ORLANDO,
Fla., Feb. 11, 2025 /PRNewswire/ -- NNN REIT,
Inc. (NYSE: NNN), a real estate investment trust, today announced
operating results for the quarter and year ended December 31, 2024. Highlights include:
Operating Results:
- Revenues and net earnings, FFO, Core FFO and AFFO and diluted
per share amounts:
|
|
Quarter
Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
|
Revenues
|
|
$
|
218,482
|
|
|
$
|
216,231
|
|
|
$
|
869,266
|
|
|
$
|
828,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
97,894
|
|
|
$
|
96,682
|
|
|
$
|
396,835
|
|
|
$
|
392,340
|
|
|
|
Net earnings per
share
|
|
$
|
0.52
|
|
|
$
|
0.53
|
|
(1)
|
$
|
2.15
|
|
|
$
|
2.16
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
|
$
|
152,689
|
|
|
$
|
151,712
|
|
|
$
|
610,501
|
|
|
$
|
589,074
|
|
|
|
FFO per
share
|
|
$
|
0.82
|
|
|
$
|
0.83
|
|
(1)
|
$
|
3.32
|
|
|
$
|
3.24
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO
|
|
$
|
152,731
|
|
|
$
|
154,281
|
|
|
$
|
611,169
|
|
|
$
|
592,528
|
|
|
|
Core FFO per
share
|
|
$
|
0.82
|
|
|
$
|
0.85
|
|
(1)
|
$
|
3.32
|
|
|
$
|
3.26
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
|
|
$
|
154,057
|
|
|
$
|
148,997
|
|
|
$
|
616,613
|
|
|
$
|
591,523
|
|
|
|
AFFO per
share
|
|
$
|
0.82
|
|
|
$
|
0.82
|
|
|
$
|
3.35
|
|
|
$
|
3.26
|
|
|
|
|
|
(1)
|
During the quarter
ended December 31, 2023, one tenant was reclassified to accrual
basis for accounting purposes due to their improved qualitative and
quantitative credit factors, which resulted in an increase of
accrued rent in the amount of $5,573. Excluding such, net earnings
per share would have been $0.50 and $2.13, FFO per share would have
been $0.80 and $3.21 and Core FFO would have been $0.82 and $3.23
for the quarter and year ended December 31, 2023,
respectively.
|
2024 Highlights:
- FFO per share increased 2.5% over prior year results
- Core FFO per share increased 1.8% over prior year results
- AFFO per share increased 2.8% over prior year results
- Dividend yield of 5.6% at December 31,
2024
- Annual dividend per common share increased to $2.29 marking the 35th consecutive
year of annual dividend increases - the third longest record of
consecutive annual dividend increases of all public REITs
- Maintained high occupancy levels at 98.5%, with a weighted
average remaining lease term of 9.9 years, at December 31, 2024 as compared to 99.3% at
September 30, 2024, and 99.5% at
December 31, 2023
- $565.4 million in property
investments, including the acquisition of 75 properties with
aggregate gross leasable area of approximately 1,486,000 square
feet at an initial cash cap rate of 7.7%, with a weighted average
remaining lease term of 18.5 years
- Sold 41 properties for $148.7
million, producing $42.3
million of gains on sales, at a cap rate of 7.3%
- Raised $214.3 million in net
proceeds from issuance of 4,716,754 common shares
- Issued $500 million principal
amount of 5.500% senior unsecured notes due 2034
- Redeemed $350 million principal
amount of 3.900% senior unsecured notes due 2024
- Expanded line of credit borrowing capacity from $1.1 billion to $1.2
billion and extended maturity to April 2028
- Maintained sector leading 12.1 year weighted average debt
maturity
- Total average annual shareholder returns (11.1% for the past 30
years) exceed industry equity averages for the past 3-, 15-, 20-,
25- and 30-years
Fourth Quarter 2024 Highlights:
- $216.8 million in property
investments, including the acquisition of 31 properties with an
aggregate gross leasable area of approximately 305,000 square feet
at an initial cash cap rate of 7.6%, with a weighted average
remaining lease term of 19.8 years
- Sold 12 properties for $42.8
million, producing $12.1
million of gains on sales
NNN has initiated eviction proceedings for 64 properties leased
to a mid-western restaurant operator. As of December 31, 2024, NNN had taken back possession
of 33 of those properties of which 28 properties have been
re-leased to another restaurant operator with rent commencing
May 1, 2025. NNN is working to
take possession of the remainder of the properties in the first
quarter of 2025. Additionally, during the fourth quarter of
2024, NNN took possession of 32 properties previously leased to a
southeast U.S. furniture retailer that had filed for
bankruptcy. As of December 31,
2024, NNN had sold six of these properties generating net
proceeds of $21.8 million and
re-leased five of these properties.
The company announced 2025 Core FFO guidance of $3.33 to $3.38 per
share. The 2025 AFFO is estimated to be $3.39 to $3.44 per
share. The Core FFO guidance equates to net earnings of
$1.97 to $2.02 per share, plus $1.36 per share of expected real estate
depreciation and amortization and excludes any gains from the sale
of real estate, charges for impairments and executive retirement
costs. The guidance is based on current plans and assumptions and
subject to risks and uncertainties more fully described in this
press release and the company's reports filed with the Securities
and Exchange Commission.
Steve Horn, Chief Executive
Officer, commented: "In 2024, we executed more than $560 million in acquisitions with minimal
reliance on capital markets and ended the year with a zero balance
on our revolving credit facility. With the full $1.2 billion available on our line of credit and
approximately $200 million in free
cash flow, we are in a strong position to drive property
acquisitions and capitalize on relationship opportunities in
2025."
NNN REIT invests primarily in high-quality retail properties
subject generally to long-term, net leases. As of
December 31, 2024, the company owned 3,568 properties in 49
states with a gross leasable area of approximately 36.6 million
square feet and a weighted average remaining lease term of 9.9
years. NNN is one of only three publicly traded real estate
investment trusts to have increased annual dividends for 35 or more
consecutive years. For more information on the company, visit
www.nnnreit.com.
Management will hold a conference call on February 11, 2025, at 10:30 a.m. ET to review these results. The
call can be accessed on the NNN REIT website live at
http://www.nnnreit.com. For those unable to listen to the
live broadcast, a replay will be available on the company's
website. In addition, a summary of any earnings guidance
given on the call will be posted to the company's website.
Statements in this press release that are not strictly
historical are "forward-looking" statements. These statements
generally are characterized by the use of terms such as "believe,"
"expect," "intend," "may," "estimated," or other similar words or
expressions. Forward-looking statements involve known and unknown
risks, which may cause the company's actual future results to
differ materially from expected results. These risks include,
among others, general economic conditions, including inflation,
local real estate conditions, changes in interest rates, increases
in operating costs, the preferences and financial condition of the
company's tenants, the availability of capital, risks related to
the company's status as a real estate investment trust ("REIT") and
the potential impacts of an epidemic or pandemic on the company's
business operations, financial results and financial position on
the world economy. Additional information concerning these and
other factors that could cause actual results to differ materially
from these forward-looking statements is contained from time to
time in the company's Securities and Exchange Commission (the
"Commission") filings, including, but not limited to, the company's
Annual Report on Form 10-K. Copies of each filing may be
obtained from the company or the Commission. Such
forward-looking statements should be regarded solely as reflections
of the company's current operating plans and estimates.
Actual operating results may differ materially from what is
expressed or forecast in this press release. NNN REIT, Inc.
undertakes no obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date these statements
were made.
Funds From Operations, commonly referred to as "FFO", is a
relative non-GAAP financial measure of operating performance of an
equity REIT in order to recognize that income-producing real estate
historically has not depreciated on the basis determined under
GAAP. FFO is defined by the National Association of Real
Estate Investment Trusts ("Nareit") and is used by the company as
follows: net earnings (computed in accordance with GAAP) plus
depreciation and amortization of assets unique to the real estate
industry, excluding gains (or including losses), any applicable
taxes and noncontrolling interests on the disposition of certain
assets, the company's share of these items from the company's
noncontrolling interests and any impairment charges on a
depreciable real estate asset, net of recoveries.
FFO is generally considered by industry analysts to be the
most appropriate measure of performance of real estate
companies. FFO does not necessarily represent cash provided
by operating activities in accordance with GAAP and should not be
considered an alternative to net earnings as an indication of the
company's performance or to cash flow as a measure of liquidity or
ability to make distributions. Management considers FFO an
appropriate measure of performance of an equity REIT because it
primarily excludes the assumption that the value of the real estate
assets diminishes predictably over time, and because industry
analysts have accepted it as a performance measure. The company's
computation of FFO may differ from the methodology for calculating
FFO used by other equity REITs, and therefore, may not be
comparable to such other REITs. A reconciliation of net
earnings (computed in accordance with GAAP) to FFO, as defined by
Nareit, is included in the financial information accompanying this
release.
