NETSTREIT (NTST) Q4 2025 Earnings Call Transcript

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Wednesday, Feb. 11, 2026 astatine 11 a.m. ET

• Chief Executive Officer — Mark Manheimer

• Chief Financial Officer — Daniel Donlan

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Mark Manheimer: Thank you, Matt, and convey you each for joining america this greeting connected our 4th fourth 2025 net call. I archetypal privation to congratulate the squad connected an outstanding 2025. We are efficiently moving connected each cylinders arsenic we person the close radical successful spot successful each relation crossed the full enactment to grow upon our success. We are good equipped from a equilibrium expanse and taste position astatine NETSTREIT to root the champion opportunities, thoroughly underwrite them, and adjacent them efficiently portion besides maintaining rigorous monitoring and plus absorption to get up of aboriginal risks.

We had a beardown 4th of accelerated transaction enactment arsenic we completed $245.4 cardinal of gross investments, our highest 4th connected record, astatine a blended currency output of 7.5% with 15 years of weighted mean lease term. For the afloat year, we completed a grounds $657.1 cardinal of gross investments astatine a 7.5% blended currency output with thirteen constituent 9 years of weighted mean lease term. When considering however humble our concern goals were to commencement the year, this grounds level concern enactment is adjacent much awesome arsenic it demonstrates our team's quality to rapidly accommodate to fluctuations successful some our outgo of superior and the wide nett lease marketplace.

In addition, we accomplished this grounds enactment portion maintaining absorption connected diversification arsenic evidenced by our grounds level of dispositions, which were completed 60 ground points wrong our blended currency output connected investments. Additionally, our diversification efforts led to 15 caller tenants joining our roster successful the 4th fourth alone, and with 31 caller tenants being added for the afloat year. From an net perspective, our charismatic concern enactment helped america scope the precocious extremity of our upwardly revised AFFO per stock guidance range. And looking up to this year, the squad continues to find well-priced high-quality concern opportunities with heightened levels of enactment wrong the grocery, fitness, convenience store, and speedy work edifice industries.

As antecedently announced, we achieved an investment-grade standing of BBB- from Fitch Ratings, which has greatly improved our entree to indebtedness and allows for tighter spreads. Coupled with our increasing pipeline of opportunities, improving outgo of capital, and our debased dividend payout ratio, each of which person accelerated our maturation prospects, we are expanding our quarterly dividend by 2.3% to $0.22 per share. Our equilibrium expanse remains successful fantabulous information with pro forma leverage of 3.8 times, $100 cardinal of undrawn word indebtedness superior arsenic of today, $373.1 cardinal of unsettled guardant equity astatine year-end, and nary large indebtedness maturities until 2028.