Form 8-K NETSTREIT Corp. For: Oct 01
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 1, 2020
NETSTREIT Corp.
(Exact Name of Registrant as Specified in its Charter)
| Maryland | 001-39443 | 84-3356606 | ||
|
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
||
|
5910 N. Central Expressway Suite 1600 Dallas, Texas |
75206 | |||
| (Address of Principal Executive Offices) | (Zip Code) | |||
972-200-7100
(Registrant’s telephone number, including area code)
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|
Common Stock, $0.01 par value per share |
NTST | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition.
On October 1, 2020, NETSTREIT Corp. issued a press release providing an update on third quarter business activities and announcing the dates of its third quarter 2020 earnings release and conference call. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference here.
The information contained in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. | |
| Exhibit No. | Description | |
| 99.1 | Press release dated October 1, 2020 | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NETSTREIT CORP. | ||
| By: | /s/Andrew Blocher | |
| Name: | Andrew Blocher | |
| Title: | Chief Financial Officer, Treasurer and Secretary | |
Date: October 1, 2020
Exhibit 99.1
NETSTREIT CORP. PROVIDES UPDATE ON THIRD QUARTER BUSINESS ACTIVITIES AND ANNOUNCES DATES FOR THIRD QUARTER EARNINGS RELEASE AND CONFERENCE CALL
Dallas, TX, October 1, 2020 – NETSTREIT Corp., a nationwide owner of high-quality, single-tenant net lease properties (the “Company”), today provided an update on the Company’s third quarter business activities. The Company also announced that it will release its third quarter 2020 financial results on Thursday, October 29, 2020 after the close of trading on the New York Stock Exchange. A conference call will be held on Friday, October 30, 2020 at 10:00 AM ET.
Third Quarter Business Update
Operating Activity:
| · | Prior to giving any consideration to deferral or abatement arrangements granted as a result of COVID, the Company collected 99.5% of September rent payments, bringing total third quarter rent collections to 98.0% |
| · | Maintained portfolio occupancy of 100% as of September 30, 2020 |
Portfolio Construction:
| · | Completed $103 million of acquisitions at an initial cash capitalization rate of 6.5%. Acquisitions completed during the quarter had a weighted-average remaining lease term of 10.9 years, and 100% of the properties are occupied by investment grade rated tenants |
| · | Completed one disposition at a contractual sale price of $1.9 million, which equates to a 10.4% cash capitalization rate |
| · | As of September 30, 2020, the NETSTREIT portfolio was comprised of 189 leases, contributing $38.9 million of annualized base rent1, with a weighted-average remaining lease term of 11.1 years, of which 68.0% were investment grade rated tenants and 6.4% were tenants with investment grade profiles (unrated tenants with more than $1.0 billion in annual sales and a debt to adjusted EBITDA ratio of less than 2.0x) |
1 Annualized base rent, or ABR, is calculated by multiplying (i) cash rental payments (a) for the month following the period shown plus (b) for properties under development, the first full month's permanent cash rent contractually due after the development period by (ii) 12.
Balance Sheet, Financing and Dividend:
| · | Completed an initial public offering (“IPO”) and, inclusive of the partial exercise of the underwriters’ over-allotment option, issued 13,936,829 shares of common stock at a price of $18.00 per share, for total net proceeds to the Company of approximately $227.3 million |
| · | Repaid $50 million under the Company’s line of credit, resulting in no outstanding line of credit borrowings at quarter end |
| · | Declared an inaugural common stock cash dividend of $0.10 per share for the third quarter of 2020, which was prorated to reflect the period of time from the Company’s initial public offering on August 13, 2020 to quarter end, representing an annualized dividend rate of $0.80 per share |
| · | Completed a $175 million LIBOR swap to hedge floating rate exposure on the entire balance of the Company’s Term Loan at an effective rate of 21 bps |
“Our third quarter execution represents strong momentum for NETSTREIT in our first quarter as a public company. Our strong rent collections reflect the high-quality nature of our existing portfolio, and our acquisition and disposition activities further enhance those attributes by increasing our exposure to investment grade tenants, maintaining our long weighted-average remaining lease term and improving our portfolio diversification,” said Mark Manheimer, Chief Executive Officer of NETSTREIT. “In addition to our IPO, which reduced our debt and provided significant capital to fund future growth, we hedged the floating rates on our outstanding debt to reduce our interest rate risk.”
Earnings Release and Call Date and Time
The Company will release its third quarter 2020 financial results on Thursday, October 29, 2020, after the close of markets. A conference call will be held on Friday, October 30, 2020 at 10:00 AM ET. During the conference call the Company’s officers will review third quarter performance, discuss recent events, and conduct a question and answer period.
The webcast will be accessible on the “Investor Relations” section of the Company’s website at www.NETSTREIT.com. To listen to the live webcast, please go to the site at least fifteen minutes prior to the scheduled start time to register, as well as download and install any necessary audio software. A replay of the webcast will be available for 90 days on the Company’s website shortly after the call.
The conference call can also be accessed by dialing 1-877-451-6152 for domestic callers or 1-201-389-0879 for international callers. A dial-in replay will be available starting shortly after the call until November 6, 2020, which can be accessed by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13711343.
About NETSTREIT
NETSTREIT is a Real Estate Investment Trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT aims to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.
Investor Relations
972-597-4825
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