Core Funds From Operations ("Core FFO") is a non-GAAP measure
of operating performance that adjusts FFO to eliminate the impact
of certain GAAP income and expense amounts that the company
believes are infrequent and unusual in nature and/or not related to
its core real estate operations. Exclusion of these items
from similar FFO-type metrics is common within the REIT industry,
and management believes that presentation of Core FFO provides
investors with a potential metric to assist in their evaluation of
the company's operating performance across multiple periods and in
comparison to the operating performance of its peers because it
removes the effect of unusual items that are not expected to impact
the company's operating performance on an ongoing basis. Core
FFO is used by management in evaluating the performance of the
company's core business operations and is a factor in determining
management compensation. Items included in calculating FFO
that may be excluded in calculating Core FFO may include items such
as transaction related gains, income or expense, impairments on
land, executive retirement costs, or other non-core amounts as they
occur. The company's computation of Core FFO may differ from
the methodology for calculating Core FFO used by other equity
REITs, and therefore, may not be comparable to such other REITs. A
reconciliation of net earnings (computed in accordance with GAAP)
to Core FFO is included in the financial information accompanying
this release.
Adjusted Funds From Operations ("AFFO") is a non-GAAP
financial measure of operating performance used by many companies
in the REIT industry. AFFO adjusts FFO for certain non-cash items
that reduce or increase net income in accordance with GAAP.
AFFO should not be considered an alternative to net earnings, as an
indication of the company's performance or to cash flow as a
measure of liquidity or ability to make distributions. Management
considers AFFO a useful supplemental measure of the company's
performance. The company's computation of AFFO may differ
from the methodology for calculating AFFO used by other equity
REITs, and therefore, may not be comparable to such other
REITs. A reconciliation of net earnings (computed in
accordance with GAAP) to AFFO is included in the financial
information accompanying this release.
Earnings Before Interest, Taxes, Depreciation and
Amortization for Real Estate as defined by Nareit ("EBITDA") is a
metric established by Nareit and commonly used by real estate
companies. The measure is a result of net earnings (computed in
accordance with GAAP), plus interest expense, income tax expense,
depreciation and amortization, excluding any gains (or including
any losses) on disposition of real estate, any impairment charges
and after adjustments for income and losses attributable to
noncontrolling interests. Management considers the non-GAAP measure
of EBITDA to be an appropriate measure of the company's performance
and should be considered in addition to, net earnings or loss, as a
measure of the company's operating performance. The company's
computation of EBITDA may differ from the methodology for
calculating EBITDA used by other equity REITs, and therefore, may
not be comparable to such other REITs. A reconciliation of net
earnings (computed in accordance with GAAP) to EBITDA, as defined
by Nareit, is included in the company's Annual Supplemental Data
accompanying this release.
|
NNN REIT,
Inc.
Income Statement
Summary
(dollars in thousands,
except per share data)
(unaudited)
|
|
|
|
Quarter
Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
income
|
|
$
|
218,348
|
|
|
$
|
215,178
|
|
|
$
|
867,468
|
|
|
$
|
826,090
|
|
|
|
Interest and other
income from real estate transactions
|
|
|
134
|
|
|
|
1,053
|
|
|
|
1,798
|
|
|
|
2,021
|
|
|
|
|
|
218,482
|
|
|
|
216,231
|
|
|
|
869,266
|
|
|
|
828,111
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
8,705
|
|
|
|
10,530
|
|
|
|
44,287
|
|
|
|
43,746
|
|
|
|
Real estate
|
|
|
11,142
|
|
|
|
8,237
|
|
|
|
32,317
|
|
|
|
28,378
|
|
|
|
Depreciation and
amortization
|
|
|
63,194
|
|
|
|
60,079
|
|
|
|
249,681
|
|
|
|
238,625
|
|
|
|
Leasing transaction
costs
|
|
|
24
|
|
|
|
76
|
|
|
|
99
|
|
|
|
299
|
|
|
|
Impairment losses –
real estate, net of recoveries
|
|
|
3,724
|
|
|
|
2,315
|
|
|
|
6,632
|
|
|
|
5,990
|
|
|
|
Executive retirement
costs
|
|
|
42
|
|
|
|
2,569
|
|
|
|
668
|
|
|
|
3,454
|
|
|
|
|
|
86,831
|
|
|
|
83,806
|
|
|
|
333,684
|
|
|
|
320,492
|
|
|
|
Gain on disposition of
real estate
|
|
|
12,083
|
|
|
|
7,263
|
|
|
|
42,290
|
|
|
|
47,485
|
|
|
|
Earnings from
operations
|
|
|
143,734
|
|
|
|
139,688
|
|
|
|
577,872
|
|
|
|
555,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses
(revenues):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income
|
|
|
(1,040)
|
|
|
|
(383)
|
|
|
|
(2,980)
|
|
|
|
(1,134)
|
|
|
|
Interest
expense
|
|
|
46,880
|
|
|
|
43,389
|
|
|
|
184,017
|
|
|
|
163,898
|
|
|
|
|
|
45,840
|
|
|
|
43,006
|
|
|
|
181,037
|
|
|
|
162,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
97,894
|
|
|
$
|
96,682
|
|
|
$
|
396,835
|
|
|
$
|
392,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
186,449,345
|
|
|
|
181,425,202
|
|
|
|
183,688,562
|
|
|
|
181,200,040
|
|
|
|
Diluted
|
|
|
186,833,150
|
|
|
|
181,932,133
|
|
|
|
184,043,841
|
|
|
|
181,689,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.52
|
|
|
$
|
0.53
|
|
|
$
|
2.16
|
|
|
$
|
2.16
|
|
|
|
Diluted
|
|
$
|
0.52
|
|
|
$
|
0.53
|
|
(1)
|
$
|
2.15
|
|
|
$
|
2.16
|
|
(1)
|
|
|
|
(1)
|
During the quarter
ended December 31, 2023, one tenant was reclassified to accrual
basis for accounting purposes due to their improved qualitative and
quantitative credit factors, which resulted in an increase of
accrued rent in the amount of $5,573. Excluding such, net earnings
per common share would have been $0.50 and $2.13 for the quarter
and year ended December 31, 2023, respectively.
