NYSE$NTST

Netstreit Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong results driven by strategic focus and completed a follow-on common equity offering.

NETSTREIT reported strong second-quarter results, with a 100% occupied portfolio and 100% rent collection for eleven consecutive months. The company completed a $200+ million follow-on common equity offering and net investment activity of $107.7 million.

  • Reported net loss per share of $(0.07), Core Funds from Operations (“Core FFO”) per share of $0.181 and AFFO per share of $0.201.
  • Collected 100% of the second quarter rent payments and for the month of July 2021, resulting in eleven consecutive months of 100% rent collections.
  • Completed total net investment activity of $107.7 million.
  • Reaffirms Full Year 2021 AFFO per share guidance in the range of $0.95 to $0.99.

Headline financials

Total Revenue

$13.8M

Previous: $7.12M+93.9%
EPS (adj)

$0.20

Previous: -$0.03+766.7%
Occupancy Rate

100.0%

No prior period
WALT

9.9

No prior period
IG Rated Tenants

69.9%

No prior period
Capital Expenditures

-$5.66M

No prior period
Free Cash Flow

-$8.29M

No prior period
Net Income

-$2.63M

Previous: -$294K-794.6%
Operating Income

-$4.26M

No prior period
Gross Profit

$5.41M

No prior period
Cash & Equivalents

$88.1M

Previous: $7.99M+1003.8%
Total Assets

$913M

No prior period
Stock-Based Comp

$1.04M

No prior period

Revenue & EPS history

Netstreit · Revenue · Quarterly

$13.8M

Q2 2021+93.9%vs Q2 2020
Beat estimate in 10 of 10 quarters(100%)
ActualEstimate

Revenue by segment

Netstreit · $9.65M total across 1 segment · Q3 2020

  • Rental Revenue
    $9.65M

Forward guidance

The Company is maintaining its full year 2021 AFFO per share guidance in the range of $0.95 to $0.99 per share.

Tailwinds

  • Net acquisition activity, inclusive of dispositions, to be at least $360 million.
  • Cash G&A to be in the range of $11.0 to $12.0 million, which includes recurring transaction costs.
  • Additional non-cash compensation expense of $3.0 to $4.0 million
  • Cash interest expense, including unused line of credit facility fees, of $3.0 to $3.5 million.
  • Full year 2021 diluted weighted average shares outstanding, which includes the impact of OP units, are expected to be in the range of 38 to 39 million shares

Headwinds

  • Additional $0.6 million of non-cash deferred financing fee amortization
  • Taxes in the range of $0.2 to $0.3 million which will be reported as “income taxes” in the Company’s financial statements for 2021.
  • The Company expects cash G&A to be in the range of $11.0 to $12.0 million, which includes recurring transaction costs
  • Cash interest expense, including unused line of credit facility fees, of $3.0 to $3.5 million.
  • Full year 2021 diluted weighted average shares outstanding, which includes the impact of OP units, are expected to be in the range of 38 to 39 million shares

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.6%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.5%

Avg return

30 days after

56%

14 / 25 earnings

Positive

+5.7%

Q4 2021

Best reaction

-3.9%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-1.6%-1.6%
Q4 2025-0.1%+4.8%+5.1%
Q3 2025-3.9%-4.7%-6.7%
Q2 2025+0.1%+1.0%-2.8%
Q1 2025+2.0%+0.9%+0.9%
Q4 2024+3.9%+5.1%+9.6%
Q3 2024+4.0%+5.6%+2.9%
Q2 2024+0.1%-4.0%-0.2%
Q1 2024-0.9%+2.1%-0.9%
Q4 2023+3.9%+2.4%+1.1%
Q3 2023-1.9%+1.6%+11.5%
Q2 2023-1.1%-2.1%-6.7%
Q1 2023+1.9%+2.5%+1.1%
Q4 2022+2.0%+3.5%-8.4%
Q3 2022+1.8%+4.1%+7.1%
Q2 2022-0.6%+0.1%-0.5%
Q1 2022-2.7%-3.7%-4.3%
Q4 2021+5.7%+3.9%+5.9%
Q3 2021-2.5%-3.5%-12.3%
Q2 2021+2.8%+4.5%+2.7%
Q1 2020-0.5%+1.7%+6.6%
Q1 2021-0.5%+1.7%+6.6%
Q2 2020-3.0%-2.3%+1.7%
Q4 2019+1.9%+1.2%+8.6%
Q3 2020+1.5%+4.8%+10.9%
Q3 2019
Q2 2019
Q1 2019

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