NETSTREIT Corp. (NYSE:NTST) reported financial results for the fourth quarter and full year ended December 31, 2025, delivering a significant beat on analyst earnings estimates while posting solid revenue growth. The retail net-lease REIT's performance was highlighted by record investment activity and a reaffirmed outlook for the coming year.
Earnings and Revenue Versus Estimates
The company's fourth-quarter results notably exceeded Wall Street expectations, particularly on the bottom line.
- Adjusted Funds from Operations (AFFO) per Share: Reported at $0.33, a 3.1% increase year-over-year. This figure substantially surpassed the analyst estimate of $0.0657.
- Revenue: The company reported revenue of $52.5 million for the quarter, coming in above the analyst consensus estimate of approximately $49.6 million.
For the full year 2025, NETSTREIT reported AFFO per share of $1.31, representing a 4.0% increase over the prior year. The strong finish to the year underscores the company's active acquisition strategy and portfolio management.
Market Reaction and Price Action
The market's reaction to the earnings release has been positive. In the weeks leading up to the report, the stock experienced upward momentum, which has continued in its aftermath.
- The stock has gained approximately 12.5% over the past month.
- It is up about 6.4% over the past two weeks and 2.4% over the past week.
This sustained positive price action suggests investor approval of the earnings beat, the company's operational execution, and its forward-looking guidance. The absence of a significant negative move indicates the results were well-received and likely aligned with or exceeded market expectations.
Key Highlights from the Quarterly Report
Beyond the headline earnings beat, NETSTREIT's press release outlined several pillars of its 2025 performance and 2026 strategy.
Record Investment Activity: The fourth quarter was particularly robust, with the company making $245.4 million in new investments at a 7.5% cash yield. For the full year, total investments reached $657.1 million. Management emphasized "accretively recycling capital," with full-year dispositions and loan repayments totaling over $221 million, allowing for portfolio upgrading and diversification.
Portfolio Strength and Growth: The portfolio ended the year with 758 properties across 45 states, maintaining a high occupancy rate of 99.9%. Approximately 44.3% of annualized base rent (ABR) is derived from investment-grade tenants, providing a foundation of credit quality.
Strong Balance Sheet and Liquidity: The company fortified its balance sheet, ending the year with significant liquidity of over $1.0 billion, including an undrawn revolving credit facility and proceeds from unsettled forward equity offerings. Leverage metrics remain manageable, with a pro forma adjusted net debt to annualized EBITDAre ratio of 3.8x.
Dividend Increase and 2026 Guidance: Reflecting confidence in its cash flow, the Board approved a 2.3% increase in the quarterly dividend to $0.22 per share. Furthermore, NETSTREIT reaffirmed its full-year 2026 AFFO per share guidance range of $1.35 to $1.39. This outlook compares to the current analyst consensus estimate of $0.32 for the full year 2026, though it is important to note the company's AFFO guidance and the analyst EPS estimate may be calculated on different bases. The company also expects net investment activity to range between $350 million and $450 million for the year.
Looking Ahead
NETSTREIT enters 2026 with a clear growth trajectory, a fortified balance sheet ready to deploy capital, and a raised dividend for shareholders. The company's ability to source high-yielding investments in the single-tenant retail net-lease space, coupled with its disciplined capital recycling program, appears to be driving consistent operational growth. The reaffirmed guidance suggests management expects this momentum to continue.
For a detailed look at historical earnings, future estimates, and analyst projections, visit the NETSTREIT earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
