Financial Position - As of September 30, 2024, total assets amounted to 733,070,000,adecreasefrom772,007,000 as of December 31, 2023, representing a decline of approximately 5.0%[16] - The company reported real estate held for investment at a cost of 640,264,000,downfrom647,180,000, indicating a decrease of about 1.4%[16] - Cash and cash equivalents decreased to 9,895,000from17,129,000, reflecting a decline of approximately 42.5%[16] - Total liabilities decreased to 448,372,000from471,320,000, a reduction of about 4.9%[16] - Partners' capital as of September 30, 2024, was 180,974,000,downfrom194,690,000 as of September 30, 2023[22] - The cash, cash equivalents, and restricted cash at the end of the period was 9,895,000,downfrom15,173,000 at the end of the previous year[23] - The Partnership's total debt carrying amount was 419,466asofSeptember30,2024,withafairvalueof418,623[50] - The Partnership's net asset value (NAV) was 103,724,anincreasefrom103,616 at December 31, 2023, reflecting a growth of approximately 0.1%[83] IPO and Capital Raising - The company completed its IPO on October 2, 2024, selling 13,200,000 shares at 19.00pershare,generatingnetproceedsof233,871,000 after underwriter fees[14] - An additional 1,090,846 shares were issued on October 23, 2024, from the underwriters' overallotment option, raising net proceeds of 19,327,064[14]−TheCompanysold14,290,846sharesofCommonStockatanIPOpriceof19.00 per share, raising approximately 271.5million[98]−Thecompanycompletedaninitialpublicoffering(IPO)withgrossproceedsof271,526,000, resulting in net proceeds of 251,198,000afterunderwritingdiscountsandofferingexpenses[112]RevenueandExpenses−RentalrevenuesforthethreemonthsendedSeptember30,2024,increasedto14,534,000, up 25.5% from 11,623,000forthesameperiodin2023[18]−TotaloperatingexpensesforthethreemonthsendedSeptember30,2024,decreasedto11,347,000, down 4.2% from 11,852,000forthesameperiodin2023[18]−InterestexpenseforthethreemonthsendedSeptember30,2024,roseto6,463,000, an increase of 40.2% compared to 4,611,000forthesameperiodin2023[18]−GeneralandadministrativeexpensesforthethreemonthsendedSeptember30,2024,decreasedsignificantlyto697,000, down 76.3% from 2,947,000forthesameperiodin2023[18]−RentalrevenuesfortheninemonthsendedSeptember30,2024,were43,690,000, a decrease of 1.6% from the historical predecessor[109] - Total operating expenses for the same period were 36,351,000,reflectinganincreaseof7.413,007,000, reflecting a decrease of 34.3% from the previous period[109] Losses and Impairments - Net loss attributable to NADG NNN Property Fund LP for the three months ended September 30, 2024, was (2,431,000),adecreasefrom(3,561,000) for the same period in 2023[18] - Total operating loss for the nine months ended September 30, 2024, was (9,721,000),comparedto(10,005,000) for the same period in 2023[18] - Net loss for the nine months ended September 30, 2024, was (7,069,000),aslightimprovementfrom(7,254,000) for the same period in 2023[18] - The Partnership recorded an impairment loss of 591onrealestateheldforinvestmentwitharemainingcarryingvalueof1,961 due to tenant vacancy during the nine months ended September 30, 2024[37] Real Estate Operations - The company is focused on investing in a geographically diversified portfolio of outparcel properties in prominent locations[9] - The Partnership owns 278 real estate properties, down from 284 properties as of December 31, 2023, with an average remaining lease term of approximately 7.0 years[55] - The Partnership sold five real estate properties for 10.773millionduringtheninemonthsendedSeptember30,2024,resultinginnetproceedsof9.846 million after closing costs[56] - The estimated future minimum rents to be received under non-cancelable tenant leases total 400.490millionasofSeptember30,2024[59]DebtandFinancing−TheweightedaverageinterestrateforthePartnership′sdebtwas4.9617,000 with CIBC Bank USA, maturing on March 31, 2027, bearing interest at Term SOFR plus 1.80%[77] - Following the IPO, the Partnership repaid 150,000thousandinoutstandingborrowingsandenteredintoa200,000 thousand Delayed Draw Term Loan[92] - The anticipated repayment date for the Asset Backed Securities is December 2024, with a principal balance due if not paid in full[71] Internalization and Management - The company completed the internalization of external management functions, resulting in the issuance of 931,490 OP Units to NARS and affiliates, representing approximately 3.5% of the outstanding shares[96] - General and administrative expenses increased to 9,321,000,primarilyduetoadditionalcostsassociatedwiththeinternalization[109]−Thepreliminarypurchasepriceallocationfortheinternalizationtransactionwasvaluedat17.7 million, which includes an intangible asset of $1.2 million[111] Future Outlook and Risks - The company expects to incur additional recurring general and administrative expenses as a result of becoming a public company, including employee compensation and benefits, board fees, and compliance-related expenses[117] - The company plans to manage interest rate risk through potential interest rate swaps or hedging arrangements[191]
