Net Lease Retail REIT Reports Falling Victim To $3.3M Scam

A phishing scam has cost net lease retail specialist NETSTREIT millions of dollars and pushed the firm into the red for the second quarter.

One of its employees fell victim to a financial scam and wired $3.3M to a third party impersonating one of the company’s development partners.

NETSTREIT disclosed the situation in its Q2 earnings release, in which it also reported a net loss per share of 3 cents. After an insurance payment, the fraud resulted in a $2.8M loss in the second quarter.

The company determined the scam was an isolated incident and added back the loss to its per-share core funds from operations.

The Dallas-based company completed nearly $116M in investments in the second quarter, bringing its year-to-date total to $245M, according to the release.

Adjusted funds from operations for the second quarter reached 32 cents per share, a slight increase from the previous year.

NETSTREIT went public in 2020 and invests in single-tenant net-leased retail properties across the country filled with what it calls "e-commerce resistant tenants with healthy balance sheets."

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