What changed in this filing

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Item 1. Business

2022-02-24 compared with 2021-03-04 · 77 added, 66 removed, 167 unchanged (46% of the section changed)

We are an internally-managed real estate company that acquires, owns and manages a diversified portfolio of single-tenant, retail commercial real estate subject to long-term net leases with high credit quality tenants across the United States.

As of December 31, 2020, our diversified portfolio consisted of 203 single-tenant retail net leased properties spanning 38 states, with tenants representing 56 different brands or concepts across 23 retail sectors.

As of December 31, 2021, our diversified portfolio consisted of 327 single-tenant retail net leased properties spanning 41 states, with 67 different tenants represented across 23 retail sectors.

As of December 31, 2021, our portfolio generated annualized base rent (“ABR”) of $71.2 million and was 100% occupied, with a weighted average remaining lease term (“WALT”) of 9.9 years and consisted of approximately 65% investment grade tenants and 16% investment grade profile tenants by ABR, which we believe provides us with a strong, stable source of recurring cash flow from which to grow our portfolio.

ABR is calculated by multiplying (i) cash rental payments (a) for the month ended December 31, 2021 (or, if applicable, the next full month's cash rent contractually due in the case of rent abatements, rent deferrals, recently acquired properties and properties with contractual rent increases, other than properties under development) for leases in place as of December 31, 2021, plus (b) for properties under development, the first full month's permanent cash rent contractually due after the development period by (ii) 12.

We were formed as a Maryland corporation on October 11, 2019.

On December 23, 2019, we issued and sold 8,860,760 shares of our common stock in a private offering at a price of $19.75 per share, to various institutional investors, accredited investors and offshore investors, in reliance upon exemptions from registration provided by Rule 144A and Regulation S under the Securities Act and pursuant to Regulation D under the Securities Act.

On February 6, 2020, we issued and sold an additional 2,936,885 shares of our common stock in the private offering pursuant to the initial purchaser's over-allotment option.

We received approximately $219.0 million of net proceeds (after deducting the initial purchaser's discount and placement fees) from the private offering and over-allotment option exercise.

In connection with the private offering, we consummated a series of formation transactions that were designed, among other things, to enable us to qualify as a real estate investment trust (a “REIT”) for U.S.

federal income tax purposes and we qualified to be taxed as a REIT beginning with our short taxable year ended December 31, 2019.

Our predecessor, EverSTAR Income & Value Fund V, LP, merged with our Operating Partnership as part of the formation transactions.

We are structured as an umbrella partnership REIT, meaning that we own our properties and conduct our business through our Operating Partnership, directly or through limited partnerships, limited liability companies or other subsidiaries.

We were formed as a Maryland corporation on October 11, 2019 and our common stock began trading on the New York Stock Exchange (“NYSE”) under the symbol “NTST” on August 13, 2020.

We are structured as an umbrella partnership real estate investment trust (a “REIT”), meaning that we own our properties and conduct our business through our Operating Partnership, directly or through limited partnerships, limited liability companies or other subsidiaries.

NETSTREIT GP, LLC, a wholly-owned subsidiary of the Company, is the sole general partner of our operating partnership.

As of December 31, 2020, we owned approximately 94.2% of the limited partnership interests in our Operating Partnership.

To assist us in maintaining our status as a REIT, on January 27, 2020, we issued and sold 125 shares of our 12.0% Series A Cumulative Non-Voting Preferred Stock, par value $0.01 per share (“Series A Preferred Stock”) for $1,000 per share to accredited investors pursuant to Regulation D under the Securities Act.

We redeemed all 125 outstanding shares of Series A Preferred Stock upon the completion of our initial public offering.

On August 17, 2020, we completed the initial public offering of our common stock.

We sold 12,244,732 shares of common stock and selling stockholders sold 255,268 shares of common stock at a price of $18.00 per share.

