NETSTREIT launches public offering of 9 million common shares

NETSTREIT Corp. announced the launch of a public offering of 9 million shares of common stock through forward sale agreements. The Dallas-based real estate investment trust also granted underwriters a 30-day option to purchase up to an additional 1.35 million shares.

BofA Securities and Wells Fargo Securities are serving as joint book-running managers for the offering. The company will enter into forward sale agreements with affiliates of these firms regarding the 9 million shares, or up to 10.35 million shares if the underwriters exercise their full option.

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

The company stated it expects to contribute net proceeds from future settlement to its operating partnership in exchange for Class A limited partnership units. The operating partnership intends to use proceeds for general corporate purposes, including potential repayment of revolving credit facility amounts and funding property acquisitions and development activities.

The offering is being conducted under the company's shelf registration statement that became effective August 12, 2024, with the Securities and Exchange Commission. NETSTREIT specializes in acquiring single-tenant net lease retail properties nationwide.

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