Item 2. Properties
Item 2. Properties
During the year ended December 31, 2023, we acquired 103 single-tenant retail net lease properties with an aggregate purchase price of $345.1 million. As of December 31, 2023, our diversified portfolio consisted of 598 single-tenant retail net leased properties spanning 45 states, with 85 different tenants represented across 26 retail sectors. As of December 31, 2023, our portfolio consisted of 10.6 million square feet and was 100% occupied.
As of December 31, 2023, our portfolio generated ABR of $131.9 million. As of December 31, 2023, our portfolio consisted of approximately 71% and 14% of investment grade tenants and investment grade profile tenants, respectively, by ABR, and had a WALT of 9.5 years (exclusive of mortgage loans receivable). As of December 31, 2023, none of our tenants represented more than 10.9% of our portfolio by ABR, and our top 10 largest tenants represented in aggregate 53.7% of our ABR. Eight of our top 10 tenants are publicly traded companies, or are subsidiaries of publicly traded companies, that have investment grade credit ratings, in addition to Hobby Lobby and Festival Foods, investment grade profile tenants.
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Tenant Diversification
As of December 31, 2023, our 598 properties were operated by 85 different tenants, each representing a distinct brand or concept, with no one tenant representing more than 10.9% of our portfolio by ABR. The following table details information about our tenants as of December 31, 2023 (dollars in thousands):
Tenant (1)
Number of Properties Square Feet ABR % of ABR ABR per Square Foot
Dollar General Corporation 134 1,386,713 $ 14,350 10.9 % $ 10.35
CVS Health Corporation 33 403,949 10,246 7.8 % 25.36
Walgreen Co. 28 413,227 9,047 6.9 % 21.89
Dollar Tree Stores, Inc. / Family Dollar Stores, Inc. 59 633,308 6,540 5.0 % 10.33
Home Depot U.S.A, Inc. 4 483,134 6,197 4.7 % 12.83
Koninklijke Ahold Delhaize N.V. (Food Lion / Stop & Shop) 7 362,103 5,808 4.4 % 16.04
Hobby Lobby Stores, Inc. 15 825,816 5,531 4.2 % 6.70
7-Eleven, Inc. 20 69,968 4,611 3.5 % 65.90
Speedway, LLC 49 106,627 4,288 3.3 % 40.21
MDSFEST, Inc. (Festival Foods) 3 268,787 3,955 3.0 % 14.71
Advance Stores Company, Inc. (Advance Auto Parts) 40 286,706 3,900 3.0 % 13.60
Wal-Mart Stores, Inc. 6 813,688 3,770 2.9 % 4.63
Lowe's Companies, Inc. 4 501,771 3,578 2.7 % 7.13
The Kroger Co. 7 396,089 3,407 2.6 % 8.60
Best Buy Stores, L.P. 6 285,495 3,188 2.4 % 11.17
Floor & Décor Outlets of America, Inc. 2 164,770 2,615 2.0 % 15.87
Ollie's Bargain Outlet, Inc. 10 373,976 2,435 1.8 % 6.51
Winn-Dixie Stores, Inc. 4 213,830 2,356 1.8 % 11.02
Dick's Sporting Goods, Inc. 2 133,247 2,186 1.7 % 16.41
Big Lots Stores, Inc. / PNS Stores, Inc. (Big Lots) 8 302,587 2,011 1.5 % 6.65
Top 20 Subtotal 441 8,425,791 100,019 75.9 % 11.87
Other 157 2,198,392 31,842 24.1 % 14.48
Total / Weighted Average 598 10,624,183 $ 131,861 100.0 % $ 12.41
(1) Represents tenant or guarantor.
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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 87.7% of our ABR as of December 31, 2023 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, 2023 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
Grocery 31 $ 20,261 15.4 % 1,589,648 15.0 %
Drug Stores & Pharmacies (2)
61 19,294 14.6 % 817,176 7.7 %
Home Improvement 29 15,269 11.6 % 1,424,030 13.4 %
Auto Parts 61 5,526 4.2 % 481,156 4.5 %
General Retail 6 3,753 2.8 % 829,233 7.8 %
Healthcare 12 2,366 1.8 % 87,126 0.8 %
Farm Supplies 7 1,615 1.2 % 172,446 1.6 %
Banking 3 467 0.4 % 9,668 0.1 %
Wholesale Warehouse Club 1 417 0.3 % 110,858 1.0 %
Total Necessity-Based Retail 211 68,968 52.3 % 5,521,341 52.0 %
Service-Oriented Industry
Convenience Stores 73 9,641 7.3 % 201,697 1.9 %
Quick Service Restaurants 22 3,170 2.4 % 64,215 0.6 %
Automotive Service 18 2,038 1.5 % 117,803 1.1 %
Casual Dining 7 1,066 0.8 % 39,490 0.4 %
Health and Fitness 1 985 0.7 % 33,616 0.3 %
Equipment Rental and Leasing 5 687 0.5 % 49,275 0.5 %
Total Service-Oriented Industry 126 17,587 13.3 % 506,096 4.8 %
Discount-Focused Industry
Dollar Stores 193 20,890 15.8 % 2,020,021 19.0 %
Discount Retail 32 8,134 6.2 % 1,113,096 10.5 %
Total Discount-Focused Industry 225 29,024 22.0 % 3,133,116 29.5 %
Defensive Retail Industries 562 115,579 87.7 % 9,160,553 86.2 %
Other, Non-Defensive Industries
Arts & Crafts 14 5,475 4.2 % 767,816 7.2 %
Sporting Goods 4 3,841 2.9 % 251,669 2.4 %
Consumer Electronics 6 3,188 2.4 % 285,495 2.7 %
Specialty 2 1,719 1.3 % 46,593 0.4 %
Furniture Stores 2 932 0.7 % 47,101 0.4 %
Apparel 4 481 0.4 % 39,126 0.4 %
Telecommunications 2 314 0.2 % 13,635 0.1 %
Gift, Novelty, and Souvenir Shops 1 200 0.2 % 8,081 0.1 %
Home Furnishings 1 132 0.1 % 4,114 — %
Total Other, Non-Defensive 36 16,282 12.3 % 1,463,629 13.8 %
Total, All Industries 598 $ 131,861 100.0 % 10,624,183 100.0 %
(1) Certain figures in this table may not foot due to rounding.