Our common stock began trading on the New York Stock Exchange (“NYSE”) under the symbol “NTST” on August 13, 2020.

On September 16, 2020,

we sold an additional 1,436,829 shares of our common stock pursuant to the underwriters' over-allotment option in connection with the initial public offering.

We received net proceeds from the initial public offering and over-allotment option exercise of $227.3 million, net of transaction costs and underwriting discounts of $18.9 million.

We contributed the total net proceeds from the initial public offering to our Operating Partnership in exchange for 13,681,561 Class A units of limited partnership of the Operating Partnership (“Class A OP Units”).

In addition, an equivalent number of Class A OP Units were issued for the 255,268 shares sold by the selling stockholders.

As of December 31, 2021, we owned 98.7% of the limited partnership interests in our operating partnership.

Beginning with our short taxable year ended December 31, 2019, we elected to be treated and qualify as a REIT for U.S.

federal income tax purposes.

Financing Activities

On April 12, 2021, we completed a registered public offering of 10,915,688 shares of common stock at a public offering price of $18.65 per share.

We received net proceeds from the offering of $194.2 million, net of transaction costs and underwriting discounts of $9.4 million.

On September 1, 2021, we entered into a $250.0 million at-the-market equity program (the “ATM Program”) through which, from time to time, we may sell shares of our common stock in registered transactions.

During the fourth quarter of 2021, we issued 3,852,436 shares of common stock at a weighted average price of $23.36 per share in connection with the ATM Program for gross proceeds of approximately $90.0 million.

Effective September 1, 2021, the board of directors authorized a repurchase program for up to $150.0 million of common stock.

Repurchases of common stock may be made at management’s discretion from time to time in open market transactions, privately negotiated transactions or by other means (including through Rule 10b5-1 trading plans or one or more accelerated stock repurchase programs).

The timing of share repurchases and the number of shares of common stock to be repurchased will depend upon prevailing market conditions and other factors and there can be no assurances that the Company will make any purchases under the common stock repurchase program.

On January 13, 2022, we completed a registered public offering of 10,350,000 shares of our common stock at a public offering price of $22.25 per share.

In connection with the offering, we entered into forward sale agreements for 10,350,000 shares of our common stock.

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

We expect to physically settle the forward sale agreements (by the 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 January 10, 2023.

We may also elect to cash settle or net share settle all or a portion of our obligations under a forward sale agreement if we conclude it is in our best interest to do so.

If we elect to cash settle a forward sale agreement, we may not receive any proceeds and we may owe cash to the relevant forward counterparty in certain circumstances.

Our Competitive Strengths

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Approximately 65% of our ABR is from investment grade credit rated tenants, which historically have exhibited a strong track record of making scheduled rental payments, showing resilience during times of economic downturn.

An additional 8.0% of our ABR is derived from tenants that have conservative high-quality balance sheets with investment grade credit metrics (e.g., more than $1.0 billion in annual sales and a debt to adjusted EBITDA ratio of less than 2.0x) but have not pursued or received a rating (i.e., investment grade profile tenants).

An additional 16% of our ABR is derived from tenants with an investment grade profile.

We define “investment grade” tenants as tenant, or tenants that are subsidiaries of a parent entity (with such subsidiary making up at least 50% of the parent company total revenue), with a credit rating of BBB- (S&P), Baa3 (Moody’s) or NAIC2 (National Association of Insurance Commissioners (“NAIC”)) or higher.

Tenants with investment grade profile metrics have more than $1.0 billion in annual sales and a debt to adjusted EBITDA ratio of less than 2.0x but do not carry a published rating from S&P, Moody’s or NAIC.

• Investment Strategy that Benefits From a Fragmented, Underserved Market Segment.

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• Seasoned Leadership with a Proven Track Record of Cultivating and Expanding Publicly Traded REIT Businesses.

Our Chief Executive Officer, Mark Manheimer, has over 15 years of experience underwriting, acquiring, leasing, financing, managing and disposing of net leased properties, with a track record of growing net lease businesses to significant scale.

