What changed in this filing

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Item 2. Properties

2025-02-24 compared with 2024-02-14 · 58 added, 72 removed, 101 unchanged (56% of the section changed)

During the year ended December 31, 2024, we acquired 115 single-tenant retail net lease properties with an aggregate purchase price of $479.0 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, 2024, we owned or had investments in 687 properties spanning 45 states, with 98 different tenants represented across 26 retail sectors.

As of December 31, 2024, our portfolio consisted of 12.6 million square feet and was 99.9% occupied.

2 unchanged sentences

As of December 31, 2024, none of our tenants represented more than 9.0% of our portfolio by ABR, and our top 10 largest tenants represented, in aggregate, 46.4% 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.

Nine 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, an investment grade profile tenant.

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):

Number of Properties Square Feet ABR % of ABR ABR per Square Foot

As of December 31, 2024, our 687 investments were operated by 98 different tenants, each representing a distinct brand or concept, with no one tenant representing more than 9.0% of our portfolio by ABR.

The following table details information about our tenants as of December 31, 2024:

Number of Properties (2)

% of Annualized Base Rent (3)

Dollar General Corporation 125 9.0 %

CVS Health Corporation 33 6.2 %

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

The Home Depot, Inc.

Hobby Lobby Stores, Inc.

Koninklijke Ahold Delhaize N.V.

(Food Lion / Stop & Shop) 8 3.9 %

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

Tractor Supply Company 17 2.8 %

Speedway, LLC 49 2.6 %

7-Eleven, Inc.

Life Time Inc.

Best Buy Co., Inc.

MDSFEST, Inc.

2 unchanged sentences

(Advance Auto Parts) 37 2.2 %

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

Subtotal of Tenants with ABR greater than 2.0% 445 65.0 %

Other 241 35.0 %

1 unchanged sentence

(1) Represents tenant or guarantor.

(2) Excludes one vacant property.

(3) Certain figures in this table may not foot due to rounding.

Tenant Industry Diversification

3 unchanged sentences

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):

Gross Leasable Area

Tenant Industry and Sector Number of Leases Dollars % of Total Square Feet % of Total

Tenant Industry and Sector Number of Leases (1)

% of Total ABR (2)

% of Total Gross Leasable Area (2) (3)

Necessity-Based Retail

Grocery 35 13.6 % 15.0 %

Home Improvement 30 11.2 % 12.6 %

Drug Stores & Pharmacies (4)

57 10.6 % 6.0 %

Home Improvement 29 15,269 11.6 % 1,424,030 13.4 %

Farm Supplies 19 3.6 % 4.1 %

Auto Parts 59 3.2 % 3.7 %

1 unchanged sentence

Healthcare 14 2.0 % 0.9 %

Farm Supplies 7 1,615 1.2 % 172,446 1.6 %

Banking 3 467 0.4 % 9,668 0.1 %

Wholesale Warehouse Club 1 0.3 % 0.9 %

Banking 3 0.3 % 0.1 %

Total Necessity-Based Retail 225 47.6 % 51.5 %

1 unchanged sentence

Convenience Stores 98 9.4 % 2.4 %

Quick Service Restaurants 22 3,170 2.4 % 64,215 0.6 %

Automotive Service 42 3.7 % 2.3 %

Casual Dining 7 1,066 0.8 % 39,490 0.4 %

Health and Fitness 4 3.7 % 2.1 %

Quick-Service Restaurants 33 3.2 % 0.7 %

Casual Dining 7 0.7 % 0.3 %

Equipment Rental and Leasing 5 0.4 % 0.4 %

10 unchanged sentences

Specialty 2 1.0 % 0.4 %

Furniture Stores 2 932 0.7 % 47,101 0.4 %

Apparel 5 0.7 % 1.3 %

Furniture Stores 2 0.6 % 0.4 %

Telecommunications 2 0.2 % 0.1 %

3 unchanged sentences

Total, All Industries 686 100.0 % 100.0 %

(1) Excludes one vacant property.

