Tenant concentration
A small number of tenants can represent a meaningful share of ABR, so one tenant problem can reduce rent and occupancy.
- Scope
- Top 10 tenants and large single-tenant leases
- Materiality
- high
NETSTREIT Corp.
NETSTREIT Corp. is an internally managed U.S. REIT that acquires, owns, and manages single-tenant retail properties leased on a long-term net basis to creditworthy tenants. Its portfolio is built around necessity-based and e-commerce-resistant retail formats such as grocers, convenience stores, discount stores, home improvement, quick-service restaurants, general retail, and auto parts.
3,6 %
+19,8 %
| % | |
|---|---|
| Net lease retail properties | 88% Single-tenant commercial retail properties leased on a long-term net basis to tenants. |
| Mortgage loans receivable | 7% Loans secured by real estate that generate interest income alongside rental revenue. |
| Property development | 3% Build-to-suit and development projects where rent has not yet commenced or is under construction. |
| Property dispositions | 2% Sales of real estate assets used to recycle capital and manage portfolio quality. |
NETSTREIT’s tenants are retail operators that need physical locations to drive sales, especially in necessity and...
- Necessity retail tenantsprimary
Grocers, convenience stores, and discount retailers that buy long-term store locations because they are resilient through cycles.
- Essential service and defensive retail tenantsprimary
Quick-service restaurants, auto parts, and home improvement operators that need physical sites to support recurring demand.
- Investment-grade tenantsprimary
Tenants with strong credit profiles that support lower lease risk and more stable cash flows.
- Creditworthy non-investment-grade tenantssecondary
Operators without formal investment-grade ratings that still fit the company’s underwriting and yield targets.
NETSTREIT operates almost entirely in the United States and had investments in 45 states as of year-end 2025...
- •United States is the only operating geography disclosed
- •Portfolio spans 45 states, supporting diversification
- •Texas is the largest state exposure at 17.3% of ABR
- •South and Midwest account for 49.5% and 28.0% of ABR
- •State concentration can amplify local tax, labor, and disaster risk
NETSTREIT’s strategy is to keep scaling a diversified net-lease portfolio by sourcing marketed and off-market deals...
01
Scale the net-lease portfolio through disciplined acquisitionsshort-term
Growth depends on efficiently deploying capital into durable assets with long lease terms and creditworthy tenants.
02
Increase diversification while controlling concentrationmedium-term
Tenant, sector, and state concentration can materially affect cash flow if a large tenant or region weakens.
03
Use build-to-suit and mortgage investments to enhance returnsmedium-term
These structures can provide higher yields and broaden the company’s investment toolkit beyond plain-vanilla acquisitions.
The main risks come from tenant credit, geographic concentration, and the sensitivity of net-lease cash flows to...
Geographic concentration
A large share of ABR is concentrated in Texas, the South, and the Midwest, increasing exposure to regional shocks.
- Scope
- Texas 17.3% of ABR; South 49.5%; Midwest 28.0%
- Materiality
- high
Interest rate and financing risk
The business uses debt to fund acquisitions, so higher borrowing costs can compress returns and reduce acquisition capacity.
- Scope
- Senior unsecured term loans and ongoing capital markets access
- Materiality
- high
Property damage and insurance coverage
Physical retail assets can suffer losses from fires, floods, foundation issues, or other damage, and insurance may not fully cover them.
- Scope
- Single-tenant retail properties across the U.S.
- Materiality
- medium
Cybersecurity and third-party dependence
The company relies on vendors and systems to process and store data, creating operational and data-security exposure.
- Scope
- Third-party hosting, data processing, and internal systems
- Materiality
- medium
Straight-line rental revenue
Affects reported rental revenue and receivables
Impairment of real estate and loans
Can materially reduce earnings in periods of weaker asset performance
Gain on sales of real estate
Can swing quarterly and annual net income
Depreciation and amortization
Affects operating profit and comparability across periods
: 28.4.2026