Prior to joining EB Arrow Holdings, LLC (“EB Arrow”) as the Chief Investment Officer of its net lease portfolio, Mr.

Manheimer served on the investment committee of Spirit Realty Capital, Inc.

SRC) (“Spirit”), overseeing the acquisition of more than 1,500 properties and leading the effort to restructure the master lease of Spirit's largest tenant.

Manheimer played a critical role in Spirit's September 2012 initial public offering and shortly thereafter led Spirit's due diligence and reverse due diligence efforts as part of a merger with Cole Credit Property Trust II (“Cole”), doubling the size of the company.

Our Chief Executive Officer, Mark Manheimer, has over 16 years of experience underwriting, acquiring, leasing, financing, managing and disposing of net leased properties, with a track record of growing net lease businesses to significant scale, previously working at EB Arrow Holdings, LLC and Spirit Realty Capital, Inc.

We believe Mr.

Manheimer's reputation, in-depth market knowledge and extensive network of long-standing relationships with retailers, brokers, intermediaries, private equity firms and others in the net lease industry will provide us with an ongoing pipeline of both marketed and off-market investment opportunities.

Manheimer's reputation, in-depth market knowledge and extensive network of long-standing relationships with retailers, brokers, intermediaries, private equity firms and others in the net lease industry will continue to provide us with an ongoing pipeline of both marketed and off-market investment opportunities.

In addition, our Chief Financial Officer, Andrew Blocher, leads our conservative balance sheet and capitalization strategy and manages our liabilities, capital raising, financial reporting and investor relations activities.

Blocher has over 20 years of experience in financial reporting, debt and equity financing, investor relations, capital allocation, corporate governance and strategy for publicly traded REITs, including five years serving as the Chief Financial Officer of First Potomac Realty Trust (NYSE:

FPO) and four years serving as Chief Financial Officer and an additional seven years serving in a capital markets and investor relations role at Federal Realty Investment Trust (NYSE:

Blocher has over 21 years of experience in financial reporting, debt and equity financing, investor relations, capital allocation, corporate governance and strategy for publicly traded REITs, including First Potomac Realty Trust and Federal Realty Investment Trust.

We believe Mr.

Blocher's deep relationships with the investment banking and institutional investor communities will assist us in future capital raising activities as we grow our portfolio.

Blocher's deep relationships with the investment banking and institutional investor communities will continue to assist us in future capital raising activities as we grow our portfolio.

• Disciplined Underwriting and Active Portfolio Management Strategy.

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We believe these characteristics make our tenants' businesses e-commerce resistant and resilient through all economic cycles.

evaluating a property for acquisition, we utilize our three-part underwriting and risk management strategy with an emphasis on credit and real estate that includes:

In evaluating a property for acquisition, we utilize our three-part underwriting and risk management strategy with an emphasis on credit and real estate that includes:

◦ Tenant Credit Underwriting:

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• High Quality, Defensive and Diversified Portfolio.

As of December 31, 2020, our portfolio consisted of 203 single-tenant net leased properties that were diversified by tenant, industry and geography, including 56 different brands or concepts, across 23 retail sectors in 38 states.

As of December 31, 2021, our portfolio consisted of 327 single-tenant net leased properties that were diversified by tenant, industry and geography, including 67 different tenants, across 23 retail sectors in 41 states.

The majority of our portfolio was comprised of properties leased to tenants operating in defensive retail industries, with 86.6% of our ABR stemming from necessity, discount and/or service-oriented industries.

As of December 31, 2020, our portfolio was 100% occupied and generated ABR of $41.8 million, with a WALT of 10.5 years, which we believe provides us with a strong, stable source of recurring cash flows from which to grow our portfolio.

As of December 31, 2021, our portfolio was 100% occupied and generated ABR of $71.2 million, with a WALT of 9.9 years, which we believe provides us with a strong, stable source of recurring cash flow from which to grow our portfolio.

