Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Dec. 31, 2024	Feb. 19, 2025	Jun. 30, 2024
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-39443
Entity Registrant Name	NETSTREIT Corp.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	84-3356606
Entity Address, Address Line One	2021 McKinney Avenue
Entity Address, Address Line Two	Suite 1150
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75201
City Area Code	972
Local Phone Number	200-7100
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	NTST
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 1.2
Entity Common Stock, Shares Outstanding		81,663,128
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE We intend to file with the Securities and Exchange Commission, not later than 120 days after the close of our fiscal year ended December 31, 2024, a definitive proxy statement or an amendment to this report filed under cover of Form 10-K/A containing the information required to be disclosed under Part III of Form 10-K.
Entity Central Index Key	0001798100
Amendment Flag	false
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2024
Auditor Information [Abstract]
Auditor Name	KPMG LLP
Auditor Location	Chicago, Illinois
Auditor Firm ID	185

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Real estate, at cost:
Land	$ 571,272	$ 460,896
Buildings and improvements	1,400,393	1,149,809
Total real estate, at cost	1,971,665	1,610,705
Less accumulated depreciation	(143,422)	(101,210)
Property under development	6,118	29,198
Real estate held for investment, net	1,834,361	1,538,693
Assets held for sale	48,637	52,451
Mortgage loans receivable, net	139,409	114,472
Cash, cash equivalents, and restricted cash	14,320	29,929
Lease intangible assets, net	164,392	161,354
Other assets, net	58,227	49,337
Total assets	2,259,346	1,946,236
Liabilities:
Term loans, net	622,608	521,912
Revolving credit facility	239,000	80,000
Mortgage note payable, net	7,853	7,883
Lease intangible liabilities, net	20,177	25,353
Liabilities related to assets held for sale	1,912	1,158
Accounts payable, accrued expenses, and other liabilities	29,664	36,498
Total liabilities	921,214	672,804
Commitments and contingencies (Note 12)
Stockholders’ equity
Common stock, $0.01 par value, 400,000,000 shares authorized; 81,602,232 and 73,207,080 shares issued and outstanding as of December 31, 2024 and 2023, respectively	816	732
Additional paid-in capital	1,507,995	1,367,505
Distributions in excess of retained earnings	(188,046)	(112,276)
Accumulated other comprehensive income	10,206	8,943
Total stockholders’ equity	1,330,971	1,264,904
Noncontrolling interests	7,161	8,528
Total equity	1,338,132	1,273,432
Total liabilities and equity	$ 2,259,346	$ 1,946,236

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	81,602,232	73,207,080
Common stock, shares outstanding	81,602,232	73,207,080

Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenues
Rental revenue (including reimbursable)	$ 150,823	$ 123,967	$ 93,934
Interest income on loans receivable	11,561	7,388	2,345
Other revenue	400	550	0
Total revenues	162,784	131,905	96,279
Operating expenses
Property	17,422	16,413	11,695
General and administrative	19,722	20,176	19,053
Depreciation and amortization	76,871	63,677	50,075
Provisions for impairment	29,969	7,083	1,114
Transaction costs	359	456	839
Total operating expenses	144,343	107,805	82,776
Other (expense) income
Interest expense, net	(30,324)	(19,058)	(9,181)
Gain on sales of real estate, net	1,876	1,175	4,148
Loss on debt extinguishment	0	(128)	0
Other (expense) income, net	(1,944)	752	131
Total other expense, net	(30,392)	(17,259)	(4,902)
Net (loss) income before income taxes	(11,951)	6,841	8,601
Income tax (expense) benefit	(49)	49	(396)
Net (loss) income	(12,000)	6,890	8,205
Net (loss) income attributable to noncontrolling interests	(63)	53	88
Net (loss) income attributable to common stockholders	$ (11,937)	$ 6,837	$ 8,117
Amounts available to common stockholders per common share:
Basic (in dollars per share)	$ (0.16)	$ 0.11	$ 0.16
Diluted (in dollars per share)	$ (0.16)	$ 0.11	$ 0.16
Weighted average common shares:
Basic (in shares)	76,517,767	63,922,973	49,517,977
Diluted (in shares)	76,517,767	64,665,439	50,431,822
Change in value on derivatives, net	$ 1,269	$ (14,822)	$ 19,758
Total comprehensive (loss) income	(10,731)	(7,932)	27,963
Comprehensive (loss) income attributable to noncontrolling interests	(57)	(39)	296
Comprehensive (loss) income attributable to common stockholders	$ (10,674)	$ (7,893)	$ 27,667

Consolidated Statement of Changes in Equity - USD ($) $ in Thousands	Total	Total Stockholders’ Equity	Common stock	Additional Paid-in Capital	Distributions in Excess of Retained Earnings	Accumulated Other Comprehensive Income	Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2021			44,223,050
Beginning balance at Dec. 31, 2021	$ 789,815	$ 779,170	$ 442	$ 809,724	$ (35,119)	$ 4,123	$ 10,645
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock (in shares)			13,600,004
Issuance of stock	296,162	296,162	$ 135	296,027
Offering and related costs of common stock	(18,444)			(18,444)
Redemption of OP Units and issuance of common stock in initial public offering (in shares)			49,317
Redemption of OP Units and issuance of common stock in initial public offering	0	929		929			(929)
Dividends and distributions declared on common stock and OP units	(39,952)	(39,533)			(39,533)		(419)
Dividends declared on restricted stock	(522)	(522)			(522)
Vesting of restricted stock units (in shares)			234,108
Vesting of restricted stock units	0		$ 3	(3)
Repurchase of common stock for tax withholding obligations (in shares)			(74,600)
Repurchase of common stock for tax withholding obligations	(1,477)	(1,477)		(1,477)
Stock-based compensation	4,878	4,878		4,758	120
Other comprehensive income (loss)	19,758	19,550				19,550	208
Net income (loss)	8,205	8,117			8,117		88
Ending balance (in shares) at Dec. 31, 2022			58,031,879
Ending balance at Dec. 31, 2022	1,058,423	1,048,830	$ 580	1,091,514	(66,937)	23,673	9,593
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock (in shares)			15,038,397
Issuance of stock	280,908	280,908	$ 151	280,757
Offering and related costs of common stock	(9,519)			(9,519)
Redemption of OP Units and issuance of common stock in initial public offering (in shares)			34,169
Redemption of OP Units and issuance of common stock in initial public offering	0	619		619			(619)
Dividends and distributions declared on common stock and OP units	(52,082)	(51,675)			(51,675)		(407)
Dividends declared on restricted stock	(503)	(503)			(503)
Vesting of restricted stock units (in shares)			139,527
Vesting of restricted stock units	0		$ 1	(1)
Repurchase of common stock for tax withholding obligations (in shares)			(36,892)
Repurchase of common stock for tax withholding obligations	(688)	(688)		(688)
Stock-based compensation	4,825	4,825		4,823	2
Other comprehensive income (loss)	(14,822)	(14,730)				(14,730)	(92)
Net income (loss)	6,890	6,837			6,837		53
Ending balance (in shares) at Dec. 31, 2023			73,207,080
Ending balance at Dec. 31, 2023	1,273,432	1,264,904	$ 732	1,367,505	(112,276)	8,943	8,528
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock (in shares)			8,183,711
Issuance of stock	138,332	138,332	$ 83	138,249
Offering and related costs of common stock	(2,856)			(2,856)
Redemption of OP Units and issuance of common stock in initial public offering (in shares)			54,342
Redemption of OP Units and issuance of common stock in initial public offering	0	941		941			(941)
Dividends and distributions declared on common stock and OP units	(63,826)	(63,457)			(63,457)		(369)
Dividends declared on restricted stock	(557)	(557)			(557)
Vesting of restricted stock units (in shares)			246,755
Vesting of restricted stock units	0		$ 2	(2)
Repurchase of common stock for tax withholding obligations (in shares)			(89,656)
Repurchase of common stock for tax withholding obligations	(1,499)	(1,499)	$ (1)	(1,498)
Stock-based compensation	5,837	5,837		5,656	181
Other comprehensive income (loss)	1,269	1,263				1,263	6
Net income (loss)	(12,000)	(11,937)			(11,937)		(63)
Ending balance (in shares) at Dec. 31, 2024			81,602,232
Ending balance at Dec. 31, 2024	$ 1,338,132	$ 1,330,971	$ 816	$ 1,507,995	$ (188,046)	$ 10,206	$ 7,161

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities
Net (loss) income	$ (12,000)	$ 6,890	$ 8,205
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	76,871	63,677	50,075
Amortization of deferred financing costs	2,230	1,730	862
Amortization of above/below-market assumed debt	114	114	29
Noncash revenue adjustments	(3,699)	(1,632)	(2,466)
Amortization of deferred gains on interest rate swaps	(3,789)	(2,124)	0
Stock-based compensation expense	5,656	4,823	4,758
Gain on sales of real estate, net	(1,876)	(1,175)	(4,148)
Provisions for impairment	29,969	7,083	1,114
Loss on debt extinguishment	0	128	0
Gain (loss) on involuntary conversion of building and improvements	502	(78)	(126)
Changes in assets and liabilities, net of assets acquired and liabilities assumed:
Other assets, net	(1,200)	(1,237)	(6,193)
Accounts payable, accrued expenses and other liabilities	(946)	3,696	1,215
Lease incentive payments	(1,668)	(1,740)	(2,678)
Net cash provided by operating activities	90,164	80,155	50,647
Cash flows from investing activities
Acquisitions of real estate	(479,039)	(340,451)	(424,794)
Real estate development and improvements	(40,334)	(78,798)	(22,402)
Investment in mortgage loans receivable	(29,543)	(72,429)	(46,466)
Principal collections on mortgage loans receivable	24,870	1,482	0
Earnest money deposits	(67)	(265)	868
Purchase of computer equipment and other corporate assets	(8)	(35)	(1,208)
Proceeds from sale of real estate	90,843	38,465	25,515
Proceeds from the settlement of property-related insurance claims	403	78	126
Net cash used in investing activities	(432,875)	(451,953)	(468,361)
Cash flows from financing activities
Issuance of common stock in public offerings, net	135,475	271,389	277,718
Payment of common stock dividends	(63,457)	(51,675)	(39,533)
Payment of OP unit distributions	(369)	(407)	(419)
Payment of restricted stock dividends	(599)	(148)	(339)
Principal payments on mortgages payable	(155)	(138)	(48)
Proceeds under revolving credit facilities	392,000	361,000	515,000
Repayments under revolving credit facilities	(233,000)	(394,000)	(466,000)
Proceeds from term loans	100,000	150,000	200,000
Proceeds under property development incentives	0	0	755
Repurchase of common stock for tax withholding obligations	(1,498)	(688)	(1,478)
Payment of deferred offering costs	(1,295)	(878)	(1,220)
Payment of deferred financing costs	0	(3,271)	(3,782)
Net cash provided by financing activities	327,102	331,184	480,654
Net change in cash, cash equivalents, and restricted cash	(15,609)	(40,614)	62,940
Cash, cash equivalents, and restricted cash at beginning of the period	29,929	70,543	7,603
Cash, cash equivalents, and restricted cash at end of the period	14,320	29,929	70,543
Supplemental disclosures of cash flow information:
Cash paid for interest, net of amounts capitalized	30,295	18,336	7,218
Cash (received) paid for income taxes, net	(31)	628	129
Supplemental disclosures of non-cash investing and financing activities:
Dividends declared and unpaid on restricted stock	376	501	403
Deferred offering costs included in accounts payable, accrued expenses, and other liabilities	35	7	0
Loan Origination Fees On Mortgage Loans Receivable, Accrued Not Yet Received	200	0	0
Cash flow hedge change in fair value	5,058	(12,698)	19,758
Mortgage loan receivable settled in exchange for acquisition of real estate	0	4,673	0
Increase in mortgage loan receivable in exchange for disposition of real estate	20,102	1,837	0
Refinancing of mortgage loan receivable	0	1,327	0
Accrued capital expenditures and real estate development and improvement costs	4,500	5,686	2,473
Accrued lease incentives	368	0	0
Mortgage note assumed at fair value	$ 0	$ 0	$ 7,913

Organization and Description of Business	12 Months Ended
Organization and Description of Business	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business NETSTREIT Corp. (the “Company”) was incorporated on October 11, 2019 as a Maryland corporation and commenced operations on December 23, 2019. The Company conducts its operations through NETSTREIT, L.P., a Delaware limited partnership (the “Operating Partnership”). NETSTREIT GP, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company, is the sole general partner of the Operating Partnership. The Company elected to be treated as and to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with its short taxable year ended December 31, 2019. Additionally, the Operating Partnership formed NETSTREIT Management TRS, LLC (“NETSTREIT TRS”), which together with the Company jointly elected to be treated as a taxable REIT subsidiary under Section 856(a) of the Internal Revenue Code of 1986, as amended, (the “Code”) for U.S. federal income tax purposes. The Company is structured as an umbrella partnership real estate investment trust (commonly referred to as an “UPREIT”) and is an internally managed real estate company that acquires, owns, and manages a diversified portfolio of single-tenant, retail commercial real estate leased on a long-term basis to high credit quality tenants across the United States. The Company also invests in property developments and mortgage loans secured by real estate. As of December 31, 2024, the Company owned or had investments in 687 properties, located in 45 states, excluding five property developments where rent has yet to commence.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation and the Company’s net (loss) income is reduced by the portion of net (loss) income attributable to noncontrolling interests.

Noncontrolling Interests

The Company presents noncontrolling interests, which represent limited partnership units in the Operating Partnership (the “OP Units”) not owned by the Company, as a component of permanent equity, separate from the Company’s stockholders’ equity. Noncontrolling interests were created as part of an asset acquisition and were recognized at fair value as of the date of the transaction. Effective with the Company’s initial public offering, each limited partner of the Operating Partnership has the right to require the Operating Partnership to redeem part or all of its OP Units for cash, based upon the value of an equivalent number of shares of the Company’s common stock at the time of the redemption, or, at the Company’s election, shares of the Company’s common stock on a one-for-one basis, subject to certain adjustments and the restrictions on ownership and transfer of the Company’s common stock. The election to pay cash or issue common stock is solely within the control of the Company to satisfy a noncontrolling interest holder’s redemption request.

Net (loss) income of the Operating Partnership is allocated to its noncontrolling interests based on the noncontrolling interests’ ownership percentages in the Operating Partnership throughout the period. Ownership percentage is calculated by dividing the number of OP Units held by the noncontrolling interests by the total OP Units outstanding.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s most significant assumptions and estimates relate to the useful lives of real estate assets, lease accounting, real estate impairment assessments, and allocation of fair value of purchase consideration. These estimates are based on historical experience and other assumptions which management believes are reasonable under the circumstances. The Company evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates.

Real Estate Held for Investment

Real estate is recorded and stated at cost less any provision for impairment. At acquisition date, the purchase price of an acquired property is allocated to tangible and identifiable intangible assets or liabilities based on their relative fair values. For properties developed by the Company, all direct and indirect costs related to planning, development and construction, including interest, real estate taxes, and other miscellaneous costs incurred during the construction period, are capitalized for financial reporting purposes and recorded as property under development until construction has been completed.

