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Investing.com - Berenberg initiated coverage on Netstreit Corp. (NYSE:NTST) with a Buy rating and a price target of $22.00 on Monday. The stock, currently trading at $18.21 and showing strong momentum with a 33.82% year-to-date return, maintains a market capitalization of $1.53 billion and offers a dividend yield of 4.72%.
The research firm highlighted Netstreit’s diversified retail portfolio, noting that approximately 88% of the company’s annualized base rent (ABR) as of June came from necessity-focused and discount retailers, with groceries, dollar stores, and home-improvement retailers representing the largest industry segments.
Netstreit’s portfolio comprised nearly 700 investments across 26 different retail sectors as of June, according to Berenberg’s analysis, demonstrating the REIT’s broad market exposure.
The firm pointed to Netstreit’s portfolio strategy, which aims to limit concentration risk by capping any single tenant at 5% of ABR, any retail sector at 15%, and any single state at 15% of total ABR.
Berenberg also noted that Netstreit’s approach ensures its 10 largest tenants contribute no more than 50% of ABR, which enhances marketability of individual assets and facilitates potential disposals.
In other recent news, Netstreit Corp . has announced several significant developments. The company secured $450 million in additional financing commitments, including a $200 million senior unsecured 5.5-year term loan and a $250 million senior unsecured 7-year term loan, facilitated by PNC Bank. Additionally, Netstreit completed a public offering of 12.4 million shares at $17.70 per share, which included shares sold through the full exercise of the underwriters’ option. Analyst firms have also shown interest in Netstreit, with Cantor Fitzgerald initiating coverage with an Overweight rating and a $21.00 price target, based on favorable tenant quality and AFFO multiples. Stifel reiterated its Buy rating with a $20.00 price target, highlighting the company’s improved liquidity and return to external growth. BofA Securities upgraded the stock from Underperform to Neutral, citing strong quarterly results and a successful forward equity raise. These developments reflect Netstreit’s strategic efforts to enhance its financial position and growth potential.
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