NETSTREIT Corp. reported record Q4 2025 results, completing $657.1 million of gross investment activity and $435.6 million of net investment activity, driven by 164 new acquisitions and 76 dispositions totaling $178.6 million. The company achieved a blended cash yield of 7.5%, with new assets averaging 13.9‑year lease terms and disposals averaging 10.5 years.
AFFO per share for 2025 was reaffirmed at $1.30 to $1.31, matching the guidance issued in the prior year. For 2026, management raised the guidance to $1.35 to $1.39 per share, a 3.8% to 5.6% increase over the 2025 range and a $0.04 to $0.08 beat over the consensus estimate of $0.67. The guidance reflects confidence in continued acquisition momentum and the ability to recycle capital into higher‑yielding assets.
Liquidity remains robust, with $1.04 billion in total liquidity as of December 31 2025 and a debt‑to‑equity ratio of 0.84 as of January 9 2026, comfortably within the company’s target range. Fitch upgraded NETSTREIT to investment‑grade BBB‑ in December, reinforcing the firm’s access to low‑cost capital and supporting its dividend growth strategy.
CEO Mark Manheimer said the company’s “prefunded investment pipeline is both attractively priced and robust,” and highlighted the strong liquidity position and disciplined capital allocation as key enablers of the 2026 guidance. He emphasized that the portfolio’s e‑commerce‑resistant tenants and high‑quality net‑lease properties underpin the company’s long‑term resilience.
Analysts across the sector noted the record investment activity and the 2026 AFFO guidance as primary drivers of the positive market reaction. The 7.5% blended cash yield, 99.9% occupancy, and 9.9‑year weighted average lease term for the guidance period were cited as evidence of a well‑managed, high‑quality portfolio that can sustain dividend growth.
The results reinforce NETSTREIT’s strategy of acquiring and holding single‑tenant net‑lease retail properties with e‑commerce‑resistant tenants. The company’s ability to dispose of lower‑yielding assets and reinvest in higher‑yielding ones, combined with a strong credit profile, positions it to capture upside in a market that continues to favor resilient retail tenants. Headwinds such as potential interest‑rate increases remain a concern, but the company’s investment‑grade rating and robust liquidity buffer mitigate those risks.
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