NETSTREIT Earns Investment Grade Rating, Validating Financial Strategy

DALLAS, TX – December 30, 2025 – In a significant affirmation of its financial discipline, NETSTREIT Corp. (NYSE: NTST) today announced it has secured its first-ever investment-grade credit rating. Fitch Ratings assigned the Dallas-based real estate investment trust (REIT) a BBB- issuer rating with a stable outlook, a milestone that validates the company's conservative management and positions it for a new phase of growth.

The rating marks a pivotal moment for the company, which has specialized in acquiring single-tenant net lease retail properties since its IPO just over five years ago. Achieving investment-grade status is expected to immediately translate into lower borrowing costs and grant more efficient access to a wider array of debt markets, providing substantial financial flexibility as it navigates the commercial real estate landscape.

“This recognition is a significant achievement for NETSTREIT that affirms our commitment to a conservatively managed balance sheet and low leverage profile, which the Company has consistently maintained since our IPO,” said Daniel Donlan, Chief Financial Officer. He noted the tangible benefits, stating, “Given this inaugural investment grade rating, the Company can now recognize substantial interest expense savings across our revolving credit and term loan facilities as well as more efficiently access certain debt markets.”

A Stamp of Prudence from Fitch

The BBB- rating, which sits at the entry level of investment grade, signifies Fitch's view that NETSTREIT possesses an adequate capacity to meet its financial commitments. The accompanying stable outlook suggests that Fitch does not anticipate a change in the rating in the near term.

According to the rating agency's analysis, the decision was anchored in NETSTREIT's robust and high-quality property portfolio. Fitch highlighted the company's stable operating performance, which has been remarkably resilient through recent economic cycles, including the pandemic era. A key metric underpinning this stability is an occupancy rate that has consistently remained above 99%, a testament to the durability of its tenant base and property selection.

Fitch's rationale also pointed to several other fundamental strengths. These include strong rent coverage at the property level, indicating the tenants themselves are financially healthy, and minimal credit losses when compared to industry peers. Furthermore, the agency noted NETSTREIT’s well-structured debt profile, with staggered maturities that mitigate refinancing risk, and a flexible liquidity position that provides a significant operational cushion.

However, the analysis was not without its balancing considerations. Fitch also pointed to some risk factors that temper the rating, including an elevated concentration among its tenants. While the tenants are high-quality, a reliance on a smaller group increases exposure should any single tenant face financial distress. The agency also noted the company’s relatively limited track record in accessing public debt markets compared to more established REITs, a natural consequence of its younger age as a public entity.

Benchmarking in a Competitive Field

With its new BBB- rating, NETSTREIT now stands shoulder-to-shoulder with some of its publicly traded peers, solidifying its credibility among investors. The rating aligns it directly with companies like Essential Properties Realty Trust (EPRT), which holds a similar BBB- rating from S&P Global Ratings. Both companies have demonstrated strong operational metrics, with near-100% occupancy and a focus on service-oriented and e-commerce-resistant tenants.

NETSTREIT’s financial metrics compare favorably within this peer group. The company reported leverage of 4.6x net debt to EBITDA in its second-quarter 2025 results, a conservative figure that underscores the discipline cited by its management. This is competitive with EPRT's leverage in the low- to mid-5x range.

While the rating is a major step, the company still has ground to cover to reach the status of sector bellwethers like Realty Income Corp. (O), a much larger and more mature net lease REIT that boasts a higher 'A-' rating from S&P. Realty Income's scale, diversification, and long history of capital markets access provide it with a lower cost of capital. However, NETSTREIT's achievement of investment-grade status is a crucial move in closing that gap and enhances its competitive posture for acquiring high-quality assets.

Fueling the Next Chapter of Growth

The most immediate and strategic impact of the investment-grade rating lies in its power to unlock future growth. The anticipated reduction in interest expenses on its revolving credit and term loan facilities directly improves the company's bottom line, freeing up cash flow that can be deployed for shareholder returns or, more likely, reinvested into its acquisition pipeline.

This improved cost of capital comes at an opportune time. During its third-quarter 2025 earnings call, CEO Mark Manheimer signaled the company's intent to remain “highly acquisitive,” citing an attractive opportunity set and its strong balance sheet. In a clear display of confidence, NETSTREIT more than doubled its net investment guidance for 2025, raising it to a range of $350-$400 million from an initial $125-$175 million.

Access to more efficient debt markets opens up new funding avenues, allowing the company to tap into the deep pool of institutional bond investors. This diversifies its funding sources away from a primary reliance on bank loans and equity, providing greater stability and potentially more favorable terms for financing its expansion. This enhanced financial toolkit will allow NETSTREIT to pursue its disciplined growth strategy more aggressively, targeting the high-quality, necessity-based retail properties that form the core of its portfolio.

While poised for accelerated growth, management has consistently emphasized a commitment to prudence, reassuring investors that expansion will not come at the expense of its balance sheet strength or per-share earnings growth. This disciplined approach, now formally validated by Fitch, suggests that the new financial firepower will be wielded strategically to enhance long-term shareholder value and solidify NETSTREIT's position as a premier name in the net lease retail sector.