Item 2. Properties
Item 2. Properties
Between the closing of our initial public offering and December 31, 2021, we acquired 177 single-tenant retail net lease properties with an aggregate purchase price of $588.8 million. As of December 31, 2021, our diversified portfolio consisted of 327 single-tenant retail net leased properties spanning 41 states, with 67 different tenants represented across 23 retail sectors. As of December 31, 2021, our portfolio consisted of 6.4 million square feet and was 100% occupied.
As of December 31, 2021, our portfolio generated ABR of $71.2 million. As of December 31, 2021, our portfolio had a WALT of 9.9 years and consisted of approximately 65% and 16% of investment grade tenants and investment grade profile tenants, respectively, by ABR. As of December 31, 2021, none of our tenants represented more than 7.3% of our portfolio by ABR, and our top 10 largest tenants represented in aggregate 54.3% of our ABR. Eight of our top 10 tenants are publicly traded companies and eight have investment grade credit ratings, in addition to Hobby Lobby, an investment grade profile tenant.
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Tenant Diversification
As of December 31, 2021, our 327 properties were operated by 67 different tenants, each representing a distinct brand or concept, with no one tenant representing more than 7.3% of our portfolio by ABR. The following table details information about our tenants as of December 31, 2021 (dollars in thousands):
Tenant (1)
Number of Properties Square Feet ABR % of ABR ABR per Square Foot Weighted Average Lease Term (2)
Walgreen Co. 18 266,839 $ 5,200 7.3 % $ 19.49 12.2
7-Eleven, Inc. 21 71,618 4,879 6.9 % 68.12 13.5
Hobby Lobby Stores, Inc. 12 662,858 4,689 6.6 % 7.07 10.3
Advance Stores Company, Inc. (Advance Auto Parts) 39 278,953 3,882 5.5 % 13.92 9.5
Dollar General Corporation 37 350,670 3,701 5.2 % 10.55 7.6
CVS Health Corporation 18 207,477 3,666 5.1 % 17.67 14.0
Lowe's Companies, Inc. 4 501,771 3,578 5.0 % 7.13 12.2
Wal-Mart Stores, Inc. 5 771,538 3,288 4.6 % 4.26 7.0
Best Buy Stores, L.P. 6 285,495 3,150 4.4 % 11.03 5.5
Floor & Décor Outlets of America, Inc. 2 164,770 2,615 3.7 % 15.87 11.3
Big Lots Stores, Inc. / PNS Stores, Inc. (Big Lots) 9 344,699 2,382 3.3 % 6.91 9.0
Ollie's Bargain Outlet, Inc. 9 342,278 2,282 3.2 % 6.67 8.1
Dollar Tree Stores, Inc. / Family Dollar Stores, Inc. 20 193,521 2,010 2.8 % 10.39 7.5
Home Depot U.S.A, Inc. 2 228,362 1,944 2.7 % 8.51 3.8
Tractor Supply Company 6 135,341 1,407 2.0 % 10.40 10.8
Koninklijke Ahold Delhaize N.V. (Food Lion / Stop & Shop) 2 66,158 1,268 1.8 % 19.17 5.5
Burlington Coat Factory Warehouse Corporation 3 98,004 1,205 1.7 % 12.30 8.6
The Kroger Co. 3 163,328 1,198 1.7 % 7.33 8.3
Fresenius Medical Care Holdings, Inc. 4 31,182 1,027 1.4 % 32.93 10.1
Kohl's Department Stores, Inc. 2 165,870 1,006 1.4 % 6.06 10.1
Top 20 Subtotal 222 5,330,732 54,378 76.4 % 10.20 9.8
Other 105 1,089,514 16,834 23.6 % 15.45 10.3
Total / Weighted Average (2)
327 6,420,246 $ 71,212 100 % $ 11.09 9.9
(1) Represents tenant or guarantor.
(2) Weighted by ABR.
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Tenant Industry Diversification
The majority of our portfolio is comprised of properties leased to tenants operating in defensive retail industries, with 86.6% of our ABR as of December 31, 2021 coming from necessity, service-oriented, and/or discount industries. Necessity-based industries are those that are considered essential by consumers and include sectors such as home improvement, auto parts, drug stores, general retail, and grocers. Service-oriented industries consist of retailers that provide services rather than goods, including, for example, convenience stores, quick service and casual dining restaurants, and tire and auto services. Discount retailers offer a low price point and consist of off-price and dollar stores.
