Overview
Cantor Fitzgerald raised its price target on Netstreit Corp. to $22 from $20 and left its Overweight recommendation unchanged. The move follows the company’s fourth-quarter releases and a subsequent forward equity offering that together have shaped the firm’s near-term assumptions about investment activity and earnings potential.
Quarterly results and operating metrics
Netstreit reported fourth-quarter 2025 net investments of $198 million, a level described by Cantor Fitzgerald as above expectations. The company reported capitalization rates holding at 7.5% for the period. Management reaffirmed its 2026 adjusted funds from operations (AFFO) guidance range of $1.35 to $1.39 per share, with the midpoint implying roughly 5% year-over-year AFFO growth.
On the top line, Netstreit posted fourth-quarter revenue of $52.5 million, ahead of the consensus expectation of $47.74 million by 9.97%. On the bottom line, reported earnings per share were $0.02 versus an anticipated $0.07, representing a negative surprise of 71.43%.
Capital raise and balance sheet
Following the earnings announcement, the company completed an upsized follow-on offering, issuing approximately $209 million of forward equity at $19 per share. The offering comprised 10.98 million shares priced at $19 each, which represented a 1.3% discount to the stock’s last closing price and an increase from an initially planned 8.75 million shares. Cantor Fitzgerald noted that the equity raise was not yet incorporated into its financial model but could support higher 2026 investment volume and earnings growth.
Netstreit entered the reporting period with a solid liquidity position: its current ratio stood at 3.58, indicating that near-term liquid assets comfortably exceed short-term obligations.
Valuation and analyst view
Cantor Fitzgerald derived its 12-month price target using an estimated 2026 AFFO multiple of 14.7 times, which the firm says is in line with the sector average. The analyst highlighted that Netstreit’s projected 5% AFFO growth is above the sector average, factors that supported maintaining the Overweight rating.
At the same time, some valuation metrics paint a different picture. The company’s reported price-to-earnings ratio stands at 246.84. InvestingPro analysis cited in the report indicates that Netstreit is currently overvalued relative to its Fair Value estimate. The research note also referenced InvestingPro consensus expectations that analysts anticipate roughly 19% revenue growth for fiscal 2026, extending the company’s five-year revenue compound annual growth rate of 42%.
Dividend profile and operational notes
Netstreit offers a dividend yield of 4.36% and has raised its dividend for three consecutive years. The company recorded 4.76% dividend growth over the last twelve months. In explaining its Overweight stance, Cantor Fitzgerald cited a robust investment pipeline, an improved cost of capital, and the absence of any known tenant credit issues.
Implications
Cantor Fitzgerald’s update links a number of elements - investment volume, capital structure and affirmed 2026 AFFO guidance - in sustaining a constructive view on Netstreit while flagging valuation tensions. The follow-on equity proceeds have the potential to expand the company’s capacity to pursue new investments, and the affirmed guidance anchors near-term earnings expectations.
Note on data sources
Where cited, InvestingPro data and analysis are referenced for consensus revenue growth expectations, historical revenue compound annual growth, and the Fair Value comparison.