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NETSTREIT (NTST)
NYSE:NTST

NETSTREIT (NTST) AI Stock Analysis

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NETSTREIT

(NYSE:NTST)

Rating:69Neutral
Price Target:
$18.50
▲(8.50%Upside)
NETSTREIT's overall stock score is driven by solid financial performance with strong cash flow and operational improvements. The technical analysis suggests a positive trend, though caution is advised due to potential overbought conditions. The valuation is a concern due to negative earnings, but mitigated by a strong dividend yield. Earnings call insights on strategic investments and improved AFFO guidance further support a positive outlook, despite market uncertainties.
Positive Factors
Financial Performance
The company's adjusted funds from operations per share slightly exceeded consensus expectations.
Growth Potential
The small asset base of Netstreit Corp. presents potential for significant growth in funds from operations per share with each acquisition.
Valuation
NTST trades below the private market value of its portfolio, indicating potential for positive valuation adjustments.
Negative Factors
Cost of Capital
NTST's high WACC (>8% ICR) / tighter investment spreads (<100bps) have limited its ability to raise and deploy capital.
Investment Activity
NTST's investment activity guidance was lower than expected but considered reasonable due to the recent decline in share price.
Market Concerns
Investor concern exists around negative headlines affecting some of NTST's key tenants, impacting the stock.

NETSTREIT (NTST) vs. SPDR S&P 500 ETF (SPY)

NETSTREIT Business Overview & Revenue Model

Company DescriptionNETSTREIT is an internally managed Real Estate Investment Trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT's strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.
How the Company Makes MoneyNETSTREIT generates revenue primarily through rental income from its portfolio of single-tenant, net-leased retail properties. The company's business model involves acquiring properties that are leased to tenants on a net lease basis, meaning tenants are responsible for paying most or all of the operating expenses, including taxes, maintenance, and insurance, in addition to rent. This structure provides NETSTREIT with predictable cash flows and reduces the financial burden of property ownership. Key revenue streams include rental payments from tenants in essential and resilient retail sectors. The company's earnings are further supported by strategic acquisitions and portfolio management aimed at enhancing the quality and stability of its income. Significant partnerships with high-credit-quality tenants and a focus on sectors less susceptible to economic downturns contribute to NETSTREIT's financial performance.

NETSTREIT Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q1-2025)
|
% Change Since: 10.43%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong investment activity, portfolio diversification efforts, zero credit losses, and improved financial performance, suggesting solid operational execution. However, the investment pace was deliberately measured due to market uncertainties and cost of capital concerns. Overall, positive developments outweigh the challenges.
Q1-2025 Updates
Positive Updates
Strong Investment Activity
NETSTREIT completed $90.7 million of gross investments at a blended cash yield of 7.7% with a weighted average lease term of 9.2 years. 66% of ABR came from investment grade and investment grade profile tenants.
Portfolio Diversification
Successfully reduced top five tenant concentration by 70 basis points to 28.2% of ABR, including a 50 basis point reduction in Dollar General concentration.
No Credit Losses
Reported zero credit losses during the quarter, maintaining a strong track record of credit performance.
Financial Performance and Increased Guidance
Core FFO for the quarter was $24.6 million or $0.30 per diluted share, and AFFO was $26.2 million or $0.32 per diluted share, a 3.2% increase over last year. Guidance for AFFO per share was increased to $1.28 to $1.30.
Capital Markets Activity
Closed on $275 million of additional financing commitments, including a new $175 million term loan and an upsized $500 million revolving credit facility.
Negative Updates
Measured Investment Pace
The investment pace remains more measured versus prior years to maintain a low leverage balance sheet and ensure cost of capital reflects portfolio strength.
Uncertainty in Transaction Market
Ongoing uncertainty in the market has made it difficult for some companies to make decisions, impacting the speed of investment and disposition activities.
Company Guidance
During the first quarter of 2025, NETSTREIT Corp. focused on diversifying its portfolio and maintaining a low leverage balance sheet. The company completed $90.7 million of gross investments at a blended cash yield of 7.7%, with a weighted average lease term of 9.2 years. Investment grade or investment grade profile tenants constituted 66% of the annual base rent (ABR) for these investments. The company also disposed of properties worth $40.3 million at a 7.3% blended cash yield. As a result, NETSTREIT's portfolio included 695 properties leased to 101 tenants across 26 industries in 45 states, with 71% of the total ABR leased to investment grade or investment grade profile tenants. The weighted average lease term remained at 9.7 years, with just 1.3% of ABR expiring through 2026. The company's top five tenant concentration decreased to 28.2% of ABR. Financially, NETSTREIT reported net income of $1.7 million, core funds from operations (FFO) of $24.6 million, and adjusted FFO (AFFO) of $26.2 million, representing a 3.2% increase over the previous year. The company updated its AFFO per share guidance to $1.28 to $1.30 for 2025, assuming net investment activity between $75 million and $125 million.

