Core Viewpoint - The article highlights several companies that offer attractive dividend yields above 5%, contrasting with the average S&P 500 dividend yield of only 1.2% [1]. Group 1: Clearway Energy - Clearway Energy has a current dividend yield of 5%, supported by stable cash flows from its renewable energy facilities [2]. - The company plans to pay out approximately 70% of its free cash flow in dividends, with expectations to grow cash available for distribution from $2.11 per share in 2023 to at least $2.70 per share by 2027 [3]. - Clearway aims to increase its annualized dividend from $1.81 per share to $1.98 per share by 2027, with long-term goals of reaching around $3.00 per share by 2030 [3]. Group 2: Oneok - Oneok has a dividend yield of 5.9%, supported by resilient, fee-based cash flows and a history of dividend stability and growth [5]. - The company plans to increase its dividend by 3% to 4% annually and has completed strategic acquisitions expected to generate significant cost savings [6]. - Ongoing organic expansion projects are anticipated to enhance cash flow, supporting the company's dividend growth strategy [6]. Group 3: NNN REIT - NNN REIT offers a dividend yield of 5.9% and has raised its dividend for 36 consecutive years, indicating strong performance in the REIT sector [7]. - The REIT pays out 70% of its stable cash flow in dividends, allowing for reinvestment in new properties [9]. - NNN REIT focuses on retail properties secured by triple-net leases, providing stable cash flow as tenants cover all operating costs [9]. Group 4: Verizon - Verizon's dividend yield stands at 6.7%, with a growth streak of 19 consecutive years [10]. - The company generated $28 billion in cash flow from operations in the first nine months of the year, with $15.8 billion in free cash flow available to cover its $8.6 billion dividend payout [11]. - Verizon is working on a $20 billion acquisition of Frontier Communications to expand its fiber footprint, which is expected to enhance customer loyalty and profit margins [12]. Group 5: VICI Properties - VICI Properties has a dividend yield of 6.2%, focusing on experiential real estate and leasing properties under long-term NNN agreements [14]. - The REIT pays out about 75% of its stable rental income in dividends and has grown its payout at a 6.6% compound annual rate since 2018 [15]. - Recent acquisitions, including a $1.2 billion sale-leaseback deal, are expected to support continued dividend increases [15]. Group 6: Investment Outlook - The highlighted companies provide high-quality, high-yield dividend stocks with solid financial profiles and growth potential, making them attractive investment opportunities for income-seeking investors [16].

NNN REIT ( NNN ) is a stock that I've been bullish on for quite some time despite their ongoing headwinds. In their most recent Q3, the REIT reported what I thought was a solid earnings reportContributing analyst to the iREIT+Hoya Capital investment group. Dividend Collection Agency is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Na ...

Group 1 - The American economy is heavily reliant on debt, with significant levels of debt present in the government, citizens, and corporations [2] - There is a community focused on achieving high dividend yields of 6-7% while maintaining conservative risk-taking strategies [1] Group 2 - The information provided does not constitute investment advice and past performance is not indicative of future results [3] - Analysts contributing to the discussion may not be licensed or certified, indicating a mix of professional and individual investors [3]

Core Insights - NNN REIT is recognized for its income stability and conservative investment approach, contributing to its strong historical performance [1] Company Overview - NNN REIT is a preferred choice for investors seeking reliable income through dividend investing, which is viewed as a straightforward path to financial freedom [1] - The company operates in sectors such as tech, real estate, software, finance, and consumer staples, which form the core of its investment portfolio [1] Investment Philosophy - The emphasis on dividend investing is highlighted as a key strategy for building long-term wealth, with the aim of making the investment process more accessible to a broader audience [1]

Core Insights - The article focuses on the net lease real estate sector, which is characterized by corporate tenants and long-term leases, highlighting its significance within the broader real estate investment trust (REIT) landscape [1] Industry Overview - The net lease industry is described as a niche sector of real estate, emphasizing its unique attributes such as the presence of corporate tenants and the structure of long maturity leases [1]