The Company evaluates each acquisition transaction to determine whether the acquired asset meets the definition of a business and therefore accounted for as a business combination or if the acquisition transaction should be accounted for as an asset acquisition. Under Accounting Standards Update (“ASU”) 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”), an acquisition does not qualify as a business when substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets or the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort, or delay. Transaction costs related to acquisitions that qualify as asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be acquisitions of a business are expensed as incurred.

The Company allocates the purchase price of acquired properties accounted for as asset acquisitions to tangible and identifiable intangible assets or liabilities based on their relative fair values. Tangible assets may include land, buildings, site improvements, and tenant improvements. Intangible assets include the value of in-place leases and above-market leases, and intangible liabilities include below-market leases. The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases based on the specific characteristics of each tenant’s lease. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal, and other related expenses. The fair value of above-market or below-market leases is recorded based on the net present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company’s estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining non-cancelable term of the lease, including any below-market fixed rate renewal options for below-market leases. In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including real estate valuations prepared by an independent valuation firm. The Company also considers information and other factors, including market conditions, the industry that the tenant operates in, characteristics of the real estate; e.g., location, size, demographics, value and comparative rental rates; tenant credit profile and the importance of the location of the real estate to the operations of the tenant’s business. Additionally, the Company considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets and liabilities acquired. Based on these inputs for measuring and allocating the fair value of real estate acquisitions, the Company utilizes both observable market data (categorized as level 2 on the three-level valuation hierarchy of Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement), and unobservable inputs that reflect the Company’s own internal assumptions (categorized as level 3 under ASC Topic 820).

Depreciation and Amortization

Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets:


Buildings			13 – 35 years
Building improvements			15 years
Tenant improvements			Shorter of the term of the related lease or useful life
Acquired in-place leases or leasing commissions			Remaining terms of the respective leases
Assembled workforce			3 years
Computer equipment and other corporate assets			3 – 5 years

Depreciation and amortization amounts for the years ended December 31, 2024, 2023, and 2022 are as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Depreciation on real estate held for investment and computer equipment and other corporate assets	$	55,066	$	44,402	$	33,883
Amortization on acquired in-place lease and assembled workforce intangible assets and leasing commission costs	21,805		19,275		16,192
Total depreciation and amortization expense	$	76,871	$	63,677	$	50,075

Repairs and maintenance are charged to operations as incurred; major renewals and betterments that extend the useful life or improve the operating capacity of the asset are capitalized. Upon the sale or disposition of a property, the asset and the related accumulated depreciation and amortization are removed from the consolidated balance sheets with the difference between the proceeds received, net of sales costs, and the carrying value of the asset group recorded as a gain or loss on sale, subject to impairment considerations.

Assets Held for Sale

The Company is continually evaluating the portfolio of real estate assets and may elect to dispose of assets considering criteria including, but not limited to, tenant concentration, tenant credit quality, unit financial performance, local market conditions and lease rates, asset location and tenant operation type (e.g., tenant or retail sector). Real estate assets held for sale are expected to be sold within twelve months. Properties classified as held for sale, including the related intangibles, in the consolidated balance sheets include only those properties available for immediate sale in their present condition, which are actively being marketed, and for which management believes that it is probable that a sale of the property will be completed within one year. Properties held for sale are carried at the lower of cost or fair value, less estimated selling costs. No depreciation expense or amortization expense is recognized on properties held for sale and the related intangible assets or liabilities once they have been classified as such. Only disposals representing a strategic shift in operations are presented as discontinued operations. Accordingly, the Company has not reclassified results of operations for properties disposed during the years ended December 31, 2024, 2023, and 2022 or held for sale as discontinued operations as of December 31, 2024 or December 31, 2023, as these events are a normal part of the Company’s operations and do not represent strategic shifts in the Company’s operations. There were 23 properties classified as held for sale for both of the years ended December 31, 2024 and December 31, 2023.

Impairment of Long-Lived Assets

Fair value measurement of an asset group occurs when events or changes in circumstances related to an asset indicate that the carrying amount of the asset is no longer recoverable. An example of an event or changed circumstance is a reduction in the expected holding period of a property. If indicators are present, the Company will prepare a projection of the undiscounted future cash flows of the property, excluding interest charges, and determine if the carrying amount of the asset group is recoverable. When a carrying amount is not recoverable, an impairment loss is recognized to the extent that the carrying amount of the asset group exceeds its fair market value. The Company estimates fair value using data such as operating income, estimated capitalization rates or multiples, leasing prospects, local market information, and discount rates, and with regard to assets held for sale, based on the estimated or negotiated selling price, less estimated costs of disposal. Based on these unobservable inputs, the Company determined that its valuations of impaired real estate and intangible assets fall within Level 2 and Level 3 of the fair value hierarchy under ASC Topic 820.

The following table summarizes the provision for impairment during the periods indicated below (in thousands):


	Year Ended December 31,
	2024		2023		2022
Total provision for impairment	$	29,969	$	7,083	$	1,114
Number of properties: (1)
Classified as held for sale	13		14		—
Disposed within the period	35		4		1
Classified as held for investment	11		2		—

(1) Includes the number of properties that were either (i) impaired during the period on the held for sale classification date and remained as held for sale as of period-end, (ii) impaired and disposed of during the respective period, or (iii) impaired during the period and remained as held for investment as period-end. Excludes properties that did not have impairment recorded during the year. Of the total provision for impairment during the year ended December 31, 2024, the Company recorded $1.4 million of additional impairment expense on four properties that were classified as held for sale in prior periods and remained as held for sale as of period-end, and $14.6 million of impairment expense on properties held for investment.

Cash, Cash Equivalents, and Restricted Cash

The Company considers all cash balances, money market accounts, and highly liquid investments with original maturities of three months or less to be cash and cash equivalents. Restricted cash includes cash restricted for property tenant improvements and cash proceeds from the sale of assets held by qualified intermediaries in anticipation of the acquisition of replacement properties in tax-free exchanges under Section 1031 of the Code. Restricted cash is included in cash, cash equivalents, and restricted cash in the consolidated balance sheets. The Company had $7.9 million of restricted cash as of December 31, 2024, and $11.5 million of restricted cash as of December 31, 2023.

The Company’s bank balances as of December 31, 2024 and 2023 included certain amounts over the Federal Deposit Insurance Corporation limits.

Revenue Recognition and Related Matters

The Company’s rental revenue is primarily related to rent received from tenants under leases accounted for as operating leases. Rent from leases that have fixed and determinable rent increases is recognized on a straight-line basis over the non-cancellable initial term of the lease and reasonably certain renewal periods, from the later of the date of the commencement of the lease or the date of acquisition of the property subject to the lease. The difference between rental revenue recognized and the cash rent due under the provisions of the lease is recorded as deferred rent receivable and included as a component of other assets in the consolidated balance sheets.

Variable lease revenues include tenant reimbursements, reserves for uncollectible amounts, changes in the index or market-based indices after the inception of the lease, or percentage rents. Variable lease revenues are not recognized until the specific events that trigger the variable payments have occurred. The Company recognized variable lease revenue related to tenant reimbursements and lease termination fees for the periods presented.

Capitalized above-market and below-market lease values are amortized on a straight-line basis as a reduction or increase of rental revenue as appropriate over the remaining non-cancellable terms of the respective leases.

Reserves for uncollectible amounts are provided against the portion of accounts receivable, net, including straight-line rents, which is estimated to be uncollectible, which includes a portfolio-based reserve and reserves for specifically disputed amounts. Such reserves are reviewed each period based upon recovery experience and the specific facts of each outstanding amount. As of December 31, 2024 and December 31, 2023, the Company had an immaterial reserve for uncollectible amounts specific to reimbursable expenses.

Mortgage Loans Receivable

The Company holds loans receivable, which are mortgage loans secured by real estate, for short and long-term investment. Loans receivable are carried at amortized cost. As of December 31, 2024, the Company held 18 senior secured first-lien mortgage loans receivable.

The Company recognizes interest income on loans receivable using the effective interest method. Direct costs associated with originating loans, along with any premium or discount, are deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective interest method. The Company evaluates its loan receivable balances, including accrued interest, for potential credit losses by analyzing the credit of the borrower, the remaining time to maturity of the loan, collateral value and quality (if any), and other relevant factors. A loan receivable is placed on a nonaccrual status when management determines that full recovery of the contractually specified payments of principal and interest is doubtful.

Stock-Based Compensation

The Company has a share-based compensation award program for its employees and directors. Stock-based compensation expense associated with these awards is recognized in general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income. The Company classifies stock-based payment awards either as equity awards or liability awards based upon an analysis of ASC 718, Compensation - Stock Compensation, and ASC 480, Distinguishing Liabilities from Equity. Equity classified awards are measured based on the fair value on the date of grant. Liability classified awards are remeasured to fair value each reporting period. Stock-based compensation expense is recognized over the requisite service or performance period. The Company recognizes forfeitures as they occur.

Forward Equity Sales

The Company sells shares of common stock through forward sale agreements from time to time to enable the Company to set the price of such shares upon pricing the offering (subject to certain adjustments), while delaying the issuance of such shares and the receipt of the net proceeds by the Company.

To account for the forward sale agreements, the Company considers the accounting guidance governing financial instruments and derivatives. To date, the Company has concluded that its forward sale agreements are not liabilities as they do not embody obligations to repurchase its shares nor do they embody obligations to issue a variable number of shares for which the monetary value are predominantly fixed, varying with something other than the fair value of the shares, or varying inversely in relation to its shares. The Company then evaluates whether the agreements meet the derivatives and hedging guidance scope exception to be accounted for as equity instruments. The Company has concluded that the agreements are classifiable as equity contracts based on the following assessments: (i) none of the agreements’ exercise contingencies are based on observable markets or indices besides those related to the market for the Company’s own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to its own stock.

The Company also considers the potential dilution resulting from the forward sale agreements on the earnings per share calculations. Prior to settlement, a forward sale agreement will be reflected in the diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of the Company’s common stock used in diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares of the Company’s common stock that would be issued upon full physical settlement of such forward sale agreement over the number of shares of the Company’s common stock that could be purchased by the Company in the market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). Consequently, prior to settlement of a forward sale agreement, there will be no dilutive effect on the Company’s earnings per share except during periods when the average market price of the Company’s common stock is above the adjusted forward sale price. However, upon settlement of a forward sale agreement, if the Company elects to physically settle or net share settle such forward sale agreement, delivery of the Company’s shares will result in dilution to the Company’s earnings per share.

Transaction Costs

Transaction costs represent non-capitalizable acquisition related expenses and costs associated with abandoned acquisitions. Acquisition and dead deal related expenses were $0.4 million, $0.5 million, and $0.8 million for the years ended December 31, 2024, 2023, and 2022, respectively.

Income Taxes

The Company elected to be treated and qualify as a REIT for U.S. federal income tax purposes beginning with its short taxable year ended December 31, 2019. To qualify as a REIT, the Company must meet certain organizational, income, asset, and distribution tests. Accordingly, the Company will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions of all of its taxable income to its stockholders and provided it satisfies, on a continuing basis, through actual investment and operating results, the REIT requirements, including certain asset, income, distribution, and share ownership tests. The Company expects the distributions made during 2024 are sufficient to receive a full dividends paid deduction.

NETSTREIT TRS is treated as a taxable REIT subsidiary which may be subject to U.S. federal, state, and local income taxes on its taxable income. In general, NETSTREIT TRS may perform services for tenants of the Company, hold assets that the Company cannot hold directly, and may engage in any real estate or non-real estate-related business.

The Company recognizes franchise and other state and local tax expenses in general and administrative expenses and recognizes state and federal income tax in income tax (expense) in the accompanying consolidated statements of operations and comprehensive (loss) income.

All provisions for federal income taxes in the accompanying consolidated financial statements are attributable to NETSTREIT TRS. Deferred income tax expense and its related deferred tax assets and liabilities were immaterial for the years presented.

The Company has elected to record related interest and penalties, if any, as general and administrative expense or as income tax expense based on the nature of the tax in the consolidated statements of operations and comprehensive (loss) income. The Company had no material interest or penalties relating to income, franchise, and other state and local taxes for the years presented. Additionally, there were no material accruals for interest or penalties as of December 31, 2024 and 2023.

The Company files federal, state, and local income tax returns. The Company regularly analyzes its various federal and state filing positions and only recognizes the income tax effect in its financial statements when certain criteria regarding uncertain income tax positions have been met. The Company believes that its income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no provisions for uncertain income tax positions have been recorded in the consolidated financial statements.

All federal tax returns for years prior to 2021 are no longer subject to examination. Additionally, state tax returns for years prior to 2019 are generally no longer subject to examination.

Earnings Per Share

Earnings per common share has been computed pursuant to the guidance in FASB ASC Topic 260, Earnings per Share. Basic earnings per share (“EPS”) is computed by dividing net (loss) income allocated to common stockholders by the weighted-average number of common shares outstanding for the reporting period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. No effect is shown for any securities that are anti-dilutive. Net (loss) income allocated to common stockholders represents net (loss) income less (loss) income allocated to participating securities and noncontrolling interests. None of the Company’s equity awards are participating securities.

Fair Value Measurement

Fair value measurements are utilized in the accounting of the Company’s assets acquired and liabilities assumed in an asset acquisition and also affect the Company’s accounting for certain of its financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 inputs, such as quoted prices in an active market; Level 2 inputs, which are observable inputs for similar assets; or Level 3 inputs, which are unobservable inputs.

The Company uses the following inputs in its fair value measurements:

– Level 2 and Level 3 inputs for its debt and derivative financial instrument fair value disclosures. See “Note 6 - Debt” and “Note 7 - Derivative Financial Instruments,” respectively; and

– Level 2 and Level 3 inputs when assessing the fair value of assets and liabilities in connection with real estate acquisitions and impairment. See “Note 4 - Real Estate Investments.”

Additionally, companies are required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair value. The fair values of financial instruments are estimates based on market conditions and perceived risks as of December 31, 2024 and December 31, 2023. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities.

The fair value of the Company’s cash, cash equivalents, and restricted cash (including money market accounts), other assets and accounts payable, accrued expenses and other liabilities approximate their carrying value because of the short-term nature of these instruments. Additionally, the Company believes the following financial instruments have carrying values that approximate their fair values as of December 31, 2024:

•Borrowings under the Company’s Revolver (as defined in “Note 6 - Debt”) approximate fair value based on their nature, terms and variable interest rates.

•Carrying values of the Company’s mortgage loans receivable approximate fair values based on a number of factors, including either their short-term nature, the availability of market quotes for comparable instruments, and a discounted cash flow analysis using estimates of the amount and timing of future cash flows, market rates, and credit spreads.

•Carrying value of the Company’s mortgage note payable approximates fair value based on a discounted cash flow analysis using estimates of the amount and timing of future cash flows, market rates, and credit spreads.

