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Shareholders’ Equity, Partners’ Capital and Preferred Equity
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Shareholders’ Equity, Partners’ Capital and Preferred Equity Shareholders’ Equity, Partners’ Capital and Preferred Equity
ATM Program

On September 1, 2021, the Company entered into a $250.0 million at-the-market equity program (the “ATM Program”) through which, from time to time, it may sell shares of its common stock in registered transactions. The Company has issued shares of common stock in connection with the ATM Program for the periods presented as follows:
•In June 2023, the Company issued 1,364,815 shares of common stock at a weighted average price of $17.53 per share for net proceeds of approximately $23.4 million, net of sales commissions and offering costs of $0.3 million. The Company contributed the net proceeds to the Operating Partnership in exchange for 1,364,815 Class A OP Units.

•In March 2023, the Company issued 146,745 shares of common stock at a weighted average price of $20.22 per share for net proceeds of approximately $2.9 million, net of sales commissions and offering costs of less than $0.1 million. The Company contributed the net proceeds to the Operating Partnership in exchange for 146,745 Class A OP Units.

•In March 2022, the Company issued 163,774 shares of common stock at a weighted average price of $22.08 per share for net proceeds of approximately $3.5 million, net of sales commissions and offering costs of less than $0.1 million. The Company contributed the net proceeds to the Operating Partnership in exchange for 163,774 Class A OP Units.

As of June 30, 2023, the Company has $127.3 million remaining gross proceeds available for future issuances of shares of common stock under the ATM Program.

August 2022 Follow-On Offering

On August 8, 2022, the Company completed a registered public offering of 9,000,000 shares of its common stock at a public offering price of $20.20 per share, which excluded an over-allotment option to the underwriters to purchase up to an additional 1,350,000 shares, which was exercised in full on August 10, 2022. In connection with the offering, the Company entered into forward sale agreements for 10,350,000 shares of its common stock. The Company did not initially receive any proceeds from the sales of shares of common stock by the forward purchasers upon registration of the offering. On March 30, 2023, the Company partially physically settled 2,612,736 shares of common stock at a price of $20.20 per share in accordance with the forward sale agreements. The Company received net proceeds from the settlement of $50.0 million, net of underwriting discounts and offering costs of $2.8 million. The Company contributed the net proceeds to the Operating Partnership in exchange for 2,612,736 Class A OP Units. On June 28, 2023, the Company physically settled 4,763,320 shares of common stock at a price of $20.20 per share in accordance with the forward sale agreements. The Company received net proceeds from the settlement of $91.1 million, net of underwriting discounts and offering costs of $5.1 million. The Company contributed the net proceeds to the Operating Partnership in exchange for 4,763,320 Class A OP Units.

As of June 30, 2023, the Company fully physically settled the forward sale agreements (by the delivery of shares of common stock).

January 2022 Follow-On Offering

On January 13, 2022, the Company completed a registered public offering of 10,350,000 shares of its common stock at a public offering price of $22.25 per share. In connection with the offering, the Company entered into forward sale agreements for 10,350,000 shares of its common stock.

On June 23, 2022, the Company settled 2,397,035 shares of common stock at a price of $22.25 per share in accordance with the forward sale agreements. The Company received net proceeds from the offering of $50.0 million, net of underwriting discounts and offering costs of $3.3 million. The Company contributed the net proceeds to the Operating Partnership in exchange for 2,397,035 Class A OP Units.

On March 30, 2022, the Company settled 3,440,962 shares of common stock at a price of $22.25 per share in accordance with the forward sale agreements. The Company received net proceeds from the settlement of $72.0 million, net of underwriting discounts and offering costs of $4.6 million. The Company contributed the net proceeds to the Operating Partnership in exchange for 3,440,962 Class A OP Units.

As of December 31, 2022, the Company fully physically settled the forward sale agreements (by the delivery of shares of common stock).

Surrendered Shares on Vested Stock Unit Awards

During the six months ended June 30, 2023 and 2022, portions of restricted stock unit awards (“RSUs”) granted to certain of the Company’s officers, directors, and employees vested. The vesting of these awards, granted pursuant to the NETSTREIT Corp.
2019 Omnibus Incentive Plan (the “Omnibus Incentive Plan”), resulted in federal and state income tax liabilities for the recipients. During the six months ended June 30, 2023 and 2022, as permitted by the terms of the Omnibus Incentive Plan and the award grants, certain executive officers and employees elected to surrender a total of 18 thousand and 17 thousand RSUs, respectively both valued at approximately $0.4 million, solely to pay the associated statutory tax withholding. The surrendered RSUs are included in the row entitled “repurchase of shares of common stock” on the condensed consolidated statements of cash flows.

Dividends

During the six months ended June 30, 2023, the Company declared and paid the following common stock dividends (in thousands, except per share data):

Six Months Ended June 30, 2023
Declaration DateDividend Per ShareRecord DateTotal AmountPayment Date
February 21, 2023$0.20 March 15, 2023$11,650 March 30, 2023
April 25, 20230.20 June 1, 202312,173 June 15, 2023
$0.40 $23,823 

Six Months Ended June 30, 2022
Declaration DateDividend Per ShareRecord DateTotal AmountPayment Date
February 22, 2022$0.20 March 15, 2022$8,888 March 30, 2022
April 26, 20220.20 June 1, 20229,588 June 15, 2022
$0.40 $18,476 

The holders of OP Units are entitled to an equal distribution per each OP Unit held as of each record date. Accordingly, during the six months ended June 30, 2023 and 2022, the Operating Partnership paid distributions of $0.2 million and $0.2 million, respectively, to holders of OP Units.

Noncontrolling Interests
Noncontrolling interests represent noncontrolling holders of OP Units in the Operating Partnership. OP Units are convertible into common stock as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one-for-one basis. As of June 30, 2023 and December 31, 2022, noncontrolling interests represented 0.8% and 0.9%, respectively, of OP Units. During the three months ended June 30, 2023 and 2022, OP Unit holders redeemed 0 and 22,265 OP units, respectively, into shares of common stock on a one-for-one basis. During the six months ended June 30, 2023 and 2022, OP Unit holders redeemed 5,694 and 47,894 OP units, respectively, into shares of common stock on a one-for-one basis.