NETSTREIT launches public offering of 8.75 million common shares

NETSTREIT Corp. announced it has commenced a public offering of 8,750,000 shares of common stock in connection with forward sale agreements. The company also intends to grant underwriters a 30-day option to purchase up to an additional 1,312,500 shares.

Wells Fargo Securities and BofA Securities are serving as joint book-running managers for the offering. The company expects to enter into forward sale agreements with affiliates of these underwriters regarding the 8,750,000 shares, or 10,062,500 shares if the option is exercised in full.

Under the forward sale structure, the forward purchasers or their affiliates will borrow and sell the shares to underwriters. NETSTREIT will not initially receive proceeds from the share sales. The company expects to deliver shares to forward purchasers within approximately 12 months from the prospectus supplement date in exchange for cash proceeds equal to the public offering price, minus underwriting discounts and commissions.

The company plans to contribute net proceeds from future settlement of the forward sale agreements to its operating partnership in exchange for common units. The operating partnership intends to use proceeds for general corporate purposes, including potential repayment of amounts under the company's revolving credit facility and funding acquisitions and development activities.

The offering is being conducted under the company's shelf registration statement on Form S-3, which became effective upon filing with the Securities and Exchange Commission on August 12, 2024.

NETSTREIT is a Dallas-based real estate investment trust that specializes in acquiring single-tenant net lease retail properties nationwide, according to the press release.

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