Provisions for impairment recognized during the years ended December 31, 2024, 2023, and 2022 primarily related to assets held for sale where impairment was determined based on the estimated or negotiated selling price, less costs of disposal, compared to the carrying value of the property. As of December 31, 2024, there were 11 properties that were held for investment accounted for at fair value. The 11 properties were all accounted for at fair value on a nonrecurring basis using a cash flow model (Level 3 inputs) with a total adjusted carrying value of $27.1 million. The Company estimated the fair value using capitalization rates ranging from 6.5% to 12.1%, and a discount rate of 5.6%, which it believes is reasonable based on current market rates. As of December 31, 2023, there were two real estate assets held for investment accounted for at fair value. Of these properties, one was accounted for at fair value on a nonrecurring basis using a cash flow model (Level 3 inputs) with an adjusted carrying value of $1.5 million.

The following table discloses estimated fair value information for the Company’s 2027 Term Loan, 2028 Term Loan, and 2029 Term Loan (each as defined in “Note 6 - Debt”) which is derived based primarily on unobservable market inputs such as interest rates and discounted cash flow analysis using estimates of the amount and timing of future cash flows, market rates, and credit spreads (in thousands):


	December 31, 2024				December 31, 2023
	Carrying Value (1)		Estimated Fair Value		Carrying Value (1)		Estimated Fair Value
2027 Term Loan	$	174,509	$	175,245	$	174,037	$	175,641
2028 Term Loan	$	199,246	$	200,858	$	199,006	$	201,396
2029 Term Loan	$	248,853	$	250,526	$	148,869	$	150,666

(1) The carrying value of the debt instruments are net of unamortized debt issuance and discount costs.

Concentrations of Credit Risk

During the year ended December 31, 2024, one tenant, Dollar General, accounted for 11.5% of total revenues. During the years ended December 31, 2023 and 2022, there were no tenants or borrowers with rental revenue or interest income on loans receivable that exceeded 10% of total rental revenues.

Other financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash held at various financial institutions, access to the Company’s credit facilities, and amounts due or payable under derivative contracts. These credit risk exposures are spread among a diversified group of investment grade financial institutions.

Segment Reporting

ASC Topic 280, Segment Reporting, establishes standards for the manner in which companies report information about operating segments. The Company is an internally managed real estate company that acquires, owns, invests in, and manages a diversified portfolio of single-tenant, retail commercial real estate subject to long-term net leases with high credit quality tenants across the United States. The Company primarily engages in leasing activities that generate revenues and incur operating expenses in addition to investing in property developments and mortgage loans secured by real estate. The Company aggregates these investments for reporting purposes and operates in one reportable segment.

The Company’s chief operating decision maker (“CODM”) is the Company’s senior executive investment committee that includes the chief executive officer and chief financial officer. The CODM uses net (loss) income, as reported on the consolidated statements of operations and comprehensive (loss) income to measure segment operating performance and allocate resources. All of the Company’s expenses are included in segment operating performance and are reviewed regularly. Significant segment expenses include property, general and administrative, depreciation and amortization, provisions for impairment, and interest expense. The measure of segment assets is reported on the Company’s consolidated balance sheets as total assets. The CODM also reviews characteristics of potential future investments such as weighted average remaining lease term (“WALT”), capitalization rate, tenant credit quality, industry type, and geographic location.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 is intended to improve reportable segment disclosures by requiring disclosure of incremental segment information on an annual and interim basis such as, annual and interim disclosure of significant segment expenses that are regularly provided to the chief operating decision maker, interim disclosure of a reportable segment’s profit or loss and assets, and the requirement that a public entity that has a single reportable segment provide all the disclosures required by ASU 2023-07 and all existing segment disclosures in Topic 280. The amendments in ASU 2023-07 do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The disclosures are applied retrospectively to all periods presented, and early adoption is permitted. The Company adopted the provisions of ASU 2023-07 for the annual period ending December 31, 2024, which did not materially impact the Company’s consolidated financial statements. The amendments for interim periods will be adopted for the Company’s fiscal year ending December 31, 2025.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires annual disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold within the rate reconciliation. In addition, the amendments require annual disclosure of income taxes paid disaggregated by federal, state and foreign jurisdictions as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis, however early adoption and retrospective application is permitted. The Company continues to evaluate the potential impact of the guidance and potential additional disclosures required.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires disclosure, in the notes to the financial statements, of specified information about certain costs and expenses and a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the potential impact of the guidance and potential additional disclosures required.

Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Tenant Leases

The Company acquires, owns, and manages commercial single-tenant lease properties, with the majority being long-term triple-net leases where the tenant is generally responsible for all improvements and contractually obligated to pay all operating costs (such as real estate taxes, utilities, and repairs and maintenance costs). As of December 31, 2024, exclusive of mortgage loans receivable, the Company’s weighted average remaining lease term was 9.8 years.

The Company’s property leases have been classified as operating leases and some have scheduled rent increases throughout the lease term. The Company’s leases typically provide the tenant one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases, consistent with the initial lease term.

All lease-related income is reported as a single line item, rental revenue (including reimbursable), in the consolidated statements of operations and comprehensive (loss) income and is presented net of any reserves, write-offs, or recoveries for uncollectible amounts.

Fixed lease income includes stated amounts per the lease contract, which include base rent, fixed common area maintenance charges, and straight-line lease adjustments.

Variable lease income primarily includes recoveries from tenants, which represent amounts that tenants are contractually obligated to reimburse the Company for, specific to their portion of actual recoverable costs incurred. Variable lease income also includes percentage rent, which represents amounts billable to tenants based on their actual sales volume in excess of levels specified in the lease contract.

The following table provides a disaggregation of lease income recognized under ASC 842 (in thousands):



	Year Ended December 31,
	2024		2023		2022
Rental revenue
Fixed lease income (1)	$	138,101	$	110,177	$	82,836
Variable lease income (2)	12,263		13,179		10,209
Other rental revenue:
Above/below market lease amortization, net	1,219		1,400		1,430
Lease incentives	(760)		(789)		(541)
Rental revenue (including reimbursable)	$	150,823	$	123,967	$	93,934

(1) Fixed lease income includes contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term.

(2) Variable lease income primarily includes tenant reimbursements for real estate taxes, insurance, common area maintenance, and reserves for uncollectible amounts. There were no material reserves, write-offs, or recoveries of uncollectible amounts during the years ended December 31, 2024, 2023, and 2022.

Scheduled future minimum base rental payments (excluding base rental payments from properties classified as held for sale and straight-line rent adjustments for all properties) due to be received under the remaining noncancellable term of the operating leases in place as of December 31, 2024 are as follows (in thousands):


	Future Minimum Base Rental Receipts
2025	$	149,740
2026	148,771
2027	145,664
2028	139,908
2029	131,636
Thereafter	843,433
Total	$	1,559,152

Future minimum rentals exclude amounts that may be received from tenants for reimbursements of operating costs and property taxes. In addition, the future minimum rents do not include any contingent rents based on a percentage of the lessees’ gross sales or lease escalations based on future changes in the Consumer Price Index or other stipulated reference rate.

Corporate Office Lease

In August 2021, the Company entered into a lease agreement on a new corporate office space, which commenced in October 2021 and is classified as an operating lease. The Company began operating out of the new office in February 2022. The lease has a remaining noncancellable lease term of 7.6 years that expires on July 31, 2032, with a one-time option to terminate in 2029 exercisable by the Company. The lease is also renewable at the Company’s option for two additional periods of five years. No renewals were incorporated in the calculation of the corporate lease right-of-use asset and liability as it is not reasonably certain that the Company will exercise the options. Further, the lease agreement does not contain any material residual value guarantees or material restrictive covenants. The corporate office lease contains variable lease costs related to the lease of parking spaces and non-lease components related to the reimbursement of property operating expenses and certain common area maintenance expenses, all of which are recognized as incurred. The Company elected to use the component practical expedient, which permits the Company to not separate non-lease components from lease components if timing and pattern of transfer is the same.

The following table presents the lease expense components for the years ended December 31, 2024, 2023, and 2022 (in thousands):


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	542	$	542	$	542
Variable lease cost	$	316	$	306	$	110

The Company recorded a right-of-use asset and operating lease liability of approximately $4.5 million at lease commencement. As of December 31, 2024, the right-of-use asset and operating lease liability were $3.5 million and $4.6 million, respectively.

The right-of-use asset is included in other assets, net and the operating lease liability is included in accounts payable, accrued expenses, and other liabilities in the accompanying consolidated balance sheets.

The following table reflects the maturity analysis of payments due from the Company over the next five years and thereafter for the corporate office lease obligation as of December 31, 2024 (in thousands):


	Future Minimum Lease Payments
2025	$	636
2026	653
2027	670
2028	689
2029	707
Thereafter	1,915
Total lease payments	5,270
Less: Amount representing interest (1)	(624)
Present value of operating lease liabilities	$	4,646

(1) Imputed interest was calculated using a discount rate of 3.25%. The discount rate is based on the estimated incremental borrowing rate, calculated as the treasury rate for the same period as the underlying lease term, plus a spread determined using various factors, including REIT industry performance.

Real Estate Investments

12 Months Ended

Dec. 31, 2024

Real Estate [Abstract]

Real Estate Investments

As of December 31, 2024, the Company had investments in 687 properties, excluding 5 property developments where rent has yet to commence. The gross real estate investment portfolio, including properties under development, totaled approximately $2.2 billion and consisted of the gross acquisition cost of land, buildings, improvements, lease intangible assets and liabilities, and property development costs. The investment portfolio is geographically dispersed throughout 45 states with gross real estate investments in Texas and Illinois representing 12.7% and 10.8%, respectively, of the total gross real estate investment of the Company’s investment portfolio.

Acquisitions

During the year ended December 31, 2024, the Company acquired 115 properties for a total purchase price of $479.0 million, inclusive of $4.6 million of capitalized acquisition costs.

During the year ended December 31, 2023, the Company acquired 103 properties for a total purchase price of $345.1 million, inclusive of $3.5 million of capitalized acquisition costs.

The acquisitions were all accounted for as asset acquisitions. An allocation of the purchase price and acquisition costs paid for the completed acquisitions is as follows (in thousands):


	Year Ended December 31,
	2024		2023
Land	$	141,074	$	71,574
Buildings	266,644		212,971
Site improvements	31,825		18,613
Tenant improvements	3,934		3,396
In-place lease intangible assets	36,580		36,548
Above-market lease intangible assets	—		2,022


	480,057		345,124
Liabilities assumed


Accounts payable, accrued expenses, and other liabilities	(1,018)		—
Purchase price (including acquisition costs)	$	479,039	$	345,124

Development

As of December 31, 2024, the Company had four property developments under construction. During 2024, the Company invested $29.8 million in property developments, including the land acquisition of four new developments with a combined initial purchase price of $2.0 million. During 2024, the Company completed development on 18 projects and reclassified approximately $52.9 million from property under development to land, buildings and improvements, and other assets (leasing commissions) in the accompanying consolidated balance sheets. Rent commenced for 17 of the 18 completed developments in 2024, while rent is expected to commence for the other completed development in the first quarter of 2025. The remaining four developments are expected to be substantially completed with rent commencing at various points throughout the next twelve months. The purchase price, including acquisition costs, and subsequent development are included in property under development in the accompanying consolidated balance sheets as of December 31, 2024.

During 2023, the Company invested $81.0 million in property developments, including the land acquisition of 40 new developments with a combined initial purchase price of $27.3 million. During 2023, the Company completed development on 27 projects and reclassified approximately $68.6 million from property under development to land, buildings and improvements in the accompanying consolidated balance sheets. Rent commenced for the completed developments at various points throughout 2023 and the first quarter of 2024. The purchase price, including acquisition costs, and subsequent development are included in property under development in the accompanying consolidated balance sheets as of December 31, 2023.

Additionally, during 2024 and 2023, the Company capitalized approximately $0.8 million and $1.1 million, respectively, of interest expense associated with properties under development.

Dispositions

During 2024, the Company sold 56 properties for a total sales price, net of disposal costs, of $110.9 million, recognizing a net gain of $1.9 million.

During 2023, the Company sold 19 properties for a total sales price, net of disposal costs, of $40.3 million, recognizing a net gain of $1.2 million.

During 2022, the Company sold seven properties for a total sales price, net of disposal costs, of $25.5 million, recognizing a net gain of $4.1 million.

Investment in Mortgage Loans Receivable

The Company’s mortgage loans receivable portfolio as of December 31, 2024 and December 31, 2023 is summarized below (in thousands):


Loan Type	Monthly Payment (1)	Number of Secured Properties	Effective Interest Rate (2)	Stated Interest Rate	Maturity Date	December 31, 2024		December 31, 2023
Mortgage (3) (4) (5)	I/O	1	7.53%	7.50%	1/8/2025	$	43,612	$	43,612
Mortgage (4)	I/O	46	9.55%	9.55%	3/10/2026	41,940		41,940
Mortgage (4) (6)	I/O	3	8.10%	6.89%	4/10/2026	4,132		4,132
Mortgage (3) (4) (6)	I/O	6	7.98%	7.98%	6/10/2025	8,408		14,024
Mortgage	None (7)	1	7.85%	7.00%	1/31/2026	825		660
Mortgage (3)	P+I	1	8.65%	7.50%	1/8/2025	—		3,246
Mortgage (3) (4) (8)	I/O	7	10.31%	10.25%	6/18/2025	11,658		5,007
Mortgage (3) (4)	I/O	1	13.23%	10.25%	6/22/2025	1,296		1,909
Mortgage (3) (4)	I/O	1	10.25%	10.25%	4/26/2025	2,095		—
Mortgage (3) (4)	I/O	1	10.25%	10.25%	5/15/2025	1,894		—
Mortgage (3) (4)	I/O	1	10.25%	10.25%	7/26/2025	2,029		—
Mortgage (3) (4)	I/O	1	10.25%	10.25%	8/27/2025	1,539		—
Mortgage	P+I	1	7.25%	7.25%	7/17/2027	4,076		—
Mortgage	P+I	1	7.25%	7.25%	7/17/2027	5,221		—
Mortgage	I/O	1	14.34%	13.09%	1/17/2025	1,299		—
Mortgage	P+I	1	7.25%	7.25%	9/19/2027	1,434		—
Mortgage	I/O	1	7.00%	7.00%	9/30/2029	636		—
Mortgage	I/O	1	6.50%	6.50%	12/23/2029	3,284		—
Mortgage	I/O	1	6.50%	6.50%	12/23/2029	4,105		—
Total						139,483		114,530
Unamortized loan origination costs and fees, net						74		58
Unamortized discount						(148)		$	(116)
Total mortgage loans receivable, net						$	139,409	$	114,472

(1) I/O: Interest Only; P+I: Principal and Interest.

(2) Includes amortization of discount, loan origination costs and fees, as applicable.

(3) The Company has the right, subject to certain terms and conditions, to acquire all or a portion of the underlying collateralized properties.

(4) Loans require monthly payments of interest only with principal payments occurring as borrower disposes of underlying properties, limited to the Company’s allocated investment by property. Any remaining principal balance will be repaid at or before the maturity date.

(5) The $43.6 million mortgage note receivable was scheduled to mature on January 8, 2025, however, the Company executed an amendment in January 2025 that extended the maturity date to August 31, 2025.

