<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV style="font-size: 10pt">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>


<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): November 10, 2008</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>NetREIT<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>CALIFORNIA</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>001-34049</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>33-0841255</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>1282 Pacific Oaks Place<BR>Escondido, CA <BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>92029-2900</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(760) 471-8537</B>


<TABLE border="0" width="30%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="100%">&nbsp;</TD>
</TR>

<TR>
    <TD width="100%">&nbsp;365 S. Rancho Santa Fe Road Suite 300</TD>
</TR>
<TR>
    <TD nowrap style="border-bottom: 1px solid #000000">San Marcos,
CA 92078</TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<P>
<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P align="left" style="font-size: 10pt"><B>Item&nbsp;7.01 Regulation&nbsp;FD Disclosure.</B>


<P align="left" style="font-size: 10pt"><U>Restatement of 2007 Financial Statement and 2008 Quarterly Reports</U>


<P align="left" style="font-size: 10pt">We are in the process of restating our financial statements for the year ended December&nbsp;31, 2007 to reclassify a
portion of the acquisition costs previously classified as building and improvements. Pursuant to Statement of
Financial Accounting Standards No.&nbsp;141, Business Combinations (&#147;SFAS 141&#148;), the Company allocates the purchase price of
acquired properties to land, buildings and improvements and identified tangible and intangible assets and liabilities
associated with in-place leases (including tenant improvements, unamortized leasing commissions, value of above and
below-market leases, acquired in-place lease values, and tenant relationships, if any) based our respective estimated
fair values. We have determined that our initial process of estimating fair values for acquired in-place lease values
did not include all components of such valuation and we did not value the tenant relationships in connection with our
acquisition of the two self storage facilities. The restatement will increase the depreciation and amortization
expense since the buildings and improvements are depreciated on a 39-year life while the amounts reclassified as tenant
improvements and in-place lease values are depreciated or amortized over the remaining life of the lease which ranges
from 1 to 15&nbsp;years. Our total acquisition costs included in the balance sheet will not change.


<P align="left" style="font-size: 10pt">The restatement will reduce the total assets by approximately $350,000 on the balance sheet at December&nbsp;31, 2007 due to
the increase in the accumulated depreciation and amortization.


<P align="left" style="font-size: 10pt">The effect on the Statement of Operations for the year ended December&nbsp;31, 2007 will be to increase depreciation and
amortization expense by approximately $350,000 and thereby increase the loss from continuing operations and reducing
the net income (loss)&nbsp;available to common stockholders by that same amount. The effect on loss from continuing
operations per share and Income per common share available to common shareholders will decrease by approximately $0.15
per share.


<P align="left" style="font-size: 10pt">The restatement will not change the results of Statement of Cash Flows since the restatement relates only to non-cash
expenses.


<P align="left" style="font-size: 10pt">We anticipate completion of the restated financial statements opinion in the next two weeks.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;8.01 Other Events.</B>


<P align="left" style="font-size: 10pt"><U>Change in Principal Executive Offices</U>


<P align="left" style="font-size: 10pt">Effective November&nbsp;10, 2008, the address of our principal executive offices will be 1282 Pacific Oaks Place, Escondido,
California, 92029-2900.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Financial Statements of Real Estate Acquired.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">Not applicable.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pro Forma Financial Information.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">Not applicable.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(c)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Company Shell Transactions.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">Not applicable.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(d)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exhibits.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">None.

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="left" style="font-size: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">NetREIT</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: November 12, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>/s/ Kenneth Elsberry</I></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD nowrap colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Kenneth Elsberry</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Chief Financial Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3




</DIV>
</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "c77035e8vk.htm", "description": "8-K", "secsgml_size_bytes": 11725}]
{"company-data": {"conformed-name": "NETREIT", "cik": "0001080657", "assigned-sic": "6798", "irs-number": "000000000"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-34049", "film-number": "081181747"}, "business-address": {"street1": "365 SOUTH RANCHO SANTA RD", "street2": "SUITE 300", "city": "SAN MARCO", "state": "CA", "zip": "92078", "phone": "760-471-8536"}}
Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 10, 2008
NetREIT
(Exact name of registrant as specified in its charter)
CALIFORNIA
001-34049
33-0841255
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
1282 Pacific Oaks Place
Escondido, CA
92029-2900
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
(760) 471-8537
365 S. Rancho Santa Fe Road Suite 300
San Marcos,
CA 92078
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
Restatement of 2007 Financial Statement and 2008 Quarterly Reports
We are in the process of restating our financial statements for the year ended December 31, 2007 to reclassify a
portion of the acquisition costs previously classified as building and improvements. Pursuant to Statement of
Financial Accounting Standards No. 141, Business Combinations ("SFAS 141"), the Company allocates the purchase price of
acquired properties to land, buildings and improvements and identified tangible and intangible assets and liabilities
associated with in-place leases (including tenant improvements, unamortized leasing commissions, value of above and
below-market leases, acquired in-place lease values, and tenant relationships, if any) based our respective estimated
fair values. We have determined that our initial process of estimating fair values for acquired in-place lease values
did not include all components of such valuation and we did not value the tenant relationships in connection with our
acquisition of the two self storage facilities. The restatement will increase the depreciation and amortization
expense since the buildings and improvements are depreciated on a 39-year life while the amounts reclassified as tenant
improvements and in-place lease values are depreciated or amortized over the remaining life of the lease which ranges
from 1 to 15 years. Our total acquisition costs included in the balance sheet will not change.
The restatement will reduce the total assets by approximately $350,000 on the balance sheet at December 31, 2007 due to
the increase in the accumulated depreciation and amortization.
The effect on the Statement of Operations for the year ended December 31, 2007 will be to increase depreciation and
amortization expense by approximately $350,000 and thereby increase the loss from continuing operations and reducing
the net income (loss) available to common stockholders by that same amount. The effect on loss from continuing
operations per share and Income per common share available to common shareholders will decrease by approximately $0.15
per share.
The restatement will not change the results of Statement of Cash Flows since the restatement relates only to non-cash
expenses.
We anticipate completion of the restated financial statements opinion in the next two weeks.
Item 8.01 Other Events.
Change in Principal Executive Offices
Effective November 10, 2008, the address of our principal executive offices will be 1282 Pacific Oaks Place, Escondido,
California, 92029-2900.
Item 9.01 Financial Statements and Exhibits.
(a)
Financial Statements of Real Estate Acquired.
Not applicable.
(b)
Pro Forma Financial Information.
Not applicable.
(c)
Company Shell Transactions.
Not applicable.
(d)
Exhibits.
None.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
NetREIT
Date: November 12, 2008
By:
/s/ Kenneth Elsberry
Name: Kenneth Elsberry
Title: Chief Financial Officer