|
|
NNN REIT,
Inc.
(dollars in thousands,
except per share data)
(unaudited)
|
|
|
|
Quarter
Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
Funds From
Operations ("FFO") Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
97,894
|
|
|
$
|
96,682
|
|
|
$
|
396,835
|
|
|
$
|
392,340
|
|
|
|
Real estate
depreciation and amortization
|
|
|
63,154
|
|
|
|
59,978
|
|
|
|
249,324
|
|
|
|
238,229
|
|
|
|
Gain on disposition of
real estate
|
|
|
(12,083)
|
|
|
|
(7,263)
|
|
|
|
(42,290)
|
|
|
|
(47,485)
|
|
|
|
Impairment losses –
depreciable real estate, net of recoveries
|
|
|
3,724
|
|
|
|
2,315
|
|
|
|
6,632
|
|
|
|
5,990
|
|
|
|
Total FFO
adjustments
|
|
|
54,795
|
|
|
|
55,030
|
|
|
|
213,666
|
|
|
|
196,734
|
|
|
|
FFO
|
|
$
|
152,689
|
|
|
$
|
151,712
|
|
|
$
|
610,501
|
|
|
$
|
589,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.82
|
|
|
$
|
0.84
|
|
|
$
|
3.32
|
|
|
$
|
3.25
|
|
|
|
Diluted
|
|
$
|
0.82
|
|
|
$
|
0.83
|
|
(1)
|
$
|
3.32
|
|
|
$
|
3.24
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Funds From
Operations ("Core FFO") Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
97,894
|
|
|
$
|
96,682
|
|
|
$
|
396,835
|
|
|
$
|
392,340
|
|
|
|
Total FFO
adjustments
|
|
|
54,795
|
|
|
|
55,030
|
|
|
|
213,666
|
|
|
|
196,734
|
|
|
|
FFO
|
|
|
152,689
|
|
|
|
151,712
|
|
|
|
610,501
|
|
|
|
589,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive retirement
costs
|
|
|
42
|
|
|
|
2,569
|
|
|
|
668
|
|
|
|
3,454
|
|
|
|
Total Core FFO
adjustments
|
|
|
42
|
|
|
|
2,569
|
|
|
|
668
|
|
|
|
3,454
|
|
|
|
Core FFO
|
|
$
|
152,731
|
|
|
$
|
154,281
|
|
|
$
|
611,169
|
|
|
$
|
592,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.82
|
|
|
$
|
0.85
|
|
|
$
|
3.33
|
|
|
$
|
3.27
|
|
|
|
Diluted
|
|
$
|
0.82
|
|
|
$
|
0.85
|
|
(1)
|
$
|
3.32
|
|
|
$
|
3.26
|
|
(1)
|
|
|
|
(1)
|
During the quarter
ended December 31, 2023, one tenant was reclassified to accrual
basis for accounting purposes due to their improved qualitative and
quantitative credit factors, which resulted in an increase of
accrued rent in the amount of $5,573. Excluding such, FFO per
common share would have been $0.80 and $3.21 and Core FFO would
have been $0.82 and $3.23 for the quarter and year ended December
31, 2023, respectively.
|
|
NNN REIT,
Inc.