(6) The stated interest rate is variable up to 15.0% and is calculated based on contractual rent for existing collateralized properties subject to the loan agreement.

(7) Payments of both interest and principal are due at maturity.

(8) The collateralized properties are in process developments with varying maturity dates dependent upon initial funding. Maturity dates range from January 30, 2025 to June 18, 2025.

Intangible Assets and Liabilities

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Liabilities

Intangible assets and liabilities consisted of the following (in thousands):


	December 31, 2024						December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Assets:
In-place leases	$	203,104	$	(60,729)	$	142,375	$	181,564	$	(45,210)	$	136,354
Above-market leases	19,644		(5,500)		14,144		21,661		(4,361)		17,300
Lease incentives	9,529		(1,656)		7,873		8,996		(1,296)		7,700
Total intangible assets	$	232,277	$	(67,885)	$	164,392	$	212,221	$	(50,867)	$	161,354

Liabilities:
Below-market leases	$	29,847	$	(9,670)	$	20,177	$	33,196	$	(7,843)	$	25,353

The remaining weighted average amortization period for the Company’s intangible assets and liabilities as of December 31, 2024 and 2023 by category were as follows:


	Years Remaining
	December 31,
	2024	2023
In-place leases	8.6	8.8
Above-market leases	11.4	12.2
Below-market leases	10.1	10.9

Lease incentives	10.1	11.1

The Company records amortization of in-place lease assets to amortization expense, and records net amortization of above-market and below-market lease intangibles as well as amortization of lease incentives to rental revenue. The following amounts in the accompanying consolidated statements of operations and comprehensive (loss) income related to the amortization of intangible assets and liabilities for all property and ground leases (in thousands):


	Year Ended December 31,
	2024		2023		2022
Amortization:
Amortization of in-place leases	$	21,302	$	19,203	$	15,872
Amortization of assembled workforce	—		—		281
	$	21,302	$	19,203	$	16,153

Net adjustment to rental revenue:
Above-market lease assets	(1,621)		(1,575)		(1,376)
Below-market lease liabilities	2,839		2,975		2,806
Lease incentives	(760)		(789)		(541)
	$	458	$	611	$	889

The following table provides the projected amortization of in-place lease assets to amortization expense and the net amortization of above-market, below-market, and lease incentive lease intangible assets and liabilities to rental revenue as of December 31, 2024, for the next five years and thereafter (in thousands):


	2025		2026		2027		2028		2029		Thereafter		Total
In-place leases	$	22,230	$	21,045	$	19,120	$	16,346	$	13,864	$	49,770	$	142,375

Above-market lease assets	(1,523)		(1,500)		(1,436)		(1,391)		(1,219)		(7,075)		(14,144)
Below-market lease liabilities	2,561		2,475		2,404		2,272		2,077		8,388		20,177
Lease incentives	(894)		(895)		(839)		(809)		(771)		(3,665)		(7,873)
Net adjustment to rental revenue	$	144	$	80	$	129	$	72	$	87	$	(2,352)	$	(1,840)

Debt

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Debt

Debt consists of the following (in thousands):


				Amounts Outstanding as of
	Contractual Maturity Date	Fully Extended Maturity Date (1)	Interest Rate (2)	December 31, 2024		December 31, 2023
Debt:
2027 Term Loan (3)	January 15, 2026	January 15, 2027	3.65%	$	175,000	$	175,000
2028 Term Loan (4)	February 11, 2028	—	3.88%	200,000		200,000
2029 Term Loan (5)	July 3, 2026	January 3, 2029	4.99%	250,000		150,000
Revolver (6)	August 11, 2026	August 11, 2027	5.63%	239,000		80,000
Mortgage Note	November 1, 2027	—	4.53%	8,205		8,361
Total debt				872,205		613,361
Unamortized discount and debt issuance costs				(2,744)		(3,566)
Unamortized deferred financing costs, net (7)				(1,200)		(1,942)
Total debt, net				$	868,261	$	607,853

(1) Date represents the fully extended maturity date available to the Company, subject to certain conditions, under each related debt instrument.

(2) Rate represents the effective interest rate as of December 31, 2024 and includes the effect of interest rate swap agreements, as described further in “Note 6 - Debt” and “Note 7 - Derivative Financial Instruments.”

(3) Loan is a floating-rate loan which resets daily at daily SOFR plus a SOFR adjustment of 0.10% plus the applicable margin, which was 1.15% as of December 31, 2024. The Company has entered into five interest rate swap agreements that effectively convert the floating rate to a fixed rate. The hedged fixed rate reset to 1.87% effective November 27, 2023, and to 2.40% effective December 23, 2024.

(4) Loan is a floating-rate loan which resets monthly at one-month term SOFR plus a SOFR adjustment of 0.10% plus the applicable margin, which was 1.15% as of December 31, 2024. The Company has entered into three interest rate swap agreements that effectively convert the floating rate to a fixed rate.

(5) Loan is a floating-rate loan which resets daily at daily SOFR plus a SOFR adjustment of 0.10% plus the applicable margin, which was 1.15% as of December 31, 2024. The Company has entered into four interest rate swap agreements that effectively convert the floating rate to a fixed rate.

(6) The annual interest rate of the Revolver assumes daily SOFR as of December 31, 2024 of 4.53% plus a SOFR adjustment of 0.10% plus the applicable margin, which was 1.00% as of December 31, 2024.

(7) The Company records deferred financing costs associated with the Revolver in other assets, net on its consolidated balance sheets. The Company reclassified the net amount of loan commitment fees associated with the 2029 Term Loan from other assets, net to debt issuance costs upon the $100.0 million draw under the 2029 Term Loan.

Truist Credit Agreement

On July 3, 2023, the Company entered into a Credit Agreement, by and among the Operating Partnership, the Company, the financial institutions party thereto, as lenders, and Truist Bank, as Administrative Agent (the “Truist Credit Agreement”), related to a $250.0 million sustainability-linked senior unsecured term loan (the “2029 Term Loan”) which may, subject to the terms of the Truist Credit Agreement, be increased to an amount of up to $400.0 million at the Company’s request. The 2029 Term Loan contains a 12-month delayed draw feature and $150.0 million was drawn on July 3, 2023. Subject to the terms of the Truist Credit Agreement, the Company drew an additional $100.0 million under the 2029 Term Loan on March 1, 2024. The 2029 Term Loan is prepayable at the Company’s option in whole or in part without premium or penalty. The 2029 Term Loan matures on July 3, 2026, subject to two one-year extension options and one six-month extension option with a final, extended maturity date of January 3, 2029. The extension options are at the Company’s election and are subject to certain conditions.

The interest rate applicable to the 2029 Term Loan is determined by the Company’s Investment Grade Rating (as defined in the Truist Credit Agreement). Prior to the date the Company obtains an Investment Grade Rating, interest shall accrue at either (i) SOFR, plus a margin ranging from 1.15% to 1.60% or (ii) Base Rate (as defined in the Truist Credit Agreement), plus a margin ranging from 0.15% to 0.60%, in each case based on the Company’s consolidated total leverage ratio. After the date the Company obtains an Investment Grade Rating, interest shall accrue at either (i) SOFR, plus a margin ranging from 0.80% to 1.60% or (ii) Base Rate, plus a margin ranging from 0.00% to 0.60%, in each case based on the Company’s Investment Grade Rating.

The Company has hedged the entire $250.0 million of the 2029 Term Loan at an all-in fixed interest rate of 4.99%, through January 2029, which consists of a fixed SOFR rate of 3.74%, plus a credit spread adjustment of 0.10% and, at current leverage levels, a borrowing spread of 1.15%. Interest is payable monthly or at the end of the applicable interest period in arrears on any outstanding borrowings. The interest rate hedge is further described in “Note 7 – Derivative Financial Instruments.”

The 2029 Term Loan also contains sustainability-linked pricing component pursuant to which the Company will receive interest rate reductions up to 0.025% based on its performance against a sustainability performance target focused on the portion of the Company’s annualized based rent attributable to tenants with commitments or quantifiable targets for reduced GHG emission in accordance with the standards of the Science Based Targets initiative (“SBTi”).

In connection with the 2029 Term Loan, the Company incurred $1.4 million of deferred financing costs. Additionally, the Company incurred $0.9 million of loan commitment fees associated with the 2029 Term Loan, which were capitalized to other assets, net on the consolidated balance sheets and subsequently reclassified to debt issuance costs upon the $100.0 million draw under the 2029 Term Loan. Deferred financing costs are amortized over the term of the loan and are included in interest expense, net on the Company’s consolidated statements of operations and comprehensive (loss) income.

PNC Credit Agreement

On August 11, 2022, the Company entered into a Credit Agreement, by and among the Operating Partnership, the Company, the several institutions party thereto, as lenders, and PNC Bank, National Association, as Administrative Agent (the “PNC Credit Agreement”), related to sustainability-linked senior unsecured credit facility consisting of (i) a $200.0 million senior unsecured term loan (the “2028 Term Loan”) and (ii) a $400.0 million senior unsecured revolving credit facility (the “Revolver”, and together with the 2028 Term Loan, the “PNC Credit Facility”). The PNC Credit Facility may be increased by $400.0 million in the aggregate for total availability of up to $1.0 billion.

The 2028 Term Loan matures on February 11, 2028. The Revolver matures on August 11, 2026, subject to a one year extension option at the Company’s election (subject to certain conditions) to August 11, 2027. Borrowings under the PNC Credit Facility are repayable at the Company’s option in whole or in part without premium or penalty. Borrowings under the Revolver may be repaid and reborrowed from time to time prior to the maturity date.

Prior to the date the Company obtains an Investment Grade Rating (as defined in the PNC Credit Agreement), interest rates are based on the Company’s consolidated total leverage ratio, and are determined by (A) in the case of the 2028 Term Loan either (i) SOFR, plus a SOFR adjustment of 0.10%, plus a margin ranging from 1.15% to 1.60%, based on the Company’s consolidated total leverage ratio, or (ii) a Base Rate (as defined in the Credit Agreement), plus a margin ranging from 0.15% to 0.60%, based on the Company’s consolidated total leverage ratio and (B) in the case of the Revolver either (i) SOFR, plus a SOFR adjustment of 0.10%, plus a margin ranging from 1.00% to 1.45%, based on the Company’s consolidated total leverage ratio, or (ii) a Base Rate, plus a margin ranging from 0.00% to 0.45%, based on the Company’s consolidated total leverage ratio.

After the date the Company obtains an Investment Grade Rating, interest rates are based on the Company’s Investment Grade Rating, and are determined by (A) in the case of the 2028 Term Loan either (i) SOFR, plus a SOFR adjustment of 0.10%, plus a margin ranging from 0.80% to 1.60%, based on the Company’s Investment Grade Rating, or (ii) a Base Rate, plus a margin ranging from 0.00% to 0.60%, based on the Company’s Investment Grade Rating and (B) in the case of the Revolver either (i) SOFR, plus a SOFR adjustment of 0.10%, plus a margin ranging from 0.725% to 1.40%, based on the Company’s Investment Grade Rating, or (ii) a Base Rate, plus a margin ranging from 0.00% to 0.40%, based on the Company’s Investment Grade Rating.

Additionally, the Company will incur a facility fee based on the total commitment amount of $400.0 million under the Revolver. Prior to the date the Company obtains an Investment Grade Rating, the applicable facility fee will range from 0.15% to 0.30% based on the Company’s consolidated total leverage ratio. After the date the Company obtains an Investment Grade Rating, the applicable facility fee will range from 0.125% to 0.30% based on the Company’s Investment Grade Rating.

The PNC Credit Facility also contains a sustainability-linked pricing component pursuant to which the Company will receive interest rate reductions up to 0.025% based on its performance against a sustainability performance target focused on the portion of the Company’s annualized base rent attributable to tenants with commitments or quantifiable targets for reduced greenhouse gas emission in accordance with the standards of the SBTi.

The Company has fully hedged the 2028 Term Loan with an all-in interest rate of 3.88%. Interest is payable monthly or at the end of the applicable interest period in arrears on any outstanding borrowings. The interest rate hedge is further described in “Note 7 – Derivative Financial Instruments.”

In connection with the PNC Credit Facility, the Company incurred approximately $3.8 million of deferred financing costs which were allocated between the Revolver and 2028 Term Loan in the amounts of $2.4 million and $1.3 million, respectively. Additionally, $0.5 million of unamortized deferred financing costs associated with the Company’s previous revolving credit facility were reclassified to the Revolver. Deferred financing costs are amortized over the remaining terms of each respective borrowing and are included in interest expense, net in the Company’s consolidated statements of operations and comprehensive (loss) income.

Wells Fargo Credit Agreement

In December 2019, the Company entered into a Credit Agreement, by and among the Operating Partnership, the Company, the several institutions party thereto, as lenders, and Wells Fargo Bank, National Association, as Administrative Agent (the “Original Wells Fargo Credit Agreement”) governing a $175.0 million senior unsecured term loan that was scheduled to mature in December 2024 (the “2024 Term Loan”). On June 15, 2023, the Company amended and restated the Original Wells Fargo Credit Agreement (as amended, the “Wells Fargo Credit Agreement”) to provide for a $175.0 million senior unsecured term loan with a maturity date of January 15, 2026, subject to a one year extension option at the Company’s election (subject to certain conditions) (the “2027 Term Loan”). The 2027 Term Loan is repayable at the Company’s option in whole or in part without premium or penalty.

The interest rate applicable to the 2027 Term Loan is determined by the Company’s Investment Grade Rating (as defined in the Wells Fargo Credit Agreement). Prior to the date the Company obtains an Investment Grade Rating, interest shall accrue at either (i) SOFR, plus a margin ranging from 1.15% to 1.60% or (ii) Base Rate (as defined in the Wells Fargo Credit Agreement), plus a margin ranging from 0.15% to 0.60%, in each case based on the Company’s consolidated total leverage ratio. After the date the Company obtains an Investment Grade Rating, interest shall accrue at either (i) SOFR, plus a margin ranging from 0.80% to 1.60% or (ii) Base Rate, plus a margin ranging from 0.00% to 0.60%, in each case based on the Company’s Investment Grade Rating.

The Company has fully hedged the 2027 Term Loan with an all-in interest rate of 3.65%. Interest is payable monthly or at the end of the applicable interest period in arrears on any outstanding borrowings. The interest rate hedges are described in “Note 7 – Derivative Financial Instruments.”

Mortgage Note Payable

As of December 31, 2024, the Company had total gross mortgage indebtedness of $8.2 million, which was collateralized by related real estate and a tenant’s lease with an aggregate net book value of $12.1 million. The Company incurred debt issuance costs of less than $0.1 million and recorded a debt discount of $0.6 million, both of which are recorded as a reduction of the principal balance in mortgage note payable, net in the Company’s consolidated balance sheets. The mortgage note matures on November 1, 2027, but may be repaid in full beginning August 2027.

Debt Maturities

Payments on the 2027 Term Loan, 2028 Term Loan, and 2029 Term Loan are interest-only through maturity. As of December 31, 2024, scheduled debt maturities, including balloon payments, are as follows (in thousands):


	Scheduled Principal		Balloon Payment (1)		Total
2025	$	174	$	—	$	174
2026	178		664,000		664,178
2027	170		7,683		7,853
2028	—		200,000		200,000


Total	$	522	$	871,683	$	872,205

(1) Does not assume the exercise of any extension options available to the Company.

