NETSTREIT Corp. Reports 21% Revenue Growth, Net Loss in Q3 2024

NETSTREIT Corp. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on acquiring and managing a diversified portfolio of single-tenant retail properties, experienced a notable increase in total revenues, which rose to $41.4 million for the three months ended September 30, 2024, compared to $34.0 million for the same period in 2023. This $7.4 million increase was primarily driven by additional cash rental receipts of $6.8 million, interest income on mortgage loans of $1.0 million, and straight-line rental revenue of $0.5 million.

However, the company reported a net loss of $5.3 million for the third quarter of 2024, a significant decline from the net income of $4.2 million recorded in the same quarter of the previous year. The increase in total operating expenses to $39.1 million, up from $26.5 million in 2023, contributed to this loss. Key factors included a rise in depreciation and amortization expenses, which increased by $4.6 million to $20.4 million, and a provision for impairment of $9.8 million on 18 properties, compared to $1.5 million on seven properties in the prior year.

For the nine months ended September 30, 2024, total revenues increased by $23.7 million to $118.7 million, with rental revenue rising to $110.2 million from $89.3 million in 2023. Despite this growth, the company reported a net loss of $6.6 million for the nine-month period, down from a net income of $4.9 million in the same timeframe last year. The increase in total operating expenses to $101.9 million, up from $77.9 million, was a significant factor in this loss.

Strategically, NETSTREIT continued to expand its real estate portfolio, acquiring 68 properties for a total of $302.3 million during the nine months ended September 30, 2024. The company also sold 26 properties for $55.6 million, resulting in a net gain of $0.9 million. As of September 30, 2024, NETSTREIT owned or had investments in 671 properties across 45 states, with a total real estate investment portfolio valued at approximately $2.1 billion.

The company’s total assets increased to $2.2 billion, up from $1.9 billion at the end of 2023, while total liabilities rose to $837.9 million from $672.8 million. Stockholders’ equity also improved, reaching $1.34 billion as of September 30, 2024, compared to $1.26 billion at the end of the previous fiscal year. The company maintained compliance with all debt covenants and reported a total debt of $783.2 million, reflecting an increase from $613.4 million at the end of 2023.