What changed in this filing

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Item 1. Financial Statements

2026-07-22 compared with 2026-04-20 · 248 added, 162 removed, 723 unchanged (36% of the section changed)

4 unchanged sentences

(In thousands, except share and per share data)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Real estate, at cost:

22 unchanged sentences

Common stock, $ 0.01 par value, 400,000,000 shares authorized;

97,253,523 and 93,070,533 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

101,526,575 and 93,070,533 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 1,841,754 1,701,572

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Rental revenue (including reimbursable) $ 57,822 $ 45,158 $ 111,849 $ 87,748

38 unchanged sentences

Shares Par Value Additional

Paid-in Capital Distributions in Excess of Retained Earnings Accumulated Other Comprehensive Income Total Stockholders’ Equity Noncontrolling Interests Total Equity

Paid-in Capital Distributions in Excess of Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Noncontrolling Interests Total Equity

Balance at December 31, 2025 93,070,533 $ 931 $ 1,701,572 $ ( 251,926 ) $ ( 4,565 ) $ 1,446,012 $ 6,554 $ 1,452,566

9 unchanged sentences

Balance at March 31, 2026 97,253,523 $ 973 $ 1,769,473 $ ( 267,741 ) $ 2,384 $ 1,505,089 $ 6,332 $ 1,511,421

Issuance of common stock in public offerings, net of issuance costs 4,264,947 43 70,633 — — 70,676 — 70,676

Issuance of OP Units — — — — — — 911 911

Dividends and distributions declared on common stock and OP Units — — — ( 21,398 ) — ( 21,398 ) ( 143 ) ( 21,541 )

Dividends declared on restricted stock, net — — — ( 147 ) — ( 147 ) — ( 147 )

Vesting of restricted stock units 13,097 — — — — — — —

Repurchase of common stock for tax withholding obligations ( 4,992 ) — ( 101 ) — — ( 101 ) — ( 101 )

Stock-based compensation, net — — 1,749 3 — 1,752 3 1,755

Other comprehensive income — — — — 10,264 10,264 43 10,307

Net income — — — 6,285 — 6,285 26 6,311

Balance at June 30, 2026 101,526,575 $ 1,016 $ 1,841,754 $ ( 282,998 ) $ 12,648 $ 1,572,420 $ 7,172 $ 1,579,592

NETSTREIT CORP.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except share data)

Shares Par Value Additional

Paid-in Capital Distributions in Excess of Retained Earnings Accumulated Other Comprehensive Income Total Stockholders’ Equity Noncontrolling Interests Total Equity

Paid-in Capital Distributions in Excess of Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Noncontrolling Interests Total Equity

Balance at December 31, 2024 81,602,232 $ 816 $ 1,507,995 $ ( 188,046 ) $ 10,206 $ 1,330,971 $ 7,161 $ 1,338,132

7 unchanged sentences

Balance at March 31, 2025 81,698,909 $ 817 $ 1,508,809 $ ( 203,524 ) $ 393 $ 1,306,495 $ 7,030 $ 1,313,525

Issuance of common stock in public offerings, net of issuance costs 1,757,815 18 28,334 — — 28,352 — 28,352

Dividends and distributions declared on common stock and OP Units — — — ( 17,159 ) — ( 17,159 ) ( 89 ) ( 17,248 )

Dividends declared on restricted stock, net — — — ( 178 ) — ( 178 ) — ( 178 )

Vesting of restricted stock units 13,096 — — — — — — —

Repurchase of common stock for tax withholding obligations ( 4,769 ) — ( 72 ) — — ( 72 ) — ( 72 )

Stock-based compensation, net — — 1,521 — — 1,521 — 1,521

Other comprehensive loss — — — — ( 5,615 ) ( 5,615 ) ( 29 ) ( 5,644 )

Net income — — — 3,272 — 3,272 17 3,289

Balance at June 30, 2025 83,465,051 $ 835 $ 1,538,592 $ ( 217,589 ) $ ( 5,222 ) $ 1,316,616 $ 6,929 $ 1,323,545

The accompanying notes are an integral part of these condensed consolidated financial statements.

3 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended June 30,

Cash flows from operating activities

5 unchanged sentences

Noncash revenue adjustments ( 4,313 ) ( 2,093 )

Amortization of deferred losses (gains) on interest rate swaps 705 705

Noncash other income ( 375 ) —

Amortization of deferred losses on interest rate swaps 1,418 1,418

Stock-based compensation expense 3,441 2,909

5 unchanged sentences

Accounts payable, accrued expenses, and other liabilities

3,029 ( 445 )

Lease incentive payments ( 711 ) ( 199 )

20 unchanged sentences

Principal payments on term loans — ( 43,675 )

Repayment of property development incentives ( 375 ) —

Repurchase of common stock for tax withholding obligations ( 1,798 ) ( 645 )

7 unchanged sentences

Cash paid for interest, net of amounts capitalized $ 26,008 $ 20,812

Cash paid (received) for income taxes, net $ 83 $ ( 3 )

Supplemental disclosures of non-cash investing and financing activities:

3 unchanged sentences

Cash flow hedge change in fair value $ 15,868 $ ( 16,925 )

Increase in noncontrolling interests from property acquisitions $ 911 $ —

Mortgage loan receivable settled in exchange for acquisition of real estate $ 17,342 $ —

Extinguishment and reissuance of mortgage loan receivable $ 27,942 $ —

Increase in mortgage loan receivable in exchange for disposition of real estate $ 6,027 $ 8,450

Assumption of tenant allowances, other liabilities, and settlement of receivables in acquisitions of real estate

15 unchanged sentences

The Company also invests in property developments and mortgage loans secured by real estate.

As of March 31, 2026, the Company owned or had investments in 808 properties located in 46 states.

As of June 30, 2026, the Company owned or had investments in 864 properties located in 46 states.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying interim condensed consolidated financial statements have been prepared in accordance with U.S.

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S.

generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S.

6 unchanged sentences

In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation have been included.

The results of operations for the three months ended March 31, 2026 and 2025 are not necessarily indicative of the results for the full year.

The results of operations for the three and six months ended June 30, 2026 and 2025 are not necessarily indicative of the results for the full year.

Use of Estimates

13 unchanged sentences

Based on these unobservable inputs, the Company determined that its valuations of impaired real estate and intangible assets fall within Level 3 of the fair value hierarchy under Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC 820”).

The Company recorded provisions for impairment on long-lived assets of $ 1.5 million and $ 3.6 million during the three months ended March 31, 2026 and 2025, respectively.

The Company recorded provisions for impairment on long-lived assets of $ 4.2 million and $ 4.4 million during the three months ended June 30, 2026 and 2025, respectively, and $ 5.7 million and $ 8.0 million during the six months ended June 30, 2026 and 2025, respectively.

Mortgage Loans Receivable, Net

2 unchanged sentences

Fair value is determined based on Level 3 inputs within the fair value hierarchy under ASC 820, which includes the expected selling price of the loan, current market conditions, investor yield requirements, and other relevant factors.

The Company recorded non-credit related provisions for impairment of $ 0.6 million on one mortgage loan receivable that was disposed of at a discount during the three months ended March 31, 2026.

No provisions for impairment on mortgage loans receivable were recorded during the three months ended March 31, 2025.

No provisions for impairment on mortgage loans receivable were recorded during the three months ended June 30, 2026.

The Company recorded non-credit related provisions for impairment of $ 0.6 million on one mortgage loan receivable that was disposed at a discount during the six months ended June 30, 2026.

No provisions for impairment on mortgage loans receivable were recorded during the three and six months ended June 30, 2025.

Cash, Cash Equivalents, and Restricted Cash

2 unchanged sentences

Restricted cash is included in cash, cash equivalents, and restricted cash in the condensed consolidated balance sheets.

The Company had $ 0.1 million of restricted cash as of March 31, 2026 and December 31, 2025.

The Company’s bank balances as of March 31, 2026 and December 31, 2025 included certain amounts over the Federal Deposit Insurance Corporation limits.

The Company had $ 12.5 million of restricted cash as of June 30, 2026 and $ 0.1 million of restricted cash as of December 31, 2025.

The Company’s bank balances as of June 30, 2026 and December 31, 2025 included certain amounts over the Federal Deposit Insurance Corporation limits.

Fair Value Measurements

9 unchanged sentences

Concentrations of Credit Risk

During the three months ended March 31, 2026 and 2025, there were no tenants or borrowers with rental revenue or interest income on loans receivable that exceeded 10% of total revenues.

During the three and six months ended June 30, 2026 and 2025, there were no tenants or borrowers with rental revenue or interest income on loans receivable that exceeded 10% of total revenues.

Other financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash held at various financial institutions, access to the Company’s credit facilities, and amounts due or payable under derivative contracts.

30 unchanged sentences

The Company acquires, owns, and manages single-tenant commercial retail net lease properties, the majority of which have long-term triple-net leases where the tenant is generally responsible for all improvements and contractually obligated to pay all operating costs (such as real estate taxes, utilities, and repairs and maintenance costs).

As of March 31, 2026, exclusive of mortgage loans receivable, the Company’s WALT was 10.2 years.

The Company’s property leases have been classified as operating leases, with approximately half having scheduled rent increases throughout the lease term.

As of June 30, 2026, exclusive of mortgage loans receivable, the Company’s WALT was 10.0 years.

The Company’s property leases have been classified as operating leases, most of which have scheduled rent increases throughout the lease term.

The Company’s leases typically provide the tenant one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases, consistent with the initial lease term.

4 unchanged sentences

The following table provides a disaggregation of lease income recognized under ASC Topic 842, Leases (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Rental revenue

2 unchanged sentences

Variable lease income (2)

4,437 3,977 8,712 7,405

Other rental revenue:

5 unchanged sentences

There were no material reserves, write-offs, or recoveries of uncollectible amounts during the periods indicated above.

Scheduled future minimum base rental payments (excluding base rental payments from properties classified as held for sale and straight-line rent adjustments for all properties) due to be received under the remaining noncancellable term of the operating leases in place as of March 31, 2026 are as follows (in thousands):

Future Minimum Base

Rental Receipts

Future Minimum Base Rental Receipts

Remainder of 2026 $ 107,519

4 unchanged sentences

Note 4 – Real Estate Investments

As of March 31, 2026, the Company owned or had investments in 808 properties.

As of June 30, 2026, the Company owned or had investments in 864 properties.

The gross real estate investment portfolio, including properties under development and mortgage loans receivable, totaled approximately $ 3.2 billion and consisted of the gross acquisition cost of land, buildings, improvements, lease intangible assets and liabilities, mortgage loans receivable, and property development costs.

2 unchanged sentences

Number of Investments Amount of Investment

March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025

Properties held for investment (1)

7 unchanged sentences

864 761 $ 3,219,447 $ 2,773,722

(1) Includes one vacant property for the periods ended March 31, 2026 and December 31, 2025.

(1) Includes one vacant property as of December 31, 2025.

(2) Rent has not commenced for properties under development.

The Company’s acquisitions during the three months ended March 31, 2026 and 2025 were all accounted for as asset acquisitions.

The Company’s acquisitions during the three and six months ended June 30, 2026 and 2025 were all accounted for as asset acquisitions.

An allocation of the purchase price and acquisition costs paid for the completed acquisitions during the period is as follows (dollars in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Number of properties acquired 79 23 135 41

5 unchanged sentences

In-place lease intangible assets 22,651 5,405 38,829 11,669

Above-market lease intangible assets 1,497 — 1,497 —

Assets held for sale 6,026 — 18,201 —

$ 252,680 $ 96,528 $ 486,654 $ 174,002

(1) During the three months ended March 31, 2026 and 2025, the Company capitalized $ 3.0 million and $ 0.9 million of acquisition costs, respectively.

The Company’s property dispositions during the three months ended March 31, 2026 and 2025 are summarized below (dollars in thousands):

Three Months Ended March 31,

(1) During the three months ended June 30, 2026 and 2025, the Company capitalized $ 3.5 million and $ 1.0 million of acquisition costs, respectively.

During the six months ended June 30, 2026 and 2025, the Company capitalized $ 6.6 million and $ 1.9 million of acquisition costs, respectively.

The Company’s property dispositions during the three and six months ended June 30, 2026 and 2025 are summarized below (dollars in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Number of properties sold 16 20 21 36

1 unchanged sentence

Gain on sales of real estate, net $ 1,662 $ 3,533 $ 1,781 $ 5,608

The Company’s investment in property developments during the three months ended March 31, 2026 and 2025 is summarized below (dollars in thousands):

Three Months Ended March 31,

The Company’s investment in property developments during the three and six months ended June 30, 2026 and 2025 is summarized below (dollars in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Number of developments acquired 2 — 3 —

4 unchanged sentences

Amounts placed into service (3)

(1) During the three months ended March 31, 2026 and 2025, the Company capitalized $ 0.1 million of interest expense associated with properties under development.

(2) For the one development completed during the three months ended March 31, 2025, rent commenced in the second quarter of 2025.

$ 4,977 $ 2,740 $ 4,977 $ 6,545

(1) During the three months ended June 30, 2026 and 2025, the Company capitalized $ 0.1 million and less than $0.1 million, respectively, of interest expense associated with properties under development.

During the six months ended June 30, 2026 and 2025, the Company capitalized $ 0.2 million and $ 0.1 million, respectively, of interest expense associated with properties under development.

(2) For the one development completed during the six months ended June 30, 2026, rent commenced in the second quarter of 2026.

For the two developments completed during the six months ended June 30, 2025, rent commenced in the second quarter of 2025.

(3) Amounts reclassified from property under development to land, buildings and improvements, and other assets (leasing commissions) in the accompanying condensed consolidated balance sheets.

As of March 31, 2026, the Company had four property developments under construction, which are expected to be substantially completed with rent commencing at various points throughout 2026 and into the first quarter of 2027.

The purchase price, including acquisition costs, and subsequent development are included in property under development in the accompanying condensed consolidated balance sheets as of March 31, 2026.

As of June 30, 2026, the Company had five property developments under construction, which are expected to be substantially completed with rent commencing at various points throughout 2026 and into the first quarter of 2027.

The purchase price, including acquisition costs, and subsequent development are included in property under development in the accompanying condensed consolidated balance sheets as of June 30, 2026.