NETSTREIT Financial Statement Overview

Summary
NETSTREIT demonstrates solid revenue growth and operational improvements, particularly in EBIT and EBITDA margins. Despite these strengths, the company faces challenges with profitability, as seen in the negative net income. The balance sheet is stable, supported by a reasonable debt level, though there is a slight decline in equity ratio. Cash flows are a strong point, with consistent operating cash flow and free cash flow generation, supporting future growth investments. Overall, while there are profitability concerns, the company's financial position remains sound.
Income Statement
62
Positive
The company shows consistent revenue growth, with a notable increase in total revenue from previous years. However, the net profit margin is negative in the TTM period, indicating current profitability challenges. The EBIT and EBITDA margins show improvement, suggesting operational efficiencies despite the net income loss.
Balance Sheet
70
Positive
The balance sheet reflects a strong equity base with a stable debt-to-equity ratio, indicating moderate leverage. However, the equity ratio has decreased slightly over the years, suggesting increased liabilities relative to assets. Return on equity is low due to negative net income, which is a concern for investors.
Cash Flow
75
Positive
The cash flow statement highlights positive operating cash flows with a significant increase over the years, indicating strong cash generation capabilities. Free cash flow remains robust, although growth has varied. The operating cash flow to net income ratio is strong, reflecting efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue161.01M150.00M123.12M96.28M59.14M33.73M
Gross Profit148.58M133.80M106.25M84.58M53.34M31.16M
EBITDA108.79M98.24M95.65M65.66M38.96M19.81M
Net Income-11.29M-11.94M6.84M8.12M3.05M-4.00M
Balance Sheet
Total Assets2.29B2.26B1.95B1.61B1.07B725.82M
Cash, Cash Equivalents and Short-Term Investments14.21M14.32M18.43M70.54M7.60M92.64M
Total Debt941.87M894.28M640.25M524.32M261.65M191.03M
Total Liabilities971.75M921.21M672.80M547.27M278.63M197.74M
Stockholders Equity1.31B1.33B1.26B1.05B779.17M494.10M
Cash Flow
Free Cash Flow75.57M90.16M80.12M49.44M30.75M12.70M
Operating Cash Flow100.60M90.16M80.16M50.65M31.48M12.75M
Investing Cash Flow-383.98M-432.88M-451.95M-468.36M-430.13M-362.13M
Financing Cash Flow275.25M327.10M331.18M480.65M313.61M272.71M

NETSTREIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.05
Price Trends
50DMA
16.05
Positive
100DMA
15.41
Positive
200DMA
15.13
Positive
Market Momentum
MACD
0.27
Negative
RSI
60.21
Neutral
STOCH
71.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTST, the sentiment is Positive. The current price of 17.05 is above the 20-day moving average (MA) of 16.57, above the 50-day MA of 16.05, and above the 200-day MA of 15.13, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTST.