Interest Expense

The following table is a summary of the components of interest expense related to the Company’s borrowings (in thousands):


	Year Ended December 31,
	2024		2023		2022
Revolving credit facilities (1)	$	6,879	$	5,492	$	3,187
Term loans (2)	25,315		14,518		5,455
Mortgage note payable	380		387		100
Non-cash:
Amortization of deferred financing costs	794		898		541
Amortization of debt discount and debt issuance costs, net	1,551		947		350
Amortization of deferred gains on interest rate swaps	(3,789)		(2,124)		—
Capitalized interest	(806)		(1,060)		(452)
Total interest expense, net	$	30,324	$	19,058	$	9,181

(1) Includes facility fees and non-utilization fees of approximately $0.6 million, $0.6 million, and $0.4 million for the years ended December 31, 2024, 2023, and 2022, respectively.

(2) Includes the effects of interest rate hedges in place as of such date.

Deferred financing, discount, and debt issuance costs are amortized over the remaining terms of each respective borrowing and are included in interest expense, net in the Company’s consolidated statements of operations and comprehensive (loss) income.

During the years ended December 31, 2024, 2023, and 2022, the term loans had a weighted average interest rate, exclusive of amortization of deferred financing costs and the effects of interest rate hedges, of 6.50%, 5.51%, and 3.39%, respectively.

During the years ended December 31, 2024, 2023, and 2022, the Company incurred interest expense on revolving credit facilities with a weighted average interest rate, exclusive of amortization of deferred financing costs and facility fees, of 6.24%, 5.92%, and 2.59%, respectively.

The estimated fair values of the Company’s term loans have been derived based on market observable inputs such as interest rates and discounted cash flow analysis using estimates of the amount and timing of future cash flows. These measurements are classified as Level 2 within the fair value hierarchy. Refer to “Note 2 – Summary of Significant Accounting Policies” for additional detail on fair value measurements.

The Company was in compliance with all of its debt covenants as of December 31, 2024 and expects to be in compliance for the twelve-month period ending December 31, 2025.

See “Note 13 – Subsequent Events” for additional disclosure on the Company’s January 2025 Debt Transactions (as defined in “Note 13 – Subsequent Events”) which include amendments to its existing PNC Credit Agreement, Wells Fargo Credit Agreement, and Truist Credit Agreement.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (a)(3)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (a)(1)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Paragraph 1I
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Section 50
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company uses interest rate derivative contracts to manage its exposure to changes in interest rates on its variable rate debt. These derivatives are considered cash flow hedges and are recorded on a gross basis at fair value. Assessments of hedge effectiveness are performed quarterly using either a qualitative or quantitative approach. The Company recognizes the entire change in the fair value in Accumulated Other Comprehensive Income (“AOCI”) and the change is reflected as cash flow hedge changes in fair value in the supplemental disclosures of non-cash investing and financing activities in the consolidated statements of cash flows.

Effective July 3, 2023, such derivatives were initiated to hedge the variable cash flows associated with the 2029 Term Loan. The interest rate for the variable rate 2029 Term Loan is based on the hedged fixed rate of 3.74% compared to the variable 2029 Term Loan daily SOFR rate as of December 31, 2024 of 4.46%, plus a SOFR adjustment of 0.10% and applicable margin of 1.15%. The maturity dates of the interest rate swaps coincide with the fully extended maturity date of the 2029 Term Loan.

Effective September 1, 2022, such derivatives were initiated to hedge the variable cash flows associated with the 2028 Term Loan. The interest rate for the variable rate 2028 Term Loan is based on the hedged fixed rate of 2.63% compared to the variable 2028 Term Loan one-month SOFR rate as of December 31, 2024 of 4.55%, plus a SOFR adjustment of 0.10% and applicable margin of 1.15%. The maturity dates of the interest rate swaps coincide with the maturity date of the 2028 Term Loan.

Effective January 27, 2023, the Company converted its four existing LIBOR swap agreements associated with the 2024 Term Loan into four new SOFR swaps that convert the SOFR variable rate to a fixed rate of 0.12% and on June 15, 2023, the Company amended and restated its 2024 Term Loan, providing for the $175.0 million 2027 Term Loan. In anticipation of the amendment and restatement of the 2024 Term Loan, additional derivatives, effective November 27, 2023 and December 23, 2024 at hedged fixed rates of 1.87% and 2.40%, respectively, were initiated to hedge the variable cash flows associated with the 2027 Term Loan through the fully extended maturity date. The interest rate on the variable 2027 Term Loan includes a daily SOFR rate as of December 31, 2024 of 4.31%, plus a SOFR adjustment of 0.10% and applicable margin of 1.15%.

During the fourth quarter of 2024, such derivatives were also initiated to hedge the variable cash flows associated with future debt issuances. Specifically, the Company entered into seven swap agreements with effective and maturity dates of February 3, 2025 and January 2, 2030, respectively, for an aggregate notional amount of $175.0 million at a hedged fixed rate of 3.87%.

Amounts will subsequently be reclassified to earnings when the hedged item affects earnings. The Company does not enter into derivative contracts for speculative or trading purposes and does not have derivative netting arrangements.

The Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company evaluates counterparty credit risk through monitoring the creditworthiness of counterparties, which includes review of debt ratings and financial performance. To mitigate credit risk, the Company enters into agreements with counterparties it considers credit-worthy, such as large financial institutions with favorable credit ratings.

The Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (in thousands, except number of instruments):


	Number of Instruments		Notional
Interest Rate Derivatives	December 31, 2024	December 31, 2023	December 31, 2024		December 31, 2023
Interest rate swaps	18	12	$	800,000	$	650,000

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated balance sheets as of December 31, 2024 and December 31, 2023 (in thousands):


	Derivative Assets
		Fair Value as of December 31,
Derivatives Designated as Hedging Instruments:	Balance Sheet Location	2024		2023
Interest rate swaps	Other assets, net	$	16,426	$	14,442

	Derivative Liabilities
		Fair Value as of December 31,
Derivatives Designated as Hedging Instruments:	Balance Sheet Location	2024		2023
Interest rate swaps	Accounts payable, accrued expenses, and other liabilities	$	—	$	3,073

The following table presents the effect of the Company’s interest rate swaps in the consolidated statements of operations and comprehensive (loss) income for the years ended December 31, 2024, 2023, and 2022 (in thousands):


	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)						Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)


Derivatives in Cash Flow Hedging Relationships	2024		2023		2022			2024		2023		2022
Interest Rate Products	$	19,408	$	1,729	$	22,898	Interest expense, net	$	18,139	$	16,551	$	3,140

The Company did not exclude any amounts from the assessment of hedge effectiveness for the years ended December 31, 2024, 2023, and 2022. During the next twelve months, the Company estimates that an additional $3.8 million will be reclassified as a decrease to interest expense.

The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.

To comply with the provisions of ASC 820, Fair Value Measurement, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2024, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

The table below presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 and 2023, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands):


	Fair Value Hierarchy Level
Description	Level 1		Level 2		Level 3		Total Fair Value
December 31, 2024
Derivative assets	$	—	$	16,426	$	—	$	16,426


December 31, 2023
Derivative assets	$	—	$	14,442	$	—	$	14,442
Derivative liabilities	$	—	$	3,073	$	—	$	3,073

Supplemental Detail for Certain Components of the Condensed Consolidated Balance Sheets

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Detail for Certain Components of the Condensed Consolidated Balance Sheets

Supplemental Detail for Certain Components of the Consolidated Balance Sheets

Other assets, net consists of the following (in thousands):


	December 31,
	2024		2023
Accounts receivable, net	$	9,809	$	10,074
Deferred rent receivable	11,790		7,744
Prepaid assets	2,143		1,387
Earnest money deposits	517		450
Fair value of interest rate swaps	16,426		14,442
Deferred offering costs	1,641		1,031
Deferred financing costs, net	1,200		2,724
Right-of-use asset	3,484		3,866
Leasehold improvements and other corporate assets, net	1,425		1,723
Interest receivable	3,034		1,397
Other assets, net	6,758		4,499
	$	58,227	$	49,337

Accounts payable, accrued expenses, and other liabilities consists of the following (in thousands):


	December 31,
	2024		2023
Accrued expenses	$	4,961	$	8,826
Accrued bonus	1,271		2,575
Prepaid rent	5,655		3,896
Operating lease liability	4,646		5,104
Accrued interest	3,476		2,921
Deferred rent	4,738		3,257
Accounts payable	3,053		4,691
Fair value of interest rate swaps	—		3,073
Other liabilities	1,864		2,155
	$	29,664	$	36,498

Shareholders’ Equity

12 Months Ended

Dec. 31, 2024

Equity [Abstract]

Shareholders’ Equity

ATM Programs

On September 1, 2021, the Company entered into a $250.0 million at-the-market equity program (the “2021 ATM Program”). On September 14, 2023, the Company entered into a forward sale agreement with respect to 7,500,000 shares of its common stock under the 2021 ATM Program. As of September 30, 2024, the Company had fully settled the forward sale agreement.

On October 25, 2023, the Company entered into a $300.0 million at-the-market equity program (the “2023 ATM Program”) through which, from time to time, it may sell shares of its common stock in registered transactions. Effective October 24, 2023, in connection with the establishment of the new at-the-market offering program, the 2021 ATM Program was terminated. As a result of the termination, the Company will not offer or sell any additional shares of common stock under the 2021 ATM Program.

During 2024, the Company entered into forward sale agreements with respect to an aggregate 1,743,100 shares of its common stock under the 2023 ATM Program at a weighted average price of $17.67 per share. As of December 31, 2024, 1,743,100 shares remain unsettled under the forward sale agreements. The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than December 31, 2025.

On August 12, 2024, the Company entered into a $300.0 million at-the-market equity program (the “2024 ATM Program”) through which, from time to time, it may sell shares of its common stock in registered transactions. Effective August 12, 2024, in connection with the establishment of the new at-the-market offering program, the 2023 ATM Program was terminated. As a result of the termination, the Company will not offer or sell any additional shares of common stock under the 2023 ATM Program. As context requires, the 2024 ATM Program, the 2023 ATM Program, and the 2021 ATM Program are referred herein as the “ATM Programs.”

During 2024, the Company entered into forward sale agreements with respect to an aggregate 152,547 shares of its common stock under the 2024 ATM Program at a weighted average price of $17.13 per share. As of December 31, 2024, 152,547 shares remain unsettled under the forward sale agreements. The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than December 31, 2025.

The following table presents information about the ATM Programs (in thousands):


			Maximum Sales Authorization		Gross Settlements through December 31, 2024 (1)
Program Name	Date Established	Date Terminated
2021 ATM Program	September 2021	October 2023	$	250,000	$	249,122
2023 ATM Program (2)	October 2023	August 2024	$	300,000	$	77,323
2024 ATM Program (3)	August 2024	—	$	300,000	$	—

(1) Represents shares of common stock issued by the Company under the ATM Programs, including settlements of forward sale agreements.

(2) As of December 31, 2024, 1,743,100 shares remain unsettled under the forward sale agreements at the available net settlement price of $17.50.

(3) As of December 31, 2024, 152,547 shares remain unsettled under the forward sale agreements at the available net settlement price of $16.93.

The following table details information related to activity under the ATM Programs for each period presented (in thousands, except share and per share data):


	Year Ended December 31,
	2024		2023		2022
Shares of common stock issued (1)	5,983,711		7,662,341		276,060
Weighted average price per share	$	16.50	$	17.22	$	21.02
Gross proceeds	$	98,731	$	131,911	$	5,802
Sales commissions and offering costs	$	1,070	$	1,638	$	269
Net proceeds (2)	$	97,661	$	130,274	$	5,533

(1) Included in the years ended December 31, 2024 and 2023, were 5,983,711 and 1,516,289 shares of common stock that were physically settled at a price of $16.50 and $16.49 per share under the forward sale agreement with respect to the 2021 ATM Program.

(2) The net proceeds were contributed to the Operating Partnership in exchange for an equivalent number of Class A OP Units.

As of December 31, 2024, $300.0 million of remaining gross proceeds are available for future issuances of shares of common stock under the 2024 ATM Program, inclusive of unsettled shares under forward sale agreements.

January 2024 Follow-On Offering

In January 2024, the Company completed a registered public offering of 11,040,000 shares of its common stock at a public offering price of $18.00 per share. In connection with the offering, the Company entered into forward sale agreements for 11,040,000 shares of its common stock. The Company did not initially receive any proceeds from the sale of shares of common stock by the forward purchasers. On September 26, 2024, the Company partially physically settled 2,200,000 shares of common stock at a price of $17.22 per share in accordance with the forward sale agreements. The Company received net proceeds from the settlement of $37.8 million, net of underwriting discounts and offering costs of $1.8 million. The Company contributed the net proceeds to the Operating Partnership in exchange for 2,200,000 Class A OP Units. As of December 31, 2024, 8,840,000 shares remain unsettled under the January 2024 forward sale agreements.

August 2022 Follow-On Offering

In August 2022, the Company completed a registered public offering of 10,350,000 shares of its common stock at a public offering price of $20.20 per share. In connection with the offering, the Company entered into forward sale agreements for 10,350,000 shares of its common stock. As of June 30, 2023, the Company had fully physically settled the forward sale agreements (by the delivery of shares of common stock).

January 2022 Follow-On Offering

In January 2022, the Company completed a registered public offering of 10,350,000 shares of its common stock at a public offering price of $22.25 per share. In connection with the offering, the Company entered into forward sale agreements for 10,350,000 shares of its common stock. As of September 30, 2022, the Company had fully physically settled the forward sale agreements (by the delivery of shares of common stock).

Surrendered Shares on Vested Stock Unit Awards

During the years presented, portions of restricted stock unit awards (“RSUs”) granted to certain of the Company’s officers, directors, and employees vested. The vesting of these awards, granted pursuant to the NETSTREIT Corp. 2019 Omnibus Incentive Plan (the “Omnibus Incentive Plan”), resulted in federal and state income tax liabilities for the recipients. During the years ended December 31, 2024, 2023, and 2022, as permitted by the terms of the Omnibus Incentive Plan and the award grants, certain executive officers and employees elected to surrender approximately 90 thousand, 37 thousand, and 75 thousand RSUs, respectively, valued at approximately $1.5 million, $0.7 million, and $1.5 million, respectively, solely to pay the associated statutory tax withholding. The surrendered RSUs are included in the row entitled “repurchase of common stock for tax withholding obligations” in the consolidated statements of cash flows and consolidated statements of changes in equity.

