August 11, 2020
NetSREIT (NTST) intends to raise $316 million in an initial public offering of its common stock, according to an amended S-11 registration statement. The Dallas-based REIT owns and operates a diversified portfolio of single-tenant retail.
In its registration statement, NTST emphasizes both the strengths of its own portfolio and the long-term viability of net lease. “We focus on maintaining a healthy mix of necessity goods and essential service retail assets, which include discount stores, grocers, drug stores and pharmacies, home improvement, automotive service and quick-service restaurants,” according to the statement.
NTST notes that net lease properties are often mission-critical to their tenants and have historically generated “consistent and stable rent growth across economic cycles relative to other property types.” Further, the company says the long-term nature of net leases and their pass-through rent structure “can mitigate some risks associated with economic downturns and the effects of inflation on operating expenses.”
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