Item 9A. Controls and Procedures
Item 9A. Controls and Procedures
Disclosure Controls and Procedures. At the end of the period covered by this report, the Company conducted an evaluation, under the supervision and with the participation of its principal executive officer and principal financial officer, of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that its disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.
Management’s Annual Report on Internal Control Over Financial Reporting. This annual report does not include a report of management's assessment regarding internal control over financial reporting or an attestation report of the Company's registered public accounting firm due to a transition period established by rules of the Securities and Exchange Commission for newly public companies.
Changes in Internal Control over Financial Reporting. During the period covered by this report, there have been no changes in our internal control over financial reporting identified in connection with the evaluation described above that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information
On March 3, 2021, the Compensation Committee (the “Committee”) of the Board of Directors of the Company adopted an Alignment of Interest Program (the “Program”) pursuant to the NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan (the “Omnibus Plan”).
The Program allows individuals who are eligible to receive awards under the Omnibus Plan, as selected by the Committee from time to time, to elect to receive restricted stock units (“RSUs”) under the Omnibus Plan in lieu of a specified percentage of cash
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compensation. The amount of compensation that a participant elects to reduce will be applied to the issuance of an award of RSUs under the Omnibus Plan (the “Alignment RSUs”), and the participant will receive an additional award of RSUs under the Omnibus Plan based upon a multiple of the Alignment RSUs (the “Vesting Multiple”) that corresponds to the length of the vesting period selected by the participant (the “Additional RSUs,” and collectively with the Alignment RSUs, the “Awarded RSUs”). The number of Alignment RSUs will be determined as of the second business day following the release of the Company’s fourth quarter earnings for the most recently completed fiscal year, or, if such date is not a trading day, then the trading day immediately following such date, and the Awarded RSUs will be granted to a participant as soon as administratively feasible following such date.
The Committee will determine the minimum and maximum percentage of each compensation type that may be reduced and applied to Alignment RSUs, the lengths of the vesting periods and the corresponding Vesting Multiples that may apply under the Program. Currently, participants may elect to receive Alignment RSUs in lieu of 10%, 25% or 50% of short-term incentive compensation that is earned with respect to a fiscal year, with the number of Additional RSUs being determined by application of a Vesting Multiple of 0.25x. Awarded RSUs will vest over three years, in substantially equal annual installments, generally subject to continued provision of services. As set forth in the form of RSU agreement governing the Awarded RSUs (the “Form of Alignment of Interest RSU Agreement”), the event of a termination by the Company without “cause” or a resignation for “good reason” (each as defined in the Omnibus Plan), the Awarded RSUs will immediately vest in full.
Mark Manheimer, the Company’s President and Chief Executive Officer, and Andy Blocher, the Company’s Chief Financial Officer and Treasurer, along with certain other selected employees of the Company, are eligible to participate in the Program. Each of Messrs. Manheimer and Blocher have elected to receive Alignment RSUs in lieu of 50% of their short-term incentive compensation with respect to the Company’s 2020 fiscal year.
The foregoing descriptions of the Program and the Form of Alignment of Interest RSU Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of the Program and the Form of Alignment of Interest RSU Agreement, each of which are filed herewith as Exhibits 10.15 and 10.16, respectively.
PART III
Item 10. Directors. Executive Officers and Corporate Governance
The information required by this item will be included in our definitive Proxy Statement for the 2021 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference. The Annual Meeting of Stockholders is presently scheduled to be held on May 19, 2021.
Item 11. Executive Compensation
The information required by this item will be included in our definitive Proxy Statement for the 2021 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Equity Compensation Plan Information
Except as set forth herein, the information required by Item 12 is incorporated by reference herein to the Proxy Statement section entitled "Directors and Corporate Governance - Security Ownership of Certain Beneficial Owners, Directors and Management."
The following table summarizes the equity compensation plan under which our common stock may be issued as of December 31, 2020:
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Plan Category Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights
(a) 2
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
(b) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (a))
(c)
Equity compensation plans approved by security holders 1
377,596 $ — 1,682,780
Equity compensation plans not approved by security holders — — —
Total 377,596 $ — 1,682,780
1 Relates to restricted stock units (“RSUs”) available for issuance under our 2019 Omnibus Incentive Compensation Plan.
2 Includes 377,596 shares that employees and non-employee directors have the right to acquire upon the vesting of the equivalent RSUs that they have been awarded under our 2019 Omnibus Incentive Compensation Plan.
The other information required by this item will be included in our definitive Proxy Statement for the 2021 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this item will be included in our definitive Proxy Statement for the 2021 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.
Item 14. Principal Accountant Fees and Services
The information required by this item will be included in our definitive Proxy Statement for the 2021 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.
PART IV
Item 15. Exhibit and Financial Statement Schedules
15(a)(1) The following documents are filed as a part of this Annual Report on Form 10-K:
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets as of December 31, 2020 and 2019
Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2020 and 2019
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2020 and 2019
Consolidated Statements of Cash Flows for the Years Ended December 31, 2020 and 2019
Notes to the Consolidated Financial Statements
15(a)(2) The following is a list of the financial statement schedules required by Item 8:
Schedule III - Real Estate and Accumulated Depreciation
15(a)(3) Exhibits
Exhibit No. Description
3.1 Articles of Amendment and Restatement of NETSTREIT Corp. (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
3.2 Articles of Amendment of NETSTREIT Corp. (incorporated by reference to Exhibit 3.3 to the Registrant's Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
3.3 Articles Supplementary of NETSTREIT Corp. (incorporated by reference to Exhibit 3.2 to the Registrant's Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
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3.4 Articles Supplementary of NETSTREIT Corp. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on August 21, 2020).
3.5 Amended and Restated Bylaws of NETSTREIT Corp. (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed on August 21, 2020).
4.1* Description of NETSTREIT Corp.’s Securities.
4.2* Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-11 (File No. 333-23991) filed on July 17, 2020.
10.1 Amended and Restated Agreement of Limited Partnership of NETSTREIT, L.P. (incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.2 Registration Rights Agreement, dated December 23, 2019, by and between NETSTREIT Corp. and Stifel, Nicolaus & Company, Incorporated (incorporated by reference to Exhibit 10.2 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.3 Registration Rights Agreement, dated December 23, 2019, by and among NETSTREIT Corp., NETSTREIT, L.P. and the continuing investors party thereto (incorporated by reference to Exhibit 10.3 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.4† Form of Indemnification Agreement between NETSTREIT Corp. and each of its directors and executive officers (incorporated by reference to Exhibit 10.4 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.5† Employment Agreement, dated December 23, 2019, between NETSTREIT Management, LLC (f/k/a EBA EverSTAR Management, LLC) and Mark Manheimer (incorporated by reference to Exhibit 10.5 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.6† Employment Agreement, dated January 6, 2020, between NETSTREIT Management, LLC (f/k/a EBA EverSTAR Management, LLC) and Andrew Blocher (incorporated by reference to Exhibit 10.6 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.7† NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan (incorporated by reference to Exhibit 10.7 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.8† Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan Pre-Initial Public Offering Non-Employee Director Restricted Stock Unit Grant Agreement (incorporated by reference to Exhibit 10.8 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.9† Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan Pre-Initial Public Offering Employee Restricted Stock Unit Grant Agreement (incorporated by reference to Exhibit 10.9 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.10† Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan Post-Initial Public Offering Non-Employee Director Restricted Stock Unit Grant Agreement (incorporated by reference to Exhibit 10.10 to Amendment No. 1 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on August 5, 2020).
10.11†* Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan Post-Initial Public Offering Employee Restricted Stock Unit Grant Agreement.
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10.12 Tax Protection Agreement, dated December 23, 2019, by and among NETSTREIT Corp., NETSTREIT, L.P., Hillview Way, LLC and Mayfield Road Group, LLC (incorporated by reference to Exhibit 10.12 to Amendment No. 1 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on August 5, 2020).
10.13 Facilities Agreement, dated December 23, 2019, by and between EBA OpCO, LLC and NETSTREIT Corp. (incorporated by reference to Exhibit 10.11 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
10.14# Conformed Credit Agreement, dated December 23, 2019, by and among NETSTREIT, L.P., NETSTREIT Corp., the financial institutions party thereto, Wells Fargo Bank, National Association, KeyBank National Association and Capital One, National Association, Trust Bank, Bank of Montreal, U.S. Bank National Association, PNC Bank, National Association and Regions Bank (incorporated by reference to Exhibit 10.14 to Amendment No. 1 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on August 5, 2020).
10.15†* NETSTREIT Corp. Alignment of Interest Program under the 2019 Omnibus Incentive Compensation Plan.
10.16†* Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan (Alignment of Interest Program) Restricted Stock Unit Grant Agreement.
21.1 List of Subsidiaries of NETSTREIT Corp. (incorporated by reference to Exhibit 21.1 to the Registrant’s Registration Statement on Form S-11 (File No. 333-239911) filed on July 17, 2020).
23.1* Consent of KPMG LLP.
24.1* Power of Attorney (included on Signature Page).
31.1* Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2* Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1* Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2* Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS** XBRL Instance Document.
101.SCH** XBRL Taxonomy Extension Schema Document.
101.CAL** XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB** XBRL Taxonomy Extension Label Linkbase Document.
101.PRE** XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF** XBRL Taxonomy Extension Definition Linkbase Document.
* Filed herewith.
** Submitted electronically with the report.
†
Management contract or compensatory plan or arrangement.
# Certain of the exhibits and schedules to this exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.
Item 16. Form 10-K Summary
None.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NETSTREIT Corp.
Signature and Title Date
/s/ MARK MANHEIMER Date: March 4, 2021
Mark Manheimer
President, Chief Executive Officer and Director
(Principal Executive Officer)
POWER OF ATTORNEY
Each person whose signature appears below constitutes and appoints each of Mark Manheimer and Andrew Blocher, acting alone or together with another attorney-in-fact, as his or her true and lawful attorney-in- fact and agent, with full power of substitution and resubstitution, for such person and in his or her name, place and stead, in any and all capacities, to sign any or all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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/s/ MARK MANHEIMER Date: March 4, 2021
Mark Manheimer
President, Chief Executive Officer and Director
(Principal Executive Officer)
/s/ ANDREW BLOCHER Date: March 4, 2021
Andrew Blocher
Chief Financial Officer, Treasurer and Secretary
(Principal Financial Officer)
/s/ PATRICIA MCBRATNEY Date: March 4, 2021
Patricia McBratney
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)
/s/ TODD MINNIS Date: March 4, 2021
Todd Minnis
Chairman of the Board of Directors
/s/ MATTHEW TROXELL Date: March 4, 2021
Matthew Troxell
Director
/s/ LORI WITTMAN Date: March 4, 2021
Lori Wittman
Director
/s/ ROBIN ZEIGLER Date: March 4, 2021
Robin Zeigler
Director
/s/ HEIDI EVERETT Date: March 4, 2021
Heidi Everett
Director
/s/ MICHAEL CHRISTODOLOU Date: March 4, 2021
Michael Christodolou
Director
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NETSREIT Corp.