Investment in Mortgage Loans Receivable

The Company’s mortgage loans receivable portfolio is summarized below (dollars in thousands):

The Company’s mortgage loans receivable portfolio as of June 30, 2026 and December 31, 2025 is summarized below (dollars in thousands):

Loan Type Monthly Payment (1)

Number of Secured Properties Effective Interest Rate (2)

Stated Interest Rate Maturity Date March 31, 2026 December 31, 2025

Stated Interest Rate Maturity Date June 30, 2026 December 31, 2025

Mortgage (3) (4)

6 unchanged sentences

I/O 2 16.70 % 10.09 % 7/31/2026 2,230 2,230

Mortgage None (7)

1 7.00 % 7.00 % 5/1/2026 725 825

Mortgage P/O 1 7.00 % 7.00 % 5/1/2028 1,100 825

Mortgage (3) (4)

11 unchanged sentences

I/O — 7.25 % 7.25 % 5/18/2027 — 6,050

Mortgage (3) (4) (9)

I/O 2 9.75 % 9.75 % 6/15/2027 2,725 1,068

1 unchanged sentence

I/O 7 9.50 % 9.50 % 11/29/2027 8,280 —

Mortgage None (7)

7 8.21 % 8.21 % 7/24/2026 14,426 —

Mortgage (3) (4) (11)

I/O 28 9.50 % 9.50 % 7/10/2029 46,310 —

Total 151,437 142,555

3 unchanged sentences

Interest Only;

Principal Only;

Principal and Interest.

(2) Includes amortization of discount, loan origination costs and fees, as applicable.

(2) Includes amortization of discount, loan origination costs and fees, and extension fees, as applicable.

(3) The Company has the right, subject to certain terms and conditions, to acquire all or a portion of the underlying collateralized properties.

1 unchanged sentence

Any remaining principal balance will be repaid at or before the maturity date.

(5) The mortgage loan was scheduled to mature on March 10, 2026, however, the Company executed an amendment in April 2026 that extended the maturity date to June 1, 2026.

(5) The stated interest rate is variable up to 15.0 % and is calculated based on contractual rent for existing collateralized properties subject to the loan agreement.

(6) The collateralized properties are in process developments with varying maturity dates dependent upon initial funding.

Maturity dates range from August 19, 2026 to January 30, 2027.

(7) Payments of both interest and principal are due at maturity.

(8) Loan was disposed during the six months ended June 30, 2026.

(9) The collateralized properties are in process developments with varying maturity dates dependent upon initial funding.

Maturity dates range from April 16, 2026 to January 30, 2027.

(9) Loan was disposed during the three months ended March 31, 2026.

Maturity dates range from December 5, 2026 to June 15, 2027.

(10) The collateralized properties are in process developments with varying maturity dates dependent upon initial funding.

Maturity dates range from August 13, 2027 to September 2, 2027.

Maturity dates range from August 13, 2027 to November 29, 2027.

(11) Effective June 30, 2026, the Company completed a restructuring of its mortgage loan receivable.

Pursuant to the restructuring, the Company acquired 20 properties in exchange for partial satisfaction of the outstanding loan balance, cash consideration of $ 9.9 million, of which $ 8.7 million was used to extinguish existing mezzanine debt encumbering the acquired properties to obtain clear title, and OP Units (as defined in “Note 10 - Shareholders’ Equity”) valued at $ 0.9 million.

Concurrently, the parties executed a new $ 46.3 million mortgage note, secured by the borrower's remaining properties, which included an additional advance of $ 18.4 million funded by the Company.

The Company regularly evaluates the credit quality of its mortgage loans receivable portfolio by monitoring payment history, underlying collateral performance, and borrower creditworthiness.

As of June 30, 2026, all remaining mortgage loans receivable are performing in accordance with their contractual terms, are current, and no allowance for credit losses was deemed necessary.

Note 5 – Intangible Assets and Liabilities

Intangible assets and liabilities consisted of the following (in thousands):

March 31, 2026 December 31, 2025

Gross Carrying Amount

Accumulated Amortization Net Carrying Amount Gross Carrying Amount

Accumulated Amortization Net Carrying Amount

June 30, 2026 December 31, 2025

Amount Accumulated Amortization Net Carrying Amount Gross

Amount Accumulated Amortization Net Carrying Amount

In-place leases $ 262,658 $ ( 89,163 ) $ 173,495 $ 228,508 $ ( 77,628 ) $ 150,880

5 unchanged sentences

Years Remaining as of

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

In-place leases 8.7 8.7

4 unchanged sentences

The following amounts in the accompanying condensed consolidated statements of operations and comprehensive income (loss) related to the amortization of intangible assets and liabilities for all property and ground leases (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Amortization:

5 unchanged sentences

$ ( 112 ) $ 6 $ ( 159 ) $ 76

The following table provides the projected amortization of in-place lease assets to amortization expense and the net amortization of above-market, below-market, and lease incentive lease intangible assets and liabilities to rental revenue as of March 31, 2026, for the next five years and thereafter (in thousands):

Remainder of 2026

2027 2028 2029 2030 Thereafter Total

The following table provides the projected amortization of in-place lease assets to amortization expense and the net amortization of above-market, below-market, and lease incentive lease intangible assets and liabilities to rental revenue as of June 30, 2026, for the next five years and thereafter (in thousands):

Remainder of 2026 2027 2028 2029 2030 Thereafter Total

In-place leases $ 14,152 $ 26,510 $ 23,644 $ 21,125 $ 18,047 $ 70,017 $ 173,495

9 unchanged sentences

Hedged Interest Rate (3)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

2028 Term Loan February 11, 2028 — 4.57 % 3.58 % $ 200,000 $ 200,000

12 unchanged sentences

(1) Date represents the fully extended maturity date available to the Company, subject to certain conditions, under each related debt instrument.

(2) Represents the stated interest rate within the respective debt agreement as of March 31, 2026.

(2) Represents the stated interest rate within the respective debt agreement as of June 30, 2026.

The term loans and Revolver bear a floating interest rate (SOFR) plus the applicable margin as described further in “Note 6 – Debt”.

(3) Represents the weighted-average hedged fixed rate plus the applicable margin as of March 31, 2026, as described further in “Note 6 – Debt” and “Note 7 – Derivative Financial Instruments.”

(3) Represents the weighted-average hedged fixed rate plus the applicable margin as of June 30, 2026, as described further in “Note 6 – Debt” and “Note 7 – Derivative Financial Instruments.”

(4) The Company records deferred financing costs associated with the Revolver and loan commitment fees associated with the 2032 Term Loan in other assets, net in the condensed consolidated balance sheets.

The Company reclassified the net amount of loan commitment fees associated with the 2029 Term Loan from other assets, net to debt issuance costs upon the $ 100.0 million draw under the 2029 Term Loan.

The Company partially reclassified the net allocated amount of loan commitment fees associated with the 2032 Term Loan from other assets, net to debt issuance costs upon the $ 50.0 million draw under the 2032 Term Loan.

The Company partially reclassified the net allocated amount of loan commitment fees associated with the 2032 Term Loan from other assets, net to debt issuance costs upon the two $ 50.0 million draws under the 2032 Term Loan.

PNC Term Loan Agreement

1 unchanged sentence

All $ 200.0 million of the 2031 Term Loan was funded on September 25, 2025.

Of the $ 250.0 million capacity of the 2032 Term Loan commitments, $ 100.0 million in term loans were funded on September 25, 2025, $ 50.0 million in term loans were funded on January 2, 2026, and the remaining $ 100.0 million is available as a delayed draw term loan commitment until September 25, 2026.

Of the $ 250.0 million capacity of the 2032 Term Loan commitments, $ 100.0 million in term loans were funded on September 25, 2025, $ 50.0 million in term loans were funded on January 2, 2026, $ 50.0 million in term loans were funded on April 1, 2026, and the remaining $ 50.0 million is available as a delayed draw term loan commitment until September 25, 2026.

