NETSTREIT Corp. Announces Closing of Forward Common Stock Offering and Full Exercise of Underwriters’ Option to Purchase Additional Shares

NETSTREIT Corp. (the “Company”) announced today that it has closed its previously announced public offering of 11,040,000 shares of its common stock, which includes the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $18.00 per share in connection with the forward sale agreements described below.

Wells Fargo Securities and BofA Securities acted as the book-running managers and representatives of the underwriters for the offering. Jefferies, Truist Securities, Capital One Securities, Regions Securities LLC, Scotiabank, TD Securities, Mizuho, Stifel and Citigroup acted as joint book-running managers for the offering. Baird, BTIG, Raymond James, Wolfe Capital Markets and Advisory, Ramirez & Co., Inc., Comerica Securities and Roberts & Ryan acted as co-managers for the offering.

The Company has entered into forward sale agreements with affiliates of Wells Fargo Securities and BofA Securities (the "forward purchasers") with respect to 11,040,000 shares of its common stock. In connection with the forward sale agreements, the forward purchasers or their affiliates borrowed from third parties and sold to the underwriters an aggregate of 11,040,000 shares of the Company’s common stock. 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 January 9, 2025, an aggregate of 11,040,000 shares of its common stock 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 did not initially 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 enabled 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.