Slide 1: Investor Presentation February 2025
Investor Presentation February 2025 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements concerning our bus
Slide 3: Investment Highlights & Business Update
Investment Highlights & Business Update High Credit Quality & Resilient Net Lease Portfolio ✓ Focused on growing portfolio with high quality tenants that 71% 88% offer strong credit profiles and provide consistent performance Investment Grade (IG) and Necessity, Discount, and through various economi
Slide 4: Portfolio Overview
Portfolio Overview High-Quality, Diversified Portfolio Consisting of 55.8% Investment Grade Tenants Across 45 States Key Portfolio Stats Top 10 Tenants by % of ABR Investments1 687 States 45 BBB 8.6%5 Portfolio Square Feet (in millions) 12.6 Tenants 98 BBB 6.2% Retail Sectors 26 % Occupancy2 99.9% A
Slide 5: Portfolio Diversification In Defensive Retail Sectors
Portfolio Diversification In Defensive Retail Sectors Nationally Diversified Portfolio Primarily Comprised of Recession Resilient Retail Tenants 47.6% 18.8% Top Industries Necessity Discount 1 Grocery: 13.6% 2 Dollar Stores1: 13.5% 87.5% 3 Home 21.1% ABR 12.5% Improvement: 11.2% Necessity Service Di
Slide 6: Select Tenant Lease Expirations
Select Tenant Lease Expirations Minimal Lease Rollover Risk with Select Tenants through 2030 Low Near and Intermediate-Term Lease Rollover Risk with Select Tenants: Active asset management and strong tenant relationships have resulted in well-managed lease expirations with the below tenants Next Nex
Slide 7: Consistent Investment Approach
Consistent Investment Approach Disciplined and Deliberate Portfolio Construction Investment Philosophy Portfolio Strategy Current Metrics Defensive Tenancy in Necessity-Based and Primarily 87.5% E-commerce-Resistant Retail Industries1 70.8% Resilient, Cycle-Tested Investment Grade Credit (55.8% Inve
Slide 8: Acquisition Strategy – Bell Curve Investing
Acquisition Strategy – Bell Curve Investing Acquisition Strategy is Focused on Inefficiently Priced Assets Where Risk Adjusted Returns are Higher Efficiently Priced Inefficiently Priced Assets Assets TYPICAL TRANSACTION TYPICAL TRANSACTION - Well marketed transaction - Not highly marketed - Straight
Slide 9: Stringent Three-Part Underwriting Process
Stringent Three-Part Underwriting Process Our Three-Pronged Approach Results in Superior Downside Protection A B C Level of Underwriting Emphasis Tenant Credit Underwriting Real Estate Valuation • Evaluate corporate level Unit-Level financials Profitability • Review underlying key real • Assess busi
Slide 10: Strong Tenant Credit Underwriting
Strong Tenant Credit Underwriting Credit-Focused Underwriting Approach Drives Stable Revenue and Long-Term Return on Investment Investment Grade Investment Grade Sub-IG (rated) & (rated) Profile (unrated) Sub-IG Profile (unrated) • Validated financial strength and • Well-capitalized retailers • IG-c
Slide 11: Real Estate Valuation
Real Estate Valuation Real Estate Closely Follows Credit as a Top Priority: We Utilize a Ground-Up Framework Rooted in Real Estate Fundamentals to Underpin Valuation and Further Quantify the Upside Potential of an Investment Market-Level Considerations Property-Level Considerations • Vacancy analysi
Slide 12: Unit-Level Profitability
Unit-Level Profitability Assess Unit-Level Financial Performance to Focus on Properties with Strong Rent Coverage and Higher Variability in Operating Costs 1 2 3 Obtain Financial Info Perform Financial Analysis Assess Investment Merits • Provides clarity into • Analyze store demand • Determine wheth
Slide 13: History of Sourcing Investments at Attractive Yields
History of Sourcing Investments at Attractive Yields Consistently Invested at Above-Market Yields Despite Focus on High-Quality Tenants Sourcing Volume Since 3Q’20 Volume ($ in millions) $2,210 $5,853 $2,894 $1,292 $4,541 Investment Grade % 63.5% 67.5% NA 54.8% NA Investment Grade Profile1 % 14.9% N
Slide 14: Investment Activity