Subject to the terms of the PNC Term Loan Agreement, the PNC Term Loans may be increased to an amount of up to $ 600.0 million at the Company’s request.

7 unchanged sentences

The Company has fully hedged the 2031 Term Loan with an all-in fixed interest rate of 4.39 % and has partially hedged $ 200.0 million of the 2032 Term Loan at an all-in fixed interest rate of 4.67 %.

The remaining $ 50.0 million of the 2032 Term Loan is currently unhedged.

The remaining undrawn $ 50.0 million of the 2032 Term Loan is currently unhedged.

Interest is payable monthly or at the end of the applicable interest period in arrears on any outstanding borrowings.

2 unchanged sentences

Additionally, the Company incurred $ 2.1 million of loan commitment fees associated with the 2032 Term Loan, which were initially capitalized to other assets, net in the condensed consolidated balance sheets.

Of the $ 2.1 million of loan commitment fees, $ 0.7 million was reclassified to debt issuance costs upon the $ 50.0 million draw under the 2032 Term Loan.

Of the $ 2.1 million of loan commitment fees, $ 1.3 million was reclassified to debt issuance costs upon the two $ 50.0 million draws under the 2032 Term Loan.

The deferred financing costs and capitalized loan commitment fees are amortized over the term of the loans, and are included in interest expense, net in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

3 unchanged sentences

On September 25, 2025, the Truist Credit Agreement was further amended to, among other things, remove the SOFR credit spread adjustment from the 2029 Term Loan.

On May 29, 2026, the Truist Credit Agreement was further amended to, among other things, reduce the applicable margin spread.

The 2029 Term Loan contains a 12-month delayed draw feature and $ 150.0 million was drawn on July 3, 2023.

1 unchanged sentence

The 2029 Term Loan is prepayable at the Company’s option in whole or in part without premium or penalty.

The 2029 Term Loan matures on July 3, 2026, subject to two one-year extension options and one six-month extension option with a final, extended maturity date of January 3, 2029.

The extension options are at the Company’s election and are subject to certain conditions.

The 2029 Term Loan was scheduled to mature on July 3, 2026, subject to two one-year extension options and one six-month extension option with a final, extended maturity date of January 3, 2029.

On May 29, 2026, the Company exercised its first extension option and extended the loan one year through July 3, 2027.

The additional extension options are at the Company’s election and are subject to certain conditions.

Prior to the date the Company obtained an Investment Grade Rating (as defined in the Truist Credit Agreement), interest accrued at either (i) SOFR, plus a margin ranging from 1.15 % to 1.60 % or (ii) Base Rate (as defined in the Truist Credit Agreement), plus a margin ranging from 0.15 % to 0.60 %, in each case based on the Company’s consolidated total leverage ratio.

6 unchanged sentences

Additionally, the Company incurred $ 0.9 million of loan commitment fees associated with the 2029 Term Loan, which were capitalized to other assets, net in the condensed consolidated balance sheets and subsequently reclassified to debt issuance costs upon the $ 100.0 million draw under the 2029 Term Loan.

In connection with the first extension of the 2029 Term Loan, the Company incurred an extension fee of $ 0.3 million.

Deferred financing costs are amortized over the term of the loan and are included in interest expense, net in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

21 unchanged sentences

The interest rate hedges are further described in “Note 7 – Derivative Financial Instruments.”

In connection with the entry into the PNC Credit Agreement, the Company incurred approximately $ 3.8 million of deferred financing costs, which were allocated between the Revolver and 2028 Term Loan in the amounts of $ 2.4 million and $ 1.3 million, respectively.

In connection with the first amendment to the PNC Credit Agreement, the Company incurred approximately $ 5.1 million of deferred financing costs, which were allocated between the Revolver and 2030 Term Loan B in the amounts of $ 3.7 million and $ 1.4 million, respectively.

In connection with the entry into the PNC Credit Agreement, the Company incurred approximately $ 3.8 million of debt issuance and deferred financing costs, which were allocated between the Revolver and 2028 Term Loan in the amounts of $ 2.4 million and $ 1.3 million, respectively.

In connection with the first amendment to the PNC Credit Agreement, the Company incurred approximately $ 5.1 million of debt issuance and deferred financing costs, which were allocated between the Revolver and 2030 Term Loan B in the amounts of $ 3.7 million and $ 1.4 million, respectively.

Additionally, $ 0.5 million of unamortized deferred financing costs associated with the Company’s previous revolving credit facility were reclassified to the Revolver.

Deferred financing costs are amortized over the remaining terms of each respective borrowing and are included in interest expense, net in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

Debt issuance costs and deferred financing costs are amortized over the remaining terms of each respective borrowing and are included in interest expense, net in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

Wells Fargo Credit Agreement

8 unchanged sentences

The interest rate hedges are described in “Note 7 – Derivative Financial Instruments.”

In connection with the 2030 Term Loan A, the Company incurred $ 1.1 million of deferred financing costs.

In connection with the 2030 Term Loan A, the Company incurred $ 1.1 million of debt issuance costs.

Debt issuance costs are amortized over the term of the loan and are included in interest expense, net in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

Reduced Margins on Debt

1 unchanged sentence

Mortgage Note Payable

As of March 31, 2026, the Company had total gross mortgage indebtedness of $ 8.0 million, which was collateralized by related real estate and a tenant’s lease with an aggregate net book value of $ 11.5 million.

As of June 30, 2026, the Company had total gross mortgage indebtedness of $ 8.0 million, which was collateralized by related real estate and a tenant’s lease with an aggregate net book value of $ 11.4 million.

The Company incurred debt issuance costs of less than $ 0.1 million and recorded a debt discount of $ 0.6 million, both of which are recorded as a reduction of the principal balance in mortgage note payable, net in the Company’s condensed consolidated balance sheets.

2 unchanged sentences

Payments on the 2028 Term Loan, 2029 Term Loan, 2030 Term Loan A, 2030 Term Loan B, 2031 Term Loan, and 2032 Term Loan are interest-only through maturity.

As of March 31, 2026, scheduled debt maturities, including balloon payments, are as follows (in thousands):

Scheduled Principal Payment Balloon Payment (1)

As of June 30, 2026, scheduled debt maturities, including balloon payments, are as follows (in thousands):

Scheduled Principal Payment

Balloon Payment (1)

Remainder of 2026 $ 90 $ — $ 90

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2029 — 548,500 548,500

2029 — 438,000 438,000

— 350,000 350,000

Thereafter — 400,000 400,000

Total $ 260 $ 1,406,197 $ 1,406,457

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The following table is a summary of the components of interest expense related to the Company’s borrowings (in thousands):

Three Months Ended March 31,

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Revolving credit facilities (1)

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Term loans (2)

12,973 8,993 25,253 17,551

Mortgage note payable 91 93 182 186

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Total interest expense, net $ 15,554 $ 12,638 $ 29,820 $ 24,098

(1) Includes facility fees of approximately $ 0.3 million and $ 0.2 million for the three months ended March 31, 2026 and 2025, respectively.

(1) Includes facility fees of approximately $ 0.3 million and $ 0.2 million for the three months ended June 30, 2026 and 2025, respectively, and facility fees of $ 0.5 million and $ 0.4 million for the six months ended June 30, 2026 and 2025, respectively.

(2) Includes the effects of interest rate hedges.