Further, as of December 31, 2021, approximately 65% and 16% of the tenants in our portfolio were corporations with investment grade credit ratings or tenants with an investment grade profile, respectively, which historically have exhibited a strong track record of making scheduled rental payments and demonstrating defensive, consistent performance through multiple cycles.

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◦ have more than 60% of its tenants with an investment grade credit rating;

◦ have a WALT of greater than 10 years.

◦ have a WALT that approximates 10 years.

• Proven Ability to Efficiently Deploy Capital Utilizing Proprietary Sourcing Channels to Achieve Scale.

Our ability to efficiently deploy capital is a direct result of our management team's extensive network of industry relationships, which we utilized to source a robust pipeline of attractive marketed and off-market investment opportunities through which we have deployed capital, acquiring 125 single-tenant retail net leased properties with an aggregate purchase price of $409.7 million since December 2019.

Our ability to efficiently deploy capital is a direct result of our management team's extensive network of industry relationships, which we utilized to source a robust pipeline of attractive marketed and off-market investment opportunities through which we have deployed capital, acquiring 249 single-tenant retail net leased properties with an aggregate purchase price of $851.0 million since December 2019 (not including our property development acquisitions).

We believe our relationship-based sourcing strategy will continue to generate a sustainable pipeline of opportunities to drive growth and achieve scale through the efficient deployment of capital raised in our capital markets offerings.

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• Relationship-Based Investment Sourcing.

Manheimer has been active in the single-tenant net lease industry for more than 15 years, serving as Head of Sale-Leaseback Acquisitions for Cole and Executive Vice President — Head of Asset Management for Spirit.

Manheimer's extensive experience has allowed him to develop a broad network of long-standing relationships with retailers, brokers, intermediaries, private equity firms and others in the net lease industry, which we believe will provide us with an ongoing pipeline of both marketed and off-market investment opportunities.

We also anticipate leveraging our extensive developer relationships to partner on build-to-suit and reverse build-to-suit transactions.

Manheimer has been active in the single-tenant net lease industry for more than 16 years, and his extensive experience has allowed him to develop a broad network of long-standing relationships with retailers, brokers, intermediaries, private equity firms and others in the net lease industry, which we believe will provide us with an ongoing pipeline of both marketed and off-market investment opportunities.

We also anticipate continuing to leverage our extensive developer relationships to partner on build-to-suit and reverse build-to-suit transactions.

• Structure and Manage Portfolio with Disciplined Underwriting and Risk Management Processes.

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We seek to maintain a capital structure that provides us with flexibility to manage our business and scale our platform through targeted acquisitions, while allowing us to service our debt requirements and generate appropriate risk-adjusted returns.

As of December 31, 2020, we had no borrowings under our $250.0 million senior secured revolving credit facility (“Revolver”).

As of December 31, 2021, we had $64.0 million of borrowings under our $250.0 million senior revolving credit facility (“Revolver”).

We intend to target a conservative net debt to EBITDA leverage ratio of 4.5x to 5.5x at scale to best position the Company for growth, and we intend to capitalize on our leading origination, underwriting, financing, documentation and property processes to improve our efficiency.

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We seek to make investments that generate strong current income as a result of the difference, or spread, between the rate we earn on our assets and the rate we pay on our liabilities (primarily our long-term debt).

We intend to augment that income with internal growth (i) from cash generated from the current 0.79% weighted average annual escalation of base rent, based on contractual rent escalation provisions in our leases specifying a fixed rate of rent increase and (ii) through a target dividend payout ratio that will permit some free cash flow reinvestment.

We intend to augment that income with internal growth through a target dividend payout ratio that will permit some free cash flow reinvestment.

We believe this will enable strong dividend growth without relying exclusively on future common stock issuances to fund new portfolio investments.