(dollars in thousands,
except per share data)
(unaudited)
|
|
|
|
Quarter
Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
Adjusted Funds From
Operations ("AFFO") Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
97,894
|
|
|
$
|
96,682
|
|
|
$
|
396,835
|
|
|
$
|
392,340
|
|
|
|
Total FFO
adjustments
|
|
|
54,795
|
|
|
|
55,030
|
|
|
|
213,666
|
|
|
|
196,734
|
|
|
|
Total Core FFO
adjustments
|
|
|
42
|
|
|
|
2,569
|
|
|
|
668
|
|
|
|
3,454
|
|
|
|
Core FFO
|
|
|
152,731
|
|
|
|
154,281
|
|
|
|
611,169
|
|
|
|
592,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line accrued
rent, net of reserves
|
|
|
(302)
|
|
|
|
(5,957)
|
|
|
|
(294)
|
|
|
|
(7,453)
|
|
|
|
Net capital lease rent
adjustment
|
|
|
58
|
|
|
|
75
|
|
|
|
222
|
|
|
|
319
|
|
|
|
Below-market rent
amortization
|
|
|
(144)
|
|
|
|
(82)
|
|
|
|
(495)
|
|
|
|
(431)
|
|
|
|
Stock based
compensation expense
|
|
|
2,775
|
|
|
|
2,592
|
|
|
|
11,816
|
|
|
|
10,846
|
|
|
|
Capitalized interest
expense
|
|
|
(1,061)
|
|
|
|
(1,912)
|
|
|
|
(5,805)
|
|
|
|
(4,286)
|
|
|
|
Total AFFO
adjustments
|
|
|
1,326
|
|
|
|
(5,284)
|
|
|
|
5,444
|
|
|
|
(1,005)
|
|
|
|
AFFO
|
|
$
|
154,057
|
|
|
$
|
148,997
|
|
|
$
|
616,613
|
|
|
$
|
591,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.83
|
|
|
$
|
0.82
|
|
|
$
|
3.36
|
|
|
$
|
3.26
|
|
|
|
Diluted
|
|
$
|
0.82
|
|
|
$
|
0.82
|
|
|
$
|
3.35
|
|
|
$
|
3.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income from
operating leases(1)
|
|
$
|
212,565
|
|
|
$
|
209,037
|
|
|
$
|
846,653
|
|
|
$
|
805,136
|
|
|
|
Earned income from
direct financing leases(1)
|
|
$
|
115
|
|
|
$
|
133
|
|
|
$
|
468
|
|
|
$
|
560
|
|
|
|
Percentage
rent(1)
|
|
$
|
189
|
|
|
$
|
241
|
|
|
$
|
1,536
|
|
|
$
|
1,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate expenses
reimbursed from tenants(1)
|
|
$
|
5,479
|
|
|
$
|
5,767
|
|
|
$
|
18,811
|
|
|
$
|
18,763
|
|
|
|
Real estate
expenses
|
|
|
(11,142)
|
|
|
|
(8,237)
|
|
|
|
(32,317)
|
|
|
|
(28,378)
|
|
|
|
Real estate expenses,
net of tenant reimbursements
|
|
$
|
(5,663)
|
|
|
$
|
(2,470)
|
|
|
$
|
(13,506)
|
|
|
$
|
(9,615)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of debt
costs
|
|
$
|
1,455
|
|
|
$
|
1,295
|
|
|
$
|
5,993
|
|
|
$
|
4,943
|
|
|
|
Scheduled debt
principal amortization (excluding
maturities)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
173
|
|
(2)
|
|
Non-real estate
depreciation expense
|
|
$
|
43
|
|
|
$
|
105
|
|
|
$
|
370
|
|
|
$
|
409
|
|
|
|
|
|
(1)
|
For the quarters ended
December 31, 2024 and 2023, the aggregate of such amounts is
$218,348 and $215,178, respectively, and $867,468 and $826,090, for
the year ended December 31, 2024 and 2023, respectively, and
is classified as rental income on the income statement
summary.
|
|
(2)
|
In April 2023, NNN
repaid the remaining mortgages payable principal balance of
$9,774.
|
NNN REIT, Inc.
2025 Earnings Guidance:
Guidance is based on current plans and assumptions and subject
to risks and uncertainties more fully described in this press
release and the company's reports filed with the Commission.
|
|
2025
Guidance
|
|
Net earnings per share
excluding any gains on disposition of real
estate, impairment charges, and
executive retirement costs
|
|
$1.97 - $2.02 per
share
|
|
Real estate
depreciation and amortization per share
|
|
$1.36 per
share
|
|
Core FFO per
share
|
|
$3.33 - $3.38 per
share
|
|
AFFO per
share
|
|
$3.39 - $3.44 per
share
|
|
General and
administrative expenses
|
|
$47 - $48
Million
|
|
Real estate expenses,
net of tenant reimbursements
|
|
$15 - $16
Million
|
|
Acquisition
volume
|
|
$500 - $600
Million
|
|
Disposition
volume
|
|
$80 - $120
Million
|
|
NNN REIT,
Inc.
