NNN REIT (NNN) Q1 2025 Earnings Call May 01, 2025 10:30 AM ET Company Participants Stephen Horn - President & CEOVincent Chao - EVP & CFOSpenser Glimcher - Managing DirectorMadeleine Fargis - Equity Research Senior Associate Conference Call Participants Daniel Bailey - Asset-Based Lending AnalystJohn Kilichowski - Vice President - Equity Research AnalystMichael Goldsmith - US REITs AnalystLinda Tsai - Senior AnalystJohn Massocca - Senior Research AnalystNone - Analyst Operator Greetings. Welcome to the NNN ...

NNN REIT (NNN) came out with quarterly funds from operations (FFO) of $0.87 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to FFO of $0.84 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 4.82%. A quarter ago, it was expected that this retail real estate investment trust would post FFO of $0.82 per share when it actually produced FFO of $0.82, delivering no surprise.Over the last four quarters, the ...

NNN REIT (NNN) Q1 2025 Earnings Call May 01, 2025 10:30 AM ET Speaker0 Greetings. Welcome to the NNN REIT, Inc. First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Steve Horn, CEO. You may begin. Speaker1 Thanks, John. Good morning and thank you for joining NNN REIT's first quarter twenty twen ...

Financial Performance - For the quarter ended March 31, 2025, net earnings increased to $96,458,000 from $94,371,000 in the same quarter of 2024, representing a growth of 2.2%[54]. - Rental income from operating leases rose to $224,056,000 in Q1 2025, compared to $209,084,000 in Q1 2024, marking an increase of 7.2%[65]. - NNN's real estate portfolio value as of March 31, 2025, was $10,898,036,000, up from $10,746,168,000 at the end of 2024, reflecting a growth of 1.4%[64]. - The company recognized a total of $1,512,000 in real estate impairments for the quarter ended March 31, 2025, compared to $1,204,000 in Q1 2024, indicating a 25.5% increase in impairments[70]. - NNN declared dividends of $108,335,000 for the quarter ended March 31, 2025, with a per share dividend of $0.5800, compared to $102,684,000 and $0.5650 per share for the same period in 2024[80]. Real Estate and Leasing - NNN's total annualized base rent (ABR) was $874,301,000 as of March 31, 2025, an increase from $831,010,000 as of March 31, 2024[41]. - The number of tenants classified as cash basis for accounting purposes was 10 as of March 31, 2025, representing 1.5% of total properties and 3.4% of annualized base rent[41]. - NNN's properties are predominantly leased under triple-net leases, with tenants responsible for all operating expenses[37]. - NNN's real estate portfolio is primarily held for investment, with leases typically having initial terms of 10 to 20 years[45]. - The weighted average remaining lease term for NNN's real estate portfolio was 10 years as of March 31, 2025, with 3,575 leases classified as operating leases[61]. Debt and Financing - Debt costs associated with NNN's unsecured notes amounted to $43,820,000 as of March 31, 2025, net of accumulated amortization[51]. - NNN increased its unsecured revolving credit facility borrowing capacity from $1,100,000,000 to $1,200,000,000, with a weighted average interest rate of 5.21% for the quarter ended March 31, 2025[71]. - As of March 31, 2025, NNN had $116,300,000 outstanding under the credit facility and $1,083,700,000 available for future borrowings, remaining compliant with financial covenants[71]. - NNN's unsecured debt obligations have a weighted average interest rate of 4.1% and a weighted average maturity of 11.6 years[144]. - NNN's variable rate credit facility had a weighted average outstanding balance of $70,342,000 for the quarter ended March 31, 2025, down from $116,067,000 with a 6.26% interest rate in the same period of 2024[142]. Cash and Investments - NNN held $427,000 in restricted cash and cash held in escrow as of March 31, 2025, compared to $331,000 as of December 31, 2024[49]. - NNN's cash and cash equivalents consist of cash and money market accounts, with no losses experienced in accounts exceeding federally insured levels[48]. - NNN's accumulated other comprehensive income (loss) improved to $(7,791,000) as of March 31, 2025, from $(7,959,000) at the end of 2024[56]. - NNN's above-market in-place leases net value increased to $3,556,000 as of March 31, 2025, from $2,594,000 at the end of 2024, showing a growth of 37.1%[67]. Accounting and Compliance - The company is currently evaluating the potential impact of new accounting standards (ASU 2023-09 and ASU 2024-03) on its future disclosures[57][58]. - NNN's accumulated other comprehensive income related to previously terminated interest rate hedges was $7,499,000, with an estimated additional $1,274,000 to be reclassified as interest expense over the next 12 months[74]. - During the quarter ended March 31, 2025, NNN entered into a forward starting swap with a notional amount of $150,000,000, designated as a cash flow hedge, with a fair value of $292,000[75]. Real Estate Transactions - The company reported a gain on the disposition of real estate of $3,813,000 from 10 properties sold in Q1 2025, compared to a gain of $4,821,000 from 6 properties sold in Q1 2024[68]. - NNN has committed to fund construction on 19 properties with a total commitment of $143,758,000, of which $87,819,000 has been funded, leaving a remaining commitment of $55,939,000[69].