Deferred financing, discount, and debt issuance costs are amortized over the remaining terms of each respective borrowing and are included in interest expense, net in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

The Company was in compliance with all of its debt covenants as of March 31, 2026 and expects to be in compliance for the twelve month period ending December 31, 2026.

The Company was in compliance with all of its debt covenants as of June 30, 2026 and expects to be in compliance for the twelve month period ending December 31, 2026.

Note 7 – Derivative Financial Instruments

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Associated Debt Instrument

March 31, 2026 December 31, 2025 Hedge Fixed Rate (1)

June 30, 2026 December 31, 2025 Hedge Fixed Rate (1)

Maturity Dates

March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025

2028 Term Loan

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(1) Represents the weighted-average hedge fixed rate of the derivative contracts for each associated debt instrument and excludes the associated applicable margin as described in “Note 6 – Debt.”

(2) Derivative contracts in asset positions are included within other assets, net and derivative contracts in liability positions are included within accounts payable, accrued expenses, and other liabilities in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.

The following table presents the effect of the Company’s interest rate swaps in the condensed consolidated statements of operations and comprehensive income (loss) (in thousands):

Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income

(Effective Portion)

Derivatives in Cash Flow Hedging Relationships Three Months Ended March 31,

Three Months Ended March 31,

2026 2025 2026 2025

Derivatives in Cash Flow Hedging Relationships 2026 2025 2026 2025

For the Three Months Ended June 30

Interest Rate Products $ 10,651 $ ( 4,081 ) Interest expense, net $ 344 $ 1,563

The Company did not exclude any amounts from the assessment of hedge effectiveness for the three months ended March 31, 2026 and 2025.

For the Six Months Ended June 30

Interest Rate Products $ 18,072 $ ( 12,453 ) Interest expense, net $ 787 $ 3,055

The Company did not exclude any amounts from the assessment of hedge effectiveness for the three and six months ended June 30, 2026 and 2025.

During the next twelve months, the Company estimates that an additional $ 4.9 million will be reclassified as a decrease to interest expense.

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Companies are required to disclose the estimated fair values of all financial instruments, even if those instruments are not carried at fair value.

The fair values of financial instruments are based on estimates that reflect market conditions and perceived risks as of March 31, 2026 and December 31, 2025.

The fair values of financial instruments are based on estimates that reflect market conditions and perceived risks as of June 30, 2026 and December 31, 2025.

These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities.

The carrying values of the Company’s cash, cash equivalents, and restricted cash (including money market accounts), other assets, and accounts payable, accrued expenses, and other liabilities approximate their fair values due to the short-term nature of these instruments.

Additionally, the Company believes that the following financial instruments have carrying values that approximate their fair values as of March 31, 2026:

Additionally, the Company believes that the following financial instruments have carrying values that approximate their fair values as of June 30, 2026 and December 31, 2025:

• Borrowings under the Company’s Revolver (as defined in “Note 6 – Debt”) approximate fair value based on their nature, terms, and variable interest rates.

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Fair Value Hierarchy Level

Description Carrying Value

Level 1 Level 2 Level 3

March 31, 2026

Description Carrying Value Fair Value Level 1 Level 2 Level 3

June 30, 2026

Derivative assets $ 14,690 $ 14,690 $ — $ 14,690 $ —

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Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties.

However, as of March 31, 2026, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives.

However, as of June 30, 2026, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives.

As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

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The following table summarizes the provisions for impairment on real estate investments during the periods indicated below (dollars in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Carrying value prior to impairment $ 20,175 $ 22,389 $ 36,270 $ 43,111

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Estimating future cash flows is inherently subjective, and actual results may differ materially from these estimates.

During the three months ended March 31, 2026, the Company accounted for held for investment assets at fair value using purchase offers from third parties, which the Company believes is reasonable.

During the six months ended June 30, 2026, the Company accounted for held for investment assets at fair value using purchase offers from third parties, which the Company believes is reasonable.

Note 9 – Supplemental Detail for Certain Components of the Condensed Consolidated Balance Sheets

Other assets, net consists of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Accounts receivable, net $ 13,633 $ 9,679

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Accounts payable, accrued expenses, and other liabilities consists of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Accrued expenses $ 10,920 $ 4,249

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Note 10 – Shareholders’ Equity

On October 25, 2023, the Company entered into a $ 300.0 million at-the-market equity program (the “2023 ATM Program”) through which, from time to time, it may sell shares of its common stock in registered transactions.

On October 25, 2023, the Company entered into a $ 300.0 million at-the-market equity program (the “2023 ATM Program”) through which, from time to time, it could sell shares of its common stock in registered transactions.

During 2024, the Company entered into forward sale agreements with respect to an aggregate 1,743,100 shares of its common stock under the 2023 ATM Program at a weighted-average price of $ 17.67 per share.

On August 12, 2024, the Company entered into a $ 300.0 million at-the-market equity program (the “2024 ATM Program”) through which, from time to time, it may sell shares of its common stock in registered transactions.

Effective August 12, 2024, in connection with the establishment of the new at-the-market offering program, the 2023 ATM Program was terminated.

The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than December 31, 2026, unless the parties mutually agree to extend such dates.

On August 12, 2024, the Company entered into a $ 300.0 million at-the-market equity program (the “2024 ATM Program”) through which, from time to time, it could sell shares of its common stock in registered transactions.

Effective August 12, 2024, in connection with the establishment of the 2024 ATM Program, the 2023 ATM Program was terminated.

As a result of the termination, the Company will not offer or sell any additional shares of common stock under the 2023 ATM Program.

As context requires, the 2024 ATM Program and the 2023 ATM Program are referred to herein as the “ATM Programs.”

During the three months ended March 31, 2026, the Company entered into forward sale agreements with respect to an aggregate 3,956,031 shares of its common stock under the 2024 ATM Program at a weighted-average price of $ 18.81 per share.

The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than the stated maturity dates ranging from January 2027 to March 2027.

During the six months ended June 30, 2026, the Company entered into forward sale agreements with respect to an aggregate 4,264,015 shares of its common stock under the 2024 ATM Program at a weighted-average price of $ 18.86 per share.

The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than the stated maturity dates ranging from January 2027 to April 2027, unless the parties mutually agree to extend such dates.

During 2025, the Company entered into forward sale agreements with respect to an aggregate 9,068,486 shares of its common stock under the 2024 ATM Program at a weighted-average price of $ 17.75 per share.

The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than the stated maturity dates ranging from September 2026 to November 2026.

The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than the stated maturity dates ranging from September 2026 to November 2026, unless the parties mutually agree to extend such dates.

On April 21, 2026, the Company entered into a $ 400.0 million at-the-market equity program (the “2026 ATM Program”) through which, from time to time, it may sell shares of its common stock in registered transactions.

Effective April 21, 2026, in connection with the establishment of the 2026 ATM Program, the 2024 ATM Program was terminated.

As a result of the termination, the Company will not offer or sell any additional shares of common stock under the 2024 ATM Program.

As context requires, the 2023 ATM Program, the 2024 ATM Program, and the 2026 ATM Program are referred to herein as the “ATM Programs.”

During the six months ended June 30, 2026, the Company entered into forward sale agreements with respect to an aggregate 8,697,206 shares of its common stock under the 2026 ATM Program at a weighted-average price of $ 20.51 per share.

The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than the stated maturity dates ranging from April 2027 to June 2027, unless the parties mutually agree to extend such dates.

