX declared fourth of March dividend was The of quarter the February XX, quarterly shareholders cash March per be Based on payable the

line the operator, we now that, will With questions. open for

Operator

question from first Scotiabank. is Our McGinniss with Greg

Elmer Chang

on is Chang with Elmer This Greg.

with but of another volume modestly of a of into you settle any exposures didn't by equity one record at reinvesting sort birds quarter you your accretive spread, asset killed So forwards. X riskier stone sales transaction

potential we should think with year to about sources? capital and So spreads forwards use planning you're this of investment your optimize how the how those

Daniel Donlan

Elmer, it's Dan.

of settle us expect should back XXXX. in the You to the equity half

Elmer Chang

Got it.

settle are to end potentially year? required or at months another them you the Okay. X the them you so? Or And can extend of then

Daniel Donlan

the we're the us half the year. that in push if end Right year. further this now, back to think of We out I settle but the settle could always agreement them want, we calls them for to of likely by

Elmer Chang

it. Got

Okay. Yes. a you year. approach the And release also more to mentioned investing measured this then taking in

that investments will sale-leaseback still slightly investment-grade about You're Does less help opportunities. or -- rates exposure? much you as cap And transacting seeing on throughout will require year? still the think more transacting

Mark Manheimer

of now, the opportunities. haven't are just really some move, with moved big haven't. seen little the a profile investment-grade have I We Yes. move, returns a sub-investment-grade enough up investment-grade risk-adjusted bit of we're should and mean big some more a There attractive right that tenants. some say, seeing I some and with

-- So of we're X on really we've X whether maximize dogmatic investment not kind calls, is risk-adjusted to our the this last not. mentioned really about grade We're or something but several trying of we're returns. earnings or

side, and on blend opportunities are some other extend we've sometimes side where opportunities obviously, that grade. those relationships kind they're sometimes some sale-leaseback are We've the new where been like are now, that XX%, we're And had that best Gerber ones quarters grade. XXX% seeing had retailers with some we've various largely continued right we're investment not. And we of are XX% investment grade, -- we've the and investment Collision. And the

Operator

from Goldsmith Our next is question with Michael UBS.

Michael Goldsmith

X%, exposure reducing General which about of talked and You portfolio with implies above kind CVS. selling no Dollar of the and tenants continued diversifying

Walgreens a can in you're been rates the what selling? you've cap of you that little seeing as seeing well cap bit about as sort that market rate you're talk the the that from on So

Mark Manheimer

lease Yes. varied quality Yes, sold, honestly, asset Thanks, rates I some the the quite we've term widely driving on Michael. that. cap of really of and that certainly have mean, depending so Walgreens the the

So wide a in of the Xs range north there, pretty pretty we've seen and that. far some some

those lower then and think -- at cap rates. we as it relates So can move I to CVS,

individual stores, a looking at. market ability some those, seen the institutions. but get really opportunities more then that has also cap better been buyers, some Dollar we're larger not encouraging, robust to I from be we've been which -- we've able And there's potentially CVS on rate to a to just XXXX think sell of

Michael Goldsmith

And levels saw in your conjunction demand quarter, the as of with you buyer. this a follow-up, dispositions from strong right,

then looks versus question is that competition are split you've out of the what guess for properties maybe when tenants which I sort been seeing out purchasing? So investment-grade And non-investment you there more? could grade, then targeting or you you're investment-grade how

Mark Manheimer

Yes. Yes, that's question. a good

a been if rating. tenants, bit really side, It's in were was investment-grade no investment-grade little is the There's really easier buyers the really relates It bank to there I there get competition. process. on no XXXX their from with it And as a go There it's really, think last got to more that then for financing negotiating So more always expectations was acquired we an we competition noninvestment-grade the process. -- there. quarter, bidding seller what on everything was auction price. versus us type