Balance Sheet
Summary
(dollars in
thousands)
(unaudited)
|
|
|
|
|
|
December 31,
2024
|
|
|
December 31,
2023
|
|
|
Assets:
|
|
|
|
|
|
|
|
Real estate portfolio,
net of accumulated depreciation and amortization
|
|
$
|
8,746,168
|
|
|
$
|
8,535,851
|
|
|
Cash and cash
equivalents
|
|
|
8,731
|
|
|
|
1,189
|
|
|
Restricted cash and
cash held in escrow
|
|
|
331
|
|
|
|
3,966
|
|
|
Receivables, net of
allowance of $617 and $669, respectively
|
|
|
2,975
|
|
|
|
3,649
|
|
|
Accrued rental income,
net of allowance of $4,156 and $4,168, respectively
|
|
|
34,005
|
|
|
|
34,611
|
|
|
Debt costs, net of
accumulated amortization of $27,002 and $23,952,
respectively
|
|
|
8,958
|
|
|
|
3,243
|
|
|
Other
assets
|
|
|
71,560
|
|
|
|
79,459
|
|
|
Total
assets
|
|
$
|
8,872,728
|
|
|
$
|
8,661,968
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Line of credit
payable
|
|
$
|
—
|
|
|
$
|
132,000
|
|
|
Notes payable, net of
unamortized discount and unamortized debt costs
|
|
|
4,373,803
|
|
|
|
4,228,544
|
|
|
Accrued interest
payable
|
|
|
29,699
|
|
|
|
34,374
|
|
|
Other
liabilities
|
|
|
106,951
|
|
|
|
109,593
|
|
|
Total
liabilities
|
|
|
4,510,453
|
|
|
|
4,504,511
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
4,362,275
|
|
|
|
4,157,457
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
8,872,728
|
|
|
$
|
8,661,968
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
|
187,540,929
|
|
|
|
182,474,770
|
|
|
|
|
|
|
|
|
|
Gross leasable area,
Property Portfolio (square feet)
|
|
|
36,557,000
|
|
|
|
35,966,000
|
|
|
NNN REIT,
Inc.
Debt
Summary
As of December 31,
2024
(dollars in
thousands)
(unaudited)
|
|
|
Unsecured
Debt
|
|
Principal
|
|
|
Principal,
Net of
Unamortized
Discount
|
|
|
Stated
Rate
|
|
|
Effective
Rate
|
|
|
Maturity
Date
|
|
Line of credit
payable
|
|
$
|
—
|
|
|
$
|
—
|
|
|
SOFR +
87.5bps
|
|
|
|
—
|
|
|
April 2028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured notes
payable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025
|
|
|
400,000
|
|
|
|
399,900
|
|
|
|
4.000
|
%
|
|
|
4.029
|
%
|
|
November
2025
|
|
2026
|
|
|
350,000
|
|
|
|
349,128
|
|
|
|
3.600
|
%
|
|
|
3.733
|
%
|
|
December
2026
|
|
2027
|
|
|
400,000
|
|
|
|
399,490
|
|
|
|
3.500
|
%
|
|
|
3.548
|
%
|
|
October 2027
|
|
2028
|
|
|
400,000
|
|
|
|
398,778
|
|
|
|
4.300
|
%
|
|
|
4.388
|
%
|
|
October 2028
|
|
2030
|
|
|
400,000
|
|
|
|
399,286
|
|
|
|
2.500
|
%
|
|
|
2.536
|
%
|
|
April 2030
|
|
2033
|
|
|
500,000
|
|
|
|
489,579
|
|
|
|
5.600
|
%
|
|
|
5.905
|
%
|
|
October 2033
|
|
2034
|
|
|
500,000
|
|
|
|
494,112
|
|
|
|
5.500
|
%
|
|
|
5.662
|
%
|
|
June 2034
|
|
2048
|
|
|
300,000
|
|
|
|
296,219
|
|
|
|
4.800
|
%
|
|
|
4.890
|
%
|
|
October 2048
|
|
2050
|
|
|
300,000
|
|
|
|
294,561
|
|
|
|
3.100
|
%
|
|
|
3.205
|
%
|
|
April 2050
|
|
2051
|
|
|
450,000
|
|
|
|
442,228
|
|
|
|
3.500
|
%
|
|
|
3.602
|
%
|
|
April 2051
|
|
2052
|
|
|
450,000
|
|
|
|
440,282
|
|
|
|
3.000
|
%
|
|
|
3.118
|
%
|
|
April 2052
|
|
Total
|
|
|
4,450,000
|
|
|
|
4,403,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total unsecured
debt(1)
|
|
$
|
4,450,000
|
|
|
$
|
4,403,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt costs
|
|
|
|
|
$
|
(43,820)
|
|
|
|
|
|
|
|
|
|
|
Accumulated
amortization
|
|
|
|
14,060
|
|
|
|
|
|
|
|
|
|
|
Debt costs, net of
accumulated amortization
|
|
|
|
(29,760)
|
|
|
|
|
|
|
|
|
|
|
Notes payable, net of
unamortized discount and
unamortized debt costs
|
|
|
$
|
4,373,803
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Unsecured debt has a
weighted average interest rate of 4.1% and a weighted average
maturity of 12.1 years.
|
NNN REIT, Inc.
