Roman Tiraspolsky Overview The real estate sector continues to see suppressed valuations that were mostly driven by aggressively interest rate hikes that commenced throughout 2022 and 2023. We can sce that the real estate sector (XLRE) continues to underperform against the other sectors out there. While some sector specific real estate, such as office spaces, wer impacted from Covid and rising rates the most, not all areas of real estate suffered. In fact, there are plenty of dissounts out there at the mome ...

Financial Data and Key Metrics Changes - The company reported quarterly core FFO results of $0.83 per share for Q2 2024, which is an increase of $0.03 or 3.8% compared to $0.80 per share a year ago [9] - AFFO results were $0.84 per share for the second quarter, representing a $0.04 or 5% increase from the previous year [9] - Occupancy levels remained high at 99.3%, above the long-term average of approximately 98% [2][9] - The company increased the midpoint of core FFO per share guidance by $0.02 to $3.30 [3] Business Line Data and Key Metrics Changes - The leasing department achieved a 158% recapture rate from prior rent during the quarter, with a year-to-date recapture of 102%, significantly above the historical average of approximately 70% [3] - The company sold 14 properties during the quarter, raising $67 million in proceeds for reinvestment into new acquisitions [4] - Year-to-date, the company has sold $85 million of assets, leading to an increase in the disposition guidance lower end to $100 million from $80 million [4] Market Data and Key Metrics Changes - The acquisition pricing environment showed that the initial acquisition cap rate was approximately 10 basis points tighter than Q1 2024 and 70 basis points wider than Q2 2023 [6] - The company invested $110 million in 16 new properties at an initial cash cap rate of 7.9% during the quarter [5] Company Strategy and Development Direction - The company is focused on enhancing shareholder value and is well-positioned to meet its 2024 acquisition guidance of $400 million to $500 million [6] - The strategy includes a focus on direct sale leaseback transactions, which are more landlord-friendly compared to 1031 market deals [6] - The company aims to maintain a strong balance sheet with a leading average debt maturity of 12.6 years [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate uncertainties and continue growing per share results [14] - The company noted that the overall market opportunity set is larger than it was 60 days ago, with deal volume starting to pick up [15] - Management indicated that the low-end and mid-range consumers have held up well within the portfolio, with stable rent coverage ratios [28] Other Important Information - The company ended the quarter with $837.6 million of annual base rent in place for all leases as of June 30, 2024 [11] - The AFFO dividend payout ratio for the first half of 2024 was 67.1%, resulting in approximately $101 million of free cash flow [11] Q&A Session Summary Question: Can you provide updated color on the transaction market and cap rates? - Management noted that the overall market opportunity set is larger today than it was 60 days ago, with cap rates in line with Q2 [15][16] Question: Can you share more about the dispositions made in the quarter? - The company sold 14 assets, with 11 being income-producing, primarily for defensive reasons and to redeploy into accretive acquisitions [18] Question: Are you seeing any trends in lease termination fees? - Management indicated that lease termination fee income has been episodic and difficult to predict, with no significant trends observed [20][21] Question: How is the company monitoring tenant performance? - The company continuously monitors tenant performance, with specific attention to those on the watch list [23] Question: What is the outlook for bad debt? - The company maintains a 100 basis points assumption for rent loss, with actual historical losses closer to 30-50 basis points [31] Question: How is the company thinking about share issuances going forward? - Management stated there is no immediate need for equity issuance, as over two-thirds of acquisitions can be funded through free cash flow and dispositions [35] Question: What sectors are showing the most opportunities? - Management highlighted the convenience store sector and auto service as areas with increasing activity [36]