Dividends

During the year ended December 31, 2024, the Company declared and paid the following common stock dividends (in thousands, except per share data):


Year Ended December 31, 2024
Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
February 13, 2024	$	0.205	March 15, 2024	$	15,031	March 28, 2024
April 23, 2024	0.205		June 3, 2024	15,042		June 14, 2024
July 23, 2024	0.210		September 3, 2024	16,251		September 13, 2024
October 18, 2024	0.210		December 2, 2024	17,133		December 13, 2024
	$	0.830		$	63,457

During the year ended December 31, 2023, the Company declared and paid the following common stock dividends (in thousands, except per share data):


Year Ended December 31, 2023
Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
February 21, 2023	$	0.200	March 15, 2023	$	11,650	March 30, 2023
April 25, 2023	0.200		June 1, 2023	12,173		June 15, 2023
July 24, 2023	0.205		September 1, 2023	13,768		September 15, 2023
October 24, 2023	0.205		December 1, 2023	14,084		December 15, 2023
	$	0.810		$	51,675

The holders of OP Units are entitled to an equal distribution per each OP Unit held as of each record date. Accordingly, during both of the years ended December 31, 2024 and 2023, the Operating Partnership paid distributions of $0.4 million to holders of OP Units.

For federal income tax purposes, distributions to stockholders are characterized as ordinary income dividends, capital gain distributions, or non-dividend distributions. Non-dividend distributions will reduce U.S. stockholders’ basis (but not below zero) in their shares. The following table shows the character of the Company’s common stock distributions paid per share for the years ended December 31, 2024, 2023, and 2022:


	Year Ended December 31,
	2024		2023		2022
Ordinary income dividends	$	0.7680	$	0.7488	$	0.6768
Non-dividend distributions	0.0620		0.0502		0.0856
Capital gain distributions	0.0000		0.0110		0.0376
Total	$	0.8300	$	0.8100	$	0.8000

Noncontrolling Interests

Noncontrolling interests represent noncontrolling holders of OP Units in the Operating Partnership. OP Units are convertible into common stock as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one-for-one basis. As of December 31, 2024 and 2023, noncontrolling interests represented 0.5% and 0.7%, respectively, of OP Units. During the years ended December 31, 2024 and 2023, OP Unit holders redeemed 54,342 and 34,169 OP units, respectively, into shares of common stock on a one-for-one basis.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478448/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

Stock Based Compensation

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

Stock-Based Compensation

Under the Omnibus Incentive Plan, 2,094,976 shares of common stock are reserved for issuance. The Omnibus Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted shares, RSUs, long-term incentive plan units, dividend equivalent rights, and other share-based, share-related or cash-based awards, including performance-based awards, to employees, directors, and consultants, with each grant evidenced by an award agreement providing the terms of the award. The Omnibus Incentive Plan is administered by the Compensation Committee of the Board of Directors.

As of December 31, 2024, the only stock-based compensation granted by the Company were RSUs. The total amount of stock-based compensation costs recognized in general and administrative expense in the accompanying consolidated statements of operations and comprehensive (loss) income was $5.7 million for the year ended 2024, and $4.8 million for the years ended 2023 and 2022. All awards of unvested restricted stock units are expected to fully vest over the next one to five years.

Performance-Based RSUs (effectiveness of Initial Public Offering)

Pursuant to the Omnibus Incentive Plan, the Company made performance-based RSUs to certain employees and non-employee directors. The performance condition required the Company to effectively file a resale registration statement. Up until the point of filing the registration statement, performance was not deemed probable and accordingly, no RSUs had the capability of vesting and no stock-based compensation expense was recorded. As a result of the Company’s initial public offering in August 2020, the performance condition was satisfied, and the Company recorded a stock-based compensation expense catch-up adjustment of $1.4 million. The vesting terms of these grants are specific to the individual grant and were fully vested as of December 31, 2024.

The following table summarizes performance-based RSU activity for the years ended December 31, 2024, 2023, and 2022:


	2024			2023			2022
	Shares	Weighted Average Grant Date Fair Value per Share		Shares	Weighted Average Grant Date Fair Value per Share		Shares	Weighted Average Grant Date Fair Value per Share
Unvested RSU grants outstanding, beginning of year	30,379	$	19.75	61,391	$	19.75	157,380	$	19.75


Vested during the period	(30,379)	19.75		(31,012)	19.75		(95,989)	19.75
Unvested RSU grants outstanding, end of year	—	$	—	30,379	$	19.75	61,391	$	19.75

For the years ended 2024, 2023, and 2022, the Company recognized $0.1 million, $0.3 million, and $0.9 million, respectively, in stock-based compensation expense associated with performance-based RSUs. As of December 31, 2024, there was no remaining unamortized stock-based compensation expense. As of December 31, 2023, the remaining unamortized stock-based compensation expense totaled less than $0.1 million. These units are subject to graded vesting and stock-based compensation expense is recognized ratably over the requisite service period for each vesting tranche in the award.

The grant date fair value of unvested RSUs is calculated as the per share price in the private offering that closed on December 23, 2019.

Service-Based RSUs

Pursuant to the Omnibus Incentive Plan, the Company has made service-based RSU grants to certain employees and non-employee directors. The vesting terms of these grants are specific to the individual grant and vest in equal annual installments over the next one to five years.

The following table summarizes service-based RSU activity for the years ended December 31, 2024, 2023, and 2022:


	2024			2023			2022
	Shares	Weighted Average Grant Date Fair Value per Share		Shares	Weighted Average Grant Date Fair Value per Share		Shares	Weighted Average Grant Date Fair Value per Share
Unvested RSU grants outstanding, beginning of year	298,108	$	19.79	247,079	$	19.86	295,207	$	17.84
Granted during the period	210,733	17.17		161,757	19.79		148,913	22.09
Forfeited during the period	(12,138)	18.67		(2,213)	20.18		(58,922)	19.29
Vested during the period	(169,716)	19.58		(108,515)	19.93		(138,119)	18.20
Unvested RSU grants outstanding, end of year	326,987	$	18.25	298,108	$	19.79	247,079	$	19.86

For the year ended December 31, 2024, the Company recognized $3.3 million in stock-based compensation expense associated with service-based RSUs. For the years ended December 31, 2023 and 2022, the Company recognized $2.8 million in stock-based compensation expense associated with service-based RSUs. As of December 31, 2024 and December 31, 2023, the remaining unamortized stock-based compensation expense totaled $3.3 million and $3.4 million, respectively, and as of December 31, 2024, these awards are expected to be recognized over a remaining weighted average period of 1.9 years. Stock-based compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award.

The grant date fair value of service-based unvested RSUs is calculated as the per share price determined in the initial public offering for awards granted in 2020, and as the per share price of the Company’s stock on the date of grant for those granted in years subsequent to 2020.

Performance-Based RSUs (total shareholder return)

Pursuant to the Omnibus Incentive Plan, the Company has made market-based RSU grants to certain employees. These grants are subject to the participant’s continued service over a three year period with 40% of the award based on the Company’s total shareholder return (“TSR”) as compared to the TSR of identified peer companies and 60% of the award based on total absolute TSR over the cumulative three year period. The performance period of these grants runs through February 28, 2025, February 28, 2026, and December 31, 2026. Grant date fair value of the market-based share awards was calculated using the Monte Carlo simulation model, which incorporated stock price volatility of the Company and each of the Company’s peers and other variables over the performance period. Significant inputs for the current period calculation were expected volatility of the Company of 24.9% and expected volatility of the Company’s peers, ranging from 19.9% to 49.4%, with an average volatility of 27.1% and a risk-free interest rate of 4.41%. The fair value per share on the grant date specific to the target TSR relative to the Company’s peers was $18.03 and the target absolute TSR was $14.56 for a weighted average grant date fair value of $15.77 per share. Stock-based compensation expense associated with unvested market-based share awards is recognized on a straight-line basis over the minimum required service period, which is three years.

The following table summarizes market-based RSU activity for the years ended December 31, 2024, 2023, and 2022:


	2024			2023			2022
	Shares	Weighted Average Grant Date Fair Value per Share		Shares	Weighted Average Grant Date Fair Value per Share		Shares	Weighted Average Grant Date Fair Value per Share
Unvested RSU grants outstanding, beginning of year	258,558	$	20.38	177,350	$	19.83	134,467	$	17.77
Granted during the period	169,002	16.05		81,751	21.57		106,645	22.38
Forfeited during the period	(90,458)	17.55		(543)	19.36		(63,762)	19.76
Vested during the period	(46,660)	20.36		—	—		—	—
Unvested RSU grants outstanding, end of year	290,442	$	18.75	258,558	$	20.38	177,350	$	19.83

For the years ended December 31, 2024, 2023, and 2022, the Company recognized $1.9 million, $1.7 million, and $0.9 million, respectively, in stock-based compensation expense associated with market-based RSUs. As of December 31, 2024 and December 31, 2023, the remaining unamortized stock-based compensation expense totaled $2.4 million and $2.1 million, respectively, and as of December 31, 2024, these awards are expected to be recognized over a remaining weighted average period of 1.8 years.

Alignment of Interest Program

During March 2021, the Company adopted the Alignment of Interest Program (the “Program”), which allows employees to elect to receive a portion of their annual bonus in RSUs in the first quarter of the following year, that vest from one to four years based on the terms of the grant agreement. Stock-based compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award, which begins in the period the bonus relates to. The Program is deemed to be a liability-classified award (accounted for as an equity-classified award as the service date precedes the grant date and the award would otherwise be classified as equity on grant date), which will be fair-valued and accrued over the applicable service period. The total estimated fair value of the elections made for 2024 under the Program was approximately $1.2 million as of December 31, 2024. The award will be remeasured to fair value each reporting period until the unvested RSUs are granted. For the years ended December 31, 2024, 2023, and 2022, the Company recognized approximately $0.3 million, $0.1 million, and $0.1 million, respectively, in stock-based compensation expense associated with these awards. Previous awards under the Program that have been granted are included within service-based RSUs above.

(Loss) Earnings Per Share

12 Months Ended

Dec. 31, 2024

Earnings Per Share [Abstract]

(Loss) Earnings Per Share

Net (loss) income per common share has been computed pursuant to the guidance in the FASB ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing net (loss) income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is similarly calculated except that the denominator is increased by using the treasury stock method to determine the potential dilutive effect of the Company’s outstanding unvested RSUs and unsettled shares under open forward equity contracts and using the if-converted method to determine the potential dilutive effect of the OP Units. The Company has noncontrolling interests in the form of OP Units which are convertible into common stock and represent potentially dilutive securities, as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one-for-one basis.

The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net (loss) income per common share for the years ended December 31, 2024, 2023, and 2022.


	Year Ended December 31,
(in thousands, except share and per share data)	2024		2023		2022
Numerator:
Net (loss) income	$	(12,000)	$	6,890	$	8,205
Net loss (income) attributable to noncontrolling interest	63		(53)		(88)
Net (loss) income attributable to common shares, basic	(11,937)		6,837		8,117
Net (loss) income attributable to noncontrolling interest	(63)		53		88
Net (loss) income attributable to common shares, diluted	$	(12,000)	$	6,890	$	8,205

Denominator:
Weighted average common shares outstanding, basic	76,517,767		63,922,973		49,517,977
Effect of dilutive shares for diluted net income per common share:
OP Units	—		501,751		526,859
Unvested RSUs	—		165,420		248,602
Unsettled shares under open forward equity contracts	—		75,295		138,384
Weighted average common shares outstanding, diluted	76,517,767		64,665,439		50,431,822

Net (loss) income available to common stockholders per common share, basic	$	(0.16)	$	0.11	$	0.16
Net (loss) income available to common stockholders per common share, diluted	$	(0.16)	$	0.11	$	0.16

For the year ended December 31, 2024, diluted net loss per common share does not assume the conversion of 444,435 OP Units, 123,992 unvested RSUs, or 233,606 unsettled shares under open forward equity contracts, as such conversion would be antidilutive.

As of December 31, 2024 and 2023, there were 424,956 and 479,298 of OP Units outstanding, respectively.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation and Regulatory Matters In the ordinary course of business, from time to time, the Company may be subject to litigation, claims and regulatory matters, none of which are currently outstanding, which the Company believes could have, individually or in the aggregate, a material adverse effect on its business, financial condition or results of operations, liquidity or cash flows. Environmental Matters The Company is subject to environmental regulations related to the ownership of real estate. The cost of complying with the environmental regulations was not material to the Company’s results of operations for any of the periods presented. The Company is not aware of any environmental condition on any of its properties that is likely to have a material adverse effect on the consolidated financial statements when the fair value of such liability can be reasonably estimated and is required to be recognized. Commitments In the normal course of business, the Company enters into various types of commitments to purchase real estate properties, fund development projects, or extend funds under mortgage loans receivable. These commitments are generally subject to the Company’s customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase or extend funding. As of December 31, 2024, the Company had tenant improvement allowance commitments totaling approximately $4.1 million, which is expected to be funded within the next two years. Additionally, as of December 31, 2024, the Company had commitments to fund properties under development totaling $7.3 million, which is expected to be funded over the next 12 months. The Company also had commitments to extend funds under mortgage loans receivable of $9.5 million as of December 31, 2024, which is expected to occur over the next 12 months. In August 2021, the Company entered into a lease agreement on a new corporate office space, which is classified as an operating lease. The Company began operating out of the new office in February 2022. The lease has a remaining noncancellable term of 7.6 years that expires on July 31, 2032 and is renewable at the Company’s option for two additional periods of five years. Future minimum base rental payments under the lease are outlined in “Note 3 – Leases.” Annual rent expense, excluding operating expenses, is approximately $0.5 million during the initial term. As of December 31, 2024, the Company did not have any other material commitments for re-leasing costs, recurring capital expenditures, non-recurring building improvements, or similar types of costs.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated all events that occurred subsequent to December 31, 2024 through the date on which these consolidated financial statements were issued to determine whether any of these events required disclosure in the financial statements. Common Stock Dividend On February 21, 2025, the Company’s Board of Directors declared a cash dividend of $0.21 per share for the first quarter of 2025. The dividend will be paid on March 31, 2025 to stockholders of record on March 14, 2025. Revolver Activity The Company borrowed $5.0 million, net of repayments, under the Revolver which will be used for general corporate purposes, including the acquisition of properties in the Company’s pipeline. January 2025 Debt Transactions On January 15, 2025, the Company amended its existing PNC Credit Agreement, Wells Fargo Credit Agreement, and Truist Credit Agreement. The PNC Credit Agreement was amended and restated and provides for: a new $175.0 million senior unsecured term loan (the “2030 Term Loan B”); the existing $200.0 million 2028 Term Loan; and an upsized $500.0 million Revolver (increased from $400 million under the existing PNC Credit Agreement). The 2030 Term Loan B and the upsized Revolver initially mature in January 2029 and include, at the Company’s election, a one-year option to extend the maturity to January 2030. The 2030 Term Loan B was fully funded on the closing date and the Company has hedged the entire $175.0 million 2030 Term Loan B at an all-in fixed interest rate of 5.12% through January 2030. The Wells Fargo Credit Agreement was amended and restated to extend the maturity date of the $175.0 million 2027 Term Loan from January 2027 to January 2029 with an option, at the Company’s election, to extend the maturity to January 2030. Among other changes, each of the PNC Credit Agreement, Wells Fargo Credit Agreement, and Truist Credit Agreement were also amended to remove certain financial covenants and provide for revised, improved pricing when the Company meets certain investment grade rating and leverage targets. The interest rates under each of the amended PNC Credit Agreement, Wells Fargo Credit Agreement, and Truist Credit Agreement are determined by the Company’s Investment Grade Rating status and consolidated total leverage ratio. Prior to the date the Company obtains an Investment Grade Rating, interest rates are based solely on the Company’s consolidated total leverage ratio, and are determined by (A) in the case of the 2028 Term Loan, the 2030 Term Loan A, and the 2030 Term Loan B, either (i) SOFR, plus a margin ranging from 1.15% to 1.60%, based on the Company’s consolidated total leverage ratio, or (ii) a Base Rate, plus a margin ranging from 0.15% to 0.60%, based on the Company’s consolidated total leverage ratio and (B) in the case of the Revolver either (i) SOFR, plus a margin ranging from 1.00% to 1.45%, based on the Company’s consolidated total leverage ratio, or (ii) a Base Rate, plus a margin ranging from 0.00% to 0.45%, based on the Company’s consolidated total leverage ratio. After the date the Company obtains an Investment Grade Rating, interest rates are based on the Company’s Investment Grade Rating and its consolidated total leverage ratio, and are determined by (A) in the case of the 2028 Term Loan, the 2030 Term Loan A, and the 2030 Term Loan B, either (i) SOFR, plus a margin ranging from 0.80% to 1.60%, based on the Company’s Investment Grade Rating and consolidated total leverage ratio, or (ii) a Base Rate, plus a margin ranging from 0.00% to 0.60%, based on the Company’s Investment Grade Rating and consolidated total leverage ratio and (B) in the case of the Revolver either (i) SOFR, plus a margin ranging from 0.725% to 1.40%, based on the Company’s Investment Grade Rating and consolidated total leverage ratio, or (ii) a Base Rate, plus a margin ranging from 0.00% to 0.40%, based on the Company’s Investment Grade Rating and consolidated total leverage ratio. Each of the amended PNC Credit Agreement, Wells Fargo Credit Agreement, and Truist Credit Agreement contain customary representations and warranties, which include customary materiality, material adverse effect, and knowledge qualifiers. Each of the amended PNC Credit Agreement, Wells Fargo Credit Agreement, and Truist Credit Agreement contain customary affirmative and negative covenants, including, among other requirements, negative covenants that restrict the Company’s and its subsidiaries’ ability to create liens, and that restrict the Company’s subsidiaries’ ability to incur certain indebtedness. Further, each of the amended PNC Credit Agreement, Wells Fargo Credit Agreement, and Truist Credit Agreement contain a number of financial covenants, including, among others, the maintenance of a maximum leverage ratio, a fixed charge coverage ratio, a secured leverage ratio and a minimum tangible net worth. Each of the amended PNC Credit Agreement, Wells Fargo Credit Agreement, and Truist Credit Agreement contain events of default that include, among others, non-payment of principal, interest or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events with respect to the Company and certain of its subsidiaries, material judgments, and events constituting a change of control. Upon the occurrence and during the continuance of an event of default, the lenders under each such credit agreement may accelerate the obligations under the applicable credit agreement; however, under each credit agreement, acceleration will be automatic in the case of bankruptcy and insolvency events of default involving the Company.

Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2024

SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III - Real Estate and Accumulated Depreciation


NETSTREIT Corp.
Schedule III - Real Estate and Accumulated Depreciation
December 31, 2024
(Dollars in thousands)
				Initial Cost to Company				Cost Capitalized Subsequent to Acquisition(1)				Gross Amount as of December 31, 2024(2), (3)
State	Number of Properties	Encumbrances		Land		Building and Improvements		Land		Building and Improvements		Land		Building and Improvements		Total		Accumulated Depreciation(3), (4)		Year of Construction			Year Acquired(5)			Life on Which Depreciation in Statements of Operations and Comprehensive Income is Computed
Alabama	48	$	—	$	24,347	$	73,869	$	(115)	$	(620)	$	24,232	$	73,249	$	97,481	$	(5,946)	1968	–	2024	2019	–	2024	2	to	35	Years
Arizona	4	—		4,848		15,518		(619)		(931)		4,229		14,587		18,816		(1,237)		1979	–	2022	2021	–	2024	5	to	35	Years
Arkansas	10	—		7,065		12,812		—		2,477		7,065		15,289		22,354		(1,721)		1962	–	2024	2019	–	2024	8	to	35	Years
California	7	—		9,437		28,722		—		269		9,437		28,991		38,428		(3,893)		1968	–	2009	2020	–	2024	3	to	35	Years
Colorado	3	—		1,097		3,698		—		225		1,097		3,923		5,020		(582)		1978	–	2024	2019	–	2024	10	to	35	Years
Connecticut	2	—		1,978		3,407		—		—		1,978		3,407		5,385		(483)		1972	–	2012	2021	–	2021	6	to	35	Years
Florida	21	—		15,694		39,090		—		43		15,694		39,133		54,827		(4,275)		1948	–	2023	2019	–	2024	5	to	35	Years
Georgia	34	—		35,673		101,322		—		(136)		35,673		101,186		136,859		(10,098)		1968	–	2024	2019	–	2024	0	to	35	Years
Idaho	1	—		177		856		—		—		177		856		1,033		(204)		2007	–	2007	2019	–	2019	6	to	26	Years
Illinois	43	—		73,364		139,328		(169)		393		73,195		139,721		212,916		(12,853)		1944	–	2024	2020	–	2024	0	to	35	Years
Indiana	20	—		21,839		54,944		—		233		21,839		55,177		77,016		(6,730)		1961	–	2021	2019	–	2024	3	to	35	Years
Iowa	13	—		3,543		18,398		—		562		3,543		18,960		22,503		(2,442)		1975	–	2024	2019	–	2024	3	to	35	Years
Kansas	4	—		2,183		10,055		—		35		2,183		10,090		12,273		(1,169)		1973	–	2014	2019	–	2023	4	to	33	Years
Kentucky	5	—		12,014		9,542		(358)		(1,102)		11,656		8,440		20,096		(523)		1985	–	2024	2020	–	2024	0	to	35	Years
Louisiana	16	8,205		21,935		47,919		—		199		21,935		48,118		70,053		(4,973)		1986	–	2024	2020	–	2024	6	to	35	Years
Maryland	4	—		3,012		8,504		(317)		(935)		2,695		7,569		10,264		(741)		1945	–	2016	2020	–	2021	5	to	35	Years
Massachusetts	4	—		8,509		2,158		(396)		(364)		8,113		1,794		9,907		(197)		2002	–	2013	2020	–	2023	0	to	35	Years
Michigan	15	—		11,545		41,763		(30)		(27)		11,515		41,736		53,251		(4,235)		1956	–	2024	2019	–	2024	4	to	35	Years
Minnesota	8	—		4,329		19,056		(504)		(1,743)		3,825		17,313		21,138		(1,086)		1981	–	2024	2019	–	2024	4	to	35	Years
Mississippi	16	—		13,057		35,189		—		459		13,057		35,648		48,705		(6,565)		1978	–	2023	2019	–	2023	6	to	35	Years
Missouri	7	—		2,313		10,232		—		16		2,313		10,248		12,561		(601)		1971	–	2024	2019	–	2024	5	to	35	Years
Montana	2	—		3,056		14,112		—		—		3,056		14,112		17,168		(497)		2007	–	2024	2023	–	2023	5	to	35	Years
Nebraska	2	—		1,896		7,200		—		260		1,896		7,460		9,356		(1,073)		1990	–	2010	2021	–	2022	7	to	35	Years
Nevada	5	—		5,286		11,798		—		55		5,286		11,853		17,139		(1,582)		1980	–	2014	2022	–	2022	5	to	35	Years
New Hampshire	4	—		676		2,635		—		55		676		2,690		3,366		(481)		1970	–	2016	2020	–	2023	5	to	35	Years
New Jersey	6	—		6,929		18,391		(591)		(1,034)		6,338		17,357		23,695		(935)		1920	–	2016	2019	–	2024	5	to	35	Years
New Mexico	8	—		4,281		11,888		—		211		4,281		12,099		16,380		(770)		2000	–	2024	2021	–	2024	3	to	35	Years
New York	36	—		43,447		116,738		(506)		(554)		42,941		116,184		159,125		(10,799)		1896	–	2024	2020	–	2024	3	to	35	Years
North Carolina	21	—		14,631		32,617		(493)		(772)		14,138		31,845		45,983		(4,067)		1956	–	2024	2019	–	2024	0	to	35	Years
North Dakota	5	—		3,309		9,181		—		—		3,309		9,181		12,490		(633)		2009	–	2024	2020	–	2024	9	to	35	Years
Ohio	40	—		18,307		61,636		(29)		612		18,278		62,248		80,526		(8,865)		1922	–	2024	2019	–	2024	3	to	35	Years
Oklahoma	10	—		5,120		10,401		—		171		5,120		10,572		15,692		(1,019)		1998	–	2024	2019	–	2024	0	to	35	Years
Oregon	2	—		3,991		—		—		—		3,991		—		3,991		—		2000	–	2003	2023	–	2023	0	to	0	Years
Pennsylvania	29	—		20,318		58,365		(598)		(120)		19,720		58,245		77,965		(5,907)		1916	–	2024	2019	–	2024	0	to	35	Years
South Carolina	10	—		4,798		18,795		—		399		4,798		19,194		23,992		(2,003)		1967	–	2023	2019	–	2024	5	to	35	Years
South Dakota	1	—		848		4,083		—		—		848		4,083		4,931		(421)		2022	–	2022	2021	–	2021	12	to	35	Years
Tennessee	6	—		8,818		9,790		(90)		(474)		8,728		9,316		18,044		(1,866)		1963	–	2024	2019	–	2024	7	to	35	Years
Texas	65	—		90,386		162,362		—		187		90,386		162,549		252,935		(12,719)		1962	–	2024	2019	–	2024	4	to	35	Years
Utah	1	—		519		2,609		—		—		519		2,609		3,128		(493)		2015	–	2015	2019	–	2019	10	to	32	Years
Vermont	10	—		1,473		6,181		(84)		230		1,389		6,411		7,800		(1,106)		1890	–	1999	2020	–	2022	4	to	31	Years
Virginia	10	—		27,989		42,637		—		538		27,989		43,175		71,164		(5,151)		1978	–	2024	2019	–	2024	3	to	35	Years
Washington	5	—		6,357		16,446		—		44		6,357		16,490		22,847		(2,364)		1978	–	2023	2020	–	2023	5	to	35	Years
West Virginia	4	—		1,384		4,402		—		157		1,384		4,559		5,943		(757)		1996	–	2017	2019	–	2022	4	to	26	Years
Wisconsin	21	—		25,343		103,965		(950)		(1,239)		24,393		102,726		127,119		(9,360)		1970	–	2022	2019	–	2023	5	to	35	Years
	588	$	8,205	$	577,121	$	1,402,614	$	(5,849)	$	(2,221)	$	571,272	$	1,400,393	$	1,971,665	$	(143,422)

(1) Amounts shown as reductions to cost capitalized subsequent to acquisition represent provisions recorded for impairment of real estate.

(2) The aggregate cost for federal income tax purposes is $2.1 billion (unaudited).

(3) Properties with no building value represent a property for which the Company owns only the land, therefore depreciation and estimated life for depreciation are not applicable.

(4) Depreciation is calculated using the straight-line method over the estimated useful life of the asset, which is up to 35 years for buildings and up to 15 years for building improvements.

(5) The acquisition dates for properties acquired prior to December 23, 2019 are stated at the Company’s Private Offering and formation transactions date of December 23, 2019.

The following is a reconciliation of carrying value for land and building and improvements for the periods presented (in thousands):


	Year Ended December 31,
	2024		2023		2022
Balance, beginning of year	$	1,610,705	$	1,308,230	$	926,392
Additions
Acquisitions	443,481		306,564		398,177
Improvements	4,565		4,098		2,383
Property under development completed and placed in service	50,541		64,711		22,510
Reclasses to held for investment	23,980		—		—
Deductions
Reclasses to held for sale	(133,088)		(66,762)		(37,880)
Provisions for impairment	(26,797)		(3,509)		(1,067)
Involuntary conversion of assets and other adjustments	(1,722)		—		—
Dispositions	—		(2,627)		(2,285)
Balance, end of year	$	1,971,665	$	1,610,705	$	1,308,230

The following is a reconciliation of accumulated depreciation for the periods presented (in thousands):


	Year Ended December 31,
	2024		2023		2022
Balance, beginning of year	$	101,210	$	62,526	$	30,669
Additions
Depreciation expense	54,739		44,104		33,584
Deductions
Reclasses to held for sale	(7,011)		(5,154)		(1,610)
Provisions for impairment	(5,323)		(63)		—
Involuntary conversion of assets and other adjustments	(193)		—		—
Dispositions	—		(203)		(117)
Balance, end of year	$	143,422	$	101,210	$	62,526

See report of independent registered public accounting firm.

Schedule IV - Mortgage Loans on Real Estate

12 Months Ended

Dec. 31, 2024

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

Schedule IV - Mortgage Loans on Real Estate

NETSTREIT Corp.

Schedule IV - Mortgage Loans on Real Estate

As of December 31, 2024

(Dollars in thousands)

Description and Industry

Number of Secured Properties

State

Interest Rate

Final Maturity Date

Periodic Payment Terms (1)

Final Payment Terms

Prior Liens

Outstanding Face Amount of Mortgages

Carrying Amount of Mortgages

Principal amount of loans subject to delinquent principal or interest

Fully collateralized mortgage loans:

None

Home Improvement

1

Oregon

7.50%

1/8/2025

I/O

Balloon of $43.6 million

None

$

43,612

$

43,606

None

Convenience Stores

46

North Carolina

9.55%

3/10/2026

I/O

Balloon of $41.9 million

None

41,940

None

Convenience Stores

3

North Carolina

6.89%

4/10/2026

I/O

Balloon of $4.1 million

None

4,132

4,067

None

Dollar Stores

6

Mississippi and Ohio

7.98%

6/10/2025

I/O

Balloon of $8.4 million

None

8,408

None

Discount Retail

1

Wisconsin

7.00%

1/31/2026

None (2)

Interest + Balloon of $0.8 million

None

825

None

Dollar Stores

7

Florida

10.25%

6/18/2025

I/O

Balloon of $11.7 million

None

11,658

11,657

None

Quick-Service Restaurant

1

Kentucky

10.25%

6/22/2025

I/O

Balloon of $1.3 million

None

1,296

None

Quick-Service Restaurant

1

Florida

10.25%

4/26/2025

I/O

Balloon of $2.1 million

None

2,095

None

Automotive Service

1

Florida

10.25%

5/15/2025

I/O

Balloon of $1.9 million

None

1,894

None

Quick-Service Restaurant

1

Alabama

10.25%

7/26/2025

I/O

Balloon of $2.0 million

None

2,029

None

Automotive Service

1

Tennessee

10.25%

8/27/2025

I/O

Balloon of $1.5 million

None

1,539

None

Drug Stores & Pharmacies

1

Alabama

7.25%

7/17/2027

P+I

Balloon of $4.1 million

None

4,076

None

Drug Stores & Pharmacies

1

New Mexico

7.25%

7/17/2027

P+I

Balloon of $5.2 million

None

5,221

None

Dollar Stores

1

Rhode Island

13.09%

1/17/2025

I/O

Balloon of $1.3 million

None

1,299

1,297

None

Dollar Stores

1

Pennsylvania

7.25%

9/19/2027

P+I

Balloon of $1.4 million

None

1,434

None

Drug Stores & Pharmacies

1

Texas

7.00%

9/30/2029

I/O

Balloon of $0.6 million

None

636

None

Convenience Stores

1

California

6.50%

12/23/2029

I/O

Balloon of $3.3 million

None

3,284

None

Convenience Stores

1

California

6.50%

12/23/2029

I/O

Balloon of $4.1 million

None

4,105

None

$

139,483

$

139,409

(1) I/O: Interest Only; P+I: Principal and Interest.

