On this page of StockholderLetter.com we present the latest annual shareholder letter from NETSTREIT Corp. — ticker symbol NTST. Reading current and past NTST letters to shareholders can bring important insights into the investment thesis.
2024 ANNUAL REPORT
DEAR FELLOW STOCKHOLDER, 2024 has been a year of significant progress and resilience for NETSTREIT, marked by both strategic achievements and the navigation of a dynamic retail environment. At the onset of the year, we strengthened our financial position with a $199.0 million forward equity follow-on offering, which was further supplemented by over $33.4 million raised from our at-the-market ( ATM ) program over the year. These well-timed capital raises allowed us to execute on our external growth plans for 2024 while maintaining a low leverage profile. From an external growth standpoint, we recorded our highest annual gross investment activity ever in 2024 with $591.6 million of gross investments at a blended cash yield of 7.5%. After accounting for $117.7 million in disposition transactions and $24.8 million in loan payoffs, our net investment activity for the year was $449.0 million. At year end, our portfolio grew to 687 investments leased to 98 tenants covering 12.6 million square feet of retail space across 45 states. Our portfolio was leased to high-quality tenants with 71% of having an investment grade profile or investment grade rating. We maintained a Weighted Average Lease Term ( WALT ) of 9.8 years, which provides long-term stability and predictable cash flow, and our occupancy remained high at 99.9%. While 2024 marked a year of strong investment activity, it also presented us with challenges and negative market sentiment due to perceived adverse economic risk with certain retail tenants. Announcements of store closures from major retailers such as Family Dollar, Walgreens, CVS, and Advance Auto Parts brought concerns about broader economic trends and industry-specific challenges. While both inflationary pressures and interest rates eased in 2024 vs. prior years, both remained elevated, which contributed to more selective spending on discretionary purchases by consumers, particularly those with lower income. As such, various Portfolio Highlights Portfolio Metrics Annualized Base Rent (in thousands)1 Number of investments Number of states Square feet 2024 Business Highlights December 31, 2024 Completed $591.6 million of gross investment activity at a blended cash yield of 7.5% in 2024 Issued over 12.9 million shares of common stock from January 2024 follow-on offering and ATM offerings in 2024 45 12,609,612 Industries 26 WALT 687 98 3 Net loss of $12.0 million or $0.16 per diluted share, Core Funds from Operations of $97.2 million or $1.26 per diluted share, and Adjusted Funds from Operations of $97.4 million or $1.26 per diluted share for the full year 2024 $165,070 Tenants Occupancy2 99.9% 9.8 1 ABR is Annual Base Rent as of December 31, 2024, for all leases that commenced and annualized cash interest on mortgage loans receivable in place as of that date. 2 Excludes one vacant property. 3 Weighted by annual base rent; excludes lease extension options and investments that secure mortgage loans receivable.
retailers have appropriately responded to this decreasing demand by closing underperforming stores to better position their footprints for long-term success. Tenants in the drug store and pharmacy industry have felt a different set of pressures such as diminishing reimbursement rates and the negotiating power of pharmacy benefit managers, compounded by weakening of sales from the front of the store, all of which have negatively impacted profitability. Despite these headwinds, we have experienced virtually no impact from these closure announcements, which is testament to the level of individual location due diligence we complete at underwriting. Notwithstanding our long-term tenant relationships, and the constructive two-way dialogue we maintain with most tenants, our evaluation during the underwriting process includes much more than understanding a tenant s corporate credit. By utilizing technology and asymmetrical information, we have proven to be highly accurate in how we decipher the unit-level productivity of our locations and the strength of our real estate. Turning to our earnings performance in 2024, we reported adjusted funds from operations ( AFFO ) of $97.4 million or $1.26 per diluted share in 2024, which represented 23.2% growth or 3.3% growth per diluted share compared to 2023. Additionally, in the third quarter of 2024, we increased our dividend to $0.21 per share from $0.205 per share, representing a $0.02 increase over the prior year. From a balance sheet perspective, at the start of 2025, we closed on $275.0 million in additional financing commitments, which included a new fully drawn $175.0 million senior unsecured term loan that was swapped to an all-in fixed rate of 5.12% through its maturity in January 2030, and an upsized $500.0 million revolving credit facility that was increased from $400.0 million. Additionally, we extended the maturity date of our existing $175.0 million senior unsecured term loan to January 2030 from January 2027. We also amended our existing credit agreements to remove certain financial agreements and provide for revised, improved pricing when the Company meets certain investment grade rating and leverage targets. From a personnel standpoint, we were excited in early 2025 to welcome our new Chief Accounting Officer, Sofia Chernylo, who brings to us over 25 years of impressive experience in all facets of accounting, financial reporting, audit, and finance. Her leadership and deep understanding of financial operations will be a tremendous asset to our Company. As we move forward in 2025, we remain committed to accretively deploying capital and building a highly diversified portfolio to maximize shareholder return. We are confident that our strong foundation, strategic investments, and dedicated team will enable us to continue delivering value to our shareholders. Lastly, we extend our sincerest gratitude to our employees, tenants, and business partners for their unwavering support. We also thank you, our shareholders, for your continued confidence in NETSTREIT. Mark Manheimer President and Chief Executive Officer
 • shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
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 • stockholder letter icon 4/1/2024 NTST Stockholder Letter
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 • Benford's Law Stocks icon NTST Benford's Law Stock Score = 87