Schedule III - Real Estate and Accumulated Depreciation
December 31, 2020
(Dollars in thousands)
Description Initial Cost to Company Gross Amount as of December 31, 2020 1, 4, 5
Industry City State Encumbrances Land Building and Improvements Cost Capitalized Subsequent to Acquisition Land Building and Improvements Total Accumulated Depreciation 2, 6
Date of Construction Date Acquired 3
Life on Which Depreciation in Statements of Operations and Comprehensive Income (Loss) is Computed
Apparel Indianola IA $ — $ 312 $ 686 $ — $ 312 $ 686 $ 998 $ ( 32 ) 2013 12/23/2019 6 to 31 Years
Apparel Laredo TX — 590 1,207 — 590 1,207 1,797 ( 51 ) 2010 12/23/2019 6 to 32 Years
Apparel Odessa TX — 599 1,086 — 599 1,086 1,686 ( 45 ) 2012 12/23/2019 6 to 32 Years
Apparel Rio Grande City TX — 640 831 — 640 831 1,471 ( 39 ) 2005 12/23/2019 6 to 28 Years
Auto Parts Harrisonville MO — 412 1,118 — 412 1,118 1,530 ( 41 ) 2013 12/23/2019 9 to 32 Years
Auto Parts New Richmond WI — 67 1,191 — 67 1,191 1,258 ( 43 ) 2013 12/23/2019 9 to 32 Years
Automotive Services Colorado Springs CO — 429 1,056 — 429 1,056 1,485 ( 61 ) 1978 12/23/2019 10 to 19 Years
Banking Atco NJ — 780 570 — 780 570 1,350 ( 33 ) 1990 12/23/2019 9 to 18 Years
Banking Atco NJ — 686 1,941 — 686 1,941 2,627 ( 92 ) 1920 12/23/2019 9 to 22 Years
Banking Richwood NJ — 787 766 — 787 766 1,553 ( 37 ) 1970 12/23/2019 9 to 22 Years
Banking Vineland NJ — 620 270 — 620 270 890 ( 22 ) 1973 12/23/2019 9 to 15 Years
Banking Elizabethtown PA — 1,264 1,486 — 1,264 1,486 2,750 ( 71 ) 1916 12/23/2019 9 to 22 Years
Casual Dining Greensburg IN — 924 1,521 — 924 1,521 2,445 ( 57 ) 2007 12/23/2019 8 to 32 Years
Casual Dining Wichita KS — 1,013 1,152 — 1,013 1,152 2,165 ( 43 ) 2016 12/23/2019 12 to 32 Years
Casual Dining Marquette MI — 163 931 — 163 931 1,095 ( 39 ) 2010 12/23/2019 5 to 30 Years
Discount Retail Holland MI — 1,865 4,833 — 1,865 4,833 6,698 ( 223 ) 1994 12/23/2019 6 to 26 Years
Discount Retail St. Joseph MO — 1,956 5,494 — 1,956 5,494 7,450 ( 257 ) 2005 12/23/2019 6 to 26 Years
Dollar Stores Deltona FL — 335 937 — 335 937 1,272 ( 36 ) 2011 12/23/2019 8 to 33 Years
Dollar Stores Lake City IA — 250 848 — 250 848 1,099 ( 33 ) 2016 12/23/2019 12 to 32 Years
Dollar Stores Strawberry Point IA — 304 852 — 304 852 1,156 ( 33 ) 2016 12/23/2019 12 to 32 Years
Dollar Stores Indianapolis IN — 392 611 — 392 611 1,003 ( 33 ) 2013 12/23/2019 4 to 26 Years
Dollar Stores Brookfield MA — 468 1,149 — 468 1,149 1,617 ( 43 ) 2014 12/23/2019 9 to 33 Years
Dollar Stores Belgrade MN — 414 746 — 414 746 1,159 ( 34 ) 2016 12/23/2019 12 to 27 Years
Dollar Stores Bogue Chitto MS — 105 963 — 105 963 1,068 ( 36 ) 2013 12/23/2019 9 to 33 Years
Dollar Stores Buckatunna MS — 136 938 — 136 938 1,074 ( 35 ) 2014 12/23/2019 10 to 33 Years
Dollar Stores Hurley MS — 246 1,249 — 246 1,249 1,495 ( 48 ) 2013 12/23/2019 9 to 33 Years
Dollar Stores Meridian MS — 287 940 — 287 940 1,228 ( 35 ) 2014 12/23/2019 10 to 33 Years
Dollar Stores Birmingham OH — 210 939 — 210 939 1,149 ( 37 ) 2013 12/23/2019 9 to 32 Years
Dollar Stores McComb OH — 209 868 — 209 868 1,078 ( 34 ) 2013 12/23/2019 9 to 32 Years
Dollar Stores Windham OH — 332 834 — 332 834 1,166 ( 34 ) 2013 12/23/2019 9 to 31 Years
Dollar Stores Norman OK — 417 836 — 417 836 1,252 ( 33 ) 2013 12/23/2019 9 to 33 Years
Dollar Stores Friedens PA — 311 931 — 311 931 1,242 ( 37 ) 2014 12/23/2019 10 to 30 Years
Dollar Stores Cleveland TX — 209 809 — 209 809 1,017 ( 31 ) 2014 12/23/2019 10 to 33 Years
Dollar Stores Houston TX — 567 735 — 567 735 1,302 ( 32 ) 2012 12/23/2019 4 to 33 Years
Dollar Stores Houston TX — 278 534 — 278 534 812 ( 32 ) 2004 12/23/2019 4 to 23 Years
Dollar Stores Fox Lake WI — 212 882 — 212 882 1,094 ( 32 ) 2018 12/23/2019 14 to 34 Years