Financial Performance - Revenues for Q1 2025 increased to $230.854 million, up 7.0% from $215.407 million in Q1 2024[2] - Net earnings per diluted share were $0.51, a slight decrease from $0.52 in the prior year[3] - Core FFO per diluted share grew by 3.6% to $0.86, while AFFO per diluted share increased to $0.87, up from $0.84[3] - Rental income for Q1 2025 was $230,574, an increase of 7.9% from $214,825 in Q1 2024[25] - Net earnings for Q1 2025 were $96,458, compared to $94,371 in Q1 2024, reflecting a growth of 2.2%[25] - Funds from Operations (FFO) for Q1 2025 reached $158,734, up from $151,261 in Q1 2024, indicating a 4.9% increase[32] - Core FFO per share for Q1 2025 was $0.86, compared to $0.83 in Q1 2024, representing a growth of 3.6%[32] Investment and Capital Structure - The company closed on $232.4 million of investments, achieving an initial cash cap rate of 7.4%[3] - Gross Debt was reported at $4.6 billion with a weighted average interest rate of 4.1%[7] - The company maintained $1.1 billion in total available liquidity, with only 2.5% of floating rate debt[3] - Total liabilities increased to $4,665,231 as of March 31, 2025, compared to $4,510,453 at the end of 2024[30] - The gross debt to gross assets ratio was 41.0% as of March 31, 2025, compared to 40.7% at the end of 2024[39] - The company maintained a fixed charge coverage ratio of 4.27, well above the required minimum of 1.50[41] Dividends - The board declared a quarterly dividend of $0.58 per share, representing a 5.4% annualized yield[8] - The company reported a dividend per share of $0.5800 for Q1 2025, up from $0.5650 in Q1 2024[32] Asset and Equity Overview - Total assets as of March 31, 2025, were $9,021,718, an increase from $8,872,728 as of December 31, 2024[30] - The total equity as of March 31, 2025, was $4,356,487, slightly down from $4,362,275 at the end of 2024[30] Annual Base Rent (ABR) and Lease Information - Annualized Base Rent (ABR) rose by 5.2% compared to the previous year[3] - As of March 31, 2025, the total ABR (Annual Base Rent) is $874,301,000, an increase from $831,010,000 as of March 31, 2024, representing a growth of approximately 5.7%[45] - Lease expirations in 2025 account for 2.5% of ABR, with 107 properties covering 608,000 square feet[48] - The 2030 lease expirations represent 4.6% of ABR, with 169 properties covering 2,202,000 square feet[48] - The weighted average remaining lease term is 9.9 years as of March 31, 2025[48] Tenant and Segment Performance - The top line of trade is Automotive service, accounting for 17.9% of ABR in 2025, up from 16.3% in 2024[43] - The state of Texas contributes the highest ABR at 19.0%, followed by Florida at 8.7%[44] - The top tenant, 7-Eleven, represents 4.5% of total properties with 146 locations[47] - The family entertainment centers segment increased to 7.1% of ABR in 2025 from 6.7% in 2024[43] - The convenience stores segment shows a slight increase to 16.8% of ABR in 2025 from 16.2% in 2024[43] - The company has 2,267 properties classified as "Other," which make up 52.1% of total properties[47]

ORLANDO, Fla., May 1, 2025 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) (the "Company" or "NNN"), a real estate investment trust, today announced financial and operating results for the quarter ended March 31, 2025. Highlights include:First Quarter 2025 Highlights: Net earnings of $0.51 per diluted share Grew Core FFO and AFFO per diluted share by 3.6% over prior year results, to $0.86 and $0.87, respectively Increased ABR by 5.2% over the prior year result Closed on $232.4 million of investments, at an initi ...

NNN REIT (NYSE: NNN ) is one of the oldest triple net lease REITs in the US, with 35 years of uninterrupted dividend growth. Founded in 1984, the company started with a modest portfolio in Florida. Since then, it has grown into a majorI'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies th ...

NNN REIT ( NNN ) has several qualities and some of them are not shared by its peers, making NNN a compelling investment for long-term-oriented investors. Valuation-wise, NNN is basically as attractive as it was when I covered it lastWelcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I’ve built a rock-solid pillar in my financial foundation through dividend investing. I believe it’s one of the ...

Core Viewpoint - NNN REIT, Inc. is set to release its first quarter 2025 financial results on May 1, 2025, before market opening, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The company will announce its first quarter 2025 results on May 1, 2025, before the market opens [1]. - A conference call will be held on the same day at 10:30 a.m. ET to discuss financial and operating results [1]. Group 2: Conference Call Details - A live webcast of the conference call will be available on the company's website [2]. - The conference call can be accessed by dialing 888-506-0062 in the U.S. or 973-528-0011 internationally, with a participant code of 696567 [2]. - A telephonic replay of the call will be available until May 8, 2025, using the numbers 877-481-4010 in the U.S. or 919-882-2331 internationally, with the code 52285 [2]. Group 3: Company Overview - NNN REIT invests in high-quality properties generally subject to long-term, net leases with minimal ongoing capital expenditures [3]. - As of December 31, 2024, the company owned 3,568 properties across 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 [3].

Core Insights - Rising uncertainty due to tariffs, recession fears, and Federal Reserve interest rate decisions is prompting investors to reconsider their investment strategies [1] Group 1 - The current economic climate is characterized by increased tariffs and recession fears, leading to investor uncertainty [1] - The Federal Reserve's actions regarding interest rates are a significant concern for investors [1] - The article emphasizes the importance of quality investments, particularly in blue-chip stocks, BDCs, and REITs, for long-term financial independence [1]