Core Insights - The company has raised its guidance due to resilient demand across all geographies, including a recovery in the US towards the end of the quarter, alongside effective cost management that has improved margins across all businesses [1] Global Trade Perspective - The current global trade picture remains strong, countering narratives of deglobalization, with growth observed across many regions, primarily driven by China's manufacturing strength [2][3] Freight Rates and Market Dynamics - Freight rates have shown significant volatility, particularly in Q3, primarily due to supply-driven factors rather than demand, with an influx of tonnage expected to impact future rates [4][5] - The company anticipates continued volatility in the market, influenced by ongoing tariff negotiations and the need for clarity in investment conditions [7][9] China's Role in Global Trade - China's share in global trade has been increasing steadily, a trend that predates recent tariff discussions, with strong export growth observed across various regions including Asia, Europe, and Latin America [6][12][13] Regional Developments - The situation in the Red Sea has improved, with a ceasefire in Gaza being a positive development for shipping routes, although the timeline for reopening normal traffic remains uncertain [15][16] Environmental Commitments - The shipping industry is facing challenges in meeting decarbonization targets due to delays in regulatory measures, emphasizing the need for stakeholders to address these issues at COP 30 [17][18]

Financial Data and Key Metrics Changes - NNN reported core FFO of $0.85 per share and AFFO of $0.86 per share for Q3 2025, representing increases of 1.2% and 2.4% year-over-year respectively [10] - Annualized base rent reached $912 million at the end of the quarter, an increase of over 7% year-over-year [10] - The company's NOI margin was 98% for the quarter, with G&A as a percentage of total revenues at about 5% [11] Business Line Data and Key Metrics Changes - NNN closed 20 deals containing 57 assets for $283 million during the quarter, with an initial cap rate of 7.3% and an average lease duration of nearly 18 years [2][7] - The company executed a high renewal rate of 92% for leases, with rental rates at 108% above prior rents [6] - Seven new properties were leased to new tenants at rates of 124% of previous rents, indicating strong demand [6] Market Data and Key Metrics Changes - The company is increasing its 2025 acquisition volume guidance to a midpoint of $900 million, which would be an all-time high for NNN [3][15] - NNN's balance sheet remains strong with $1.4 billion in liquidity and an industry-leading average debt maturity of nearly 11 years [2][8] Company Strategy and Development Direction - NNN's strategy focuses on disciplined growth, proactive management, and optimizing its portfolio to drive sustainable growth and enhance shareholder value [2][8] - The company aims to resolve more than 75% of its vacant assets by the end of Q1 2026, positioning itself for future growth [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving an occupancy rate exceeding 98% by year-end, despite temporary reductions due to legal disputes with tenants [5][6] - The company raised its guidance for core FFO per share to a range of $3.36-$3.40 and AFFO per share to $3.41-$3.45, reflecting year-to-date outperformance [15] Other Important Information - NNN has maintained a healthy 70% AFFO payout ratio with a quarterly dividend of $0.60, equating to a 5.6% annualized yield [14] - The company has proactively managed risks, including the successful resolution of the At Home bankruptcy, which significantly de-risked its capital structure [12][16] Q&A Session Summary Question: Could we get more color around the outsized interest income? - Management attributed the increase in interest income to a high cash balance and better-than-expected interest rates on short-term deposits [18] Question: What is the rationale behind using equity to fund acquisitions? - The company aims for a 60/40 mix of equity and debt for funding, and current market conditions allow for accretive acquisitions despite higher costs of capital [20][21] Question: Are you seeing increased competition impacting pricing? - Management acknowledged heightened competition but emphasized that NNN's long-standing tenant relationships allow for continued execution without significant pricing pressure [26] Question: What are the bad debt assumptions now compared to earlier in the year? - The company reduced its bad debt assumption for the full year to 25 basis points, down from 60 basis points, due to limited losses and successful tenant resolutions [30] Question: What is the expected occupancy trajectory going forward? - Management expects to resolve a significant number of vacancies by year-end, aiming for improved occupancy rates as leases are renewed and assets are disposed of [32][34] Question: How does the company plan to handle debt maturity in 2026? - NNN is exploring various options for refinancing, including bank loans and bond markets, to manage upcoming debt maturities effectively [59]

Core Insights - NNN REIT reported revenue of $229.77 million for the quarter ended September 2025, reflecting a year-over-year increase of 5.3% and a slight revenue surprise of +0.18% over the Zacks Consensus Estimate of $229.37 million [1] - The company's EPS for the quarter was $0.86, which matches the consensus estimate, indicating no EPS surprise [1] - The stock has underperformed, returning -3.6% over the past month compared to the S&P 500 composite's +2.1% change, and currently holds a Zacks Rank 3 (Hold) [3] Revenue Breakdown - Rental income was reported at $229.77 million, exceeding the average estimate of $226.22 million from three analysts, marking a year-over-year increase of 5.3% [4] - Interest and other income from real estate transactions was $0.39 million, slightly above the estimated $0.35 million, but this represents a year-over-year decline of -5.6% [4] Earnings Performance - Net Earnings Per Share (Diluted) was reported at $0.51, surpassing the average estimate of $0.48 based on three analysts [4]

(All data as of September 30, 2025) This presentation contains certain statements that are the Company's and Management's hopes, intentions, beliefs, expectations, or projections of the future and might be considered to be forward-looking statements under Federal Securities laws. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties. The Company's actual future results may differ significantly from the matte ...

