Netstreit Investor Presentation Deck
Non-GAAP Measures and Definitions (cont'd)
Property-Level NOI, Property-Level Cash NOI, Property-Level Cash NOI - Estimated Run Rate,
and Total Cash NOI - Estimated Run Rate
Property-Level NOI, Property-Level Cash NOI, Property-Level Cash NOI - Estimated Run Rate, and Total Cash NOI - Estimated Run Rate
are non-GAAP financial measures which we use to assess our operating results. We compute Property-Level NOI as net income
(computed in accordance with GAAP), excluding general and administrative expenses, interest expense (or income), income tax expense,
transaction costs, depreciation and amortization, gains (or losses) on sales of depreciable property, real estate impairment losses, interest
income on mortgage loans receivable, loss on debt extinguishment, lease termination fees, and other income (or expense). We further
adjust Property-Level NOI for non-cash revenue components of straight-line rent and amortization of lease-intangibles to derive Property-
Level Cash NOI. We further adjust Property-Level Cash NOI for intraquarter acquisitions, dispositions and completed developments to
derive Property-Level Cash NO1 - Estimated Run Rate. We further adjust Property-Level Cash NOI - Estimated Run Rate for interest
income on mortgage loans receivable and intraquarter mortgage loan activity to derive Total Cash NOI - Estimated Run Rate. We believe
Property-Level NOI, Property-Level Cash NOI, Property-Level Cash NOI - Estimated Run Rate, and Total Cash NOI - Estimated Run Rate
provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level
and present such items on an unlevered basis.
Property-Level NOI, Property-Level Cash NOI, Property-Level Cash NOI - Estimated Run Rate, and Total Cash NOI - Estimated Run Rate
are not measurements of financial performance under GAAP, and may not be comparable to similarly titled measures of other companies.
You should not consider our measures as alternatives to net income or cash flows from operating activities determined in accordance with
GAAP.
Other Definitions
ABR is annualized base rent as of September 30, 2023, for all leases that commenced and annualized cash interest on mortgage loans
receivable in place as of that date.
Cash Yield is the annualized base rent contractually due from acquired properties, interest income from mortgage loans receivable, and
completed developments, divided by the gross investment amount, or gross proceeds in the case of dispositions.
Defensive Category is considered by us to represent tenants that focus on necessity goods and essential services in the retail sector,
including discount stores, grocers, drug stores and pharmacies, home improvement, automotive service and quick-service restaurants,
which we refer to as defensive retail industries.
NETSTREIT
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