NTST Shareholder/Stockholder Letter Transcript:

2024
ANNUAL REPORT


DEAR FELLOW STOCKHOLDER,
2024 has been a year of significant progress and resilience for NETSTREIT, marked by both strategic
achievements and the navigation of a dynamic retail environment. At the onset of the year, we strengthened
our financial position with a $199.0 million forward equity follow-on offering, which was further
supplemented by over $33.4 million raised from our at-the-market (   ATM   ) program over the year. These
well-timed capital raises allowed us to execute on our external growth plans for 2024 while maintaining a
low leverage profile.
From an external growth standpoint, we recorded our highest annual gross investment activity ever in 2024
with $591.6 million of gross investments at a blended cash yield of 7.5%. After accounting for $117.7 million
in disposition transactions and $24.8 million in loan payoffs, our net investment activity for the year was
$449.0 million.
At year end, our portfolio grew to 687 investments leased to 98 tenants covering 12.6 million square feet of
retail space across 45 states. Our portfolio was leased to high-quality tenants with 71% of having an
investment grade profile or investment grade rating. We maintained a Weighted Average Lease Term
(   WALT   ) of 9.8 years, which provides long-term stability and predictable cash flow, and our occupancy
remained high at 99.9%.
While 2024 marked a year of strong investment activity, it also presented us with challenges and negative
market sentiment due to perceived adverse economic risk with certain retail tenants. Announcements of
store closures from major retailers such as Family Dollar, Walgreens, CVS, and Advance Auto Parts brought
concerns about broader economic trends and industry-specific challenges. While both inflationary pressures
and interest rates eased in 2024 vs. prior years, both remained elevated, which contributed to more selective
spending on discretionary purchases by consumers, particularly those with lower income. As such, various
Portfolio Highlights
Portfolio Metrics
Annualized Base Rent (in thousands)1
Number of investments
Number of states
Square feet
2024 Business Highlights
December 31, 2024
Completed $591.6 million of gross investment
activity at a blended cash yield of 7.5% in 2024

Issued over 12.9 million shares of common
stock from January 2024 follow-on offering and
ATM offerings in 2024
45
12,609,612
Industries
26
WALT

687
98
3
Net loss of $12.0 million or $0.16 per diluted
share, Core Funds from Operations of $97.2
million or $1.26 per diluted share, and
Adjusted Funds from Operations of $97.4
million or $1.26 per diluted share for the full
year 2024
$165,070
Tenants
Occupancy2

99.9%
9.8
1
ABR is Annual Base Rent as of December 31, 2024, for all leases that commenced and annualized cash interest on mortgage loans receivable
in place as of that date.
2
Excludes one vacant property.
3
Weighted by annual base rent; excludes lease extension options and investments that secure mortgage loans receivable.

retailers have appropriately responded to this decreasing demand by closing underperforming stores to better
position their footprints for long-term success. Tenants in the drug store and pharmacy industry have felt a
different set of pressures such as diminishing reimbursement rates and the negotiating power of pharmacy
benefit managers, compounded by weakening of sales from the front of the store, all of which have negatively
impacted profitability.
Despite these headwinds, we have experienced virtually no impact from these closure announcements, which
is testament to the level of individual location due diligence we complete at underwriting. Notwithstanding our
long-term tenant relationships, and the constructive two-way dialogue we maintain with most tenants, our
evaluation during the underwriting process includes much more than understanding a tenant   s corporate
credit. By utilizing technology and asymmetrical information, we have proven to be highly accurate in how we
decipher the unit-level productivity of our locations and the strength of our real estate.
Turning to our earnings performance in 2024, we reported adjusted funds from operations (   AFFO   ) of $97.4
million or $1.26 per diluted share in 2024, which represented 23.2% growth or 3.3% growth per diluted share
compared to 2023. Additionally, in the third quarter of 2024, we increased our dividend to $0.21 per share from
$0.205 per share, representing a $0.02 increase over the prior year.
From a balance sheet perspective, at the start of 2025, we closed on $275.0 million in additional financing
commitments, which included a new fully drawn $175.0 million senior unsecured term loan that was swapped
to an all-in fixed rate of 5.12% through its maturity in January 2030, and an upsized $500.0 million revolving
credit facility that was increased from $400.0 million. Additionally, we extended the maturity date of our
existing $175.0 million senior unsecured term loan to January 2030 from January 2027. We also amended our
existing credit agreements to remove certain financial agreements and provide for revised, improved pricing
when the Company meets certain investment grade rating and leverage targets.
From a personnel standpoint, we were excited in early 2025 to welcome our new Chief Accounting Officer, Sofia
Chernylo, who brings to us over 25 years of impressive experience in all facets of accounting, financial
reporting, audit, and finance. Her leadership and deep understanding of financial operations will be a
tremendous asset to our Company.
As we move forward in 2025, we remain committed to accretively deploying capital and building a highly
diversified portfolio to maximize shareholder return. We are confident that our strong foundation, strategic
investments, and dedicated team will enable us to continue delivering value to our shareholders.
Lastly, we extend our sincerest gratitude to our employees, tenants, and business partners for their unwavering
support. We also thank you, our shareholders, for your continued confidence in NETSTREIT.
Mark Manheimer
President and Chief Executive Officer



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