NETSTREIT Corp. Announces Pricing of Upsized Forward Common Stock Offering
NETSTREIT Corp. (the "Company") announced today that it has priced a public offering of 10,800,000 shares of its common stock at a public offering price of $17.70 per share in connection with the forward sale agreements described below. The Company has granted the underwriters a 30-day option to purchase up to an additional 1,620,000 shares of common stock. The offering is expected to close on July 28, 2025, subject to customary closing conditions.
BofA Securities and Wells Fargo Securities are acting as book-running managers and representatives of the underwriters for the offering. Jefferies, Truist Securities, Capital One Securities, Mizuho, Baird, Scotiabank, Regions Securities LLC, TD Cowen, Stifel and BTIG are acting as joint book-running managers for the offering. Raymond James, Wolfe Capital Markets and Advisory, Ramirez & Co. Inc., and Lucid Capital Markets are acting as co-managers for the offering.
The Company has entered into forward sale agreements with affiliates of BofA Securities and Wells Fargo Securities (the "forward purchasers") with respect to 10,800,000 shares of its common stock (and expects to enter into forward sale agreements with respect to an aggregate of 12,420,000 shares if the underwriters exercise their option to purchase additional shares in full). In connection with the forward sale agreements, the forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 10,800,000 shares of the common stock that will be delivered in this offering (or an aggregate of 12,420,000 shares if the underwriters exercise their option to purchase additional shares in full). Subject to its right to elect cash or net share settlement, which right is subject to certain conditions, the Company intends to deliver, upon physical settlement of such forward sale agreements on one or more dates specified by the Company occurring no later than July 24, 2026, an aggregate of 10,800,000 shares of its common stock (or an aggregate of 12,420,000 shares if the underwriters exercise their option to purchase additional shares in full) to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price, which will be the public offering price, less underwriting discounts and commissions, and will be subject to certain adjustments as provided in the forward sale agreements.
The Company initially will not receive any proceeds from the sale of shares of its common stock by the forward purchasers. The Company expects to contribute the net proceeds, if any, it receives upon the future settlement of the forward sale agreements to its operating partnership in exchange for Class A limited partnership units in the operating partnership and the operating partnership intends to use the net proceeds for general corporate purposes, which may include the repayment of amounts outstanding from time to time under the Company's revolving credit facility, and funding of acquisitions of properties and development activities in the Company's pipeline. Selling common stock through the forward sale agreements enables the Company to set the price of such shares upon pricing the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by the Company until the expected funding requirements described above have occurred.
The offering is being made pursuant to the Company's shelf registration statement, which was automatically effective upon filing with the U.S. Securities and Exchange Commission on August 12, 2024. Copies of the final prospectus may be obtained, when available, from the SEC's website at www.sec.gov or by contacting: BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001 or by email at [email protected] and Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, at (800)-645-3751 (option #5) or email a request to [email protected] .
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About NETSTREIT Corp.
NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT's strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements." Forward-looking statements include statements regarding the proposed public offering and other statements identified by words such as "expects," "anticipates," "intends," "plans," "likely," "will," "believes," "seeks," "estimates," and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements, including statements regarding the expected use of proceeds of the offering and expected timing for closing of the offering, are based on the Company's current expectations and assumptions regarding the Company's business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company's actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include financial market and regulatory conditions, general real estate market conditions, the Company's competitive environment and other factors set forth under "Risk Factors" in the Company's prospectus supplement and accompanying prospectus and in the Company's annual and quarterly reports and other documents filed with the U.S. Securities and Exchange Commission from time to time. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
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