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. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

1% increase in AFFO per share over the previous year. 8% yield, enhancing portfolio quality. 39. 5% investment-grade tenants, showcasing strong unit-level rent coverage.

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. 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. 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. 8 years.

8% blended cash yield, the proceeds of which were recycled into higher-quality, longer-duration opportunities that enhanced our portfolio quality and further reduced select tenant and industry concentrations. This robust start to the year reflects the depth of our sourcing platform and our team's ability to move quickly across a wide swath of opportunities while still staying disciplined in our underwriting criteria. With that in mind, we have seen an uptick in portfolio transactions in recent months which historically have priced away from us given the large premiums these deals typically command.

That said, we were successful in a couple of instances this quarter which has fortuitously carried over into the third quarter. As a result, we have gained additional exposure without sacrificing our investment spreads to various high-quality tenants like Chick-fil-A, Sprouts, and Kwik Trip that usually price too aggressively for us in the one-off market. Also of note this quarter was the UPREIT acquisition of 20 Speedway properties that we previously invested in via a first mortgage in early 2023. This was a great example of our creative structuring within our debt program, providing a path to direct fee ownership at cap rates that are significantly above market.

75% initial cash yield which we see as a strong risk-adjusted yield given the long-term leases, the investment-grade credit support, high unit-level rent coverage and the low basis in these assets. Turning to the portfolio, we ended the quarter with 859 investments leased to 156 tenants across 28 industries and 46 states. 5% of ABR. 8 time