Investment Activity Summary Details $195,079 $200,000 Gross Investment Activity $160,000 $151,555 $128,615 $129,207 $119,128 ($000s) $115,321 $117,455 $115,795 $120,000 $80,000 $40,000 $0 1 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Investments 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Nu
Slide 15: Disposition Activity
Disposition Activity Summary Details $70,000 $59,337 Dispositions Activity $60,000 $50,000 ($000s) $40,000 $30,000 $24,105 $21,600 $20,000 $15,907 $15,995 $13,543 $12,707 $10,000 $4,060 $0 Dispositions 1Q'23 1Q'23 2Q'23 2Q'23 3Q'23 3Q'23 4Q'23 4Q'23 1Q'24 1Q'24 2Q'24 2Q'24 3Q'24 3Q'24 4Q'24 4Q'24 Ca
Slide 16: Active Asset Management
Active Asset Management Continuously Track Property Performance to Stratify Portfolio and Ensure a Secure Rental Stream Strategic Recycling Active Monitoring Leverage 1031 exchange Periodically review all transfers where possible to properties for changes in access deep, non- performance, credit, an
Slide 17: Conservative Balance Sheet with Improved Liquidity
Conservative Balance Sheet with Improved Liquidity Balance Sheet Positioned for Growth Given Strong Liquidity Profile and Low Leverage Position Recently Completed Debt Transactions: Debt Maturity Schedule – Pro Forma Increased revolver facility to $500.0 million from $400.0 million and pushed maturi
Slide 18: Portfolio Highlights Relative to Peers
Portfolio Highlights Relative to Peers NTST’s Stable & Predictable Cash Flow Profile Drives Superior Risk-Adjusted Returns Investment Grade % Portfolio Composition1 68% Service Discount Necessity 56% 56% 3% 48% 40% 5% 97% 10% 29% 80% 6% 16% 19% 56% 14% 35% 21% 26% 0% ADC FCPT NTST O NNN EPRT FCPT NT
Slide 19: Multiple and Earnings Growth Comparison
Multiple and Earnings Growth Comparison Relative Valuation and Growth Remains Stable 2025E AFFO per Share Growth1 2024A AFFO per Share Multiple2 8.3% 18.3x 17.6x 16.2x 13.6x 13.1x 13.0x 12.4x 11.4x 3.7% 3.3% 3.1% 3.1% 3.0% 2.3% 1.7% Net Debt + Pref. / EBITDA3 2025E AFFO per Share Multiple4 17.0x 16.
Slide 20: Applied Cap Rate and NAV Analysis
Applied Cap Rate and NAV Analysis Strong Upside Potential Given Relative Valuation Applied Nominal Cap Rate – Sensitivity Analysis Peer Benchmarking Three Months Ended, Implied Cap G&A Adjusted 2025E AFFO (unaudited, in millions) December 31, Rate Implied Cap Rate2 Multiple 2024 NOI - Property $36.2
Slide 21: Case Studies
Case Studies 21
Slide 22: Case Study: Loan Strategy
Case Study: Loan Strategy Investment Stats: Close Date: March 2023 Loan Amount: $46.1 million Interest Rate: 9.3% Location: Multiple – Southeast Term at Close: 3 years Parent Credit Rating: A / Baa2 Investment Highlights • Loan provided the borrower funding to acquire a 49 property Speedway portfoli
Slide 23: Case Study: Breakup Strategy
Case Study: Breakup Strategy Investment Stats: Close Date: July 2020 STATS: INVESTMENT INVETMENT STATS: Purchase Price: $17.0 million Cash Cap Rate: 6.6% Location: Tupelo, MS Term at Close: 12 years Credit Rating: AA / Aa2 Investment Highlights • Acquisition of one Walmart Supercenter and one Sam’s
Slide 24: Case Study: Blend & Extend
Case Study: Blend & Extend Investment Stats: Close Date: March 2021 INVESTMENT STATS: Purchase Price: $6.2 million Post-B&E Cash Cap Rate: 6.9% Location: Olympia, WA Term at Close of B&E: 10.5 Years Credit Rating: BBB / Baa1 Investment Highlights • NTST negotiated a new 10-year lease with only a 7.4
Slide 25: Corporate Responsibility
Corporate Responsibility 25
Slide 26: Governance
Governance We are committed to acting with honesty and integrity and conducting all corporate opportunities in an ethical manner. Governance Highlights Board Independence and Diversity No poison pill or differential Annual Director voting stock structure to Elections chill shareholder participation
Slide 27: Social Responsibility
Social Responsibility Human capital management is the cornerstone of our ESG and corporate strategy. We believe in the value of a diverse workforce and inclusive culture. Workforce Diversity Benefits 401K Plan Leave 100% company match of up to a Ten weeks of paid maternity leave 6% contribution at 1
Slide 28: Environmental Responsibility