Operator

question next with Mizuho. Ravi Our is from Vaidya

Ravi Vaidya

the how Are to you acquisition view Just minimum grade? can think expect today? environment? do wanted you on And current acquisition about still your focusing for what criteria spread in investment we a

Mark Manheimer

Thanks, Yes. Ravi.

the the take let I'll of side part I'll first tackle spread Dan question. So the of of that kind equation.

since inception. criteria Our investment has iota changed one not really

big that I investment credit, there's people X not the to look things really grade, X returns which of risk-adjusted think one go criteria, I pieces think for but some that underwriting, probably really fall continue into into big corporate that We investment can There's there's mean our is XXX we our grade. investment best which pieces. find.

is time? trying that going really as want the we charge to which correlated to when a versus going that entirely. X tenancy to to obligations we dips credit investment-grade and X, not Or ratio having they cash situations to correlated be? going below those north obviously much what's how avoid but tenant And long conversations a to volatile possible. to that ratings, of of as is fixed We're are well starting understand period of have financial for flow generated the and Are the

at on And second restructuring, we're an focused unit it's so level the want lease flow that a the assets, not, then whether or at tenant or we of And flow store not piece a a end where the they're to is big they're the stay strong term end in buy that of of investment-grade the generating is the at the the at term. tenant cash there's on rent wants rejecting simple. there. lot no store pretty conversation or generating location, If to negotiation a reducing lease the renewing cash

going third estate, to wrong, use the and we doesn't then real And things potentially get we're where going course, or it what's at of and piece, take anymore, much which first a to we rent ultimately then us And what's what we could if location? how and the how work the to the cost -- buying. big going tenant And are be? to much have that is is So how the that market the put much to asset is back we new we have changes X world the gain. demand rent lose to rent

the So of trying filters maximizing loss we're and to that at investment, expected through kind to returns. that the what's really all while minimize each

set And so has opportunity is the right that really just now, changed. all

risk rating cases, taking at getting less and doing And in so actually while an investment-grade that level, returns. we think be most might that we have the fewer we're might acquisitions tenant better

Daniel Donlan

AFFO assume raising any our doesn't Ravi, in it. equity guidance Yes.

think spreads infer us for basis are to acquiring that you points. relative where XXX right so less can now we're than And I

Ravi Vaidya

helpful. That's it. Got

the watch remaining Just on credit, one your How any do of more have us with color target Can And and regarding Big you your X any should about CVS? here. your such tenant Lots tenants Walgreens, that list you here further think as we you have? remind boxes exposures reserves? of maybe some

Mark Manheimer

Yes.

order reverse I'll So go here. in

We and kind mean, on the that we get [ I from agent assumed of analysis. of that took had X in ], is and exclude current yes, to X Nexus the of Capital we're So that course, the going of as Ollie's over we Big with locations an acquisition, kind settled were obviously, Lots, assumed.

the We done, are negotiations of almost think, kind that getting expect complete. I with

We think where lot we So those end going assets. we have similar for that up it's to assumed. with very look assets of a X demand do

debt, potentially a an And with with try was I'm more a that's large of new Lots as also, other So successful. a also there profile, not Variety willing rent. there operator what long you history being and a no then tenant is in to to may is try pay Big has the that very a with something we part to of the Wholesalers Variety possibility may But is or investment-grade that to tenant know, lot get question? negotiate a sorry,

Ravi Vaidya

watch Just wanted exposure the underperforming levels list reserves? of to ask about your tenants broad and tenant credit, target your with for your Walgreens some and regarding commentary CVS and

Mark Manheimer

sure. Yes. Yes,

really was Big the on list watch mean, last I Lots So year. it

tenants So we're any with not year. really any anticipating our issues of specific this

something of the terms get kind below in of But we're bit really of always, of there's then that which course, X%. always we'd Of budget a tenants concentrations, thinking is happens, have risk. like all we're in little our case left to not a what course, in

to down rapidly has. You In a be top XX. other see the X with may a X.X%. bit as see Walgreens That us tenants the more already come quarters, trying will and down top just some maybe not get active past of as and little diversified to you X more it

Operator

Our from Rose Citi. Smedes next is with question

next with from Our question is Michael BTIG. Gorman

Michael Gorman

I lease for top for some any the presentation loans points reduce loans of also kind these of off of I'm does appreciate the receivable, are any of marketable? disclosure kind of Dollar in basis XXXX the of the Or help that some dispositions? be that concentration on would could Or General, there? additional XXX property curious, burn the does that of potentially those tenants. in expirations

Mark Manheimer

It a will both. question. bit Yes. good of be a It's little

year. correct -- if wrong, it's that points I basis think I could we've XXX Daniel loans and I'm this but think me roll of

the reduce exposure. helps certainly that So

market just If us because make think don't the we for X. huge that they're able them And those up then sell short-term loans. there's really with they rest think potentially dispositions. kind I we'll So longer below I term, of were And a to would loans. be down gets

Michael Gorman

back, And if Got missed I you then it. I should stepping rent situation? all kind apologize have how we don't just if or know I've of portfolio of kind above I coverage portfolio about helpful. across so the That's across coverage think below a level of in did. But and terms maybe it, buckets in of level and X, X the that of terms kind do

Mark Manheimer

Yes.

because cases, that P&L. mainly a getting have have And In we're coverage that we give cases But sales. we us tenant we where the many with In what not are get the many coverage cases, we entire disclosed we're of directly not what good flows just the extrapolating many what a full is so portfolio. cash conversations across is that in generated. indication are that pretty --

other that you and traffic tells extrapolate the traffic in what sales versus from average can And foot what which us and apply are Placer, from margins. situations, is driving then then we're the foot there the

we coverage, it's rent portfolio think Xx. our haven't overall, the But the disclosed healthy extraordinarily in since so you And I in asked, of past. neighborhood

Michael Gorman

That's maybe of some about an with And job really the just experience one, Great. you headline versus that. to last talked And offshoot underwriting. the then portfolio of your good kind done obviously, you've just Mark, helpful. a maybe risk.

between capabilities future dealing your the some currently getting some expectations and in also opportunities. based credit a your balance do market platform that monitoring kind also whether and think maybe quality of out tenants, returns with investment portfolio significant bridging market with for to of and better risk-adjusted returns the issues? better have shareholders they're opportunity you on You versus about do How get underwriting sentiment the or gap sentiment the and platform you versus while here. of the How

Mark Manheimer

confident wrestling asset We've certainly especially real level all. there's that been us last if and to the at ability comfortable for locations the question, headlines or getting some really very estate great level going That's disruption we've very or economically some it's underwrite, at with the our a the part It's in got that not better been to we've and even that Michael. that year impact so. of something

there investors, is impacted hit been It and headlines. some a the a we've higher, us. some where of being just bit has knee-jerk then reaction it can -- some getting be certainly with little concentrations But

really learn with on So a that much better business. down to we of where us our kind we'll try go-forward as and the I allows underwrite a comfortable we just kind impacted the down is economic and kind headlines continue way have of assets, our to real ability on our basis, really to as come need think impact to that head very get and of keep might But that concentrations but keep continue to have by to we've we not can. underwrite lower get and not

Operator

is Alec Our next from with Feygin question Baird.

Alec Feygin

that On categories the which there's now? acquisition prioritizing right curious I new quarter-over-quarter. tenants X you side, saw are

speak on or If you they can maybe who categories which are.

Mark Manheimer

sure. Yes,

the opportunity store I restaurants, a grocery. auto mean, auto and I then collision yes, service, quick So of we've on seen service lot guess, convenience side,

And even are with of we so and farm we Supply, their competitors that well. invest couple pretty there attractive but Tractor supplies, as -- to think continue are a

it's So mix. a diversified pretty

Alec Feygin

And the you relationships, or mentioned? are new they as tenant

Daniel Donlan

that do you again? Can

Alec Feygin

the new categories with are mentioned? relationships, the they I you asked in tenant

Mark Manheimer

yes. are, they Yes,

Alec Feygin

And Okay. inception the specific for believe you the small since mentioned a that I loss as but give can very maybe XXXX? what the was credit in you -- number, total Mark,

Mark Manheimer

XXXX. and of it's that was annually mean I all basis in per points Yes. X year,

should give good that pretty idea. you So a

Operator

Linda is with question next from Our Tsai Jefferies.

Linda Yu Tsai

In exposure, are AI. some examples utilize? mentioned terms know of closure you store I limit helping of your information Placer you underwriting What asymmetrical to

Mark Manheimer

Yes.

flow understand of can Placer at the replace your that think I foot generated a assets with and So asset relationships we tool But you is your them their ever phenomenal and taken assets level. directly really the us they're the and conversations certainly, traffic. really and helps the thinking advantage and with how about cash the tenants have don't completely

relationships kind part. a our big that's where so of play And

Linda Yu Tsai

leverage there's from differently are coming you running processes realize any in of G&A you natural revenue then And base, your growing improve terms also down, to but I positive efficiencies?

Daniel Donlan

different XXXX. is XXXX on efficiencies just of the versus kind improve I going that across the increasing the across say our up portfolio. the a couple Linda. looking headcount margin And cash we We're always of G&A to board. roles is Sure, to as continue scale in would

Operator

question with Guglielmo Our Daniel from Securities. is next Capital One

Daniel Guglielmo

are On material out? there the differences escalation in the for versus any leases the going lease side, and weighted the between coming disposition those average acquisitions

Mark Manheimer

say the leases would I general. on the that are Yes. shorter side, disposition in

we're and exposure And to at decreasing oftentimes to get we overall either oftentimes, risk so when trying out we're of looking looking closer at some ahead potential get renewal. dispositions, as

And so little term general, the be the we're bit margin selling to in going you're lease see what on shorter. a to

Daniel Guglielmo

with around each Okay. the kind the lease like same, Great. bumps And -- of or like each sorry, the renewal that quarter, escalation bumps bumps? is each the the -- year, year,

Mark Manheimer

Yes, absolutely.

about So But of what you mix that's -- going disposing are most we're internal whether they've bumps about than we're kind acquiring of those not. has just And mean, think better a stores growth CVS, Dollar many really think of got significantly I you leases. entirely be what of. or flat Walgreens, to

we're best opportunities side, And seeing the really we're is and we're the and helpful. annual increases, on focused acquisition so where where getting certainly -- which

Daniel Guglielmo

and that. just math quarter-to-quarter. really and with And dispositions. the I ins I a be changes the there That's of know few going state by is then one diversification Perfect. And and there's then to outs helpful, lots increased appreciate acquisitions are to the next

So material where kind certain states expect are or you there? thinking changes about there that of map, would regions

Mark Manheimer

other the asset asset and an as comfortable to take There's market long going in agnostic construction an just And so. country more somewhat there. see event the be But think in think new the we you're that for dynamics of more to population wouldn't I to market increases. part and No, to have individual tenants we where demand grow in what back. us overall, the opportunity we're continue the potential with you'll likely seeing and as Sunbelt I get the

Operator

Our is next Securities. Wedbush question Jay with Kornreich from

Jay Kornreich

mentioned you're I'm to is beyond volume just want tenant to there is of really ballpark XXXX? additional just earlier, a So disposition the aiming wondering exposures X%. work And tenant for you tenants, really that, get under top much aiming exposures you do on which all how year? the this X in do really And

Mark Manheimer

sell mean, We're and the disposition may relates that anything. not I tenants I Yes. think we if think right opportunistic tenants only demand I going able to then to if think getting to not, push rates, it to side. think them be we're assets. to that mean exception, harder. we're you'll the going But be buyers find below just yes, try like the pretty to have going we're even course, good -- we're pretty we're cap bit attractive If that I and below I of fire little a as hard work it see, sense to all to X%, we rule sale likely I most for And really for the to makes but not X%. at