The following table presents information about the ATM Programs (in thousands):

As of March 31, 2026

Program Name Date Established Date Terminated Maximum Sales Authorization Value of Gross Proceeds Settled (1)

As of June 30, 2026

Program Name Date Established Date Terminated Maximum Sales Authorization Value of Gross Proceeds

Value of Gross Proceeds of Unsettled Forward Equity Value of Gross Proceeds Available for Issuance (2)

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2024 ATM Program (4)

August 2024 — $ 300,000 $ 52,446 $ 197,623 $ 49,931

August 2024 April 2026 $ 300,000 $ 52,446 $ 203,641 $ —

2026 ATM Program (5)

April 2026 — $ 400,000 $ — $ 178,416 $ 221,584

(1) Represents gross proceeds received from shares of common stock issued by the Company under the ATM Programs, including settlements of forward sale agreements.

(2) Represents gross proceeds available for future issuances of shares of common stock under the ATM Programs.

(3) As of March 31, 2026, 1,743,100 shares remain unsettled under the forward sale agreements at a weighted-average available net settlement price of $ 17.15 .

(4) As of March 31, 2026, 10,726,818 shares remain unsettled under the forward sale agreements at a weighted-average available net settlement price of $ 18.12 .

(3) As of June 30, 2026, 1,743,100 shares remain unsettled under the forward sale agreements at a weighted-average available net settlement price of $ 17.06 .

(4) As of June 30, 2026, 11,034,802 shares remain unsettled under the forward sale agreements at a weighted-average available net settlement price of $ 18.07 .

(5) As of June 30, 2026, 8,697,206 shares remain unsettled under the forward sale agreements at a weighted-average available net settlement price of $ 20.30 .

The following table details information related to the issuance of shares (including through physical settlement under forward sale agreements) under the ATM Programs for the six months ended June 30, 2025 (in thousands, except share and per share data).

During the three and six months ended June 30, 2026, the Company did not issue any shares under the ATM Programs or physically settle any forward sale agreements under the ATM Programs.

Six Months Ended June 30,

Shares of common stock issued (1)

Weighted-average price per share $ 16.32

Gross proceeds $ 28,694

Sales commissions and offering costs $ 342

Net proceeds (2)

(1) Includes 1,105,299 shares of common stock that were physically settled at a weighted-average price of $ 16.37 per share under forward sale agreements.

(2) The net proceeds were contributed to the Operating Partnership in exchange for an equivalent number of OP Units.

February 2026 Follow-On Offering

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The Company did not initially receive any proceeds from the sale of shares of common stock by the forward purchasers.

As of March 31, 2026, 12,627,000 shares remain unsettled under the February 2026 forward sale agreements.

The Company expects to physically settle the forward sale agreements (by delivery of shares of common stock) and receive proceeds from the sale of those shares upon one or more forward settlement dates, which shall occur no later than February 12, 2027.

As of June 30, 2026, 12,627,000 shares remain unsettled under the February 2026 forward sale agreements.

July 2025 Follow-On Offering

In July 2025, the Company completed a registered public offering of 12,420,000 shares of its common stock at a public offering price of $ 17.70 per share, including the full exercise of the underwriters’ option to purchase additional shares.

In connection with the offering, the Company entered into forward sale agreements for 12,420,000 shares of its common stock.

The Company did not initially receive any proceeds from the sale of shares of common stock by the forward purchasers.

On June 29, 2026, the Company physically settled 4,264,947 shares of common stock at a weighted-average price of $ 16.60 per share in accordance with the forward sale agreements.

The Company received net proceeds from the settlement of $ 70.7 million, net of underwriting discounts and offering costs of $ 4.8 million.

The Company contributed the net proceeds to the Operating Partnership in exchange for 4,264,947 OP Units (as defined below).

As of June 30, 2026, the Company had fully settled the July 2025 forward sale agreements.

January 2024 Follow-On Offering

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The Company contributed the net proceeds to the Operating Partnership in exchange for 4,000,000 OP Units (as defined below).

As of March 31, 2026, 4,840,000 shares remain unsettled under the January 2024 forward sale agreements.

As of June 30, 2026, 4,840,000 shares remain unsettled under the January 2024 forward sale agreements.

The following table presents information about the Company’s January 2024, July 2025, and February 2026 follow-on offerings (in thousands, except share data):

As of March 31, 2026

As of June 30, 2026

Follow-On Offering Shares Sold Shares Settled Shares Unsettled Value of Gross Proceeds of Unsettled Forward Equity

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Surrendered Shares on Vested Stock Unit Awards

During the three months ended March 31, 2026 and 2025, portions of restricted stock unit awards (“RSUs”) granted to certain of the Company’s officers, directors, and employees vested.

During the six months ended June 30, 2026 and 2025, portions of restricted stock unit awards (“RSUs”) granted to certain of the Company’s officers, directors, and employees vested.

The vesting of these awards, granted pursuant to the NETSTREIT Corp.

Amended and Restated 2019 Omnibus Incentive Plan (the “Omnibus Incentive Plan”), resulted in federal and state income tax liabilities for the recipients.

During the three months ended March 31, 2026 and 2025, as permitted by the terms of the Omnibus Incentive Plan and the award grants, certain executive officers and employees elected to surrender approximately 83 thousand and 40 thousand RSUs valued at approximately $ 1.7 million and $ 0.6 million, respectively, solely to pay the associated statutory withholding tax.

During the six months ended June 30, 2026 and 2025, as permitted by the terms of the Omnibus Incentive Plan and the award grants, certain executive officers and employees elected to surrender approximately 88 thousand and 44 thousand RSUs valued at approximately $ 1.8 million and $ 0.6 million, respectively, solely to pay the associated statutory withholding tax.

The surrendered RSUs are included in the row entitled “repurchase of common stock for tax withholding obligations” in the condensed consolidated statements of cash flows and condensed consolidated statements of changes in equity.

During the three months ended March 31, 2026, the Company declared and paid the following common stock dividends (in thousands, except per share data):

Three Months Ended March 31, 2026

During the six months ended June 30, 2026, the Company declared and paid the following common stock dividends (in thousands, except per share data):

Six Months Ended June 30, 2026

Declaration Date Dividend Per Share Record Date Total Amount Payment Date

February 5, 2026 $ 0.220 March 16, 2026 $ 21,396 March 31, 2026

During the three months ended March 31, 2025, the Company declared and paid the following common stock dividends (in thousands, except per share data):

Three Months Ended March 31, 2025

April 16, 2026 0.220 June 1, 2026 21,398 June 15, 2026

$ 0.440 $ 42,794

During the six months ended June 30, 2025, the Company declared and paid the following common stock dividends (in thousands, except per share data):

Six Months Ended June 30, 2025

Declaration Date Dividend Per Share Record Date Total Amount Payment Date

February 21, 2025 $ 0.210 March 14, 2025 $ 17,157 March 31, 2025

April 25, 2025 0.210 June 2, 2025 17,159 June 16, 2025

$ 0.420 $ 34,316

Noncontrolling Interests

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The Company contributes net proceeds from issuing shares of common stock to the Operating Partnership in exchange for common units of limited partnership interest in the Operating Partnership (the “OP Units”) equal to the number of shares of common stock issued.

As of March 31, 2026, the Company held 97,253,523 OP Units and external parties (the “Noncontrolling OP Unit Holders”) held 402,178 OP Units, representing 99.6 % and 0.4 %, respectively, of OP Units.

