NETSTREIT (NTST) Investor presentation summary

Portfolio quality and diversification

• Maintains a 99.9% occupancy rate with a portfolio of 804 investments across 46 states, focusing on high-credit tenants and defensive retail sectors such as grocery, convenience, home improvement, and pharmacy.

• 58.3% of annual base rent (ABR) comes from investment grade or investment grade profile tenants, with a weighted average lease term of 10.2 years.

• Top tenants include Ahold Delhaize, Dollar General, CVS Health, The Home Depot, and Tractor Supply Co.

• 88.1% of ABR is derived from necessity, discount, and service-oriented tenants, providing resilience through economic cycles.

• Portfolio is diversified by industry, tenant, and geography, with no single industry exceeding 15.1% of ABR.

Investment strategy and performance

• Employs a disciplined acquisition strategy targeting inefficiently priced assets for higher risk-adjusted returns.

• Utilizes a stringent three-part underwriting process focusing on tenant credit, real estate fundamentals, and unit-level profitability, targeting rent coverage above 2.0x.

• Demonstrates a strong track record of sourcing investments at above-market yields, with a weighted average cash yield of 7.1% since 3Q'20.

• Maintains low historical credit loss, with only 3bps annualized credit loss since inception, outperforming peers.

• Actively manages the portfolio, having disposed of 223 properties totaling $551 million to optimize tenant quality and geographic diversity.

Financial position and liquidity

• Holds $1.3 billion in total pro forma liquidity, including $605.6 million in unsettled forward equity and $100 million undrawn term loan balance.

• Maintains low leverage with a pro forma adjusted net debt/annualized adjusted EBITDAre of 2.4x and no term loan maturities until 2028.

• Over 99% of the asset base is unencumbered, supporting financial flexibility.

• Debt maturity profile is well-staggered, with fixed-rate debt comprising 93% of total debt.

• All key debt covenants are comfortably met, with a consolidated total leverage ratio of 34.5% and fixed charge coverage ratio of 3.28x.