Drug Stores & Pharmacies Clanton AL — 630 1,604 — 630 1,604 2,234 ( 59 ) 2004 12/23/2019 10 to 31 Years
Drug Stores & Pharmacies Montgomery AL — 1,150 1,932 — 1,150 1,932 3,081 ( 69 ) 2004 12/23/2019 15 to 31 Years
Drug Stores & Pharmacies Warrior AL — 369 1,640 — 369 1,640 2,009 ( 59 ) 2004 12/23/2019 15 to 31 Years
Drug Stores & Pharmacies Canton GA — 658 1,789 — 658 1,789 2,447 ( 71 ) 2004 12/23/2019 15 to 27 Years
Drug Stores & Pharmacies Savannah GA — 1,746 1,651 — 1,746 1,651 3,397 ( 58 ) 1998 12/23/2019 14 to 31 Years
Drug Stores & Pharmacies Hanover IN — 727 1,076 — 727 1,076 1,803 ( 52 ) 2004 12/23/2019 15 to 22 Years
Drug Stores & Pharmacies Indianapolis IN — 2,410 2,377 — 2,410 2,377 4,787 ( 91 ) 2003 12/23/2019 9 to 29 Years
Drug Stores & Pharmacies Waterford Charter Township MI — 3,256 2,152 — 3,256 2,152 5,408 ( 85 ) 2004 12/23/2019 15 to 27 Years
Drug Stores & Pharmacies Austin MN — 1,121 2,451 — 1,121 2,451 3,572 ( 99 ) 1989 12/23/2019 10 to 27 Years
Drug Stores & Pharmacies Albuquerque NM — 3,744 3,019 — 3,744 3,019 6,763 ( 101 ) 2010 12/23/2019 15 to 33 Years
Drug Stores & Pharmacies Amelia OH — 1,170 1,517 — 1,170 1,517 2,687 ( 71 ) 1999 12/23/2019 10 to 23 Years
Drug Stores & Pharmacies Franklin TN — 2,164 1,848 — 2,164 1,848 4,013 ( 66 ) 2004 12/23/2019 10 to 31 Years
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Description Initial Cost to Company Gross Amount as of December 31, 2020 1, 4, 5
Industry City State Encumbrances Land Building and Improvements Cost Capitalized Subsequent to Acquisition Land Building and Improvements Total Accumulated Depreciation 2, 6
Date of Construction Date Acquired 3
Life on Which Depreciation in Statements of Operations and Comprehensive Income (Loss) is Computed
Drug Stores & Pharmacies Fredericksburg VA — 3,551 2,951 — 3,551 2,951 6,502 ( 98 ) 2008 12/23/2019 14 to 33 Years
Drug Stores & Pharmacies Hurricane WV — 956 1,139 — 956 1,139 2,095 ( 55 ) 2004 12/23/2019 15 to 22 Years
Equipment Rental and Leasing Idaho Falls ID — 177 856 — 177 856 1,033 ( 42 ) 2007 12/23/2019 6 to 26 Years
Farm Supplies Ottawa OH — 409 2,031 — 409 2,031 2,440 ( 77 ) 2017 12/23/2019 13 to 34 Years
Farm Supplies Wellington OH — 308 1,986 — 308 1,986 2,294 ( 75 ) 2017 12/23/2019 13 to 34 Years
Farm Supplies Llano TX — 634 1,389 — 634 1,389 2,024 ( 73 ) 2012 12/23/2019 6 to 28 Years
Farm Supplies Ballard UT — 519 2,609 — 519 2,609 3,128 ( 100 ) 2015 12/23/2019 10 to 32 Years
Furniture Stores Jacksonville FL — 1,087 2,723 — 1,087 2,723 3,810 ( 97 ) 1995 12/23/2019 9 to 32 Years
Furniture Stores College Station TX — 1,561 4,626 — 1,561 4,626 6,188 ( 172 ) 2006 12/23/2019 9 to 31 Years
Gift, Novelty, and Souvenir Shops Little Rock AR — 560 1,788 — 560 1,788 2,348 ( 59 ) 2012 12/23/2019 11 to 34 Years
Grocery Memphis TN — 1,864 2,958 — 1,864 2,958 4,822 ( 181 ) 1987 12/23/2019 8 to 18 Years
Home Furnishings Smyrna TN — 454 1,029 — 454 1,029 1,483 ( 36 ) 2011 12/23/2019 9 to 34 Years
Home Improvement Pagosa Springs CO — 324 1,364 — 324 1,364 1,688 ( 47 ) 2009 12/23/2019 4 to 33 Years
Home Improvement Macon GA — 1,861 8,377 — 1,861 8,377 10,238 ( 388 ) 1997 12/23/2019 7 to 25 Years
Home Improvement Lexington NC — 2,991 4,172 — 2,991 4,172 7,163 ( 308 ) 1997 12/23/2019 6 to 15 Years
Home Improvement Aiken SC — 908 2,083 — 908 2,083 2,991 ( 79 ) 2016 12/23/2019 7 to 33 Years
Home Improvement Indian Land SC — 468 695 — 468 695 1,163 ( 27 ) 2007 12/23/2019 6 to 31 Years
Home Improvement Spartanburg SC — 329 464 — 329 464 793 ( 21 ) 1994 12/23/2019 6 to 26 Years
Home Improvement Chattanooga TN — 1,789 2,007 — 1,789 2,007 3,796 ( 91 ) 2000 12/23/2019 7 to 28 Years
Home Improvement Franklin VA — 250 732 — 250 732 982 ( 38 ) 1998 12/23/2019 6 to 22 Years