Additionally, our WALT of 9.9 years as of December 31, 2021 and superior underwriting and portfolio monitoring capabilities, which reduce default losses, are intended to make our cash flows highly stable.

• Smaller Net Lease Acquisitions Allow for Superior Portfolio Growth.

• Smaller Net Lease Acquisitions Allow for Consistent Portfolio Growth.

We generally focus on properties with a purchase price between $1 million and $10 million and our ABR per property is approximately $218,000.

We believe this is a segment of the market that is undercapitalized and in which we can achieve superior growth through consistent acquisition volume.

We believe this is a segment of the market that is undercapitalized and one in which we can achieve consistent growth through acquisition volume.

Moreover, our platform is scalable, and we expect to leverage our capabilities to improve our efficiency and processes to achieve attractive risk-based growth.

General Investment Criteria

We will conduct all of our investment activities through our Operating Partnership and its subsidiaries.

Our objective is to maximize stockholder value by generating attractive risk-adjusted returns through owning, managing and growing a diversified portfolio of commercially desirable properties.

We expect to pursue our objective primarily through the ownership by our Operating Partnership of our existing properties and other acquired properties and assets.

We seek to acquire single-tenant, retail commercial real estate net leased on a long-term basis (at least ten years) to high credit quality tenants in industries where a physical location is critical to the generation of sales and profits, with a focus on necessity goods and essential services in the retail sector, including home improvement, auto parts, drug stores and pharmacies, general retail, grocers, convenient stores, discount stores, and quick-service restaurants.

As we continue to grow our portfolio, we seek to acquire single-tenant, retail commercial real estate net leased on a long-term basis (at least ten years) to high credit quality tenants in industries where a physical location is critical to the generation of sales and profits, with a focus on necessity goods and essential services in the retail sector, including home improvement, auto parts, drug stores and pharmacies, general retail, grocers, convenient stores, discount stores, and quick-service restaurants.

We believe these characteristics make our tenants' businesses e-commerce resistant and resilient through all economic cycles.

Our current strategy targets a scaled portfolio that, over time, will (i) derive no more than (a) 5% of its ABR from any single tenant or property, (b) 15% of its ABR from any single retail sector, (c) 15% of its ABR from any single state and (d) 50% of its ABR from its top 10 tenants, (ii) be primarily leased to tenants operating in businesses we believe to be e-commerce resistant and resilient through all economic cycles, (iii) have a more than 60% of its tenants with an investment grade rating and (iv) have a WALT of greater than 10 years.

While we consider the foregoing when making investments, we may be opportunistic in managing our business and make investments that do not meet one or more of these criteria if we believe the opportunity presents an attractive risk-adjusted return.

We intend to engage in future investment activities in a manner that is consistent with the maintenance of our status as a REIT for U.S.

We intend to engage in investment activities in a manner that is consistent with the maintenance of our status as a REIT for U.S.

federal income tax purposes.

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We generally target properties with a purchase price between $1 million and $10 million, a segment of the market that we believe is undercapitalized and where we can maintain a consistent pipeline of relatively small assets to acquire on attractive terms without the threat of broad competition.

We also selectively review larger properties with a purchase price in excess of $10 million, which we typically lease to investment grade tenants like Walmart and Home Depot, when we believe the acquisition will be accretive to the quality of our portfolio.

The average purchase price of a property in our portfolio as of December 31, 2020 was $3.2 million, and our leases typically have initial lease terms of at least 10 years and contain two or more options for the tenant to extend the lease term, most often for additional five-year periods.

As of December 31, 2020, more than 83% of the leases in our portfolio were triple-net, with the remaining leases double-net.

We also selectively review larger properties with a purchase price in excess of $10 million, which are typically leased to investment grade tenants like Walmart and Home Depot, when we believe the acquisition will be accretive to the quality of our portfolio.

The average purchase price of a property in our portfolio as of December 31, 2021 was $3.3 million, and our leases typically have initial lease terms of approximately 10 years and contain two or more options for the tenant to extend the lease term, most often for additional five-year periods.