As of June 30, 2026, the Company held 101,526,575 OP Units and external parties (the “Noncontrolling OP Unit Holders”) held 445,539 OP Units, representing 99.6 % and 0.4 %, respectively, of OP Units.

As of December 31, 2025, the Company held 93,070,533 OP Units and Noncontrolling OP Unit Holders held 412,143 OP Units, representing 99.6 % and 0.4 %, respectively, of OP Units.

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The holders of OP Units are entitled to receive an equal distribution for each OP Unit held as of each record date.

During the three months ended March 31, 2026 and 2025, the Operating Partnership paid distributions of $ 0.1 million to Noncontrolling OP Unit Holders.

During each of the six months ended June 30, 2026 and 2025, the Operating Partnership paid distributions of $ 0.2 million to Noncontrolling OP Unit Holders.

OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one -for-one basis.

During the three months ended March 31, 2026, Noncontrolling OP Unit Holders redeemed 9,965 OP Units for shares of common stock on a one -for-one basis.

There were no OP Unit redemptions during the three months ended March 31, 2025.

During the six months ended June 30, 2026, Noncontrolling OP Unit Holders redeemed 9,965 OP Units for shares of common stock on a one -for-one basis.

There were no OP Unit redemptions during the six months ended June 30, 2025.

Note 11 – Stock-Based Compensation

Under the Omnibus Incentive Plan, 4,294,976 shares of common stock are reserved for issuance and, as of March 31, 2026, 3,134,013 shares of common stock were available for future issuance under the Omnibus Incentive Plan.

Under the Omnibus Incentive Plan, 4,294,976 shares of common stock are reserved for issuance and, as of June 30, 2026, 3,120,916 shares of common stock were available for future issuance under the Omnibus Incentive Plan.

The Omnibus Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted shares, RSUs, LTIP Units (as defined below), dividend equivalent rights, and other share-based, share-related, or cash-based awards, including performance-based awards, to employees, directors, and consultants, with each grant evidenced by an award agreement providing the terms of the award.

The Omnibus Incentive Plan is administered by the Compensation Committee of the Board of Directors.

As of March 31, 2026, the only stock-based compensation granted by the Company were RSUs and LTIP Units.

The total amount of stock-based compensation costs recognized in general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss) was $ 1.7 million and $ 1.4 million for the three months ended March 31, 2026 and 2025, respectively.

As of June 30, 2026, the only stock-based compensation granted by the Company were RSUs and LTIP Units.

The total amount of stock-based compensation costs recognized in general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss) was $ 1.8 million and $ 1.5 million for the three months ended June 30, 2026 and 2025, respectively.

Stock-based compensation expense was $ 3.4 million and $ 2.9 million for the six months ended June 30, 2026 and 2025, respectively.

All awards of unvested RSUs and LTIP Units are expected to fully vest within the next five years .

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Restricted Stock Units LTIP Units

Service-Based

Performance Service-Based

Units Weighted Average Grant Date Fair Value per Unit Units Weighted Average Grant Date Fair Value per Unit Units

Weighted Average Grant Date Fair Value per Unit

Service-Based Performance Service-Based Performance

Units Weighted Average Grant Date Fair Value per Unit Units Weighted Average Grant Date Fair Value per Unit Units Weighted Average Grant Date Fair Value per Unit Units (1)

Weighted Average Grant Date Fair Value per Unit

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Vested during the period ( 215,792 ) 16.23 ( 53,173 ) 21.81 — — — —

Unvested grants outstanding as of March 31, 2026

362,431 $ 16.97 321,348 $ 15.32 125,559 $ 19.85 121,691 $ 20.74

(1) The number of Performance LTIP Units disclosed is based on the target level of awards being achieved, with the ultimate number earned subject to the achievement of specified performance metrics over a three-year performance period, ranging from 0 % to 200 % of target.

Unvested grants outstanding as of June 30, 2026 346,921 $ 16.90 321,348 $ 15.32 125,559 $ 19.85 121,691 $ 20.74

(1) The number of Performance LTIP Units (as defined below) disclosed is based on the target level of awards being achieved, with the ultimate number earned subject to the achievement of specified performance metrics over a three-year performance period, ranging from 0 % to 200 % of target.

The actual number of Performance LTIP Units issued on the grant date assumes maximum performance is achieved.

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The vesting terms of these grants are specific to the individual grant and vest in equal annual installments within the next one to five years .

For the three months ended March 31, 2026 and 2025, the Company recognized $ 0.9 million and $ 0.8 million, respectively, in stock-based compensation expense associated with service-based RSUs.

As of March 31, 2026 and December 31, 2025, the remaining unamortized stock-based compensation expense totaled $ 5.0 million and $ 3.9 million, respectively, and as of March 31, 2026, these awards are expected to be recognized over a remaining weighted average period of 2.1 years.

For the three months ended June 30, 2026 and 2025, the Company recognized $ 0.8 million and $ 0.9 million, respectively, in stock-based compensation expense associated with service-based RSUs.

For each of the six months ended June 30, 2026 and 2025, the Company recognized $ 1.7 million in stock-based compensation expense associated with service-based RSUs.

As of June 30, 2026 and December 31, 2025, the remaining unamortized stock-based compensation expense totaled $ 4.1 million and $ 3.9 million, respectively, and as of June 30, 2026, these awards are expected to be recognized over a remaining weighted average period of 1.9 years.

Stock-based compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award.

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These grants are subject to the participant’s continued service over a three-year period with 40 % of the award based on the Company’s total shareholder return (“TSR”) as compared to the TSR of identified peer companies and 60 % of the award based on total absolute TSR over the cumulative three-year period.

The performance period of these grants runs through December 31, 2026 and December 31, 2027.

The performance periods of these grants run through December 31, 2026 and December 31, 2027.

Grant date fair value of the performance-based share awards was calculated using the Monte Carlo simulation model, which incorporated stock price volatility of the Company and each of the Company’s peers and other variables over the performance period.

Stock-based compensation expense associated with unvested performance-based share awards is recognized on a straight-line basis over the minimum required service period of three years .

For the three months ended March 31, 2026 and 2025, the Company recognized $ 0.5 million in stock-based compensation expense associated with performance-based RSUs.

As of March 31, 2026 and December 31, 2025, the remaining unamortized stock-based compensation expense totaled $ 2.3 million and $ 2.8 million, respectively, and as of March 31, 2026, these awards are expected to be recognized over a remaining weighted average period of 1.5 years.

For each of the three months ended June 30, 2026 and 2025, the Company recognized $ 0.5 million in stock-based compensation expense associated with performance-based RSUs.

For each of the six months ended June 30, 2026 and 2025, the Company recognized $ 1.0 million in stock-based compensation expense associated with performance-based RSUs.

As of June 30, 2026 and December 31, 2025, the remaining unamortized stock-based compensation expense totaled $ 1.8 million and $ 2.8 million, respectively, and as of June 30, 2026, these awards are expected to be recognized over a remaining weighted average period of 1.3 years.

On February 11, 2026, the Company entered into the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership to, among other things, designate and set forth the terms of a new class of units of limited partnership interest in the Operating Partnership (the “LTIP Units”), including Basic LTIP Units, which have service-based vesting conditions (“Basic LTIP Units”), and Performance LTIP Units, which have performance-based vesting conditions (“Performance LTIP Units”).

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Pursuant to the Omnibus Incentive Plan, the Company has granted Basic LTIP Units to certain employees.