(2) Certain figures in this table may not foot due to rounding.

(3) Square feet.

(4) The Drug Stores & Pharmacies industry has one property that resides in NETSTREIT Management TRS, LLC (“NETSTREIT TRS”), representing approximately 0.3% of ABR.

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 %

The following table presents ABR by state for our portfolio as of December 31, 2024:

Tenant State Number of Leases (1)

% of Total ABR % of Total Gross Leasable Area (2)

Texas 70 12.3 % 7.9 %

Wisconsin 24 9,507 7.2 % 920,831 8.7 %

Illinois 43 10.1 % 8.3 %

New York 36 7.4 % 7.2 %

North Carolina 70 7,721 5.9 % 531,814 5.0 %

Georgia 36 6.2 % 9.1 %

Wisconsin 23 5.7 % 7.3 %

North Carolina 72 5.0 % 4.5 %

Alabama 50 4.6 % 4.4 %

Ohio 42 4.0 % 5.5 %

Virginia 11 5,892 4.5 % 281,363 2.6 %

Pennsylvania 30 3.9 % 3.9 %

Virginia 11 3.6 % 2.2 %

Indiana 20 3.6 % 3.6 %

Florida 30 3.4 % 2.6 %

Louisiana 16 3.2 % 3.4 %

Michigan 18 2.5 % 3.4 %

Mississippi 21 2.4 % 4.0 %

California 12 2.4 % 1.7 %

Florida 29 3,965 3.0 % 280,914 2.6 %

Michigan 19 3,616 2.7 % 376,373 3.5 %

Oregon 3 2.0 % 1.2 %

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 %

South Carolina 11 1.3 % 1.7 %

New Jersey 6 1.2 % 0.7 %

Washington 5 1.1 % 1.1 %

131 14.1 % 16.3 %

Total 686 100.0 % 100.0 %

(1) Excludes one vacant property.

(2) Square feet.

(3) Includes 25 states.

4 unchanged sentences

ABR Gross Leasable Area

Year Number of Leases Dollars % of Total Square Feet % of Total

Year Number of Leases (1)

Amount % of Total (2)

Square Feet % of Total

2025 4 $ 1,215 0.8 % 238,918 2.0 %

15 unchanged sentences

Total 610 $ 153,395 100.0 % 12,094,050 100.0 %

(1) Excludes one vacant property and 76 investments that secure mortgage loans receivable.

(2) Certain figures in this table may not foot due to rounding.

During 2024, rent commenced on 23 completed property developments.

As of December 31, 2023, we had 24 property developments with rent expected to commence at various dates throughout 2024.

As of December 31, 2024, we had five property developments with rent expected to commence at various dates throughout 2025.

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

Tenant Industry Location Lease Term (Years) Actual or Anticipated Rent Commencement

Dollar Stores (multiple programs) Various (9 completed) 10 to 15 Commenced 1Q'24

Farm Supplies Malakoff, TX 20 Commenced 1Q'24

Dollar Stores (multiple programs) Various (5 completed) 15 Commenced 2Q'24

Automotive Service (multiple locations) Various (1 completed) 10 to 15 Commenced 2Q'24

Home Improvement Butte, MT 15 Commenced 3Q'24

Dollar Stores (multiple programs) Various (2 completed) 15 Commenced 3Q'24

Automotive Service (multiple locations) Various (1 completed) 15 Commenced 3Q'24

Dollar Stores (multiple programs) Various (2 completed) 10 to 15 Commenced 4Q'24

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

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.

Mine Safety Disclosures

Not applicable.

PART II — OTHER INFORMATION

Automotive Service (multiple locations) Various (1 completed) 15 Commenced 4Q'24

Dollar Stores (multiple programs) Various (1 in progress) 10 1Q'25 to 2Q'25

Automotive Service (multiple locations) Various (3 in progress) 15 1Q'25 to 2Q'25

Pet Supplies Sumter, SC 10 1Q'25

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties