NETSTREIT (NTST) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: 4.61%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 10852.9
• Beta (1Y): 0.32
• Revenue Growth: 19.92%
• EPS Growth: N/A
• Country: US
• Employees: 22
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.01
• Shares Outstanding: 83,561,676
• 10 Day Avg. Volume: 1,513,079
• 30 Day Avg. Volume: 1,287,556
• PEG Ratio: 0.37
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 7.22
• P/FCF Ratio: 12.01
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 8.24
• Enterprise Value/Gross Profit: 8.91
• Enterprise Value/Ebitda: 11.32
• 1Y Price Target: $20.11
• Price Target Upside: 9.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.34
• Revenue Forecast (FY): $209.51M

• Rating: 66 Neutral
• Price Target: $18.50 ▲(0.27% Upside)

The score is driven primarily by strong and growing cash generation and a solid balance-sheet backdrop, reinforced by constructive guidance and an investment-grade rating. Offsetting these positives are weak/volatile GAAP profitability (very low ROE) and soft technical momentum, while valuation is pressured by an extremely high P/E despite a ~5% dividend yield.

Positive Factors

Strong cash generation and FCF growth

Consistent and growing operating cash flow and FCF provide durable internal funding for dividends, acquisitions, and debt service. For a net-lease REIT this reduces refinancing risk and reliance on external capital, supporting long-term payout sustainability and accretive portfolio growth.

Investment-grade rating and ample liquidity

Achieving an inaugural investment-grade rating and maintaining >$1B liquidity materially improves access to debt markets and lowers financing costs. This structural improvement increases capital flexibility for accretive purchases and cushions the balance sheet across cycles, aiding long-term growth execution.

High occupancy and strong tenant credit mix

Near-perfect occupancy and a large share of investment-grade tenants produce predictable rent rolls and low credit losses. Long average lease durations reduce re-leasing risk, supporting stable cash flows and dividend coverage over multi-year horizons, a core strength for net-lease REITs.

Negative Factors

Very low ROE and volatile GAAP profitability

Extremely low ROE and volatile GAAP earnings signal limited bottom-line conversion of assets and capital. Over time this constrains equity investors' return potential and highlights dependency on FFO/FFO metrics, requiring continued portfolio growth or margin improvements to raise shareholder returns.

Limited AFFO/share improvement despite heavy investments

Record investment activity that fails to translate into AFFO/share gains indicates timing and dilution risks. Reliance on equity raises and deal close timing can mute per-share accretion structurally, making earnings-per-share improvement dependent on execution and restraint in share issuance.

Higher recurring G&A as staffing normalizes

A permanently higher operating cost base from normalized staffing increases fixed expenses, reducing operating leverage. Sustained elevated G&A requires larger scale or higher spreads on new investments to protect AFFO margins and could slow margin expansion unless offset by continued revenue growth.

NETSTREIT Business Overview & Revenue Model

Company Description

NETSTREIT 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 Money

NETSTREIT generates revenue primarily through long-term leases with its tenants, who are responsible for the property’s operating expenses, including taxes, insurance, and maintenance. This net lease structure allows NETSTREIT to benefit from stable cash flows while minimizing operational costs. The company earns rental income from its portfolio of properties, which is further supplemented by periodic rent escalations built into lease agreements. Key partnerships with reputable tenants and strategic acquisitions of high-demand properties contribute to its earnings, enabling consistent dividend payouts to shareholders.

NETSTREIT Financial Statement Overview

Summary

Solid fundamentals supported by strong free cash flow growth (29.51% TTM) and high gross margin (94.90%), alongside moderate leverage (debt-to-equity 0.72). The main offset is profitability pressure, with negative net income and negative ROE despite healthy EBITDA/EBIT margins.

Income Statement

NETSTREIT has shown consistent revenue growth, with a TTM growth rate of 7.27%. The gross profit margin is strong at 94.90%, indicating effective cost management. However, the company is currently experiencing negative net profit margins, reflecting challenges in achieving profitability. The EBIT and EBITDA margins are healthy, suggesting operational efficiency, but the negative net income is a concern.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.72, indicating a balanced approach to leverage. The equity ratio is stable, showing a solid equity base. However, the return on equity is negative, highlighting profitability challenges. Overall, the balance sheet reflects financial stability but with room for improvement in profitability.

