NETSTREIT Raises 2026 Minimum Net Investment Activity Target to $800 Million
Key Facts
NETSTREIT raised its 2026 net investment activity forecast to at least $800 million, from its previous range of $700 million to $800 million, according to the third-quarter results announced by the company. The revision follows net investment activity of $205.4 million in the third quarter. The total reached $646.1 million in the nine months ended September 30, 2026. These figures show the scale of activity completed so far relative to the new annual forecast floor. The company, meanwhile, kept its 2026 guidance for adjusted funds from operations per share at $1.37 to $1.39.
Third-quarter activity included 84 gross investments valued at $273.144 million, with a cash yield of 7.4% and a weighted average lease term of 13 years. In the first nine months, gross investment value rose to $810.965 million across 235 investments. Gross investment value for the nine-month period exceeds the net investment activity recorded for the same period, another measure reported by the company in its results. Net activity reached $646.1 million through September 30, the basis for assessing the year's progress against the stated target. The cash yield and lease-term figures describe the terms of investments completed in the quarter, while the cumulative figures show activity since the start of the year.
On earnings, adjusted funds from operations were $0.35 per diluted share in the third quarter, compared with $0.33 in the same period of 2025, an annual increase of 6.1%. For the nine months ended September 30, 2026, adjusted funds from operations per diluted share were $1.03, compared with $0.98 in the same period of 2025, up 5.1%. NETSTREIT kept its 2026 adjusted earnings per share forecast within a range of $1.37 to $1.39. The guidance includes estimated dilution of $0.035 to $0.04 per share from outstanding forward shares. The higher investment target therefore came alongside an unchanged annual earnings range, with the estimated dilution included in the guidance.
Chief Executive Mark Manheimer said higher capital costs in the net lease sector coincided with the company's low leverage and ample liquidity. He added that these factors "position NETSTREIT to capitalize on future opportunities that may arise from any prolonged market disruption." Manheimer linked this position to a capital strategy he said extends through 2027. Total reported liquidity was $1.254 billion as of September 30, 2026. This included $499.85 million of unused capacity under the revolving credit facility and $42.305 million in cash, cash equivalents and restricted cash.
The company had a portfolio of 913 investments across 46 states as of September 30, 2026. The portfolio was 99.9% occupied, with a weighted average lease term of 10.1 years. These figures place the size and occupancy of the existing portfolio alongside investments added by the company during the quarter and the first nine months. On distributions, NETSTREIT announced a payment of $0.225 per share for the fourth quarter of 2026. That equates to an annualized distribution of $0.90 per share at the announced rate.
The distribution is scheduled to be paid on December 15, 2026, to shareholders of record on December 1. NTST shares closed at $17.57 on October 29, 2026. The record and payment dates set out the next step for shareholders in connection with the fourth-quarter distribution, while the closing price reflects the stock's level on that date. The announcement was part of the third-quarter results, which also included an update to the annual investment target and confirmation of the adjusted earnings per share range. Management linked potential expansion opportunities to capital cost and liquidity conditions and to its capital strategy through 2027.