Item 9A. Controls and Procedures
Item 9A. Controls and Procedures
Evaluation of 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 were effective as of December 31, 2024 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.
The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of the Company’s financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.
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Under the supervision and with the participation of management, including the principal executive officer and principal financial officer, the Company conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this evaluation, management has concluded that the Company’s internal control over financial reporting was effective as of December 31, 2024.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2024 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in its report, which is included under Item 8 of this Annual Report on Form 10-K.
Changes in Internal Control over Financial Reporting.
During the period covered by this report, there were no changes to our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) 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
Not applicable.
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.
PART III
Item 10. Directors, Executive Officers and Corporate Governance
The information required by this item will be included in the sections entitled “Directors and Management,” “Corporate Governance” and, if required, “Delinquent Section 16(a) Reports” of our definitive Proxy Statement for the 2025 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.
Our written code of business conduct and ethics, the Code of Business Conduct and Ethics, applies to all of our employees, officers and directors, including our principal executive officer, principal financial officer, principal accounting officer, or controller, or persons performing similar functions. The Code of Business Conduct and Ethics is available on our corporate website at https://www.netstreit.com/ in the Investor Relations section under “Governance – Corporate Policies and Governance Documents.” We intend to promptly disclose on our website or in a Current Report on Form 8-K in the future (i) the date and nature of any amendment (other than technical, administrative or other non-substantive amendments) to the Code of Business Conduct and Ethics that applies to our principal executive officer, principal financial officer, principal accounting officer, or controller, or persons performing similar functions and relates to any element of the code of ethics definition enumerated in Item 406(b) of Regulation S-K and (ii) the nature of any waiver, including an implicit waiver, from a provision of the Code of Business Conduct and Ethics that is granted to one of these specified individuals that relates to one or more of the elements of the code of ethics definition enumerated in Item 406(b) of Regulation S-K, the name of such person who is granted the waiver and the date of the waiver.
Item 11. Executive Compensation
The information required by this item will be included in the sections entitled “Compensation Discussion and Analysis,” “Executive Compensation,” “Pay Ratio,” “Corporate Governance - Director Compensation,” “Corporate Governance - Other Board Information - Compensation Committee Interlocks and Insider Participation”, and “Compensation Committee Report” of our definitive Proxy Statement for the 2025 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
Except as set forth herein, the information required by this item will be included in the section entitled “Corporate Governance - Security Ownership of Certain Beneficial Owners, Directors and Management” of our definitive Proxy Statement for the 2025 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.
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Equity Compensation Plan Information
The following table summarizes the equity compensation plan under which our common stock may be issued as of December 31, 2024:
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)
617,429 $ — 737,897
Equity compensation plans not approved by security holders — — —
Total 617,429 $ — 737,897
(1) Relates to restricted stock units (“RSUs”) available for issuance under our 2019 Omnibus Incentive Compensation Plan.
(2) Includes 617,429 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.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this item will be included in the sections entitled “Certain Relationships and Related Party Transactions” and “Corporate Governance - Independence of Directors” of our definitive Proxy Statement for the 2025 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.
Item 14. Principal Accountant Fees and Services
Our independent registered public accounting firm is KPMG LLP , Chicago, Illinois Auditor Firm ID: 185 .
The information required by this item will be included in the section entitled “Fees of Independent Accountants” of our definitive Proxy Statement for the 2025 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:
Reports of Independent Registered Public Accounting Firm
Consolidated Balance Sheets as of December 31, 2024 and 2023
Consolidated Statements of Operations and Comprehensive (Loss) Income for the Years Ended December 31, 2024, 2023, and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023, and 2022
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023, and 2022
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
Schedule IV - Mortgage Loans on Real Estate
15(a)(3) Exhibits
Exhibit No. Description
3.1 Conformed Articles of Amendment and Restatement of NETSTREIT Corp. (incorporated by reference to Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2022).
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3.2 Amended and Restated Bylaws of NETSTREIT Corp. (incorporated by reference to Exhibit 3.2 to the Registrant ’ s Annual Report on Form 10-K for the year ended December 31, 2022).
4.1 Description of NETSTREIT Corp.’s Securities. (incorporated by reference to Exhibit 4.1 to the Registrant ’ s Annual Report on Form 10-K for the year ended December 31, 2020).
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† 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).
10.3† Amended and Restated Employment Agreement, dated February 22, 2022, between NETSTREIT Management, LLC and Mark Manheimer (incorporated by reference to Exhibit 10.6 the Registrant ’ s Annual Report on Form 10-K for the year ended December 31, 2021).
10.4† Employment Agreement, dated March 24, 2023, between NETSTREIT Management, LLC and Daniel P. Donlan (incorporated by reference to Exhibit 10.1 to the Registrant ’ s Current Report on Form 8-K filed with the SEC on April 3, 2023).
10.5† 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).
10.6† 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).
10.7† Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan Post-Initial Public Offering Employee Restricted Stock Unit Grant Agreement (incorporated by reference to Exhibit 10.16 to the Registrant ’ s Annual Report on Form 10-K for the year ended December 31, 2020).
10.8† Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan 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).
10.9† Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan Employee Restricted Stock Unit Grant Agreement (incorporated by reference to Exhibit 10.1 to the Registrant ’ s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022).
10.10† Form of 2021 Performance Stock Unit Agreement under the NETSTREIT Corp. 2019 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021).
10.11† Form of Performance Stock Unit Agreement under the NETSTREIT Corp. 2019 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.21 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2021).
10.12† NETSTREIT Corp. Alignment of Interest Program under the 2019 Omnibus Incentive Compensation Plan (incorporated by reference to Exhibit 10.15 to the Registrant ’ s Annual Report on Form 10-K for the year ended December 31, 2020).
10.13† Form of NETSTREIT Corp. 2019 Omnibus Incentive Compensation Plan (Alignment of Interest Program) Restricted Stock Unit Grant Agreement (incorporated by reference to Exhibit 10.2 to the Registrant ’ s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022).
10.14 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).
10.15#
Amended and Restated Credit Agreement, dated January 15, 2025, by and among NETSTREIT, L.P., NETSTREIT Corp., the several institutions party thereto, as lenders, and PNC Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on January 17, 2025).
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10.16#
Second Amended and Restated Credit Agreement, dated January 15, 2025, by and among NETSTREIT, L.P., NETSTREIT Corp., the several institutions party thereto, as lenders, and Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K with the SEC on January 17, 2025).
10.17#
As-Amended Term Loan Agreement, dated June 3, 2023, by and among NETSTREIT, L.P., NETSTREIT Corp., the several institutions party thereto, as lenders, and Truist Bank, as Administrative Agent (reflecting the amendments set forth in the First Amendment to the Term Loan Agreement, dated January 15, 2025) (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K with the SEC on January 17, 2025).
19 Insider Trading Policy.
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.
97†
Incentive Compensation Recoupment Policy (incorporated by reference to Exhibit 97 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2023).
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.
*** Furnished, not filed.
†
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.
The agreements and other documents filed as exhibits to this Annual Report on Form 10-K are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.
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: February 24, 2025
Mark Manheimer
President, Chief Executive Officer, Secretary and Director
(Principal Executive Officer)
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POWER OF ATTORNEY
Each person whose signature appears below constitutes and appoints each of Mark Manheimer and Daniel Donlan, 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.
/s/ MARK MANHEIMER Date: February 24, 2025
Mark Manheimer
President, Chief Executive Officer, Secretary and Director
(Principal Executive Officer)
/s/ DANIEL DONLAN Date: February 24, 2025
Daniel Donlan
Chief Financial Officer and Treasurer
(Principal Financial Officer)
/s/ SOFIA CHERNYLO
Date: February 24, 2025
Sofia Chernylo
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)
/s/ LORI WITTMAN Date: February 24, 2025
Lori Wittman
Chair of the Board of Directors
/s/ MATTHEW TROXELL Date: February 24, 2025
Matthew Troxell
Director
/s/ TODD MINNIS Date: February 24, 2025
Todd Minnis
Director
/s/ ROBIN ZEIGLER Date: February 24, 2025
Robin Zeigler
Director
/s/ HEIDI EVERETT Date: February 24, 2025
Heidi Everett
Director
/s/ MICHAEL CHRISTODOLOU Date: February 24, 2025
Michael Christodolou
Director
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NETSTREIT Corp.
Schedule III - Real Estate and Accumulated Depreciation
December 31, 2024
(Dollars in thousands)
Initial Cost to Company Cost Capitalized Subsequent to Acquisition (1)
Gross Amount as of December 31, 2024 (2), (3)
State Number of Properties Encumbrances Land Building and Improvements Land Building and Improvements Land Building and Improvements Total Accumulated Depreciation (3), (4)
Year of Construction Year Acquired (5)
Life on Which Depreciation in Statements of Operations and Comprehensive Income is Computed
Alabama 48 $ — $ 24,347 $ 73,869 $ ( 115 ) $ ( 620 ) $ 24,232 $ 73,249 $ 97,481 $ ( 5,946 ) 1968 – 2024 2019 – 2024 2 to 35 Years
Arizona 4 — 4,848 15,518 ( 619 ) ( 931 ) 4,229 14,587 18,816 ( 1,237 ) 1979 – 2022 2021 – 2024 5 to 35 Years
Arkansas 10 — 7,065 12,812 — 2,477 7,065 15,289 22,354 ( 1,721 ) 1962 – 2024 2019 – 2024 8 to 35 Years
California 7 — 9,437 28,722 — 269 9,437 28,991 38,428 ( 3,893 ) 1968 – 2009 2020 – 2024 3 to 35 Years
Colorado 3 — 1,097 3,698 — 225 1,097 3,923 5,020 ( 582 ) 1978 – 2024 2019 – 2024 10 to 35 Years
Connecticut 2 — 1,978 3,407 — — 1,978 3,407 5,385 ( 483 ) 1972 – 2012 2021 – 2021 6 to 35 Years
Florida 21 — 15,694 39,090 — 43 15,694 39,133 54,827 ( 4,275 ) 1948 – 2023 2019 – 2024 5 to 35 Years
Georgia 34 — 35,673 101,322 — ( 136 ) 35,673 101,186 136,859 ( 10,098 ) 1968 – 2024 2019 – 2024 0 to 35 Years
Idaho 1 — 177 856 — — 177 856 1,033 ( 204 ) 2007 – 2007 2019 – 2019 6 to 26 Years
Illinois 43 — 73,364 139,328 ( 169 ) 393 73,195 139,721 212,916 ( 12,853 ) 1944 – 2024 2020 – 2024 0 to 35 Years
Indiana 20 — 21,839 54,944 — 233 21,839 55,177 77,016 ( 6,730 ) 1961 – 2021 2019 – 2024 3 to 35 Years
Iowa 13 — 3,543 18,398 — 562 3,543 18,960 22,503 ( 2,442 ) 1975 – 2024 2019 – 2024 3 to 35 Years
Kansas 4 — 2,183 10,055 — 35 2,183 10,090 12,273 ( 1,169 ) 1973 – 2014 2019 – 2023 4 to 33 Years
Kentucky 5 — 12,014 9,542 ( 358 ) ( 1,102 ) 11,656 8,440 20,096 ( 523 ) 1985 – 2024 2020 – 2024 0 to 35 Years
Louisiana 16 8,205 21,935 47,919 — 199 21,935 48,118 70,053 ( 4,973 ) 1986 – 2024 2020 – 2024 6 to 35 Years
Maryland 4 — 3,012 8,504 ( 317 ) ( 935 ) 2,695 7,569 10,264 ( 741 ) 1945 – 2016 2020 – 2021 5 to 35 Years
Massachusetts 4 — 8,509 2,158 ( 396 ) ( 364 ) 8,113 1,794 9,907 ( 197 ) 2002 – 2013 2020 – 2023 0 to 35 Years
Michigan 15 — 11,545 41,763 ( 30 ) ( 27 ) 11,515 41,736 53,251 ( 4,235 ) 1956 – 2024 2019 – 2024 4 to 35 Years
Minnesota 8 — 4,329 19,056 ( 504 ) ( 1,743 ) 3,825 17,313 21,138 ( 1,086 ) 1981 – 2024 2019 – 2024 4 to 35 Years
Mississippi 16 — 13,057 35,189 — 459 13,057 35,648 48,705 ( 6,565 ) 1978 – 2023 2019 – 2023 6 to 35 Years
Missouri 7 — 2,313 10,232 — 16 2,313 10,248 12,561 ( 601 ) 1971 – 2024 2019 – 2024 5 to 35 Years
Montana 2 — 3,056 14,112 — — 3,056 14,112 17,168 ( 497 ) 2007 – 2024 2023 – 2023 5 to 35 Years
Nebraska 2 — 1,896 7,200 — 260 1,896 7,460 9,356 ( 1,073 ) 1990 – 2010 2021 – 2022 7 to 35 Years
Nevada 5 — 5,286 11,798 — 55 5,286 11,853 17,139 ( 1,582 ) 1980 – 2014 2022 – 2022 5 to 35 Years
New Hampshire 4 — 676 2,635 — 55 676 2,690 3,366 ( 481 ) 1970 – 2016 2020 – 2023 5 to 35 Years
New Jersey 6 — 6,929 18,391 ( 591 ) ( 1,034 ) 6,338 17,357 23,695 ( 935 ) 1920 – 2016 2019 – 2024 5 to 35 Years
New Mexico 8 — 4,281 11,888 — 211 4,281 12,099 16,380 ( 770 ) 2000 – 2024 2021 – 2024 3 to 35 Years
New York 36 — 43,447 116,738 ( 506 ) ( 554 ) 42,941 116,184 159,125 ( 10,799 ) 1896 – 2024 2020 – 2024 3 to 35 Years
North Carolina 21 — 14,631 32,617 ( 493 ) ( 772 ) 14,138 31,845 45,983 ( 4,067 ) 1956 – 2024 2019 – 2024 0 to 35 Years
North Dakota 5 — 3,309 9,181 — — 3,309 9,181 12,490 ( 633 ) 2009 – 2024 2020 – 2024 9 to 35 Years
Ohio 40 — 18,307 61,636 ( 29 ) 612 18,278 62,248 80,526 ( 8,865 ) 1922 – 2024 2019 – 2024 3 to 35 Years
Oklahoma 10 — 5,120 10,401 — 171 5,120 10,572 15,692 ( 1,019 ) 1998 – 2024 2019 – 2024 0 to 35 Years
Oregon 2 — 3,991 — — — 3,991 — 3,991 — 2000 – 2003 2023 – 2023 0 to 0 Years
Pennsylvania 29 — 20,318 58,365 ( 598 ) ( 120 ) 19,720 58,245 77,965 ( 5,907 ) 1916 – 2024 2019 – 2024 0 to 35 Years
South Carolina 10 — 4,798 18,795 — 399 4,798 19,194 23,992 ( 2,003 ) 1967 – 2023 2019 – 2024 5 to 35 Years
South Dakota 1 — 848 4,083 — — 848 4,083 4,931 ( 421 ) 2022 – 2022 2021 – 2021 12 to 35 Years
Tennessee 6 — 8,818 9,790 ( 90 ) ( 474 ) 8,728 9,316 18,044 ( 1,866 ) 1963 – 2024 2019 – 2024 7 to 35 Years
Texas 65 — 90,386 162,362 — 187 90,386 162,549 252,935 ( 12,719 ) 1962 – 2024 2019 – 2024 4 to 35 Years
Utah 1 — 519 2,609 — — 519 2,609 3,128 ( 493 ) 2015 – 2015 2019 – 2019 10 to 32 Years
Vermont 10 — 1,473 6,181 ( 84 ) 230 1,389 6,411 7,800 ( 1,106 ) 1890 – 1999 2020 – 2022 4 to 31 Years
Virginia 10 — 27,989 42,637 — 538 27,989 43,175 71,164 ( 5,151 ) 1978 – 2024 2019 – 2024 3 to 35 Years
Washington 5 — 6,357 16,446 — 44 6,357 16,490 22,847 ( 2,364 ) 1978 – 2023 2020 – 2023 5 to 35 Years
West Virginia 4 — 1,384 4,402 — 157 1,384 4,559 5,943 ( 757 ) 1996 – 2017 2019 – 2022 4 to 26 Years
Wisconsin 21 — 25,343 103,965 ( 950 ) ( 1,239 ) 24,393 102,726 127,119 ( 9,360 ) 1970 – 2022 2019 – 2023 5 to 35 Years
588 $ 8,205 $ 577,121 $ 1,402,614 $ ( 5,849 ) $ ( 2,221 ) $ 571,272 $ 1,400,393 $ 1,971,665 $ ( 143,422 )
(1) Amounts shown as reductions to cost capitalized subsequent to acquisition represent provisions recorded for impairment of real estate.
(2) The aggregate cost for federal income tax purposes is $ 2.1 billion (unaudited).
(3) Properties with no building value represent a property for which the Company owns only the land, therefore depreciation and estimated life for depreciation are not applicable.
(4) 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.
(5) The acquisition dates for properties acquired prior to December 23, 2019 are stated at the Company’s Private Offering and formation transactions date of December 23, 2019.
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The following is a reconciliation of carrying value for land and building and improvements for the periods presented (in thousands):
Year Ended December 31,
2024 2023 2022
Balance, beginning of year $ 1,610,705 $ 1,308,230 $ 926,392
Additions
Acquisitions 443,481 306,564 398,177
Improvements 4,565 4,098 2,383
Property under development completed and placed in service 50,541 64,711 22,510
Reclasses to held for investment 23,980 — —
Deductions
Reclasses to held for sale ( 133,088 ) ( 66,762 ) ( 37,880 )
Provisions for impairment ( 26,797 ) ( 3,509 ) ( 1,067 )
Involuntary conversion of assets and other adjustments ( 1,722 ) — —
Dispositions — ( 2,627 ) ( 2,285 )
Balance, end of year $ 1,971,665 $ 1,610,705 $ 1,308,230
The following is a reconciliation of accumulated depreciation for the periods presented (in thousands):
Year Ended December 31,
2024 2023 2022
Balance, beginning of year $ 101,210 $ 62,526 $ 30,669
Additions
Depreciation expense 54,739 44,104 33,584
Deductions
Reclasses to held for sale ( 7,011 ) ( 5,154 ) ( 1,610 )
Provisions for impairment ( 5,323 ) ( 63 ) —
Involuntary conversion of assets and other adjustments ( 193 ) — —
Dispositions — ( 203 ) ( 117 )
Balance, end of year $ 143,422 $ 101,210 $ 62,526
See report of independent registered public accounting firm.
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NETSTREIT Corp.
