Question · Q4 2025
Handel St. Juste (via Ravi Vaidya) inquired about NETSTREIT's strategy for balancing tenant credit and yield in capital deployment, noting the shift in top tenants and asking if there's a greater focus on four-wall coverage or lease term. He also asked about management's confidence in reaching the upper end of the acquisition and AFFO guidance, and the progress of capital deployment in Q1.
Answer
Mark Manheimer (CEO, NETSTREIT Corp.) explained that Academy, despite being sub-investment grade, is considered a high-quality retailer with strong financials and potential for an upgrade. He noted that better risk-adjusted returns are often found in the non-rated bucket, where NETSTREIT performs its own underwriting, securing stronger leases and pure absolute triple net terms. Dan Donlan (CFO, NETSTREIT Corp.) added that management always biases towards the upper end of the guidance range, driven by net investment activity, G&A, dilution, and credit events, expressing confidence in reaching the upper end. Mark Manheimer also stated confidence in hitting the high end of the acquisitions guide, especially with fewer property sales planned.
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