NTST - Netstreit: There Are More Attractive Opportunities Given Its Valuation

2024-05-29 07:07:58 ET

Summary

• NTST is a triple net lease REIT focused on retail/service-oriented properties.
• Despite a decline in stock price, NTST's P/FFO multiple remains high.
• The business looks relatively well, but there are better investment opportunities, even within this property sector.
• The article compares NTST to its competitors and provides a valuation outlook.

Investment thesis

NETSTREIT Corp. ( NTST ) has mostly solid business and credit metrics, there are also some risks accompanied by a relatively high P/FFO multiple when compared to the leading sector REITs.

However, the Company has a coherent investment strategy with a clear growth path, which may make it worth holding and collecting well-covered dividends to support patience....

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