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NETSTREIT (NTST) Expands Borrowing Capacity, Is The Stock Still Below Fair Value?

Simply Wall St · 2d ago

NETSTREIT (NTST) has just reworked its borrowing stack, upsizing two existing term loans and adding a new $400 million delayed draw facility that refinances nearer term maturities and trims interest spreads.

Despite the fresh refinancing, NETSTREIT’s recent trading tells a mixed story for momentum. The stock has fallen about 18% on a 90 day share price return and is down roughly 11% over 30 days. However, the 3 year total shareholder return of about 36% still paints a much stronger longer term picture.

Scan how NETSTREIT’s refinancing compares with peers that also lean on balance sheet flexibility by reviewing our hand picked list of solid balance sheet and fundamentals (25 results) in similar capital intensive sectors.

NETSTREIT now has more firepower on the balance sheet, yet the share price has pulled back sharply. Does that set up a reasonable entry today, or does it argue for patience and a lower starting point later?

Most Popular NETSTREIT Narrative: 23% Undervalued

NETSTREIT’s most followed thesis points to a fair value of about $22.87 per share, which sits above the recent $17.57 close and puts the focus squarely on how much balance sheet capacity can be turned into cash flow over time.

Conservative use of NETSTREIT’s balance sheet, including adjusted net debt to annualized adjusted EBITDA of 3.2x and access to about US$1.1b of liquidity, together with raised net investment guidance of US$700 million to US$800 million for 2026, points to continued capacity for external acquisitions that can add to rental revenue and AFFO over time.

See why 5 investors see NETSTREIT as 23% undervalued.

Result: Fair Value of $22.87 (UNDERVALUED)

Still, the NETSTREIT story can break if higher funding costs squeeze acquisition spreads or if fewer portfolio sellers emerge and choke off that external growth pipeline.

Find out about the key risks to this NETSTREIT narrative.

Another View: NETSTREIT On Earnings Multiples

On price versus earnings, NETSTREIT looks far less forgiving. The stock trades on a P/E of 129x, compared with 25.9x for the US Retail REITs group and a fair ratio estimate of 46.7x. That gap suggests investors face real valuation risk if sentiment shifts away from growth expectations.

To see how the current pricing compares with the underlying numbers, take a closer look at our valuation breakdown, including how that fair ratio was derived, in the See what the numbers say about this price — find out in our valuation breakdown.

NYSE:NTST P/E Ratio as at Oct 2026
NYSE:NTST P/E Ratio as at Oct 2026

Next Steps

If the mixed signals around NETSTREIT leave you on the fence, move quickly from headline takes to your own view by weighing the 4 key rewards and 3 important warning signs.

Looking for more investment ideas beyond NETSTREIT?

Do not stop with NETSTREIT. Apply the same disciplined lens to other opportunities so you are not relying on a single story to carry your portfolio.

  • Target higher quality value ideas by scanning the 29 high quality undervalued stocks to find investments that combine strong fundamentals with pricing that still looks reasonable.
  • Build a steadier income stream by reviewing the 8 dividend fortresses to identify opportunities that focus on robust yields backed by durable cash flows.
  • Cut concentration risk and widen your opportunity set by checking the 20 high quality undiscovered gems that many investors are not watching yet.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.