NETSTREIT (NYSE:NTST) management highlighted record investment activity in 2025, improving balance sheet flexibility, and a higher dividend during the company’s fourth-quarter earnings call. Executives also reaffirmed 2026 guidance and described a shift toward fewer dispositions after completing a year of portfolio diversification.
Record investment year and accelerated fourth-quarter activity
CEO Mark Manheimer said NETSTREIT completed $245.4 million of gross investments in the fourth quarter, the highest quarter on record, at a 7.5% blended cash yield and 15 years of weighted average lease term. For the full year, the company completed a record $657.1 million of gross investments at a 7.5% blended cash yield with 13.9 years of weighted average lease term.
Portfolio snapshot and credit metrics
NETSTREIT ended the quarter with 758 properties leased to 129 tenants across 28 industries in 45 states. Manheimer said 58.3% of annual base rent (ABR) was leased to investment grade or “investment grade profile” tenants. The portfolio’s weighted average remaining lease term was 10.1 years, with 2.4% of ABR expiring through 2027. He also cited a portfolio weighted average unit-level coverage ratio of 3.8x.
Discussing near-term lease maturities, Manheimer said the ABR expiring over the next four years had a “high probability of renewal,” citing a 5.1x blended rent coverage ratio for that cohort and ongoing tenant dialogue. In response to a question on renewal options, he noted that most leases generally include options and that the company expects the “lion’s share” of locations to be renewed via option exercise.
Dispositions: diversification goals met, fewer sales expected
Manheimer said NETSTREIT sold 76 properties in 2025 totaling $178.6 million at a 6.9% cash yield. Those sales helped the company meet diversification goals, including bringing all tenants below 5% of ABR.
Looking ahead, he said the company expects to sell significantly fewer properties in 2026, with a greater focus on opportunistic sales and risk mitigation—including selling assets where buyers offer “very aggressive cap rates” relative to NETSTREIT’s internal view, or where unit-level or corporate performance degrades. He added the company expects Walgreens to represent less than 2% of ABR by year-end 2026.
On the portfolio’s unit-level coverage distribution, management said movements can occur quarter to quarter. Manheimer noted that assets in weaker-coverage buckets were being monitored and could be monetized if performance does not improve over several quarters, but he said the shift was not a short- or medium-term concern.
Financial results, guidance, and dividend increase
CFO Dan Donlan reported fourth-quarter net income of $1.3 million, or $0.02 per diluted share. Core FFO was $26.6 million, or $0.31 per diluted share, and AFFO was $28.2 million, or $0.33 per diluted share, representing a 3.1% increase from the prior year’s quarter.
For full-year 2025, Donlan reported net income of $0.08 per diluted share, core FFO of $1.23 per diluted share, and AFFO of $1.31 per diluted share, which he said represented 4% growth over 2024. He also said recurring G&A was 11% of total revenues in 2025, unchanged from 2024, and the company expects that metric to average below 10% in 2026.
NETSTREIT reaffirmed its 2026 AFFO per share guidance range of $1.35 to $1.39, which assumes 5% year-over-year growth at the midpoint. The company also reiterated expectations for:
- Net investment activity of $350 million to $450 million
- Cash G&A of $16 million to $17 million
- $0.015 to $0.03 per share of estimated dilution tied to outstanding forward equity under the treasury stock method
The board declared a quarterly dividend of $0.22 per share, a 2.3% increase from $0.215. The dividend is payable March 31 to shareholders of record March 16.
Balance sheet, capital markets activity, and investment-grade rating
Manheimer and Donlan both emphasized balance sheet strength. Management cited pro forma leverage of 3.8x, no major debt maturities until 2028, and meaningful liquidity. Donlan said adjusted net debt (including forward equity impacts) was $720 million, with a 3.9-year weighted average debt maturity and a 4.24% weighted average interest rate. Total liquidity at year-end was described as $1.0 billion, consisting of cash, revolver availability, unsettled forward equity, and undrawn term loan capacity.
In the quarter, the company sold 5.8 million shares through its ATM program for $104 million of net proceeds, and after quarter-end sold another 2.6 million shares for $46 million in net proceeds.
Management discussed NETSTREIT’s newly achieved BBB- investment-grade rating from Fitch, which Manheimer said improved access to debt and tightened spreads. Donlan said most term loans priced down 20 to 25 basis points, resulting in approximately $2 million of annual interest savings. He added that an upgrade could provide another roughly 10 basis points of benefit across the term loan stack, but said the company does not expect to need long-term debt until around mid-2027 and is not in a rush to pursue additional agency ratings.
During the Q&A, management said acquisition capacity is influenced by cost of capital and that the company believes it can source more than the current investment guidance range if conditions are accretive. Manheimer also pointed to continued activity in grocery, fitness (selectively), convenience stores, and quick-service restaurants. On underwriting, he said the company is seeing attractive risk-adjusted returns in certain non-rated credits, where it can negotiate stronger lease terms and evaluate unit-level performance, particularly in sale-leaseback transactions.
About NETSTREIT (NYSE:NTST)
NetSTREIT Corp. is a real estate investment trust that specializes in the acquisition and management of single‐tenant, net lease retail properties across the United States. The company targets assets leased to investment‐grade or creditworthy tenants under long‐term, triple‐net leases, which generally shift property‐level expenses—such as taxes, insurance and maintenance—to the tenant. This business model is designed to generate predictable, stable income streams and to limit landlord responsibilities.
NetSTREIT’s portfolio encompasses a diversified mix of essential retail and service properties, including quick‐service restaurants, convenience stores, banks, automotive service centers and medical clinics.
