1315_Nareit Testimonials_Manheimer_2023-06-26_v2
07/10/2023 | by Diane Rusignola

Mark Manheimer, CEO of NETSTREIT (NYSEMKT: NTST), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.

Manheimer talked about why dollar stores, which comprise about 9% of the NETSTREIT portfolio annual base rent, work so well in conjunction with the REIT’s overall retail mix, noting that dollar stores have done “exceptionally well” in the last couple of recessions.

“We’re currently seeing a lot of opportunity with that particular segment as they are growing faster than any of the other retailers,” he added.

Turning to NETSTREIT’s growth strategy, Manheimer said that most net lease REITs that have been successful have relied on external growth rather than internal growth.

“We’re a smaller REIT, so growing into our G&A (general and administrative) is something that investors really want to see us do,” he said. “We’ve been very successful in going out and finding very attractive acquisitions opportunities and growing the portfolio each quarter.”

Manheimer added that for the past 13 years, merchant developers have been the “most attractive place to be in net lease,” but that has changed since merchant developers are no longer able to rely on community and smaller regional banks for debt capital at similar rates.

“We see that as a great opportunity for us to be able to provide institutional capital at more attractive yields,” he said.