Debt Summary -
Continued
As of December 31,
2024
(unaudited)
Credit Facility and Notes Covenants
The following is a summary of key financial covenants for the
company's unsecured credit facility and notes, as defined and
calculated per the terms of the facility's credit agreement and the
notes' governing documents, respectively, which are included in the
company's filings with the Commission. These calculations, which
are not based on U.S. GAAP measurements, are presented to investors
to show that as of December 31, 2024, the company believes it
is in compliance with the covenants.
|
Key
Covenants
|
|
Required
|
|
December 31,
2024
|
|
Unsecured Bank
Credit Facility:
|
|
|
|
|
|
Maximum leverage
ratio
|
|
< 0.60
|
|
0.37
|
|
Minimum fixed charge
coverage ratio
|
|
> 1.50
|
|
4.28
|
|
Maximum secured
indebtedness ratio
|
|
< 0.40
|
|
—
|
|
Unencumbered asset
value ratio
|
|
> 1.67
|
|
2.70
|
|
Unencumbered interest
ratio
|
|
> 1.75
|
|
4.23
|
|
Unsecured
Notes:
|
|
|
|
|
|
Limitation on
incurrence of total debt
|
|
≤ 60%
|
|
40.0 %
|
|
Limitation on
incurrence of secured debt
|
|
≤ 40%
|
|
—
|
|
Debt service coverage
ratio
|
|
≥ 1.50
|
|
4.2
|
|
Maintenance of total
unencumbered assets
|
|
≥ 150%
|
|
250 %
|
|
NNN REIT,
Inc.
Property
Portfolio
As of December 31,
2024
|
|
|
Top 20 Lines of
Trade
|
|
|
|
|
|
As of
December 31,
|
|
|
Lines of
Trade
|
|
2024(1)
|
|
2023(2)
|
|
1.
|
|
Convenience
stores
|
|
17.0 %
|
|
16.4 %
|
|
2.
|
|
Automotive
service
|
|
16.9 %
|
|
15.6 %
|
|
3.
|
|
Restaurants – limited
service
|
|
8.4 %
|
|
8.5 %
|
|
4.
|
|
Restaurants – full
service
|
|
7.8 %
|
|
8.7 %
|
|
5.
|
|
Family entertainment
centers
|
|
7.2 %
|
|
6.4 %
|
|
6.
|
|
Recreational vehicle
dealers, parts and accessories
|
|
5.1 %
|
|
4.6 %
|
|
7.
|
|
Theaters
|
|
4.0 %
|
|
4.1 %
|
|
8.
|
|
Health and
fitness
|
|
3.9 %
|
|
4.5 %
|
|
9.
|
|
Equipment
rental
|
|
3.2 %
|
|
3.0 %
|
|
10.
|
|
Wholesale
clubs
|
|
2.4 %
|
|
2.5 %
|
|
11.
|
|
Automotive
parts
|
|
2.4 %
|
|
2.5 %
|
|
12.
|
|
Drug stores
|
|
2.2 %
|
|
2.4 %
|
|
13.
|
|
Home
improvement
|
|
2.1 %
|
|
2.2 %
|
|
14.
|
|
Medical service
providers
|
|
1.7 %
|
|
1.7 %
|
|
15.
|
|
General
merchandise
|
|
1.4 %
|
|
1.4 %
|
|
16.
|
|
Furniture
|
|
1.3 %
|
|
2.0 %
|
|
17.
|
|
Pet supplies and
services
|
|
1.3 %
|
|
1.1 %
|
|
18.
|
|
Consumer
electronics
|
|
1.3 %
|
|
1.4 %
|
|
19.
|
|
Travel
plazas
|
|
1.2 %
|
|
1.3 %
|
|
20.
|
|
Home
furnishings
|
|
1.1 %
|
|
1.3 %
|
|
|
Other
|
|
8.1 %
|
|
8.4 %
|
|
|
Total
|
|
100.0 %
|
|
100.0 %
|
|
Top 10
States
|
|
|
|
State
|
|
% of
Total(1)
|
|
|
|
State
|
|
% of
Total(1)
|
|
1.
