NETSTREIT secures $450 million in additional financing commitments

DALLAS - NETSTREIT Corp. (NYSE:NTST), a $1.5 billion market cap REIT currently trading near its 52-week high, announced Thursday it has closed $450 million in additional financing commitments and amendments to its existing credit facilities. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 4.66x, indicating robust ability to meet short-term obligations.

The real estate investment trust secured a new Term Loan Credit Agreement agented by PNC Bank, National Association, which provides for a $200 million senior unsecured 5.5-year term loan facility and a $250 million senior unsecured 7-year term loan facility. This financing adds to NETSTREIT’s existing debt position of $942.55 million, while maintaining an attractive dividend yield of 4.8%.

The company has fully funded the $200 million term loan and $100 million of the 7-year facility at closing. The remaining $150 million will be available as a delayed draw term loan commitment until September 25, 2026.

NETSTREIT has fully hedged the 5.5-year term loan with an all-in interest rate of 4.59% per annum, effective October 1, 2025. The company has partially hedged $200 million of the 7-year term loan at an all-in interest rate of 4.92% per annum, also effective October 1, while the remaining $50 million remains unhedged.

The company also amended its existing credit agreements with PNC Bank, Wells Fargo Bank, and Truist Bank to remove the SOFR credit spread adjustment and make other conforming changes.

Multiple financial institutions participated as joint lead arrangers for the term loans, with PNC Capital Markets LLC serving as the sole bookrunner. Cooley LLP acted as counsel to NETSTREIT, while Alston & Bird LLP represented the administrative agents.

NETSTREIT specializes in acquiring single-tenant net lease retail properties nationwide, according to the company’s press release statement. The company has demonstrated strong growth with revenue increasing 21.39% over the last twelve months. For deeper insights into NETSTREIT’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports and expert financial metrics.

In other recent news, Netstreit Corp reported its second-quarter 2025 earnings, showing a mixed financial performance. The company posted an earnings per share of $0.04, which was below the anticipated $0.06, representing a 33.33% miss. However, Netstreit’s revenue exceeded expectations, coming in at $45.16 million compared to the forecasted $44.12 million, a 2.36% surprise. Additionally, Netstreit completed a public offering of 12.4 million shares at a price of $17.70 per share, with the underwriters’ option fully exercised. This offering was conducted with the involvement of Bank of America and Wells Fargo, among others.

BofA Securities upgraded Netstreit from Underperform to Neutral, raising its price target to $19.00 due to the company’s strong quarterly results and recent forward equity raise. Stifel also reiterated its Buy rating on Netstreit with a $20.00 price target, highlighting the company’s improved liquidity and return to external growth. These developments reflect the company’s strategic moves and the positive reception from analysts.

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