We seek to invest in properties that have strong unit-level economics to reduce the risk of default on a particular property.

alternative use, re-leasing or redevelopment, when necessary, which we believe maximizes both investment residual value and recovery default value.

We also seek to acquire commercially desirable properties by reviewing the underlying key real estate metrics of each property, including location and demographics that will support both tenant financial health, including market rents, and a market for alternative use, re-leasing or redevelopment, when necessary, which we believe maximizes both investment residual value and recovery default value.

Investment Origination Process

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In addition, we plan to leverage our developer relationships to partner on build-to-suit opportunities with triple-net leases and desirable tenants.

In addition, we plan to continue to leverage our developer relationships to partner on build-to-suit opportunities with triple-net leases and desirable tenants.

We believe our developer partnerships on build-to-suit projects, which provide higher yields than acquisitions, will differentiate us from our competitors without development expertise.

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We assess the underlying real estate metrics of each property, including location and demographics that will support both tenant financial health, including market rents, and a market for alternative use, re-leasing or redevelopment, when necessary.

We believe implementation of this underwriting and risk management criteria will continue to build a portfolio that provides a strong, stable source of recurring cash flows.

We believe implementation of this underwriting and risk management criteria will continue to build a portfolio that provides a strong, stable source of recurring cash flow.

Finally, we analyze and/or estimate unit-level profitability and cost variability to determine the likelihood of each location sustainably operating as a profit center.

We have elected to be treated and to qualify as a REIT for U.S.

federal income tax purposes beginning with our short taxable year ended December 31, 2019.

We believe that we are organized and have operated in a manner that has enabled us to qualify to be taxed as a REIT commencing with our short taxable year ended December 31, 2019, and we intend to continue to operate so as to satisfy the requirements for qualification as a REIT for U.S.

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Under various of these laws and regulations, a current or previous owner, operator or tenant of real estate may be required to investigate and clean up hazardous or toxic substances, hazardous wastes or petroleum product releases or threats of releases at the property, and may be held liable to a government entity or to third parties for property damage and for investigation, clean-up and monitoring costs incurred by those parties in connection with the actual or threatened contamination.

These laws may impose clean-up responsibility and liability without regard to fault, or whether or not the owner,

operator or tenant knew of or caused the presence of the contamination.

These laws may impose clean-up responsibility and liability without regard to fault, or whether or not the owner, operator or tenant knew of or caused the presence of the contamination.

The liability under these laws may be joint and several for the full amount of the investigation, clean-up and monitoring costs incurred or to be incurred or actions to be undertaken, although a party held jointly and severally liable may seek to obtain contributions from other identified, solvent, responsible parties of their fair share toward these costs.

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Compliance with the ADA, as well as other federal, state and local laws, may require modifications to properties we currently own or may purchase, or may restrict renovations of those properties.

Failure to comply with these laws or regulations could

result in the imposition of fines or an award of damages to private litigants, as well as the incurrence of the costs of making modifications to attain compliance, and future legislation could impose additional obligations or restrictions on our properties.

Failure to comply with these laws or regulations could result in the imposition of fines or an award of damages to private litigants, as well as the incurrence of the costs of making modifications to attain compliance, and future legislation could impose additional obligations or restrictions on our properties.

Although our tenants are generally responsible for all maintenance and repairs of the property pursuant to our leases, including compliance with the ADA and other similar laws or regulations, we could be held liable as the owner of the property for a failure of one of our tenants to comply with these laws or regulations.

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In addition, losses of a catastrophic nature, such as those caused by wind, hail, hurricanes, terrorism or acts of war, may be uninsurable or not economically insurable.

In the event there is damage to our properties that is not covered by insurance and such properties are subject to recourse indebtedness, we will continue to be liable for the indebtedness, even if these properties are irreparably damaged.