Financial Performance - NNN recognized $25,366,000 in rental income from tenants classified as cash basis for accounting purposes during the nine months ended September 30, 2025, compared to $31,330,000 for the same period in 2024[51]. - For the nine months ended September 30, 2025, net earnings were $293,826,000, compared to $298,941,000 for the same period in 2024, reflecting a decrease of approximately 1.4%[64]. - Rental income from operating leases for the nine months ended September 30, 2025, was $670,823,000, up from $634,088,000 in 2024, representing an increase of approximately 5.8%[76]. - NNN recorded a write-off of $2,471,000 of outstanding receivables during the nine months ended September 30, 2025, compared to $709,000 for the same period in 2024[50]. - NNN recognized $715,000 of net straight-line accrued rental income for the nine months ended September 30, 2025, compared to a loss of $8,000 for the same period in 2024[77]. Real Estate Portfolio - As of September 30, 2025, NNN had recorded real estate held for sale of $22,863,000 (15 properties), up from $283,000 (two properties) as of December 31, 2024[52]. - NNN's real estate portfolio as of September 30, 2025, was valued at $9,204,697,000, compared to $8,746,168,000 as of December 31, 2024, showing an increase of approximately 5.2%[75]. - The weighted average remaining lease term for NNN's real estate portfolio was 10.1 years as of September 30, 2025, with a total of 3,622 operating leases[72]. - NNN's properties are predominantly leased under triple-net leases, with tenants responsible for all operating expenses, including maintenance and repairs[46]. Debt and Financing - Debt costs associated with NNN's unsecured notes amounted to $48,020,000 as of September 30, 2025, up from $43,820,000 as of December 31, 2024[61]. - NNN's total debt obligations amount to $4,950,000, with a weighted average interest rate of 4.19%[1]. - The unsecured debt obligations have a weighted average interest rate of 4.2% and a weighted average maturity of 10.7 years[1]. - The fair value of the debt obligations as of September 30, 2025, is $4,526,095, compared to $3,894,030 on December 31, 2024[1]. - The effective interest rates for the years 2025 to 2029 range from 3.55% to 4.39%[1]. Asset Management and Sales - In Q3 2025, NNN sold 23 properties, recognizing a net gain of $12,570,000, compared to 9 properties and a net gain of $7,765,000 in Q3 2024[80]. - For the nine months ended September 30, 2025, NNN sold 56 properties with a net gain of $32,581,000, versus 29 properties and a net gain of $30,207,000 in the same period of 2024[80]. - The company has 15 properties classified as held for sale as of September 30, 2025, compared to 2 properties at the end of 2024, indicating a strategic shift in asset management[75]. Dividends and Shareholder Returns - NNN declared dividends of $112,809,000 in Q3 2025, with a per-share dividend of $0.600, compared to $106,077,000 and $0.580 per share in Q3 2024[94]. - Basic and diluted earnings per share for the quarter ended September 30, 2025, were calculated using a weighted average of 188,332,789 shares, compared to 184,561,431 shares for the same quarter in 2024, indicating an increase in shares outstanding[64]. Impairments and Other Comprehensive Income - NNN recognized real estate impairments of $7,195,000 in Q3 2025, up from $760,000 in Q3 2024, and $13,242,000 for the nine months ended September 30, 2025, compared to $2,908,000 in the same period of 2024[82]. - The company reported accumulated other comprehensive income (loss) of $(6,959,000) as of September 30, 2025, a decrease from $(7,959,000) at the beginning of the year[67]. Cash and Liquidity - NNN held $776,000 in restricted cash and cash held in escrow as of September 30, 2025, compared to $331,000 as of December 31, 2024[59]. - NNN's real estate expenses reimbursed from tenants totaled $14,304,000 for the nine months ended September 30, 2025, compared to $13,332,000 for the same period in 2024, reflecting an increase of approximately 7.3%[76]. Capital Expenditures - NNN has committed to fund construction on 19 properties, with a total commitment of $114,030,000, of which $49,737,000 remains unspent as of September 30, 2025[81]. - NNN recorded $1,920,000 in capitalized interest during the development period for the nine months ended September 30, 2025, compared to $4,744,000 for the same period in 2024[39].