Environmental Responsibility We are committed to fulfilling our responsibility as an outstanding corporate citizen. Corporate Sustainability Initiatives from Tenants Greenhouse Gas Emissions ✓ 18 of our top 20 tenants have corporate sustainability ✓ We completed scope 1 and 2 greenhouse gas initiati
Slide 29: Financial Information and Non-GAAP Reconciliations
Financial Information and Non-GAAP Reconciliations 29
Slide 30: Consolidated Statements of Operations
Consolidated Statements of Operations (unaudited, dollars in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 REVENUES Rental revenue (including reimbursable) $ 40,598 $ 34,619 $ 150,823 $ 123,967 Interest income on loans receivab
Slide 31: Funds From Operations and Adjusted Funds From Operations
Funds From Operations and Adjusted Funds From Operations (unaudited, dollars in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 GAAP Reconciliation: Net (loss) income $ (5,424) $ 1,962 $ (12,000) $ 6,890 Depreciation and amortiza
Slide 32: EBITDAre and Adjusted EBITDAre
EBITDAre and Adjusted EBITDAre (unaudited, dollars in thousands) Three Months Ended December 31, 2024 2023 GAAP Reconciliation: Net (loss) income $ (5,424) $ 1,962 Depreciation and amortization of real estate 20,275 17,000 Amortization of lease-related intangibles (95) (93) Non-real estate depreciat
Slide 33: Net Operating Income
Net Operating Income (unaudited, dollars in thousands) Three Months Ended December 31, 2024 2023 GAAP Reconciliation: Net (loss) income $ (5,424) $ 1,962 General and administrative 4,456 4,876 Depreciation and amortization 20,349 17,078 Provisions for impairment 12,633 2,709 Transaction costs 158 18
Slide 34: Consolidated Balance Sheets
Consolidated Balance Sheets (unaudited, dollars in thousands, except per share data) December 31, 2024 2023 ASSETS Real estate, at cost: Land $ 571,272 $ 460,896 Buildings and improvements 1,400,393 1,149,809 Total real estate, at cost 1,971,665 1,610,705 Less accumulated depreciation (143,422) (101
Slide 35: Debt, Capitalization, and Financial Ratios
Debt, Capitalization, and Financial Ratios (unaudited, dollars in thousands) As of December 31, 2024 Fully Extended Fixed Rate Interest Available Term Debt Summary Maturity Principal Balance SOFR Swap Rate(1) Remaining Capacity (years) Unsecured revolver(2) August 11, 2027 $ 239,000 —% 5.63% $ 160,8
Slide 36: Debt, Capitalization, and Financial Ratios (cont'd)
Debt, Capitalization, and Financial Ratios (cont’d) (unaudited, dollars in thousands) Net Debt December 31, 2024 Principal amount of total debt $ 872,205 Less: Cash, cash equivalents and restricted cash (14,320) Net Debt $ 857,885 Less: Net value of unsettled forward equity(1) (185,063) Adjusted Net
Slide 37: Non-GAAP Measures and Definitions
Non-GAAP Measures and Definitions FFO, Core FFO, and AFFO FFO means funds from operations. It is a non-GAAP measure defined by NAREIT as net (loss) income (computed in accordance with GAAP), excluding gains (or losses) resulting from dispositions of properties, plus depreciation and amortization and
Slide 38: Non-GAAP Measures and Definitions (cont'd)
Non-GAAP Measures and Definitions (cont’d) EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre EBITDA is defined as earnings before interest expense, income tax expense, and depreciation and amortization. EBITDAre is the NAREIT definition of EBITDA (as defined above), but it is fur
Slide 39: Non-GAAP Measures and Definitions (cont'd)
Non-GAAP Measures and Definitions (cont’d) Property-Level NOI, Property-Level Cash NOI, Property-Level Cash NOI - Estimated Run Rate, and Total Cash NOI - Estimated Run Rate Property-Level NOI, Property-Level Cash NOI, Property-Level Cash NOI - Estimated Run Rate, and Total Cash NOI - Estimated Run
Slide 40: Non-GAAP Measures and Definitions (cont'd)
Non-GAAP Measures and Definitions (cont’d) Investments are lease agreements in place at owned properties, properties that have leases associated with mortgage loans receivable, developments where rent commenced, interest earning developments, or in the case of master lease arrangements each property