Quick Service Restaurants Birmingham AL — 686 996 — 686 996 1,682 ( 37 ) 1992 12/23/2019 15 to 30 Years
Quick Service Restaurants Hueytown AL — 1,019 1,011 — 1,019 1,011 2,030 ( 37 ) 2007 12/23/2019 15 to 30 Years
Quick Service Restaurants Phenix City AL — 727 800 — 727 800 1,528 ( 27 ) 2017 12/23/2019 15 to 34 Years
Quick Service Restaurants Red Bay AL — 931 1,154 — 931 1,154 2,085 ( 40 ) 2012 12/23/2019 15 to 33 Years
Quick Service Restaurants Snead AL — 1,271 781 — 1,271 781 2,052 ( 32 ) 1997 12/23/2019 15 to 26 Years
Quick Service Restaurants Grovetown GA — 1,005 1,232 — 1,005 1,232 2,236 ( 42 ) 2013 12/23/2019 14 to 32 Years
Quick Service Restaurants Junction City KS — 473 840 — 473 840 1,313 ( 36 ) 1986 12/23/2019 15 to 25 Years
Quick Service Restaurants Marshall MN — 440 908 — 440 908 1,349 ( 32 ) 2016 12/23/2019 6 to 33 Years
Quick Service Restaurants Sedalia MO — 750 774 — 750 774 1,523 ( 28 ) 2007 12/23/2019 7 to 30 Years
Quick Service Restaurants Jackson MS — 728 577 — 728 577 1,305 ( 25 ) 1978 12/23/2019 15 to 25 Years
Quick Service Restaurants Shawnee OK — 712 684 — 712 684 1,396 ( 25 ) 2006 12/23/2019 7 to 30 Years
Home Improvement Sioux City IA — 253 796 — 253 796 1,048 ( 34 ) 2000 12/31/2019 15 to 24 Years
Discount Retail Flint MI — 554 4,982 — 554 4,982 5,536 ( 142 ) 1996 1/7/2020 8 to 35 Years
Convenience Stores Little Rock AR — 705 174 1,590 705 1,764 2,470 ( 2 ) 1962 1/14/2020 15 to 35 Years
Quick Service Restaurants Wood River IL — 1,707 — — 1,707 — 1,707 — 2006 1/24/2020
Arts & Crafts Hamilton OH — 1,571 5,005 — 1,571 5,005 6,576 ( 143 ) 2015 1/27/2020 11 to 35 Years
Quick Service Restaurants Fort Smith AR — 1,989 2,345 — 1,989 2,345 4,334 ( 79 ) 2019 1/31/2020 14 to 34 Years
Automotive Services Oswego IL — 2,417 1,209 — 2,417 1,209 3,626 ( 46 ) 2008 2/3/2020 7 to 35 Years
Grocery Meyersdale PA — 1,449 3,348 — 1,449 3,348 4,798 ( 121 ) 2010 2/4/2020 10 to 30 Years
Home Improvement Paintsville KY — 7,712 — — 7,712 — 7,712 — 1992 2/4/2020
Casual Dining Brandon MS — 903 1,793 — 903 1,793 2,696 ( 64 ) 1997 2/5/2020 9 to 35 Years
Automotive Services Prattville AL — 305 352 — 305 352 657 ( 16 ) 1998 2/10/2020 6 to 25 Years
Automotive Services Crawfordville FL — 322 537 — 322 537 860 ( 18 ) 1998 2/10/2020 10 to 34 Years
Automotive Services Live Oak FL — 474 589 — 474 589 1,063 ( 19 ) 2000 2/10/2020 14 to 35 Years
Automotive Services Quincy FL — 419 587 — 419 587 1,006 ( 19 ) 1989 2/10/2020 11 to 34 Years
Automotive Services Merrill WI — 189 307 — 189 307 496 ( 14 ) 1992 2/10/2020 9 to 22 Years
Automotive Services New London WI — 301 448 — 301 448 750 ( 22 ) 1998 2/10/2020 6 to 20 Years
Automotive Services Wisconsin Rapids WI — 488 488 — 488 488 976 ( 14 ) 1985 2/10/2020 13 to 35 Years
Quick Service Restaurants McKinney TX — 1,573 1,941 — 1,573 1,941 3,514 ( 59 ) 2017 3/19/2020 14 to 33 Years
Home Improvement Buckhannon WV — 358 1,262 — 358 1,262 1,619 ( 42 ) 2018 3/23/2020 8 to 35 Years
Discount Retail Tucson AZ — 2,784 2,664 — 2,784 2,664 5,448 ( 118 ) 1987 3/26/2020 11 to 20 Years
Discount Retail Augusta GA — 1,569 2,202 — 1,569 2,202 3,771 ( 94 ) 1985 3/26/2020 10 to 20 Years
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Description Initial Cost to Company Gross Amount as of December 31, 2020 1, 4, 5
Industry City State Encumbrances Land Building and Improvements Cost Capitalized Subsequent to Acquisition Land Building and Improvements Total Accumulated Depreciation 2, 6
Date of Construction Date Acquired 3
Life on Which Depreciation in Statements of Operations and Comprehensive Income (Loss) is Computed
Discount Retail Mishawaka IN — 382 4,697 — 382 4,697 5,079 ( 110 ) 1985 3/26/2020 10 to 35 Years
Discount Retail Longview TX — 703 2,490 — 703 2,490 3,193 ( 79 ) 1994 3/26/2020 10 to 30 Years
Convenience Stores North Little Rock AR — 1,283 1,043 835 1,283 1,878 3,161 ( 42 ) 1989 4/3/2020 3 to 35 Years
Discount Retail Tupelo MS — 992 1,986 — 992 1,986 2,979 ( 73 ) 1994 4/3/2020 4 to 30 Years
Auto Parts Roswell NM — 151 1,136 — 151 1,136 1,287 ( 27 ) 1960 4/13/2020 8 to 35 Years
Discount Retail Waco TX — 1,403 2,613 — 1,403 2,613 4,016 ( 84 ) 1986 4/17/2020 4 to 30 Years
Dollar Stores Baltimore MD — 380 1,746 — 380 1,746 2,127 ( 36 ) 1945 5/6/2020 10 to 35 Years
General Retail Newark NY — 593 7,635 — 593 7,635 8,227 ( 368 ) 1991 5/6/2020 3 to 20 Years
General Retail Riverdale GA — 2,601 10,179 — 2,601 10,179 12,780 ( 364 ) 1995 5/8/2020 6 to 21 Years
Dollar Stores Chicago IL — 424 982 — 424 982 1,406 ( 22 ) 1944 5/20/2020 11 to 30 Years
Discount Retail College Station TX — 819 1,756 — 819 1,756 2,575 ( 61 ) 1993 6/8/2020 8 to 23 Years
Convenience Stores Brownsboro TX — 1,170 2,020 — 1,170 2,020 3,190 ( 39 ) 1999 6/15/2020 15 to 35 Years
Convenience Stores Chandler TX — 1,732 4,813 — 1,732 4,813 6,545 ( 99 ) 2013 6/15/2020 8 to 35 Years
Convenience Stores Chandler TX — 1,176 2,216 — 1,176 2,216 3,391 ( 52 ) 1993 6/15/2020 6 to 35 Years
Convenience Stores Chandler TX — 1,839 1,771 — 1,839 1,771 3,610 ( 40 ) 1987 6/15/2020 7 to 35 Years
Convenience Stores Grand Saline TX — 829 1,807 — 829 1,807 2,637 ( 34 ) 1990 6/15/2020 15 to 35 Years
Convenience Stores Lindale TX — 1,343 3,018 — 1,343 3,018 4,362 ( 58 ) 2011 6/15/2020 15 to 35 Years
Convenience Stores Lindale TX — 1,875 3,176 — 1,875 3,176 5,051 ( 61 ) 2005 6/15/2020 15 to 35 Years
Convenience Stores Mineola TX — 679 1,399 — 679 1,399 2,078 ( 30 ) 1995 6/15/2020 15 to 35 Years
Convenience Stores Tyler TX — 2,646 3,218 — 2,646 3,218 5,864 ( 63 ) 2009 6/15/2020 15 to 35 Years
Convenience Stores Tyler TX — 2,435 5,713 — 2,435 5,713 8,148 ( 122 ) 2008 6/15/2020 8 to 35 Years
Convenience Stores Tyler TX — 798 1,283 — 798 1,283 2,081 ( 25 ) 1990 6/15/2020 15 to 35 Years
Convenience Stores Tyler TX — 887 1,361 — 887 1,361 2,247 ( 25 ) 1990 6/15/2020 15 to 35 Years
Convenience Stores Tyler TX — 550 1,186 — 550 1,186 1,736 ( 23 ) 1994 6/15/2020 15 to 35 Years
Convenience Stores Tyler TX — 3,415 1,647 — 3,415 1,647 5,062 ( 34 ) 1984 6/15/2020 15 to 35 Years
Convenience Stores Whitehouse TX — 556 1,342 — 556 1,342 1,898 ( 33 ) 1989 6/15/2020 7 to 35 Years
Healthcare Jacksonville FL — 1,175 2,666 — 1,175 2,666 3,841 ( 57 ) 2016 6/19/2020 10 to 35 Years
Healthcare Jacksonville FL — 1,427 3,504 — 1,427 3,504 4,931 ( 72 ) 2016 6/19/2020 10 to 35 Years
Home Improvement La Quinta CA — 2,616 5,785 — 2,616 5,785 8,401 ( 195 ) 2005 6/19/2020 10 to 20 Years
Auto Parts Fort Pierce FL — 217 934 — 217 934 1,151 ( 21 ) 1997 6/29/2020 10 to 35 Years
Auto Parts Lakeland FL — 408 1,005 — 408 1,005 1,412 ( 22 ) 1999 6/29/2020 10 to 35 Years
Auto Parts Orlando FL — 746 672 — 746 672 1,419 ( 18 ) 1999 6/29/2020 9 to 33 Years
Auto Parts Titusville FL — 990 586 — 990 586 1,576 ( 16 ) 1998 6/29/2020 9 to 35 Years
Auto Parts Brunswick GA — 540 848 — 540 848 1,389 ( 20 ) 2000 6/29/2020 9 to 35 Years
Auto Parts Claxton GA — 95 877 — 95 877 972 ( 17 ) 1999 6/29/2020 10 to 35 Years
Auto Parts Griffin GA — 255 851 — 255 851 1,106 ( 19 ) 1999 6/29/2020 9 to 35 Years
Auto Parts West Peoria IL — 179 711 — 179 711 890 ( 19 ) 1995 6/29/2020 6 to 31 Years
Auto Parts Gonzales LA — 557 698 — 557 698 1,255 ( 15 ) 2000 6/29/2020 7 to 35 Years
Auto Parts Breckenridge Hills MO — 94 878 — 94 878 972 ( 16 ) 1999 6/29/2020 9 to 35 Years
Auto Parts St. Louis MO — 271 970 — 271 970 1,241 ( 23 ) 1998 6/29/2020 9 to 35 Years
Auto Parts Bay St. Louis MS — 376 684 — 376 684 1,060 ( 16 ) 1999 6/29/2020 8 to 35 Years
Auto Parts Brookhaven MS — 143 893 — 143 893 1,036 ( 17 ) 1998 6/29/2020 9 to 35 Years
Auto Parts Laurel MS — 147 1,026 — 147 1,026 1,173 ( 19 ) 1998 6/29/2020 9 to 35 Years
Auto Parts Penn Hills PA — 297 631 — 297 631 927 ( 19 ) 1995 6/29/2020 8 to 29 Years
General Retail Tupelo MS — 2,955 7,341 — 2,955 7,341 10,296 ( 235 ) 1992 7/2/2020 6 to 20 Years
Grocery Tupelo MS — 2,233 4,460 — 2,233 4,460 6,692 ( 137 ) 1992 7/2/2020 6 to 20 Years
Home Improvement Orland Park IL — 6,155 8,729 — 6,155 8,729 14,884 ( 224 ) 1993 7/2/2020 7 to 21 Years
Auto Parts Barton VT — 111 395 — 111 395 506 ( 10 ) 1890 8/28/2020 6 to 20 Years
Automotive Services Colebrook NH — 193 524 — 193 524 717 ( 12 ) 1984 8/28/2020 7 to 21 Years
Automotive Services Lancaster NH — 159 334 — 159 334 493 ( 8 ) 1970 8/28/2020 6 to 20 Years
Automotive Services Newport NH — 141 431 — 141 431 572 ( 13 ) 1979 8/28/2020 5 to 17 Years
Automotive Services Bradford VT — 114 373 — 114 373 486 ( 9 ) 1973 8/28/2020 8 to 20 Years
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Description Initial Cost to Company Gross Amount as of December 31, 2020 1, 4, 5
Industry City State Encumbrances Land Building and Improvements Cost Capitalized Subsequent to Acquisition Land Building and Improvements Total Accumulated Depreciation 2, 6
Date of Construction Date Acquired 3
Life on Which Depreciation in Statements of Operations and Comprehensive Income (Loss) is Computed
Automotive Services Morristown VT — 187 661 — 187 661 848 ( 12 ) 1962 8/28/2020 6 to 25 Years
Automotive Services St. Albans VT — 161 459 — 161 459 620 ( 10 ) 1999 8/28/2020 7 to 24 Years
Home Improvement Salem VA — 4,615 16,885 — 4,615 16,885 21,500 ( 197 ) 2010 9/14/2020 10 to 33 Years
Dollar Stores Little Rock AR — 391 740 — 391 740 1,130 ( 10 ) 2019 9/25/2020 9 to 35 Years
Dollar Stores Little Rock AR — 269 775 — 269 775 1,044 ( 10 ) 2009 9/28/2020 9 to 35 Years
Auto Parts Middle River MD — 608 1,430 — 608 1,430 2,039 ( 16 ) 2016 9/30/2020 9 to 35 Years
Auto Parts Egg Harbor Township NJ — 514 1,970 — 514 1,970 2,484 ( 22 ) 2014 9/30/2020 9 to 35 Years
Auto Parts Ledgewood NJ — 703 1,433 — 703 1,433 2,136 ( 16 ) 2016 9/30/2020 11 to 35 Years
Auto Parts Ballston Spa NY — 207 1,272 — 207 1,272 1,479 ( 14 ) 2014 9/30/2020 9 to 35 Years
Auto Parts Belpre OH — 375 924 — 375 924 1,298 ( 11 ) 2014 9/30/2020 8 to 35 Years
Auto Parts Springfield OH — 241 751 — 241 751 992 ( 10 ) 1997 9/30/2020 5 to 32 Years
Auto Parts Ebensburg PA — 281 615 — 281 615 896 ( 10 ) 1997 9/30/2020 6 to 27 Years
Auto Parts Gettysburg PA — 492 1,353 — 492 1,353 1,845 ( 16 ) 2016 9/30/2020 10 to 35 Years
Auto Parts Lewistown PA — 182 835 — 182 835 1,017 ( 10 ) 1997 9/30/2020 8 to 35 Years
Auto Parts Manchester PA — 558 1,047 — 558 1,047 1,606 ( 13 ) 2014 9/30/2020 9 to 35 Years
Auto Parts Myerstown PA — 392 1,219 — 392 1,219 1,611 ( 14 ) 2015 9/30/2020 9 to 35 Years
Auto Parts Quarryville PA — 613 1,561 — 613 1,561 2,174 ( 16 ) 2017 9/30/2020 10 to 35 Years
Auto Parts Milwaukee WI — 485 1,101 — 485 1,101 1,586 ( 12 ) 2004 9/30/2020 6 to 35 Years
Auto Parts Wisconsin Rapids WI — 400 988 — 400 988 1,388 ( 11 ) 2004 9/30/2020 6 to 35 Years
Dollar Stores Queensbury NY — 234 1,381 — 234 1,381 1,616 ( 16 ) 2015 9/30/2020 10 to 35 Years
Dollar Stores Petersburg VA — 349 1,311 — 349 1,311 1,660 ( 14 ) 2019 9/30/2020 10 to 35 Years
Home Improvement Fargo ND — 524 787 — 524 787 1,311 ( 10 ) 2014 9/30/2020 4 to 35 Years
Auto Parts Demotte IN — 391 942 — 391 942 1,333 ( 8 ) 2008 10/1/2020 11 to 35 Years
Auto Parts Greenwood SC — 189 405 — 189 405 594 ( 6 ) 1967 10/1/2020 6 to 20 Years
Auto Parts Odessa TX — 219 732 — 219 732 951 ( 6 ) 2005 10/1/2020 10 to 35 Years
Farm Supplies Weatherford OK — 1,198 2,033 — 1,198 2,033 3,232 ( 23 ) 2008 10/13/2020 10 to 29 Years
