NETSTREIT (NYSE:NTST) reported first-quarter 2026 results highlighted by an active investment quarter, high portfolio occupancy, and updated full-year guidance reflecting what management described as a strong acquisition environment and ample funding capacity.
First-quarter investment activity and portfolio updates
President and CEO Mark Manheimer said the company carried “strong momentum” from 2025 into the first quarter, closing $239 million of gross investment activity focused on “core necessity and service-based sectors” including grocery, convenience stores, quick service restaurants, and auto service. The investments were completed at a blended cash yield of 7.5% and a weighted average lease term of 14.1 years.
NETSTREIT ended the quarter with 804 properties leased to 138 tenants across 28 industries and 46 states. The company reported a weighted average remaining lease term of 10.2 years and said investment grade and investment grade profile tenants were 58.3% of annual base rent (ABR). Unit-level rent coverage “ticked up slightly” to 3.9x, Manheimer said. Occupancy was 99.9% at quarter-end and returned to 100% after quarter end.
Manheimer highlighted the leasing of the company’s only vacant space, a former Big Lots location, which was backfilled in early April with an A-rated TJ Maxx tenant at “a more than 20% increase in rent.” He added that TJ Maxx has not commenced rent yet and has work to complete, with “about a year before they actually start paying rent.”
Financial results and expense trends
Senior Associate of FP&A, Capital Markets and IR Matt Miller reported net income of $5.7 million, or $0.06 per diluted share, in the first quarter. Core FFO was $32.0 million, or $0.32 per diluted share, and AFFO was $33.2 million, or $0.34 per diluted share, representing a 6.3% increase over the prior year period.
Total recurring G&A increased 9.7% year-over-year to $5.8 million, which Miller attributed “mostly” to increased staffing and investment in the team. He added that recurring G&A represented 10% of total revenues versus 11% in the prior-year quarter.
Capital markets, leverage, and liquidity
During the quarter, NETSTREIT raised equity through a forward offering and ATM issuance. Miller said the company completed a 12.6 million share forward equity offering in early February for $230.3 million of net proceeds, supplemented by 4.0 million shares via the ATM for $73.8 million of net proceeds. In total, the company sold 16.6 million forward shares for $304.1 million of net proceeds.
Management said leverage remains conservative. Adjusted net debt, including the impact of forward equity, was $629 million. The company reported a weighted average debt maturity of 3.8 years and a weighted average interest rate of 4.27%. Including extension options, NETSTREIT said it has no material debt maturities until February 2028.
Total liquidity was $1.1 billion at quarter-end, consisting of approximately:
- $11 million of cash
- $412 million available on the revolving credit facility
- $606 million of unsettled forward equity
- $100 million of undrawn term loan capacity
Adjusted net debt to annualized adjusted EBITDAre was 3.2x, well below the company’s stated target leverage range of 4.5x to 5.5x. Manheimer said the capital raised during the quarter “largely takes care of our 2026 equity needs,” and the company intends to remain opportunistic with its ATM issuance to avoid being forced to raise equity.
Guidance raised as management cites pipeline visibility
With acquisition activity and pipeline momentum, NETSTREIT raised its 2026 outlook. Management increased net investment activity guidance to $550 million to $650 million and raised the low end of its AFFO per share guidance to $1.36 to $1.39. The company maintained expected cash G&A of $16 million to $17 million.
Management noted that the AFFO per share guidance includes $0.03 to $0.06 of estimated dilution related to outstanding forward equity under the treasury stock method. In response to an analyst question, management said it expects approximately $0.045 of dilution at the midpoint and characterized the assumptions as conservative, referencing an expectation that the stock price “will kind of drift somewhere into the low 20s.”
Manheimer said the company has “visibility going out 60, 90 days,” but remains cautious in projecting conditions further out given geopolitical risks. Still, he said the second quarter “looks strong” and suggested investment volume could be “pretty similar” to the first quarter depending on closing timing.
Sector commentary: convenience stores, grocery, and developments
Manheimer said pricing has been consistent and the company expects cap rates to remain “relatively the same, give or take 10 basis points.” When asked about category-level cap rate movement amid rate volatility, he said the company has seen “pretty consistent” cap rates and has “really haven’t seen much of a change.”
On convenience stores, Manheimer said the first quarter included more activity in the category than he expects in the second quarter, and he discussed underwriting metrics such as fuel gallonage and inside sales. He also addressed recent news about 7-Eleven closures, saying NETSTREIT does not own the older, smaller stores referenced and that the company has reduced its 7-Eleven count over time, from 21 properties to 13, by actively managing exposure. He said the weighted average lease term on NETSTREIT’s 7-Eleven properties is 9.5 years, with none below 8.5 years.
In grocery, Manheimer said the company has seen “a lot of great opportunities,” but indicated a desire not to let the category rise materially above current levels, noting, “I don’t think we’d let anything get to 20%,” while suggesting the 15% to 16% range is likely to remain “pretty consistent.”
On development, Manheimer said NETSTREIT currently views the risk premium as insufficient, stating the company is “picking up 25 basis points” and would find the strategy more attractive if spreads were “50, 75, 100 basis points.” He said development is about “10% of what we’re doing” at present.
On portfolio credit, Manheimer said the company has not seen meaningful changes to the watch list and pointed to “some improvement” in unit-level and corporate performance metrics shown in the company’s supplemental materials. He said there are “three assets” under 1x coverage and “three or four” tenants at a CCC+ implied rating that are being monitored, but he does not expect meaningful impact to AFFO “for the next several years.” He also said the midpoint guidance assumes roughly 50 basis points of bad debt.
Finally, NETSTREIT’s board declared a quarterly cash dividend of $0.22 per share, payable June 15 to shareholders of record as of June 1.
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.