(2) Payments of both interest and principal are due at maturity.

The following shows changes in carrying amounts of mortgage loans receivable, net during the years ended December 31, 2024, 2023, and 2022 (in thousands):


	Year Ended December 31,
	2024		2023		2022
Balance, beginning of year	$	114,472	$	46,378	$	—
Additions:
New mortgage loans receivable	29,722		72,399		46,316
Other: Increase in mortgage loans receivable in exchange for disposition of real estate	20,101		1,970		—
Other: Increase in existing mortgage loans receivable in exchange for settlement of existing mortgage loan	—		1,327		—
Capitalized loan origination costs and fees	(45)		145		150
Discount on new mortgage loan receivable	(334)		(155)		—
Amortization of discount	302		39		—
Deductions:
Collections of principal	(24,870)		(1,482)		—
Other: Mortgage loans receivable settled in exchange for acquisition of real estate	—		(4,673)		—
Other: Mortgage loans receivable settled in refinancing of existing mortgage loans receivable	—		(1,327)		—
Amortization of loan origination costs and fees	61		(149)		(88)
Balance, end of year	$	139,409	$	114,472	$	46,378

See report of independent registered public accounting firm.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
Cybersecurity Risk Management and Strategy Disclosure	Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	Risk management and strategy Cyber Security Plan We have implemented various information security processes designed to identify, assess, and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property and confidential information that is proprietary, strategic, or competitive in nature (including without limitation tenant and property related data) (“Information Systems and Data”). Our information security processes are overseen by our IT Manager, Chief Accounting Officer, and Chief Financial Officer, and are supported by a cybersecurity monitoring service provider, who works to help identify, assess, and manage the Company’s cybersecurity threats and risks. Our IT Manager, as well as our service provider, work to identify and assess risks from cybersecurity threats by monitoring and evaluating our threat environment using various methods, including, for example, subscribing to reports and services that identify certain cybersecurity threats, evaluating certain threats reported to us, engaging a third-party vendor to audit our security protocols in certain systems, and deploying automated monitoring tools across certain systems. Depending on the environment and system, we implement and maintain various technical, physical, and organizational measures, processes, standards, and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including, for example: an incident response policy, risk assessments, network security controls for certain environments, periodic back-ups of certain data, access controls for certain environments, employee training addressing awareness of cyber risks and how to detect certain cyberattacks, and cybersecurity insurance. Risk Assessment Our assessment and management of material risks from cybersecurity threats are integrated into the Company’s overall risk management processes. For example, cybersecurity risk is integrated into the Company’s overall risk management processes, which includes an assessment of risks posed to data that is critical to our business operations (e.g., to support financial reporting, process payroll, and collect and maintain property and lease information).
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	Our assessment and management of material risks from cybersecurity threats are integrated into the Company’s overall risk management processes. For example, cybersecurity risk is integrated into the Company’s overall risk management processes, which includes an assessment of risks posed to data that is critical to our business operations (e.g., to support financial reporting, process payroll, and collect and maintain property and lease information).
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	Our board of directors addresses the Company’s cybersecurity risk management as part of its general oversight function. The board of directors’ audit committee is responsible for overseeing the Company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats. Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our IT Manager, who has worked in various roles responsible for securing networks, hardware, and other application systems, Chief Financial Officer, and Chief Accounting Officer.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	The board of directors’ audit committee is responsible for overseeing the Company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	Our Chief Financial Officer is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. Our Chief Financial Officer is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports. Our cybersecurity incident response policy is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including senior management. The Company has identified and designated certain Company employees as members of a cybersecurity incident response team, including the Chief Accounting Officer, the Chief Financial Officer, and the IT Manager. This team helps the Company mitigate and remediate cybersecurity incidents of which they are notified. In addition, the Company’s incident response policy includes reporting to the audit committee of the board of directors for certain cybersecurity incidents. The audit committee of the board of directors receives quarterly reports concerning the Company’s significant cybersecurity threats and risk and the processes the Company has implemented to address them. These quarterly reports include summaries or presentations related to cybersecurity threats, risk, and mitigation.
Cybersecurity Risk Role of Management [Text Block]	Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our IT Manager, who has worked in various roles responsible for securing networks, hardware, and other application systems, Chief Financial Officer, and Chief Accounting Officer. Our Chief Financial Officer is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. Our Chief Financial Officer is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports. Our cybersecurity incident response policy is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including senior management. The Company has identified and designated certain Company employees as members of a cybersecurity incident response team, including the Chief Accounting Officer, the Chief Financial Officer, and the IT Manager. This team helps the Company mitigate and remediate cybersecurity incidents of which they are notified. In addition, the Company’s incident response policy includes reporting to the audit committee of the board of directors for certain cybersecurity incidents. The audit committee of the board of directors receives quarterly reports concerning the Company’s significant cybersecurity threats and risk and the processes the Company has implemented to address them. These quarterly reports include summaries or presentations related to cybersecurity threats, risk, and mitigation.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our IT Manager, who has worked in various roles responsible for securing networks, hardware, and other application systems, Chief Financial Officer, and Chief Accounting Officer.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	Our Chief Financial Officer is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. Our Chief Financial Officer is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	Our cybersecurity incident response policy is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including senior management. The Company has identified and designated certain Company employees as members of a cybersecurity incident response team, including the Chief Accounting Officer, the Chief Financial Officer, and the IT Manager. This team helps the Company mitigate and remediate cybersecurity incidents of which they are notified. In addition, the Company’s incident response policy includes reporting to the audit committee of the board of directors for certain cybersecurity incidents. The audit committee of the board of directors receives quarterly reports concerning the Company’s significant cybersecurity threats and risk and the processes the Company has implemented to address them. These quarterly reports include summaries or presentations related to cybersecurity threats, risk, and mitigation.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation and the Company’s net (loss) income is reduced by the portion of net (loss) income attributable to noncontrolling interests.

Noncontrolling Interests

The Company presents noncontrolling interests, which represent limited partnership units in the Operating Partnership (the “OP Units”) not owned by the Company, as a component of permanent equity, separate from the Company’s stockholders’ equity. Noncontrolling interests were created as part of an asset acquisition and were recognized at fair value as of the date of the transaction. Effective with the Company’s initial public offering, each limited partner of the Operating Partnership has the right to require the Operating Partnership to redeem part or all of its OP Units for cash, based upon the value of an equivalent number of shares of the Company’s common stock at the time of the redemption, or, at the Company’s election, shares of the Company’s common stock on a one-for-one basis, subject to certain adjustments and the restrictions on ownership and transfer of the Company’s common stock. The election to pay cash or issue common stock is solely within the control of the Company to satisfy a noncontrolling interest holder’s redemption request.

Net (loss) income of the Operating Partnership is allocated to its noncontrolling interests based on the noncontrolling interests’ ownership percentages in the Operating Partnership throughout the period. Ownership percentage is calculated by dividing the number of OP Units held by the noncontrolling interests by the total OP Units outstanding.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s most significant assumptions and estimates relate to the useful lives of real estate assets, lease accounting, real estate impairment assessments, and allocation of fair value of purchase consideration. These estimates are based on historical experience and other assumptions which management believes are reasonable under the circumstances. The Company evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates.

Real Estate Held for Investment

Real estate is recorded and stated at cost less any provision for impairment. At acquisition date, the purchase price of an acquired property is allocated to tangible and identifiable intangible assets or liabilities based on their relative fair values. For properties developed by the Company, all direct and indirect costs related to planning, development and construction, including interest, real estate taxes, and other miscellaneous costs incurred during the construction period, are capitalized for financial reporting purposes and recorded as property under development until construction has been completed.

The Company evaluates each acquisition transaction to determine whether the acquired asset meets the definition of a business and therefore accounted for as a business combination or if the acquisition transaction should be accounted for as an asset acquisition. Under Accounting Standards Update (“ASU”) 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”), an acquisition does not qualify as a business when substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets or the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort, or delay. Transaction costs related to acquisitions that qualify as asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be acquisitions of a business are expensed as incurred.

The Company allocates the purchase price of acquired properties accounted for as asset acquisitions to tangible and identifiable intangible assets or liabilities based on their relative fair values. Tangible assets may include land, buildings, site improvements, and tenant improvements. Intangible assets include the value of in-place leases and above-market leases, and intangible liabilities include below-market leases. The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases based on the specific characteristics of each tenant’s lease. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal, and other related expenses. The fair value of above-market or below-market leases is recorded based on the net present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company’s estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining non-cancelable term of the lease, including any below-market fixed rate renewal options for below-market leases. In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including real estate valuations prepared by an independent valuation firm. The Company also considers information and other factors, including market conditions, the industry that the tenant operates in, characteristics of the real estate; e.g., location, size, demographics, value and comparative rental rates; tenant credit profile and the importance of the location of the real estate to the operations of the tenant’s business. Additionally, the Company considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets and liabilities acquired. Based on these inputs for measuring and allocating the fair value of real estate acquisitions, the Company utilizes both observable market data (categorized as level 2 on the three-level valuation hierarchy of Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement), and unobservable inputs that reflect the Company’s own internal assumptions (categorized as level 3 under ASC Topic 820).

Depreciation and Amortization

Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets:


Buildings			13 – 35 years
Building improvements			15 years
Tenant improvements			Shorter of the term of the related lease or useful life
Acquired in-place leases or leasing commissions			Remaining terms of the respective leases
Assembled workforce			3 years
Computer equipment and other corporate assets			3 – 5 years

Assets Held for Sale

The Company is continually evaluating the portfolio of real estate assets and may elect to dispose of assets considering criteria including, but not limited to, tenant concentration, tenant credit quality, unit financial performance, local market conditions and lease rates, asset location and tenant operation type (e.g., tenant or retail sector). Real estate assets held for sale are expected to be sold within twelve months. Properties classified as held for sale, including the related intangibles, in the consolidated balance sheets include only those properties available for immediate sale in their present condition, which are actively being marketed, and for which management believes that it is probable that a sale of the property will be completed within one year. Properties held for sale are carried at the lower of cost or fair value, less estimated selling costs. No depreciation expense or amortization expense is recognized on properties held for sale and the related intangible assets or liabilities once they have been classified as such. Only disposals representing a strategic shift in operations are presented as discontinued operations.

Impairment of Long-Lived Assets

Fair value measurement of an asset group occurs when events or changes in circumstances related to an asset indicate that the carrying amount of the asset is no longer recoverable. An example of an event or changed circumstance is a reduction in the expected holding period of a property. If indicators are present, the Company will prepare a projection of the undiscounted future cash flows of the property, excluding interest charges, and determine if the carrying amount of the asset group is recoverable. When a carrying amount is not recoverable, an impairment loss is recognized to the extent that the carrying amount of the asset group exceeds its fair market value. The Company estimates fair value using data such as operating income, estimated capitalization rates or multiples, leasing prospects, local market information, and discount rates, and with regard to assets held for sale, based on the estimated or negotiated selling price, less estimated costs of disposal. Based on these unobservable inputs, the Company determined that its valuations of impaired real estate and intangible assets fall within Level 2 and Level 3 of the fair value hierarchy under ASC Topic 820.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

The Company considers all cash balances, money market accounts, and highly liquid investments with original maturities of three months or less to be cash and cash equivalents. Restricted cash includes cash restricted for property tenant improvements and cash proceeds from the sale of assets held by qualified intermediaries in anticipation of the acquisition of replacement properties in tax-free exchanges under Section 1031 of the Code. Restricted cash is included in cash, cash equivalents, and restricted cash in the consolidated balance sheets. The Company had $7.9 million of restricted cash as of December 31, 2024, and $11.5 million of restricted cash as of December 31, 2023.

The Company’s bank balances as of December 31, 2024 and 2023 included certain amounts over the Federal Deposit Insurance Corporation limits.

Revenue Recognition and Related Matters

The Company’s rental revenue is primarily related to rent received from tenants under leases accounted for as operating leases. Rent from leases that have fixed and determinable rent increases is recognized on a straight-line basis over the non-cancellable initial term of the lease and reasonably certain renewal periods, from the later of the date of the commencement of the lease or the date of acquisition of the property subject to the lease. The difference between rental revenue recognized and the cash rent due under the provisions of the lease is recorded as deferred rent receivable and included as a component of other assets in the consolidated balance sheets.

Variable lease revenues include tenant reimbursements, reserves for uncollectible amounts, changes in the index or market-based indices after the inception of the lease, or percentage rents. Variable lease revenues are not recognized until the specific events that trigger the variable payments have occurred. The Company recognized variable lease revenue related to tenant reimbursements and lease termination fees for the periods presented.

Capitalized above-market and below-market lease values are amortized on a straight-line basis as a reduction or increase of rental revenue as appropriate over the remaining non-cancellable terms of the respective leases.

Reserves for uncollectible amounts are provided against the portion of accounts receivable, net, including straight-line rents, which is estimated to be uncollectible, which includes a portfolio-based reserve and reserves for specifically disputed amounts. Such reserves are reviewed each period based upon recovery experience and the specific facts of each outstanding amount.

Mortgage Loans Receivable

The Company holds loans receivable, which are mortgage loans secured by real estate, for short and long-term investment. Loans receivable are carried at amortized cost. As of December 31, 2024, the Company held 18 senior secured first-lien mortgage loans receivable.

The Company recognizes interest income on loans receivable using the effective interest method. Direct costs associated with originating loans, along with any premium or discount, are deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective interest method. The Company evaluates its loan receivable balances, including accrued interest, for potential credit losses by analyzing the credit of the borrower, the remaining time to maturity of the loan, collateral value and quality (if any), and other relevant factors. A loan receivable is placed on a nonaccrual status when management determines that full recovery of the contractually specified payments of principal and interest is doubtful.

Stock-Based Compensation

The Company has a share-based compensation award program for its employees and directors. Stock-based compensation expense associated with these awards is recognized in general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income. The Company classifies stock-based payment awards either as equity awards or liability awards based upon an analysis of ASC 718, Compensation - Stock Compensation, and ASC 480, Distinguishing Liabilities from Equity. Equity classified awards are measured based on the fair value on the date of grant. Liability classified awards are remeasured to fair value each reporting period. Stock-based compensation expense is recognized over the requisite service or performance period. The Company recognizes forfeitures as they occur.

Transaction Costs

Transaction costs represent non-capitalizable acquisition related expenses and costs associated with abandoned acquisitions.