The awards vest in equal annual installments over three years on each anniversary of the grant date, subject to continued service to the Company and certain exception s .

For the three months ended March 31, 2026, the Company recognized $ 0.1 million in stock-based compensation expense associated with Basic LTIP Units.

As of March 31, 2026, the remaining unamortized stock-based compensation expense totaled $ 2.4 million, and as of March 31, 2026, these awards are expected to be recognized over a remaining weighted average period of 2.9 years.

The awards vest in equal annual installments over three years on each anniversary of the grant date, subject to continued service to the Company and certain exceptions.

For the three and six months ended June 30, 2026, the Company recognized $ 0.2 million and $ 0.3 million, respectively, in stock-based compensation expense associated with Basic LTIP Units.

As of June 30, 2026, the remaining unamortized stock-based compensation expense totaled $ 2.2 million, and as of June 30, 2026, these awards are expected to be recognized over a remaining weighted average period of 2.6 years.

Stock-based compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award.

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The fair value per share on the grant date specific to the target TSR relative to the Company’s peers was $ 21.34 .

For the three months ended March 31, 2026, the Company recognized $ 0.1 million in stock-based compensation expense associated with Performance LTIP Units.

For the three and six months ended June 30, 2026, the Company recognized $ 0.2 million and $ 0.3 million, respectively, in stock-based compensation expense associated with Performance LTIP Units.

Stock-based compensation expense associated with unvested Performance LTIP Units is recognized on a straight-line basis over the minimum required service period of three years .

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The Program is deemed to be a liability-classified award (accounted for as an equity-classified award as the service date precedes the grant date and the award would otherwise be classified as equity on grant date), which will be fair-valued and accrued over the applicable service period.

The total estimated fair value of the elections made for 2026 under the Program was approximately $ 1.0 million as of March 31, 2026.

The total estimated fair value of the elections made for 2026 under the Program was approximately $ 0.9 million as of June 30, 2026.

The award will be remeasured to fair value each reporting period until the unvested RSUs are granted.

For the three months ended March 31, 2026 and 2025, the Company recognized less than $ 0.1 million of stock-based compensation expense associated with these awards.

For each of the three and six months ended June 30, 2026 and 2025, the Company recognized approximately $ 0.1 million of stock-based compensation expense associated with these awards.

Previous awards under the Program that have been granted are included within service-based RSUs above.

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The Company has noncontrolling interests in the form of OP Units which are convertible into common stock and represent potentially dilutive securities, as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one -for-one basis.

The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per common share for the periods indicated below (in thousands, except share data and per share data):

Three Months Ended March 31,

The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per common share (in thousands, except share data and per share data):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 6,311 $ 3,289 $ 12,022 $ 4,989

8 unchanged sentences

Unvested RSUs and LTIP Units 540,449 173,333 532,697 118,205

524,946 63,076

Unsettled shares under open forward equity contracts 4,491,613 — 3,561,337 —

2 unchanged sentences

Net income available to common stockholders per common share, diluted $ 0.06 $ 0.04 $ 0.12 $ 0.06

The three months ended March 31, 2026 exclude the impact of 125,605 unvested RSUs and LTIP Units and 10,199 unsettled shares under open forward equity contracts, as the effect would have been antidilutive.

The three months ended March 31, 2025 exclude the impact of 417,052 unvested RSUs and 1,886,795 unsettled shares under open forward equity contracts, as the effect would have been antidilutive.

As of March 31, 2026 and December 31, 2025, there were 402,178 and 412,143 of OP Units outstanding, respectively.

The three months ended June 30, 2026 exclude the impact of 5,800 unsettled shares under open forward equity contracts, and the three months ended June 30, 2025 exclude the impact of 111,161 unvested RSUs and 751,523 unsettled shares under open forward equity contracts, as such conversion would be antidilutive.

The six months ended June 30, 2026 exclude the impact of 62,803 unvested RSUs and LTIP Units and 7,999 unsettled shares under open forward equity contracts, and the six months ended June 30, 2025 exclude the impact of 264,106 unvested RSUs and 1,319,159 unsettled shares under open forward equity contracts, as such conversion would be antidilutive.

As of June 30, 2026 and December 31, 2025, there were 445,539 and 412,143 OP Units outstanding, respectively.

Note 13 – Commitments and Contingencies

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These commitments are generally subject to the Company’s customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase or extend funding.

As of March 31, 2026, the Company had commitments to fund property developments, extend funds under mortgage loans receivable, and fund tenant improvement allowances totaling $ 22.3 million, $ 6.4 million, and $ 8.3 million, respectively.

Commitments to fund property developments are expected to occur over the next nine months , commitments to fund mortgage loans receivable are expected to occur over the next 18 months, and commitments to fund tenant improvement allowances are expected to occur over the next two years .

As of June 30, 2026, the Company had commitments to fund property developments, extend funds under mortgage loans receivable, and fund tenant improvement allowances totaling $ 25.1 million, $ 11.3 million, and $ 7.9 million, respectively.

Commitments to fund property developments are expected to occur over the next nine months , while commitments to fund mortgage loans receivable and tenant improvement allowances are expected to occur over the next 18 months.

In August 2021, the Company entered into a lease agreement related to its corporate office space, which is classified as an operating lease.

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Annual rent expense, excluding operating expenses, is approximately $ 0.5 million during the initial term.

As of March 31, 2026, the Company did not have any other material commitments for re-leasing costs, recurring capital expenditures, non-recurring building improvements, or similar types of costs.

As of June 30, 2026, the Company did not have any other material commitments for re-leasing costs, recurring capital expenditures, non-recurring building improvements, or similar types of costs.

Note 14 – Subsequent Events

The Company has evaluated all events that occurred subsequent to March 31, 2026 through the date on which these condensed consolidated financial statements were issued to determine whether any of these events required disclosure in the financial statements.

2032 Term Loan Draw

Subject to the terms of the PNC Term Loan Agreement, the Company drew an additional $ 50.0 million under the 2032 Term Loan on April 1, 2026, bringing the total outstanding principal amount to $ 200.0 million.

The Company has $ 50.0 million remaining under the PNC Term Loan Agreement delayed draw term loan commitment.

The Company has evaluated all events that occurred subsequent to June 30, 2026 through the date on which these condensed consolidated financial statements were issued to determine whether any of these events required disclosure in the financial statements.

Common Stock Dividend

On April 16, 2026, the Company’s Board of Directors declared a cash dividend of $ 0.22 per share for the second quarter of 2026.

The dividend will be paid on June 15, 2026 to stockholders of record on June 1, 2026.

On July 16, 2026, the Company’s Board of Directors declared a cash dividend of $ 0.225 per share for the third quarter of 2026.

The dividend will be paid on September 15, 2026 to stockholders of record on September 1, 2026.

Revolver Activity

In April 2026, the Company repaid $ 57.0 million on the Revolver.

In July 2026, the Company borrowed $ 69.0 million, net of repayments, under the Revolver.

Forward Equity Sales

In April 2026, the Company entered into forward sale agreements with respect to an aggregate 307,984 shares of its common stock under the 2024 ATM Program at a weighted-average price of $ 19.54 per share.

The Company may physically settle the forward sale agreements (by delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than April 2027.

In July 2026, the Company entered into forward sale agreements with respect to an aggregate 210,670 shares of its common stock under the 2026 ATM Program at a weighted-average price of $ 21.49 per share.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements