Fri, May 9, 8:52 PM (14 days ago)
**New Mountain Net Lease Trust (NMNT) - Q1 2025 Financial Summary** **Company Overview:** New Mountain Net Lease Trust (NMNT) is a Maryland statutory trust formed to acquire, own, finance, and lease a diversified portfolio of industrial net lease real estate assets. NMNT is externally managed and structured as a non-listed, perpetual-life REIT. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** - Rental revenue decreased by $316,000 (1.2%) to $27,051,000 due to the sale of two properties in 2024. - Total revenues also decreased by $316,000 to $27,051,000. - **Expenses:** - Property operating expenses increased by $90,000 (225%) to $130,000 due to higher property operating costs. - Depreciation and amortization decreased by $103,000 (1.2%) to $8,714,000 due to property sales. - Management fee increased by $1,027,000 to $1,027,000 due to fee changes. - Performance participation allocation increased by $731,000 to $731,000 due to fee changes. - General and administrative expenses decreased by $9,000 (1.3%) to $693,000 due to reduced transaction costs. - Organizational costs increased by $151,000 to $151,000 due to formation expenses. - Total expenses increased by $1,887,000 to $11,446,000. - **Net Income:** - Net income before tax decreased by $3,260,000 (38.2%) to $5,267,000. - Net income decreased by $2,915,000 (35.9%) to $5,279,000. - Net income attributable to shareholders decreased by $3,230,000 (44.8%) to $3,974,000. - **Cash Flow:** - Cash provided by operating activities decreased by $1,780,000 (11.9%) to $13,161,000. - Cash provided by investing activities decreased by $121,000 (93.1%) to $9,000. - Cash used in financing activities increased by $253,051,000 (1,783.8%) to $267,285,000 due to subscriptions received in advance and redemptions of common stock. **Portfolio and Operations:** - **Portfolio:** - As of March 31, 2025, NMNT owned 165 industrial properties leased to 33 tenants. - The portfolio is diversified across tenant industries, building sub-types, geographic regions, and lease terms. - **Distributions:** - NMNT declared net distributions totaling $10,819,000 for Q1 2025. - Distributions were $0.3999 per share for all classes of common shares. - **Capital Activity:** - NMNT raised $268.1 million from the sale of common shares, including $263.0 million from the completion of the Formation Transactions. **Liquidity and Debt:** - **Liquidity:** - As of March 31, 2025, NMNT had $1,760,000 in cash and cash equivalents and $52,015,000 in available credit. - NMNT received $5,070,000 in incremental liquidity through the sale of common shares. - **Debt:** - Total indebtedness was $901,366,000, including mortgage notes, revolving credit facilities, and an affiliated line of credit. - NMNT has a committed revolving loan agreement with a maturity date of June 30, 2026. **Future Outlook:** - NMNT plans to continue selling shares on a monthly basis and using proceeds for new acquisitions, operations, debt service, share repurchases, and distributions. - The company aims to provide current income, realize appreciation in NAV, preserve capital, and offer an investment alternative for shareholders seeking exposure to commercial real estate. **Risks and Uncertainties:** - NMNT faces risks related to interest rates, economic conditions, market movements, legislative changes, and asset-level developments. - The company's ability to achieve its investment objectives may be affected by these risks and uncertainties.