The breakdown of our necessity-based retail, service-oriented, discount-focused, and other, non-defensive retail industries by sector and by percentage of ABR as of December 31, 2021 is set forth below (dollars in thousands):
ABR (1)
Gross Leasable Area
Tenant Industry and Sector Number of Leases Dollars % of Total Square Feet % of Total
Necessity-Based Retail
Home Improvement 23 $ 10,325 14.5 % 1,071,206 16.7 %
Drug Stores & Pharmacies 36 8,866 12.5 % 474,316 7.4 %
Auto Parts 58 5,174 7.3 % 401,908 6.3 %
Grocery 10 4,206 5.9 % 380,332 5.9 %
General Retail 5 3,226 4.5 % 787,083 12.3 %
Healthcare 8 1,685 2.4 % 52,425 0.8 %
Farm Supplies 6 1,407 2.0 % 135,341 2.1 %
Wholesale Warehouse Club 1 417 0.6 % 110,858 1.7 %
Banking 3 457 0.6 % 9,668 0.2 %
Total Necessity-Based Retail 150 35,764 50.2 % 3,423,137 53.3 %
Service-Oriented Industry
Convenience Stores 25 5,621 7.9 % 96,720 1.5 %
Quick Service Restaurants 17 2,777 3.9 % 48,778 0.8 %
Automotive Service 13 1,222 1.7 % 77,515 1.2 %
Health and Fitness (2)
1 985 1.4 % 33,616 0.5 %
Casual Dining (2)
4 755 1.1 % 23,531 0.4 %
Equipment Rental and Leasing 5 679 1.0 % 49,275 0.8 %
Total Service-Oriented Industry 65 12,038 16.9 % 329,434 5.1 %
Discount-Focused Industry
Discount Retail (2)
29 8,141 11.4 % 1,076,710 16.8 %
Dollar Stores 57 5,711 8.0 % 544,191 8.5 %
Total Discount-Focused Industry 86 13,853 19.5 % 1,620,901 25.2 %
Defensive Retail Industries 301 $ 61,654 86.6 % 5,373,472 83.7 %
Other, Non-Defensive Industries
Arts & Crafts 12 4,689 6.6 % 662,858 10.3 %
Consumer Electronics 6 3,150 4.4 % 285,495 4.4 %
Furniture Stores 2 878 1.2 % 47,101 0.7 %
Apparel 4 506 0.7 % 39,126 0.6 %
Gift, Novelty, and Souvenir Shops 1 200 0.3 % 8,081 0.1 %
Home Furnishings 1 134 0.2 % 4,114 0.1 %
Total Other, Non-Defensive 26 $ 9,557 13.4 % 1,046,774 16.3 %
Total, All Industries 327 $ 71,212 100.0 % 6,420,246 100.0 %
(1) Certain figures in this table may not foot due to rounding.
(2) Health and Fitness, Casual Dining, and Discount Retail industries have one, two, and one properties, respectively, that reside in NETSTREIT Management TRS, LLC (“NETSTREIT TRS”), representing 1.38%, 0.48%, and 0.39% of ABR, respectively.
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Geographic Diversification
The following table presents ABR by state for our portfolio as of December 31, 2021 (dollars in thousands):
ABR Gross Leasable Area
Tenant State Number of Leases Dollars % of Total Square Feet % of Total
Texas 33 $ 7,756 10.9 % 408,992 6.4 %
Illinois 19 7,690 10.8 % 481,865 7.5 %
Ohio 28 4,739 6.7 % 544,676 8.5 %
Georgia 18 4,289 6.0 % 591,374 9.2 %
Wisconsin 16 3,466 4.9 % 451,747 7.0 %
New York 13 3,143 4.4 % 402,062 6.3 %
California 10 2,876 4.0 % 141,051 2.2 %
Mississippi 13 2,787 3.9 % 433,090 6.7 %
Indiana 13 2,691 3.8 % 210,925 3.3 %
Virginia 5 2,655 3.7 % 181,736 2.8 %
Pennsylvania 15 2,421 3.4 % 180,581 2.8 %
Florida 15 2,280 3.2 % 102,070 1.6 %
Michigan 7 1,966 2.8 % 207,312 3.2 %
Arizona 5 1,837 2.6 % 161,661 2.5 %
Alabama 13 1,801 2.5 % 117,258 1.8 %
Louisiana 6 1,730 2.4 % 180,537 2.8 %
Washington 3 1,399 2.0 % 116,222 1.8 %
South Carolina 9 1,373 1.9 % 139,128 2.2 %
Kentucky 4 1,366 1.9 % 166,529 2.6 %
New Mexico 4 1,232 1.7 % 54,357 0.8 %
Other (1)
78 11,715 16.5 % 1,147,073 17.9 %
Total 327 $ 71,212 100.0 % 6,420,246 100.0 %
(1) Includes 21 states generating less than 1.66% of annualized base rent.