|
|
Texas
|
|
18.8 %
|
|
6.
|
|
Tennessee
|
|
3.8 %
|
|
2.
|
|
Florida
|
|
8.7 %
|
|
7.
|
|
North
Carolina
|
|
3.7 %
|
|
3.
|
|
Illinois
|
|
5.1 %
|
|
8.
|
|
Indiana
|
|
3.6 %
|
|
4.
|
|
Georgia
|
|
4.5 %
|
|
9.
|
|
Arizona
|
|
3.2 %
|
|
5.
|
|
Ohio
|
|
4.2 %
|
|
10.
|
|
Virginia
|
|
3.2 %
|
|
As a percentage of
annual base rent, which is the annualized base rent for all leases
in place.
|
|
|
(1)
|
$860,562,000 as of
December 31, 2024.
|
|
(2)
|
$818,749,000 as of
December 31, 2023.
|
|
NNN REIT,
Inc.
Property Portfolio -
Continued
As of December 31,
2024
|
|
|
Top 20
Tenants
|
|
|
|
Tenant
|
|
# of
Properties
|
|
% of
Total(1)
|
|
1.
|
|
7-Eleven
|
|
146
|
|
4.5 %
|
|
2.
|
|
Mister Car
Wash
|
|
121
|
|
4.1 %
|
|
3.
|
|
Dave &
Buster's
|
|
34
|
|
3.8 %
|
|
4.
|
|
Camping
World
|
|
48
|
|
3.8 %
|
|
5.
|
|
GPM Investments
(convenience stores)
|
|
148
|
|
2.8 %
|
|
6.
|
|
Flynn Restaurant Group
(Taco Bell/Arby's)
|
|
204
|
|
2.7 %
|
|
7.
|
|
AMC Theatres
|
|
20
|
|
2.6 %
|
|
8.
|
|
LA Fitness
|
|
26
|
|
2.5 %
|
|
9.
|
|
BJ's Wholesale
Club
|
|
13
|
|
2.4 %
|
|
10.
|
|
Mavis Tire Express
Services
|
|
140
|
|
2.2 %
|
|
11.
|
|
Couche Tard
(Pantry)
|
|
91
|
|
2.2 %
|
|
12.
|
|
Kent Distributors
(convenience stores)
|
|
38
|
|
2.1 %
|
|
13.
|
|
Chuck E.
Cheese
|
|
53
|
|
1.8 %
|
|
14.
|
|
Walgreens
|
|
49
|
|
1.8 %
|
|
15.
|
|
Sunoco
|
|
53
|
|
1.8 %
|
|
16.
|
|
Casey's General Stores
(convenience stores)
|
|
62
|
|
1.7 %
|
|
17.
|
|
United
Rentals
|
|
49
|
|
1.6 %
|
|
18.
|
|
Tidal Wave Auto
Spa
|
|
35
|
|
1.3 %
|
|
19.
|
|
Super Star Car
Wash
|
|
33
|
|
1.3 %
|
|
20.
|
|
Lifetime
Fitness
|
|
3
|
|
1.3 %
|
|
Lease
Expirations(2)
|
|
|
|
% of
Total(1)
|
|
# of
Properties
|
|
Gross Leasable
Area (3)
|
|
|
|
% of
Total(1)
|
|
# of
Properties
|
|
Gross Leasable
Area (3)
|
|
2025
|
|
3.2 %
|
|
132
|
|
874,000
|
|
2031
|
|
7.0 %
|
|
184
|
|
2,655,000
|
|
2026
|
|
4.2 %
|
|
204
|
|
1,981,000
|
|
2032
|
|
5.1 %
|
|
183
|
|
1,804,000
|
|
2027
|
|
7.6 %
|
|
231
|
|
3,401,000
|
|
2033
|
|
4.6 %
|
|
134
|
|
1,398,000
|
|
2028
|
|
5.8 %
|
|
255
|
|
2,306,000
|
|
2034
|
|
5.8 %
|
|
182
|
|
2,398,000
|
|
2029
|
|
4.6 %
|
|
143
|
|
2,083,000
|
|
Thereafter
|
|
47.7 %
|
|
1,711
|
|
14,840,000
|
|
2030
|
|
4.4 %
|
|
154
|
|
2,086,000
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Based on the annual
base rent of $860,562,000, which is the annualized base rent for
all leases in place as of December 31, 2024.
|
|
(2)
|
As of December 31,
2024, the weighted average remaining lease term is 9.9
years.
|
|
(3)
|
Square feet.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/2024-annual-results-and-2025-guidance-announced-by-nnn-reit-inc-302372793.html
SOURCE NNN REIT, Inc.