Auto Parts Marianna FL — 302 1,677 — 302 1,677 1,979 ( 13 ) 2020 10/14/2020 10 to 35 Years
Auto Parts Warner Robins GA — 500 1,247 — 500 1,247 1,746 ( 10 ) 2006 10/30/2020 10 to 35 Years
Dollar Stores Pittsburgh PA — 729 1,291 — 729 1,291 2,020 ( 11 ) 2017 10/30/2020 10 to 35 Years
Consumer Electronics Reynoldsburg OH — 1,704 4,934 — 1,704 4,934 6,638 ( 26 ) 2004 11/9/2020 7 to 35 Years
Healthcare Allen TX — 453 1,525 — 453 1,525 1,978 ( 8 ) 2008 11/24/2020 10 to 33 Years
Discount Retail Spokane Valley WA — 1,494 4,067 — 1,494 4,067 5,560 ( 7 ) 1997 12/1/2020 6 to 30 Years
Equipment Rental and Leasing LaGrange GA — 669 970 — 669 970 1,639 ( 2 ) 2018 12/3/2020 8 to 33 Years
Auto Parts Little Rock AR — 286 873 — 286 873 1,158 ( 1 ) 2002 12/9/2020 9 to 35 Years
Drug Stores & Pharmacies Semmes AL — 737 818 — 737 818 1,555 ( 2 ) 1999 12/11/2020 7 to 25 Years
Grocery Hopewell Junction NY — 3,785 7,139 — 3,785 7,139 10,924 ( 11 ) 1996 12/16/2020 5 to 33 Years
Dollar Stores Johnstown PA — 153 1,234 — 153 1,234 1,387 ( 2 ) 2016 12/18/2020 9 to 35 Years
Automotive Services Bellows Falls VT — 55 817 — 55 817 872 ( 1 ) 1949 12/21/2020 8 to 30 Years
Automotive Services Enosburg Falls VT — 138 802 — 138 802 940 ( 2 ) 1895 12/21/2020 11 to 24 Years
Automotive Services South Barre VT — 295 566 — 295 566 861 ( 1 ) 1965 12/21/2020 8 to 31 Years
Consumer Electronics Heath OH — 1,205 2,348 — 1,205 2,348 3,552 ( 5 ) 1998 12/21/2020 4 to 30 Years
Discount Retail Dothan AL — 987 2,009 — 987 2,009 2,996 ( 5 ) 2004 12/23/2020 6 to 21 Years
Grocery Kingston MA — 3,950 — — 3,950 — 3,950 — 2002 12/23/2020
Discount Retail Terre Haute IN — 940 2,525 — 940 2,525 3,465 ( 6 ) 1989 12/28/2020 6 to 22 Years
Wine, Beer, Spirits Rowlett TX — 1,654 2,882 — 1,654 2,882 4,536 ( 5 ) 1997 12/28/2020 8 to 35 Years
Casual Dining Warner Robins GA — 2,279 — — 2,279 — 2,279 — 2020 12/29/2020
Wine, Beer, Spirits Dallas TX — 1,611 2,123 — 1,611 2,123 3,734 ( 3 ) 1987 12/29/2020 11 to 35 Years
Dollar Stores Chester PA — 697 876 — 697 876 1,573 ( 3 ) 1996 12/31/2020 5 to 23 Years
$ — $ 189,373 $ 355,936 $ 2,425 $ 189,373 $ 358,360 $ 547,733 $ ( 10,111 )
1 The aggregate cost for federal income tax purposes is $ 619,066 thousand.
2 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.
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3 The acquisition dates for properties acquired prior to December 23, 2019 are stated at the date the Successor acquired the property.
4 Properties with no land value represent a property for which the Company owns only the land, therefore depreciation and estimated life for depreciation are not applicable.
5 The following is a reconciliation of carrying value for land and building and improvements for the periods presented (in thousands):
Successor
Year Ended December 31, For the Period from
December 23 to December 31,
2020 2019
Balance, beginning of period $ 224,053 $ 223,005
Additions
Acquisitions 365,219 1,048
Improvements 2,408 —
Deductions
Reclasses to held for sale ( 28,591 ) —
Dispositions ( 15,356 ) —
Balance, end of period $ 547,733 $ 224,053
6 The following is a reconciliation of accumulated depreciation for the periods presented (in thousands):
Successor
Year Ended December 31, For the Period from
December 23 to December 31,
2020 2019
Balance, beginning of period $ 132 $ —
Additions
Depreciation expense 10,703 132
Deductions
Reclasses to held for sale ( 518 ) —
Dispositions ( 206 ) —
Balance, end of period $ 10,111 $ 132
The change in real estate investments for the Predecessor have not been presented as the Land, Building and related Improvements were recorded by the Predecessor at the pre-acquisition basis.
See report of independent registered public accounting firm.
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