Lease Terms and Expirations
Our leases typically have initial lease terms of approximately 10 years and contain two or more options for the tenant to extend the lease term, most often for additional five-year periods.
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As of December 31, 2021, the leases in our portfolio had a WALT of 9.9 years, with no lease expiring prior to April 2023. The following table illustrates contractual lease expirations within the Company's portfolio as of December 31, 2021, assuming no exercise of contractual extension options (dollars in thousands):
ABR Gross Leasable Area
Year Number of Leases Dollars % of Total Square Feet % of Total
2022 — $ — — % — — %
2023 4 1,004 1.4 % 137,350 2.1 %
2024 3 442 0.6 % 44,006 0.7 %
2025 7 2,365 3.3 % 318,227 5.0 %
2026 12 2,665 3.7 % 289,861 4.5 %
2027 14 4,070 5.7 % 347,778 5.4 %
2028 30 4,667 6.6 % 520,665 8.1 %
2029 38 6,339 8.9 % 507,740 7.9 %
2030 39 8,815 12.4 % 933,943 14.5 %
2031 62 11,456 16.1 % 1,209,748 18.8 %
2032 21 5,780 8.1 % 906,873 14.1 %
2033 22 2,807 3.9 % 209,644 3.3 %
2034 12 3,444 4.8 % 136,226 2.1 %
2035 22 7,499 10.5 % 374,929 5.8 %
2036 23 5,436 7.6 % 301,778 4.7 %
Thereafter 18 4,423 6.2 % 181,478 2.8 %
Total 327 $ 71,212 100.0 % 6,420,246 100.0 %
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Developments
During the year ended December 31, 2021, the Company had 10 development projects completed or under construction. Actual and anticipated total costs for these projects are approximately $40.3 million and are included in the following completed or commenced projects:
Tenant Industry Land Acquired Location Lease Structure Lease Term Actual or Anticipated Rent Commencement Status
Convenience Stores 1/14/2020 North Little Rock, AR Build-to-Suit 20 years 7/1/2020 Complete
Convenience Stores 4/3/2020 North Little Rock, AR Build-to-Suit 20 years 1/1/2021 Complete
Discount Retail 5/18/2021 Fond Du Lac, WI Build-to-Suit 10 years First quarter 2022 Complete
Home Improvement 7/8/2021 Sioux Falls, SD Build-to-Suit 12 years First quarter 2022 Under Construction
Arts & Crafts 5/18/2021 Fond Du Lac, WI Build-to-Suit 10 years Second quarter 2022 Under Construction
Discount Retail 2/5/2021 Yuma, AZ Build-to-Suit 10 years Second quarter 2022 Under Construction
Dollar Stores 11/12/2021 Woodland, AL Build-to-Suit 10 years Second quarter 2022 Under Construction
Arts & Crafts 12/29/2021 D'Iberville, MS Build-to-Suit 15 years Third quarter 2022 Under Construction
Arts & Crafts 12/30/2021 Winder, GA Build-to-Suit 15 years Third quarter 2022 Under Construction
Arts & Crafts 12/3/2021 Sheboygan, WI Build-to-Suit 10 years Fourth quarter 2022 Under Construction
Discount Retail 12/3/2021 Sheboygan, WI Build-to-Suit 10 years Fourth quarter 2022 Under Construction
TBD 8/23/2021 Sumter, SC Redevelopment TBD TBD Redevelopment Property
Item 3. Legal Proceedings
From time to time, we may be party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. We are not currently subject to any lawsuits, claims, or other legal proceedings.
Item 4. Mine Safety Disclosures
Not applicable.
PART II — OTHER INFORMATION