In the event there is damage to our properties that is not covered by insurance and such properties

are subject to recourse indebtedness, we will continue to be liable for the indebtedness, even if these properties are irreparably damaged.

In addition to being a named insured on our tenants' liability policies, we separately maintain commercial general liability coverage.

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If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose our tenants or prospective tenants and we may be pressured to reduce our rental rates or to offer substantial rent abatements, tenant improvement allowances, early termination rights or below-market renewal options in order to retain tenants when our leases expire.

Human Capital Management

As of December 31, 2021, we have 23 full-time employees.

Our staff is mostly comprised of professional employees engaged in origination, underwriting, closing, financial reporting, portfolio management and capital markets activities essential to our business.

In addition, Company leadership has allowed our employees the ability to work remotely until further notice due to COVID-19 and maintains key relationships with third-party professional service firms that could assist and supplement our current workforce if the need arises.

We are committed to creating a strong internal culture that promotes inclusion and employee well-being.

Our past and continued success relies on our ability to attract, develop, engage, and retain a team of highly motivated and talented employees.

In order to meet this objective, we are committed to the following:

◦ Talent acquisition and development.

To ensure we attract and retain top talent, we provide competitive compensation and benefits, including stock awards for all employees.

We aim to develop our employees by providing internal training and reimbursement for certifications, tuition, courses and seminars for continuing professional education.

We encourage regular informal feedback directly from the leadership team and complete formal evaluations of each employee annually.

◦ Diversity, equity, and inclusion.

We provide equal employment opportunities to all individuals and seek to cultivate an inclusive culture that respects and appreciates diversity of experience, ideas and opinions.

As of December 31, 2021, our workforce was approximately 57% male and 43% female, and women represented approximately 14% of our senior management team.

The ethnicity of our workforce at the end of 2021 was approximately 69% white, 13% Asian, 9% Black, and 9% Hispanic.

As part of our effort to attract a more diverse candidate base, we partner with local universities and organizations in our recruiting efforts with a focus on recruitment of candidates that are underserved in our industry.

◦ Workplace culture and empowerment.

In 2021, we established an Employee Experience Committee (EEC) with a mission to ensure that employees have a clear voice in sharing and upholding our cultural values and expectations.

The EEC allows the leadership team to engage with, and obtain feedback from, our employees on their workplace experiences.

The EEC is comprised of non-management members of the organization and rotate annually.

Members meet periodically to discuss recommendations to present to the leadership team, which may include additional substantive training, personal growth and professional development programs, company social and team-building events, employee benefits, and health and wellness programs.

In addition, we established an Employee Recognition Program designed to recognize exemplary performance.

Employees have an opportunity to nominate their teammates who have made significant contributions and two nominees per quarter are chosen to win an award.

◦ Employee wellness.

We are committed to providing a safe and healthy working environment for our employees.

Throughout the COVID-19 pandemic, we have supported flexible work arrangements to allow employees to meet personal and family needs.

We offer competitive healthcare insurance and generous paid time off, as well as paid medical and parental leave.

We also provide employees with standing desks, ergonomic desk chairs and fitness center memberships.

Available Information

Our principal executive office is located at 5910 N.

Central Expressway, Suite 1600, Dallas, Texas 75206 and our telephone number is 972-200-7100.

Our principal executive office is located at 2021 McKinney Avenue, Suite 1150, Dallas, Texas, 75201 and our telephone number is 972-200-7100.

Our website address is www.NETSTREIT.com.

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These reports include our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and current reports on Form 8-K, as well as any amendments to those reports.

Our website also contains copies of our corporate governance guidelines and code of business conduct and ethics, as well as the charters of our audit, compensation and nominating and

governance committees.

Our website also contains copies of our corporate governance guidelines and code of business conduct and ethics, as well as the charters of our audit, compensation and nominating and governance committees.

The information on, or otherwise accessible through, our website does not constitute a part of this report.

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-K

Item 1. Business