Schedule IV - Mortgage Loans on Real Estate
As of December 31, 2024
(Dollars in thousands)
Description and Industry Number of Secured Properties State Interest Rate Final Maturity Date Periodic Payment Terms (1)
Final Payment Terms Prior Liens Outstanding Face Amount of Mortgages Carrying Amount of Mortgages Principal amount of loans subject to delinquent principal or interest
Fully collateralized mortgage loans: None
Home Improvement 1 Oregon 7.50 % 1/8/2025 I/O Balloon of $ 43.6 million
None $ 43,612 $ 43,606 None
Convenience Stores 46 North Carolina 9.55 % 3/10/2026 I/O Balloon of $ 41.9 million
None 41,940 41,940 None
Convenience Stores 3 North Carolina 6.89 % 4/10/2026 I/O Balloon of $ 4.1 million
None 4,132 4,067 None
Dollar Stores 6 Mississippi and Ohio 7.98 % 6/10/2025 I/O Balloon of $ 8.4 million
None 8,408 8,408 None
Discount Retail 1 Wisconsin 7.00 % 1/31/2026 None (2)
Interest + Balloon of $ 0.8 million
None 825 825 None
Dollar Stores 7 Florida 10.25 % 6/18/2025 I/O Balloon of $ 11.7 million
None 11,658 11,657 None
Quick-Service Restaurant 1 Kentucky 10.25 % 6/22/2025 I/O Balloon of $ 1.3 million
None 1,296 1,296 None
Quick-Service Restaurant 1 Florida 10.25 % 4/26/2025 I/O Balloon of $ 2.1 million
None 2,095 2,095 None
Automotive Service 1 Florida 10.25 % 5/15/2025 I/O Balloon of $ 1.9 million
None 1,894 1,894 None
Quick-Service Restaurant 1 Alabama 10.25 % 7/26/2025 I/O Balloon of $ 2.0 million
None 2,029 2,029 None
Automotive Service 1 Tennessee 10.25 % 8/27/2025 I/O Balloon of $ 1.5 million
None 1,539 1,539 None
Drug Stores & Pharmacies 1 Alabama 7.25 % 7/17/2027 P+I Balloon of $ 4.1 million
None 4,076 4,076 None
Drug Stores & Pharmacies 1 New Mexico 7.25 % 7/17/2027 P+I Balloon of $ 5.2 million
None 5,221 5,221 None
Dollar Stores 1 Rhode Island 13.09 % 1/17/2025 I/O Balloon of $ 1.3 million
None 1,299 1,297 None
Dollar Stores 1 Pennsylvania 7.25 % 9/19/2027 P+I Balloon of $ 1.4 million
None 1,434 1,434 None
Drug Stores & Pharmacies 1 Texas 7.00 % 9/30/2029 I/O Balloon of $ 0.6 million
None 636 636 None
Convenience Stores 1 California 6.50 % 12/23/2029 I/O Balloon of $ 3.3 million
None 3,284 3,284 None
Convenience Stores 1 California 6.50 % 12/23/2029 I/O Balloon of $ 4.1 million
None 4,105 4,105 None
$ 139,483 $ 139,409
(1) I/O: Interest Only; P+I: Principal and Interest.
(2) Payments of both interest and principal are due at maturity.
The following shows changes in carrying amounts of mortgage loans receivable, net during the years ended December 31, 2024, 2023, and 2022 (in thousands):
Year Ended December 31,
2024 2023 2022
Balance, beginning of year $ 114,472 $ 46,378 $ —
Additions:
New mortgage loans receivable 29,722 72,399 46,316
Other: Increase in mortgage loans receivable in exchange for disposition of real estate 20,101 1,970 —
Other: Increase in existing mortgage loans receivable in exchange for settlement of existing mortgage loan — 1,327 —
Capitalized loan origination costs and fees ( 45 ) 145 150
Discount on new mortgage loan receivable ( 334 ) ( 155 ) —
Amortization of discount 302 39 —
Deductions:
Collections of principal ( 24,870 ) ( 1,482 ) —
Other: Mortgage loans receivable settled in exchange for acquisition of real estate — ( 4,673 ) —
Other: Mortgage loans receivable settled in refinancing of existing mortgage loans receivable — ( 1,327 ) —
Amortization of loan origination costs and fees 61 ( 149 ) (88)
Balance, end of year $ 139,409 $ 114,472 $ 46,378
See report of independent registered public accounting firm.
95