NETSTREIT Corp. (NYSE:NTST) Q3 2023 Earnings Call Transcript

Ki Bin Kim: Okay. And in terms of drug stores, if you look at the closure plans that have come out recently, any kind of broader common themes that you’re seeing? Or is it just four-wall coverage? And when you overlay that with your tenant exposures, any kind of impact that you might see longer-term?

Dan Donlan: Yes. I mean, we don’t think we’re going to have any impact with the locations that we have. We’ve got a very good, really good relationship, both with CVS and Walgreens. We do not have any rated exposure. And so we talk to them before we’re acquiring assets, and really get updates as we see news like this, and call them up. And fortunately, they’ve been very open with us, and telling us that the stores that we have are not on any closure list. But yes, as it relates to the ones that they are closing, some of those are leases that are rolling over where they already have a presence in some of those markets. You know, they’ve grown through some mergers over the years, and really have multiple stores in the same markets. And they feel like they don’t really need that number of stores in those markets. And then there are obviously some locations that just don’t generate positive cash flow, so those are the ones that they look to close.

Ki Bin Kim: Okay. Thank you.

Operator: We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Mark Manheimer for closing comments.

Mark Manheimer: Thanks, everybody, for joining us today. We look forward to seeing you in the next few weeks at the conferences and appreciate everybody’s time. Thanks.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.