Netstreit IPO Presentation Deck
Market Opportunity: Why Now?
Current environment provides attractive risk-
adjusted returns
Cap rate spreads are currently above the mean and just
below the max of the past fifteen years
Spreads have only exceeded the current levels 1% of the
time since 2005
Despite market dislocation, investment grade and
defensive-focused ("IG/Defensive") peers have a
cost of capital advantage...
NETSTREIT
▪ IG/Defensive peers have performed better given heavier
reliance on tenant credit, real estate underwriting and
defensive, necessity-based concepts
.….
which provides NETSTREIT a unique opportunity
to capitalize on the current acquisition landscape
▪ Less-competitive landscape for new investment
opportunities with most non-IG/Defensive focused peers
having seen their trading premiums largely evaporate
▪ The currently dislocated market backdrop provides a
unique opportunity for a well-capitalized new entrant
to build a fortified portfolio at a historically
compelling basis
SINGLE-TENANT RETAIL CAP
RATE SPREAD TO UST¹
(2005- Current)
6.05%
Max
5.90%
52.7%
Cument
Jul-20
PREM. / (DISC.) TO
CONSENSUS NAV²
Unaffected
20.8%
IG/Defensive Peers
AGREE REALTY
CORPORATION
3.85%
REALTY INCOME
Mean
Current
31.4%
T
HATINAL ENTAIL
PROPERTIES
1.42%
Other Pears
JL
SP
FOUR COEREEL
Min
Jul-06
SPIRIT
STORE
ESSENTIAL PROPERTIES
Sources Real Copy, SNL Financ. 1. Real Capital Andly and SNL Finendist chean refeca single-te copprend to 10-year U.S. Tressury; minimun, main and makmum sprends from 1/3/2006 to 70112000 Monthy
des of June 2020. 2. BNL Firende unaffected in of 22:112020; current es of 70157420.View entire presentation