Netstreit Corp. · NYSE:NTST
Netstreit — Investor Presentation (March 2021)
28 slides from Netstreit's investor presentation, Mar 4, 2021
Slide 1: Investor Presentation March 2021
Investor Presentation March 2021
Slide 2: Disclaimer
Disclaimer 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements concerning our b
Slide 3: Company & Investment Highlights
Company & Investment Highlights 3 NETSTREIT Is Built on a Foundation of Strength on Both Sides of the Balance Sheet, Led by Seasoned Leadership Team with Exceptional Track Record High-Quality, Diversified, and Defensive Net Lease Retail Portfolio Conservative Capitalization to Support Accretive Grow
Slide 4: NETSTREIT Strategy by the Numbers
NETSTREIT STRATEGY BY THE NUMBERS1 Strategy Overview and Performance 4 Investment grade tenancy provides defensive, consistent performance through economic cycles ▪ High-quality tenancy creates bond-like leases with high rent collections during times of disruption ▪ 78% of portfolio consisted of inv
Slide 5: NTST's Stable, Defensive Cash Flow Profile Drives Superior Risk-Adjusted Returns
NTST’s Stable, Defensive Cash Flow Profile Drives Superior Risk-Adjusted Returns 5 Rent Collections Source: Company Filings, SNL Financial. 1. SRC includes only October and November 2020 collections. 2. NNN and NTST investment grade concentrations are as of 4Q20 and FCPT is as of 2Q20, all others as
Slide 6: Portfolio Overview
8.9% 8.6% 7.6% 6.5% 5.3% 4.8% 4.6% 3.2% 3.0% 2.9% Portfolio Overview 6 Sources: Company data. Portfolio data represents portfolio as of 12/31/2020. High-quality, diversified portfolio consisting of 70% investment grade tenants across 38 states Key Portfolio Stats Properties 203 States 38 Portfolio S
Slide 7: Portfolio Diversification In Defensive Retail Sectors
Convenience Stores: Discount Retail: Home Improvement: Auto Parts: Drug Stores & Pharmacies: Portfolio Diversification In Defensive Retail Sectors 7 Source: Company data. Portfolio data represents portfolio as of 12/31/2020. Note: Due to rounding, respective defensive retai l sector exposure may not
Slide 8: NTST Portfolio Transformation
Pre-144A (12/23/19) 144A to IPO IPO (8/13/20) Since IPO Current (12/31/20) Properties 93 70 163 40 203 States 28 6 34 4 38 Portfolio Size 1.4M SF 1.6M SF 3.0M SF 0.7M SF 3.7M SF ABR $17.8M $16.7M $34.5M $7.3M $41.8M Acquisition Volume – ~$264M – ~$146M – Acquisition Cap Rate – 6.6% – 6.8% – Value of
Slide 9: 2020 Quarterly Investment Activity
$74.2 $150.5 $102.6 $81.2 1Q'20 2Q'20 3Q'20 4Q'20 Completed Acquisitions New Quarterly Acquisitions 2020 Quarterly Investment Activity 9 Source: Company data. Portfolio data represents portfolio as of 12/31/2020. 1. Measured quarterly acquisition at purchase price divided by portfolio at the beginni
Slide 10: Active Asset Management
Active Asset Management 10 NETSTREIT continuously tracks property performance and stratifies the portfolio to achieve consistent cash flows and balanced growth for its investors Source: Company data. Since inception, the Company has disposed of 47 properties totaling approximately $136.3 million, wh
Slide 11: Three-Part Underwriting Philosophy
Three-Part Underwriting Philosophy 11 NETSTREIT leverages a disciplined, three-pronged approach to underwriting potential acquisitions which positions the Company to benefit from superior downside protection on its investments REAL ESTATE VALUATION UNIT-LEVEL PROFITABILITY • Review underlying key re
Slide 12: Tenant Credit Underwriting
Tenant Credit Underwriting 12 NETSTREIT employs a credit-focused underwriting strategy for all tenants – the MOST IMPORTANT element of the Company’s underwriting process that drives stable revenue and long-term return on investment Source: Company data. Portfolio data represents portfolio as of 12/3
Slide 13: Focus on Investment Grade Tenants
Focus on Investment Grade Tenants 13 Investment grade tenants have outperformed during economic downturns and largely avoided bankruptcy Sources: Capital IQ, Company data, The Deal Pipeline, Bloomberg, SNL Financial 1. Indicates best credit rating held after 1/1/2005 and date when the respective cre
Slide 14: Real Estate Valuation
Real Estate Valuation 14 Real Estate closely follows Credit as a top priority: NETSTREIT utilizes a ground-up framework rooted in real estate fundamentals to underpin its valuation and further quantify the upside potential for a transaction Market-Level Considerations Property-Level Considerations •
Slide 15: Unit-Level Profitability
Unit-Level Profitability 15 In assessing unit-level financial performance, NETSTREIT focuses on mission-critical properties with strong rent coverage and higher variability in operating costs Obtain Financial Information Perform Financial Analysis 2 Assess Investment Merits 1 3 • Provides clarity in
Slide 16: Portfolio Strategy / Investment Philosophy
Portfolio Strategy / Investment Philosophy 16 Source: Company data. Portfolio data represents portfolio as of 12/31/2020. 1. Portfolio statistics by percentage of ABR. Current MetricsInvestment Philosophy Portfolio Strategy Defensive Tenancy in Necessity-Based and E-commerce-Resistant Industries1 91
Slide 17: Growth Strategy: Generating Both Quality & Quantity
Growth Strategy: Generating Both Quality & Quantity 17 The Company utilizes a multi-faceted growth strategy to deploy capital in a variety of investment structures in the Net Lease Retail sector, allowing it greater flexibility to build its portfolio from a larger opportunity set Investment Type Des
Slide 18: Acquisition Case Study: Walmart Supercenter and Sam's Club – Tupelo, MS
Acquisition Case Study: Investment Grade (rated) 18 Walmart Supercenter and Sam’s Club – Tupelo, MS Sources: S&P Global Market Intelligence, Company data. Market data as of 3/4/2021. 1. Represents the twelve months ended 1/31/2021. 2. Reflects long-term debt outstanding as of 1/31/2021. Recession Pr
Slide 19: Acquisition Case Study: Floor & Decor – La Quinta, CA
Acquisition Case Study: Sub-Investment Grade (rated) 19 Floor & Decor – La Quinta, CA Sources: S&P Global Market Intelligence, Company data. Market data as of 3/4/2021. 1. Represents the twelve months ended 12/31/2020 2. Reflects long-term debt as of 12/312020 E-Commerce Resistant Tenant at Attracti
Slide 20: Acquisition Case Study: Target – Kingston, MA
Acquisition Case Study: Investment Grade (rated) 20 Target – Kingston, MA Sources: S&P Global Market Intelligence, Company data. Market data as of 3/4/2021. 1. Represents the twelve months ended 01/30/2021 2. Reflects long-term debt as of 1/30/2021 3. Nielsen estimates Strong-Performing Location wit
Slide 21: Acquisition/Disposition Case Study: 7-Eleven – Texas
Acquisition/Disposition Case Study: Investment Grade (rated) 21 7-Eleven – Texas Sources: Company data. Portfolio Execution with Subsequent Accretive Dispositions to Reduce Exposure • Example of platform’s ability to acquire large, high quality portfolios, and selectively exit assets in the acquired
Slide 22: Senior Leadership
Senior Leadership 22 Source: Company data. 1. First Potomac Realty Trust was publicly traded on the NYSE until October 2017. Seasoned leadership team with significant net lease retail and public company experience Mark Manheimer President, CEO & Director Mr. Manheimer leads the overall strategy, acq
Slide 23: Key Personnel
Key Personnel 23 Source: Company data. 1. First Potomac Realty Trust was publicly traded on the NYSE until October 2017. Experienced team of professionals drive NETSTREIT’s day to day operations Jeff Fuge Senior Vice President, Acquisitions • Joined in December 2019 • Prior experience includes: – Di
Slide 24: Corporate Responsibility
Corporate Responsibility 24 ▪ Dedication to reducing the Company’s ecological footprint ▪ Endorsement of renewable resources and encouragement of tenants to practice leading sustainability initiatives ▪ Implementation of energy conservation practices in the office E Environmental Responsibility ▪ Em
Slide 25: Board of Directors
Board of Directors Lead Independent Director ▪ Compensation Committee Chair ▪ Investment Committee Chair ▪ Audit Committee Member Background ▪ Formerly AEW Capital Management, Head of AEW Real Estate Securities ▪ Formerly Landmark Land Company, VP Matt Troxell, CFA Independent Director ▪ Audit Commi
Slide 26: Company & Investment Highlights
Company & Investment Highlights 26 NETSTREIT Is A Growth Company With A Defensive Net Lease Retail Strategy High-Quality, Diversified, and Defensive Net Lease Retail Portfolio Conservative Capitalization to Support Accretive Growth Active Asset Management to Achieve Optimal Portfolio Performance Dis
Slide 27: Definitions
Definitions 27 ABR means annualized base rent. ABR is calculated by multiplying (i) cash rental payments (a) for the month ended December 31, 2020 (or, if applicable, the next full month's cash rent contractually due in the case of rent abatements, rent deferrals, recently acquired properties and pr
Slide 28: Investor Relations
28 Investor Relations ir@netstreit.com 972-597-4825