(2) The Drug Stores & Pharmacies industry has one property that resides in NETSTREIT Management TRS, LLC (“NETSTREIT TRS”), representing approximately 0.3% of ABR.
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Geographic Diversification
The following table presents ABR by state for our portfolio as of December 31, 2023 (dollars in thousands):
ABR Gross Leasable Area
Tenant State Number of Leases Dollars % of Total Square Feet % of Total
Illinois 26 $ 11,391 8.6 % 752,941 7.1 %
Texas 43 10,063 7.6 % 591,104 5.6 %
Wisconsin 24 9,507 7.2 % 920,831 8.7 %
New York 25 8,609 6.5 % 728,008 6.9 %
North Carolina 70 7,721 5.9 % 531,814 5.0 %
Georgia 36 7,056 5.4 % 815,324 7.7 %
Alabama 45 6,698 5.1 % 536,199 5.0 %
Ohio 42 6,685 5.1 % 690,087 6.5 %
Virginia 11 5,892 4.5 % 281,363 2.6 %
Pennsylvania 28 5,697 4.3 % 405,328 3.8 %
Indiana 20 5,184 3.9 % 407,252 3.8 %
Louisiana 13 4,447 3.4 % 347,985 3.3 %
Mississippi 23 4,186 3.2 % 516,243 4.9 %
California 13 4,174 3.2 % 190,390 1.8 %
Florida 29 3,965 3.0 % 280,914 2.6 %
Michigan 19 3,616 2.7 % 376,373 3.5 %
Oregon 3 3,343 2.5 % 148,422 1.4 %
New Mexico 8 1,658 1.3 % 97,292 0.9 %
Iowa 12 1,488 1.1 % 239,596 2.3 %
Kentucky 5 1,479 1.1 % 167,479 1.6 %
Other (1)
103 19,002 14.4 % 1,599,238 15.1 %
Total 598 $ 131,861 100.0 % 10,624,183 100.0 %
(1) Includes 25 states.
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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. As of December 31, 2023, the leases in our portfolio had a WALT of 9.5 years (exclusive of mortgage loans receivable). The following table illustrates contractual lease expirations within the Company's portfolio as of December 31, 2023, 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
2024 13 $ 4,056 3.1 % 329,292 3.1 %
2025 65 7,653 5.8 % 491,842 4.6 %
2026 10 2,563 1.9 % 282,727 2.7 %
2027 17 4,602 3.5 % 429,665 4.0 %
2028 26 10,128 7.7 % 817,615 7.7 %
2029 43 9,759 7.4 % 760,148 7.2 %
2030 39 9,896 7.5 % 1,052,878 9.9 %
2031 64 12,187 9.2 % 1,150,824 10.8 %
2032 34 9,085 6.9 % 1,236,792 11.6 %
2033 61 12,590 9.5 % 1,015,117 9.6 %
2034 39 11,095 8.4 % 441,606 4.2 %
2035 28 8,861 6.7 % 499,310 4.7 %
2036 21 4,977 3.8 % 269,010 2.5 %
2037 23 6,666 5.1 % 533,383 5.0 %
2038 91 11,441 8.7 % 1,048,698 9.9 %
Thereafter 24 6,302 4.8 % 265,276 2.5 %
Total 598 $ 131,861 100.0 % 10,624,183 100.0 %
Developments
During 2023, rent commenced on 22 completed property developments. As of December 31, 2023, we had 24 property developments with rent expected to commence at various dates throughout 2024. The following table illustrates actual and anticipated rent commencement of those developments.
Tenant Industry Location Lease Term (Years) Actual/ Anticipated Rent Commencement
Arts & Craft D'Iberville 15 Commenced 1Q'23
Arts & Craft Winder, GA 15 Commenced 1Q'23
Arts & Craft Sheboygan, WI 10 Commenced 2Q'23
Home Improvement Bossier City, LA 12 Commenced 3Q'23
Discount Retail Alpena, MI 10 Commenced 3Q'23
Dollar Stores (multiple programs) Various (3 completed) 10 Commenced 3Q'23
Dollar Stores (multiple programs) Various (13 completed) 10 to 15 Commenced 4Q'23
Automotive Service (multiple programs) Various (1 completed) 15 Commenced 4Q'23
Dollar Stores (multiple programs) Various (15 in progress) 10 to 15 1Q'24 to 3Q'24
Automotive Service (multiple programs) Various (6 in progress) 15 1Q'24 to 3Q'24
Farm Supplies Malakoff, TX 20 years 1Q'24
Home Improvement Butte, MT 15 years 3Q'24
Pet Supplies Sumter, SC 10 years 4Q'24
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.
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Item 4. Mine Safety Disclosures
Not applicable.
PART II — OTHER INFORMATION