Investor Presentation August 2020
Disclaimer The presentation includes certain “forward - looking statements.” All statements, other than statements of historical fact, includ ed in this presentation regarding, among other things, our strategy, future operations, financial position, anticipated dividends, projected costs, prospects, pipeline and opportunities, plans and objectives are forward- looking statements. Forward- looking statements can be identified by words such as “will,” “could,” “would,” “potential,” “target,” “goal,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to future periods. Forward -looking statements are based on our current expectations and assumptions regarding future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short- and long-term business operations and objectives, and financial needs. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. There are risks, uncertainties and other factors, both known and unknown, that could cause actual results to differ materially from those in the forward-looking statements which include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, and other factors. Any forward- looking statement made by us is based upon the reasonable judgment of our management at the time such statement is made and speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Registrati on Statement on Form S-11 as well as any other future annual, quarterly and current reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those filings as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. Nothing contained herein is, or shall be relied upon as, a promise or representation as to the past or future. The Company expressly disclaims any and all liability relating to or resulting from the use of this presentation. In addition, the information contained in this presentation is as of the date hereof, and the Company has no obligation to update such information, including in the event that such information becomes inaccurate. The Company presents Annualized Base Rent (“ABR”) which is calculated by multiplying ( i) cash rental payments (a) for the month ending July 31, 2020 (or, if applicable, the next full month’s cash rent contractually due in the case of rent abatements, rent deferrals and recently acquired proper ties, other than properties under development) for leases in place as of July 13, 2020, plus (b) for properties under development, the first full month’s permanent cash ren t contractually due after the development period by (ii) 12 2
Company & Investment Highlights NETSTREIT Is Built on a Foundation of Strength on Both Sides of the Balance Sheet, Led by Seasoned Leadership Team with Exceptional Track Record 1 Strategy Overview and Performance During COVID 2 Active Asset Management to Achieve Optimal Portfolio Performance 3 Disciplined Underwriters with Dual Focus on Credit AND Real Estate 4 Multifaceted Investment Strategy Leveraging Deep Industry Relationships 5 Platform Positioned for Scale High-Quality, Diversified, and Conservative Capitalization to Defensive Net Lease Retail Support Accretive Growth Portfolio 3
Strategy Overview and Performance During COVID 1 Investment grade tenancy provides defensive, NETSTREIT STRATEGY BY consistent performance through economic cycles THE NUMBERS 1 ▪ High-quality tenancy creates bond-like leases with high rent collections during times of disruption ▪ 100% of Investment Grade tenants paid full rent in 2Q 2020 64% Investment Grade Tenancy Defensive nature of NETSTREIT portfolio strategy Defensive Retail Tenancy 2 88% ▪ Focused on benefits of restructuring leases (i.e. extending lease Rent Collections 3 : terms) rather than pushing rent collections during COVID-19 87% Q2 2020 ▪ No exposure to experiential retail 95% July 2020 High level of rent collections during COVID 99% ▪ Collected 95% and 99% of July and August rent payments, August 2020 respectively Unresolved Requests for COVID 0% Related Rent Relief 4 NETSTREIT’s focus on defensive, credit tenancy in essential industries is a deliberate and longstanding Experiential Retail Exposure 0% strategy, rather than a reactionary shift to a post- (Cinemas, Fitness, Childcare, Family Entertainment) COVID-19 world Source: Company data. Portfolio data represents portfolio as of 7/31/2020 unless otherwise noted. 1. Figures represent percentage of ABR unless otherwise noted. 2. Defensive retail tenancy based on rent from tenants in necessity, discount or service- oriented industries. 3. NETSTREIT rent collection percentages are based on actual cash rent collected divided by contractual rent prior to any COVID-19 related lease modifications. Amounts are as of 8/24/2020. 4. NETSTREIT has collected 100% of rent in accordance with in-place lease agreements in June, July and August (as of 8/24/2020). 4
Portfolio Overview 2 High-quality, diversified portfolio consisting of 64% investment grade tenants across 34 states Key Portfolio Stats Top 10 Tenants by % of ABR Properties 163 States 34 12.7% Baa1 / AA- Portfolio Square Feet (in millions) 3.0 Tenants 53 Aa2 / AA 7.9% Retail Sectors 23 % Occupancy 100.0% 6.1% Baa2 / BBB % Investment Grade Tenants (by ABR) 64% % Defensive Industry Exposure (by ABR) 88% 5.2% Weighted Average Lease Term Remaining (Years) 11.2 Weighted Average Annual Rent Increases 0.9% 4.9% Baa1 / BBB+ Lease Turnover Through 2024 (by ABR) 1.4% National Footprint Across Attractive Markets Baa2 / BBB- 4.7% ME WA VT 4.6% NH Baa2 / BBB ND MT MN MA NY OR CT RI WI ID SD MI WY NJ PA IA DE MD OH 3.9% Baa2 / BBB NE IN NV IL WV VA UT CO CA KY MO KS NC TN OK 3.5% AR SC A2 / A AZ NM GA AL MS LA AK TX FL Baa2 / BBB- 3.3% HI >10% and <25% ABR >5% and <10% ABR >3% and <5% ABR Investment Grade Rated 1 High-Quality Unrated 2 >1% and <3% ABR <1% ABR 0% ABR Sources: Company data, Bloomberg. Portfolio data represents portfolio as of 7/31/2020. 1. Represents tenants that are defined as having a credit rating of Baa3/BBB- or higher from one of the three major ratings agencies (S&P/Moody’s/Fitch) and includes Tractor Supply, which has an equivalent rating of NAIC-2. 2. Represents high-quality tenants without rating that are defined by sales >$1B and Max Debt / Unadjusted EBITDA of 2.0x. 5
Portfolio Diversification In Defensive Retail Sectors 2 NETSTREIT offers a national diversified portfolio comprised primarily of defensive retail tenants Top Industries (% of ABR) Necessity Discount 1 Convenience 14% Stores: 2 45% Home 14% Improvement: 88% 17% of ABR Necessity 3 Discount Discount Retail: 11% Service 12% Service Other 27% Other carefully selected Net Lease 4 tenants in key retail Drug Stores & 10% subsectors Pharmacies: 5 General Retail: 8% Source: Company data. Portfolio data represents portfolio as of 7/31/2020. Note: Due to rounding, respective defensive retail sector exposure may not precisely reflect the absolute figures. 6
Active Asset Management 2 NETSTREIT continuously tracks property performance and stratifies the portfolio to achieve consistent cash flows and balanced growth for its investors Disciplined Acquisitions Active Monitoring Pursue opportunities that Periodically review all align with objectives properties for changes in performance, credit, and Practice disciplined local conditions underwriting strategy Existing portfolio has been carefully curated Strategic Recycling Perpetual Stratification Leverage 1031 exchange Identify properties not transfers where possible meeting strategy and/or to access deep, non- risk management criteria institutional market for (i.e. rent coverage) portfolio optimization Since inception, the Company has disposed of 35 properties totaling approximately $100 million, while also acquiring high-quality assets that have enhanced scale and materially improved portfolio performance metrics Source: Company data. 7
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