Summary
- NetSTREIT has registered $316 million worth of selling shareholder shares in its IPO. No proceeds will go to the firm.
- NTST acquires and operates single tenant net-lease properties in the United States.
- Post-IPO, the expected distribution yield will approximate a disappointing 3.8%, while the firm will receive no IPO proceeds to fuel its growth initiatives.
- I'll watch the IPO from the sidelines.
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Quick Take
NetSREIT (NTST) has filed to raise $316 million for selling shareholders in an IPO of its common stock, according to an amended S-11 registration statement.
The firm owns and operates a diversified portfolio of single-tenant retail commercial real estate in the United States.
NTST is handing all the IPO proceeds to existing investors, will likely provide only a 3.8% distribution yield post-IPO and its portfolio is highly exposed to the uncertainties of the Covid-19 pandemic, so I'll watch the IPO from the sidelines.
Company and Business
Dallas, Texas-based NetSTREIT was founded to acquire, develop and own single tenant retail properties in the United States.
Below is a map of the firm’s current portfolio of 163 properties in terms of annualized base rent [ABR] contribution:
Management is headed by president and CEO Mark Manheimer, who has been with the firm since December 2019 and was previously Chief Investment Officer of EB Arrow and Fund Manager of EB Arrow’s Single Tenant Net-Lease Group.
Investors in the firm include Tilden Park, DK(2), Long Pond, Neuberger Berman and others.
The firm has received at least $219 million in investment to-date.
Below is a brief overview video of a discussion of the single tenant net lease market of just prior to the beginning of the Covid-19 pandemic:
