NETSTREIT Corp. (NTST) Q3 2025 Earnings Call Transcript
Net Income $621,000 or $0.01 per diluted share for the third quarter of 2025.
Core FFO $26.4 million or $0.31 per diluted share for the third quarter of 2025.
AFFO $28 million or $0.33 per diluted share for the third quarter of 2025, which represents an increase of 3.1% year-over-year.
Total Recurring G&A $5.1 million for the third quarter of 2025, increased year-over-year due to normalized staffing levels after restructuring roles last year. However, it represents 10.6% of total revenues this quarter compared to 11.1% quarterly average last year.
Investment Activity $203.9 million of investments across 50 properties at a blended cash yield of 7.4% for the third quarter of 2025.
Disposition Activity $37.8 million from selling 24 properties at a 7.2% cap rate for the third quarter of 2025.
Portfolio Occupancy Rate 99.9% for the third quarter of 2025, with no material tenant disruptions.
Adjusted Net Debt $623.5 million as of the third quarter of 2025.
Weighted Average Debt Maturity 4.2 years as of the third quarter of 2025.
Weighted Average Interest Rate 4.45% as of the third quarter of 2025.
Total Liquidity Over $1.1 billion at the end of the third quarter of 2025, including $53 million of cash on hand, $500 million available on revolving credit facility, $431 million of unsettled forward equity, and $150 million of undrawn term loan capacity.
Pro Forma Adjusted Net Debt to Annualized Adjusted EBITDAre 3.6x at the end of the third quarter of 2025, well below the targeted range of 4.5 to 5.5x.
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NETSTREIT Corp. Receives BBB- Rating from Fitch, Reflecting Strong Operational Performance
- Rating Upgrade: Fitch has assigned NETSTREIT a BBB- issuer rating, reflecting the company's strong operational performance with over 99% occupancy during the pandemic, which enhances investor confidence and validates its solid property portfolio.
- Financial Flexibility: This rating allows NETSTREIT to achieve substantial interest expense savings across its revolving credit and term loan facilities, not only improving the company's financial flexibility but also providing a more efficient pathway for accessing capital markets in the future.
- Management Team Strength: Led by seasoned commercial real estate executives, NETSTREIT's strategy focuses on acquiring single-tenant net lease retail properties, ensuring competitiveness in high-quality asset portfolios and generating consistent cash flows and dividends for investors.
- Long-term Growth Potential: The attainment of an investment-grade rating underscores the company's commitment to conservatively managing its balance sheet and maintaining a low leverage profile, which is expected to attract more institutional investors and further drive long-term growth potential.
NTST Surpasses 5% Yield Threshold
Dividend Predictability: Dividend amounts are generally unpredictable and fluctuate based on a company's profitability.
NetSTREIT Corp Analysis: Analyzing the historical dividend chart for NetSTREIT Corp (NTST) can provide insights into the likelihood of maintaining a 5% annual yield.
Investment Opportunities: There is a mention of other dividend stocks that have recently become available for purchase.
Author's Perspective: The opinions expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