Cash Flow

NETSTREIT exhibits strong free cash flow growth at 29.51% TTM, demonstrating effective cash management. The operating cash flow to net income ratio is positive, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also strong, suggesting efficient conversion of earnings into cash. Despite negative net income, cash flow metrics are robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.49M	150.00M	123.12M	92.50M	58.35M	33.73M
Gross Profit	163.15M	133.80M	108.10M	82.24M	53.34M	27.99M
EBITDA	128.41M	98.24M	90.80M	67.32M	37.31M	15.85M
Net Income	185.00K	-11.94M	6.84M	8.12M	3.05M	730.00K
Balance Sheet
Total Assets	2.47B	2.26B	1.95B	1.61B	1.07B	725.82M
Cash, Cash Equivalents and Short-Term Investments	53.32M	14.32M	18.43M	65.84M	7.60M	92.64M
Total Debt	0.00	894.28M	640.25M	529.79M	267.09M	191.03M
Total Liabilities	1.16B	921.21M	672.80M	547.27M	278.63M	197.74M
Stockholders Equity	1.30B	1.33B	1.26B	1.05B	779.17M	494.10M
Cash Flow
Free Cash Flow	105.67M	90.16M	80.12M	49.44M	30.75M	12.70M
Operating Cash Flow	108.74M	90.16M	80.16M	50.65M	31.48M	12.75M
Investing Cash Flow	-353.00M	-432.88M	-451.95M	-468.36M	-430.13M	-362.13M
Financing Cash Flow	268.84M	327.10M	331.18M	480.65M	313.61M	272.71M

NETSTREIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 18.45 is above the 20-day moving average (MA) of 17.61, above the 50-day MA of 17.74, and above the 200-day MA of 17.16, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 96.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTST.

NETSTREIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSR	77 Outperform	$1.45B	16.53	10.34%	3.97%	4.44%	107.23%
CBL	73 Outperform	$1.11B	9.14	37.88%	6.79%	5.74%	294.33%
FCPT	71 Outperform	$2.63B	22.88	7.56%	6.10%	8.28%	1.49%
GTY	69 Neutral	$1.73B	23.51	7.54%	6.77%	8.17%	9.96%
NTST	66 Neutral	$1.55B	10,852.94	0.02%	4.61%	19.92%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PINE	59 Neutral	$248.59M	-49.44	-2.16%	7.01%	14.81%	-245.25%

NETSTREIT Corporate Events

NETSTREIT Earns First Investment-Grade Rating from Fitch

On December 30, 2025, NETSTREIT Corp. announced that Fitch Ratings assigned the company a BBB- issuer rating with a stable outlook, reflecting the REIT’s solid property portfolio and resilient operating performance, including pandemic-era occupancy levels above 99%. Fitch highlighted NETSTREIT’s strong unit-level rent coverage, limited credit losses versus peers, well-staggered debt maturities and ample liquidity, while management pointed to the inaugural investment-grade rating as validation of its conservative balance sheet and low leverage since its IPO over five years ago, positioning the company to reduce interest expense on its revolving credit and term loan facilities and to access debt markets more efficiently.

NETSTREIT Highlights Strong Occupancy and Financial Stability

On December 8, 2025, NETSTREIT Corp. released an investor presentation highlighting its strategic focus on maintaining a high-occupancy portfolio with resilient tenants. The company reported a 99.9% occupancy rate and emphasized its strong investment pipeline and financial stability, with a significant portion of its portfolio consisting of investment-grade tenants. NETSTREIT’s strategic approach has resulted in minimal credit losses, even amid challenging economic conditions, positioning it favorably in the retail real estate market.

NETSTREIT Reports Q3 2025 Financial Results

On October 27, 2025, NETSTREIT Corp. reported its financial and operating results for the third quarter ending September 30, 2025. The company achieved a record $203.9 million in gross investment activity and completed a $219.8 million forward equity offering in July 2025. With a low-leveraged balance sheet and over $1.1 billion in available liquidity, NETSTREIT is positioned to increase investments and achieve strong long-term growth in adjusted funds from operations per share. The company also raised its 2025 net investment guidance to between $350.0 million and $400.0 million, reflecting its strategic focus on diversification and capital efficiency in a challenging macroeconomic environment.