NETSTREIT Risk Analysis

NETSTREIT disclosed 49 risk factors in its most recent earnings report. NETSTREIT reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

NETSTREIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
IVIVT
72
Outperform
$2.12B120.741.07%3.47%7.45%119.81%
GTGTY
71
Outperform
$1.55B23.187.23%6.80%7.80%4.15%
BFBFS
71
Outperform
$840.28M23.5413.86%6.91%5.00%-14.72%
WSWSR
69
Neutral
$1.27B20.737.33%4.31%4.39%24.45%
69
Neutral
$1.40B-0.88%4.93%21.91%-257.05%
63
Neutral
$6.96B19.11-1.16%6.97%4.71%-24.99%
60
Neutral
$208.86M158.960.47%7.79%14.71%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NTST
NETSTREIT
16.84
1.56
10.21%
GTY
Getty Realty
27.95
2.96
11.84%
BFS
Saul Centers
34.70
0.32
0.93%
WSR
Whitestone REIT
12.72
0.00
0.00%
IVT
InvenTrust Properties
27.33
3.57
15.03%
PINE
Alpine Income Property Trust Inc
14.59
0.50
3.55%

NETSTREIT Corporate Events

Business Operations and StrategyFinancial Disclosures
NETSTREIT Highlights Strong Financial Position and Growth
Positive
Jun 18, 2025

On June 18, 2025, NETSTREIT Corp. released an investor presentation highlighting its strong financial position and strategic focus on growth through high-quality tenant investments. The company reported a 99.9% occupancy rate and emphasized its robust liquidity and low leverage, which positions it well for future investments. NETSTREIT’s strategic management of lease expirations and minimal credit loss history underscore its resilience in the retail real estate market.

The most recent analyst rating on (NTST) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on NETSTREIT stock, see the NTST Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
NETSTREIT Highlights Strong Financial Position in 2025
Positive
Jun 2, 2025

On June 2, 2025, NETSTREIT Corp. released an investor presentation highlighting its strong financial position and strategic focus on high-quality tenants. The company reported a 99.9% occupancy rate and robust liquidity, with $584 million available for investments in 2025. The presentation emphasized NETSTREIT’s low leverage and minimal lease rollover risk, with a weighted average lease term of 9.7 years. The company has maintained a strong investment pace since 2020, completing $90.7 million in gross investments in the first quarter of 2025. NETSTREIT’s proactive asset management and industry relationships have resulted in well-managed lease expirations, with minimal credit loss from tenant events.

The most recent analyst rating on (NTST) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on NETSTREIT stock, see the NTST Stock Forecast page.

Executive/Board ChangesShareholder Meetings
NETSTREIT Holds Annual Stockholders Meeting on May 15
Neutral
May 20, 2025

On May 15, 2025, NETSTREIT Corp. held its annual meeting of stockholders where several key proposals were voted on. The election of directors saw Mark Manheimer, Lori Wittman, Michael Christodolou, Heidi Everett, Todd Minnis, Matthew Troxell, and Robin Zeigler receiving varying levels of support. Additionally, the amendment and restatement of the 2019 Omnibus Incentive Compensation Plan was approved, and the appointment of an independent registered public accounting firm was ratified. The advisory vote on executive officer compensation also took place.

The most recent analyst rating on (NTST) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on NETSTREIT stock, see the NTST Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
NETSTREIT Reports Q1 2025 Financial Results
Positive
Apr 28, 2025

On April 28, 2025, NETSTREIT Corp. announced its financial and operating results for the first quarter ending March 31, 2025. The company reported a net income of $0.02 and adjusted funds from operations (AFFO) of $0.32 per diluted share. During the quarter, NETSTREIT completed $90.7 million in gross investment activity with a 7.7% blended cash yield and closed $275 million in additional financing commitments. The company also increased its 2025 AFFO per share guidance to a new range of $1.28 to $1.30, reflecting its strategic focus on capital recycling and portfolio diversification.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 19, 2025