Netstreit Investor Presentation Deck
Non-GAAP Measures and Definitions (cont'd)
EBITDAre is the NAREIT definition of EBITDA (as defined above), but it is further adjusted to follow the definition included in a white
paper issued in 2017 by NAREIT, which recommended that companies that report EBITDA also report EBITDAre. We compute EBITDAre
in accordance with the definition adopted by NAREIT. NAREIT defines EBITD Are as EBITDA (as defined above) excluding gains (or
losses) from sales of depreciable property and impairment charges on depreciable real property.
Adjusted EBITDAre is a non-GAAP financial measure defined as EBITDAre further adjusted to exclude straight-line rent, non-cash
compensation expense, non-recurring executive transition costs, severance and related charges, loss on debt extinguishment and other
related costs, gain on insurance proceeds, other non-recurring expenses (income), lease termination fees, adjustment for construction in
process, and adjustment for intraquarter activities. Beginning in the quarter ended June 30, 2023, we modified our definition of Adjusted
EBITDAre to include adjustments for construction in process and intraquarter investment activities. Prior periods have been recast to
reflect this new definition.
Annualized Adjusted EBITDAre is a non-GAAP financial measure defined as Adjusted EBITDAre multiplied by four.
We present EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre as they are measures commonly used in our
industry. We believe that these measures are useful to investors and analysts because they provide supplemental information concerning
our operating performance, exclusive of certain non-cash items and other costs. We use EBITDA, EBITDAre, Adjusted EBITDAre and
Annualized Adjusted EBITDAre as measures of our operating performance and not as measures of liquidity.
EBITDA, EBITD Are, Adjusted EBITDAre and Annualized Adjusted EBITDAre do not include all items of revenue and expense included in
net income, they do not represent cash generated from operating activities and they are not necessarily indicative of cash available to fund
cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from
operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, our
computation of EBITDA, EBITDAre, Adjusted EBITDAre and Annualized Adjusted EBITDAre may differ from the methodology for
calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other
equity REITs.
Net Debt
We calculate our Net Debt as our principal amount of total debt outstanding excluding deferred financing costs, net discounts and debt
issuance costs less cash, cash equivalents and restricted cash available for future investment. We further adjust Net Debt by the value of
outstanding forward equity as of period end to derive Net Debt Adjusted for Outstanding Forward Equity. We believe excluding cash, cash
equivalents and restricted cash available for future investment from our principal amount, all of which could be used to repay debt,
provides an estimate of the net contractual amount of borrowed capital to be repaid. We believe these adjustments are additional
beneficial disclosures to investors and analysis.
NETSTREIT
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