NETSTREIT Corp.NTST

NETSTREIT Corp. Earnings Per Share Disclosure

10-KFiled Feb 10, 20262 min read
Earnings Per Share
Net income (loss) per common share has been computed pursuant to the guidance in the ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is similarly calculated except that the denominator is increased by using the treasury stock method to determine the potential dilutive effect of the Company’s outstanding unvested RSUs and unsettled shares under open forward equity contracts and using the if-converted method to determine the potential dilutive effect of the OP Units. The Company has noncontrolling interests in the form of OP Units which are convertible into common stock and represent potentially dilutive securities, 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.
The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income (loss) per common share:

Year Ended December 31,
(in thousands, except share and per share data)202520242023
Numerator:
Net income (loss)$6,938 $(12,000)$6,890 
Net (income) loss attributable to noncontrolling interest(37)63 (53)
Net income (loss) attributable to common shares, basic6,901 (11,937)6,837 
Net income (loss) attributable to noncontrolling interest37 (63)53 
Net income (loss) attributable to common shares, diluted$6,938 $(12,000)$6,890 
Denominator:
Weighted average common shares outstanding, basic82,702,387 76,517,767 63,922,973 
Effect of dilutive shares for diluted net income per common share:
OP Units421,516 — 501,751 
Unvested RSUs285,694 — 165,420 
Unsettled shares under open forward equity contracts795,151 — 75,295 
Weighted average common shares outstanding, diluted84,204,748 76,517,767 64,665,439 
Net income (loss) available to common stockholders per common share, basic$0.08 $(0.16)$0.11 
Net income (loss) available to common stockholders per common share, diluted$0.08 $(0.16)$0.11 

For the year ended December 31, 2024, diluted net loss per common share does not assume the conversion of 444,435 OP Units, 123,992 unvested RSUs, or 233,606 unsettled shares under open forward equity contracts, as such conversion would be antidilutive.

As of December 31, 2025 and 2024, there were 412,143 and 424,956 of OP Units outstanding, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 10, 2026Showing above
2024Feb 24, 2025
2023Feb 14, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Mar 4, 2021

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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