Jay Kornreich

that. just appreciate then And I one more. Okay.

opportunities $XXX during I unsettled the first the in capital? year drive deploying saw million back half, acquisition back on to to year. really year really to you of the the guess Going example, consider focus this if you the settle Or volume equity, plan for forward tenant you XXXX would exposures for that the wait and is acquisition of closer compelling which mentioned up? planning to to at the end

Daniel Donlan

we that the of really Yes. forwards think is activity in net I embedded the viewpoint set that we're investment look, with the I guidance mean, assuming. the driven leverage

So return I we currently as investment than front levels. acquisitive the fourth us in of cost the I done We see what to But what with alongside think what for order you we capital to -- of cost have us, quarter, more than aggressive we more that. more on our really to. equity, think, in quarter just guiding record more be a can laid we've come want capability start we've was to which to tell to have get a significantly the we're and to attractive for net more see appropriate do out,

Mark Manheimer

acquisition is good we we that just an forward side. we see price that opportunity And really pretty can Jay, the potentially are acquisition, attractive other love question, a dispositions push event we that the in an see if piece on the to that some is on we close on

Operator

question is with Capital Markets. next KeyBanc Our Upal from Rana

Upal Rana

on any for do into downtime Mark, you locations? I of this Lots is any And anticipate guidance the the Big year? your appreciate but far, your from baked that X so update how

Mark Manheimer

expect all. any downtime do not We at

Upal Rana

And then these be appetite troubled are Great. selling successful your of what several given your the kind Walgreens over were about you Okay. in last you some me properties to? one to selling of investors for what learn buy tenants? you months, just did last the would of investors And from Walgreens few on

Mark Manheimer

question. good Yes. it's a

much have -- it Walgreens little just because really comfortable so this not be of some going most is been the more other of closed. We're handholding just for the in buyer that's bit location to the to in confident And getting So the going that are buyers. be Walgreens that news XXXX going own all just we they've that been closed. it a takes all and tenants of side extraordinarily to on buyers a not the than the get does

being investors get And comfortable. sell little made Dollar is than of there appetite bit General. getting so to once what the a just outcome slower is an comfortable able kind that, really that's that But people unlikely

Operator

is with question Farrell from next America. of Our Bank Granath

Farrell Granath

you cap your is have for guidance what rate in associated XXXX? your with curious, that was place expectations, I especially

Mark Manheimer

days mean maximum I have, terms rates, of only we Yes. XX it, call really cap in visibility.

of be quarter, are at that it's most quarter above. going very a at likely for comfortable, game this bit we to least were rates little the we feel above always So or dangerous be, we'll where but a cap of next where predicting

Farrell Granath

of thinking also how may more I forward? going the that on base, are a And be seeing your front. When little consumer trend guess the impact bit and on about the having some you Okay. that tenant macro

Mark Manheimer

I think inflation gone what question. I It's that it is nowhere near it a was. ramping was, and Yes, good mean certainly yet. as isn't it's

the So I think it. we've really seen of worst

of softening the done health which trying by been short it's little to end consumer focused inflation, and to so tried here seem bigger we're problem. at bit. does has damage And going the the continues always understand down lower now to on be really come a of in I But to the for overall, adjust which But we've most to the the term. the consumer to think I that certainly struggle, think, was,

Operator

hand questions comments. are this to to at I'd for Manheimer back over further closing time. any floor Mark like There the no

Mark Manheimer

forward weeks. for in the Thank and you, the conferences seeing couple today upcoming look to you NETSTREIT. your everyone, next in We many for of of at here interest joining

Operator

concludes This conference. today's

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

NETSTREIT (NTST) 25 Feb 252024 Q4 Earnings call transcript