Netstreit Q2 2026 Earnings Call Transcript

Netstreit (NYSE: NTST ) held its second-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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View the webcast at Summary Netstreit reported strong financial performance in Q2 2026 with net income of $6.3 million and a 6.1% increase in AFFO per share over the previous year.

The company closed $298.9 million in gross investments at a blended cash yield of 7.4% and executed targeted dispositions at a 6.8% yield, enhancing portfolio quality.

Netstreit increased its full-year 2026 net investment activity guidance to $700-$800 million and raised the lower end of its AFFO per share guidance to $1.37-$1.39.

The portfolio ended the quarter with 859 investments, 100% occupancy, and 56.5% investment-grade tenants, showcasing strong unit-level rent coverage.

The company maintained a conservative capital structure with leverage at 3.2x and substantial liquidity of $1.1 billion, positioning it for continued growth.

Management highlighted successful acquisitions of high-quality tenants like Chick-fil-A and Sprouts, and a creative UPREIT acquisition strategy.

The call reflected optimism about the robust acquisitions market and strategic capital raising efforts to support future growth.

Full Transcript OPERATOR At this time, all participants are in a listen-only mode.

A question-and-answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, press Star zero on your telephone keypad.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce Matt Miller, Capital Markets Investor Relations.

Thank you.

You may begin.

Matt Miller, Capital Markets Investor Relations Good morning and thank you for joining us for Netstreit's second quarter 2026 earnings conference call.

On today's call, management's remarks and responses to your questions may contain statements considered forward-looking under federal securities law.

These statements address matters subject to risks and uncertainties that may cause actual results to differ from those discussed today.

For more information on these factors, we encourage you to review our latest Form 10-K and other SEC filings.

All forward-looking statements are made as of today's date and Netstreit assumes no obligation to update them in the future.

In addition, certain financial information presented on this call includes non-GAAP financial measures.

Please refer to our earnings release and supplemental package for definitions, reconciliations to the most comparable GAAP measures and an explanation of their usefulness to investors.

These materials can be found in the Investor Relations section of the company's website at netstreit.com.

Today's call is hosted by Netstreit CEO Mark Manheimer and CFO Dan Donlin.

They will make some prepared remarks followed by a Q&A session.

With that, I'll turn the call over to Mark.

Mark Manheimer, Chief Executive Officer Thank you, Matt, and good morning everyone.

We appreciate you joining us today to discuss Netstreit's second quarter 2026 results.

I want to begin by thanking our entire team for their outstanding execution and dedication.

We have now grown the portfolio to over $3 billion in assets and we continue to see an elevated number of high-quality opportunities at accretive pricing which should provide for an increasingly attractive growth backdrop as we head into 2027 and beyond.

In the second quarter, we saw continued acceleration on the investment front.

We closed $298.9 million of gross investments driven by well-priced assets in our core necessity and service-based sectors including quick-service restaurants, grocery, convenience store, auto service, and other essential retail categories.

These investments were completed at a blended cash yield of 7.4% with a weighted average lease term of 9.8 years.