Rental Income and Tenants - NNN recorded $20,883,000 in rental income for the six months ended June 30, 2024, compared to $30,088,000 for the same period in 2023, indicating a decrease of approximately 30.5%[27] - The company recognized $11,108,000 in rental income during the quarter ended June 30, 2024, from tenants classified to cash basis, down from $14,523,000 in the same quarter of 2023, a decrease of approximately 23.5%[27] - As of June 30, 2024, NNN had 11 tenants classified as cash basis for accounting purposes, representing 3.4% of total properties, down from 5.0% in 2023[26] - The total annual base rent for cash basis tenants was $837,568,000 as of June 30, 2024, a decrease from $794,475,000 in 2023, reflecting a reduction of 5.0%[26] - NNN's total gross leasable area with cash basis tenants was 4.8% as of June 30, 2024, down from 6.8% in 2023, indicating a reduction in exposure to cash basis tenants[26] Financial Performance - Net earnings for Q2 2024 were $106.666 million, an increase from $98.704 million in Q2 2023, representing an increase of 10.0%[39] - Rental income from operating leases for Q2 2024 was $211.557 million, compared to $197.629 million in Q2 2023, reflecting an increase of 7.0%[51] - NNN recognized a net straight-line accrued rental income of ($131,000) for the six months ended June 30, 2024, compared to $1.003 million for the same period in 2023[52] Assets and Real Estate - As of June 30, 2024, NNN's total real estate portfolio value was $10.416 billion, up from $10.248 billion as of December 31, 2023, indicating a growth of 1.6%[49] - NNN's real estate held for sale amounted to $9,442,000 as of June 30, 2024, compared to $4,573,000 as of December 31, 2023, indicating an increase of 106.5%[28] - The company reported a total of 6 properties classified as held for sale as of June 30, 2024, compared to 1 property as of December 31, 2023[50] Cash and Debt Management - NNN held $14,672,000 in restricted cash and cash held in escrow as of June 30, 2024, compared to $3,966,000 as of December 31, 2023, showing an increase of 269.5%[34] - NNN's debt costs associated with unsecured notes were $43,820,000 as of June 30, 2024, compared to $42,595,000 as of December 31, 2023, reflecting an increase of 2.9%[35] - The weighted average outstanding balance of NNN's Credit Facility was $111,966,000 with a weighted average interest rate of 6.26% for the six months ended June 30, 2024[58] - NNN issued $500,000,000 of 5.500% notes due June 2034, with net proceeds of approximately $489,390,000 after debt issuance costs of $4,450,000[60] - NNN redeemed $350,000,000 of 3.900% notes payable in June 2024 at 100% of the principal amount[61] Shareholder Returns - Dividends declared for Q2 2024 amounted to $103,159,000, an increase from $99,745,000 in Q2 2023, with a per share dividend of $0.5650[66] - NNN's average shares outstanding for diluted earnings per share increased to 182.807 million in Q2 2024 from 181.628 million in Q2 2023[39] Impairments and Write-offs - The company recorded a write-off of $473,000 in outstanding receivables for the six months ended June 30, 2024, compared to $348,000 in 2023, representing a rise of 36.0%[26] - NNN recognized real estate impairments of $944,000 for the quarter ended June 30, 2024, compared to $34,000 for the same quarter in 2023[56] Future Commitments and Evaluations - As of June 30, 2024, NNN has committed to fund construction on 27 properties with a total commitment of $249,365,000, of which $174,649,000 has been funded, leaving a remaining commitment of $74,716,000[55] - The company is currently evaluating the potential impact of new accounting standards on its future disclosures, including ASU 2023-07 and ASU 2023-09[43][44] Comprehensive Income and Fair Value - NNN's accumulated other comprehensive income (loss) decreased to $(8.869) million as of June 30, 2024, from a beginning balance of $(10.111) million[41] - The fair value of NNN's notes payable was $3,864,675,000 as of June 30, 2024, compared to $3,801,367,000 as of December 31, 2023[67]

Exhibit 99.1 NEWS RELEASE For information contact: Kevin B. Habicht Chief Financial Officer (407) 265-7348 FOR IMMEDIATE RELEASE August 1, 2024 Second Quarter 2024 Operating Results and Increased 2024 Guidance Announced by NNN REIT, Inc. Orlando, Florida, August 1, 2024 – NNN REIT, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and six months ended June 30, 2024. Highlights include: Operating Results: • Revenues and net earnings, FFO, Core FFO and AFF ...

ORLANDO, Fla., Aug. 1, 2024 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and six months ended June 30, 2024. Highlights include: Operating Results: Revenues and net earnings, FFO, Core FFO and AFFO and diluted per share amounts: | --- | --- | --- | --- | --- | |------------------------|---------------------------------|-----------------------------------------------|------------------------------------|----------| | | Quart ...

For those unfamiliar with NNN REIT (NYSE:NNN), it is a triple net lease REIT operating within the retail/service property sector that concentrates on single-tenant properties. As of March 2024, the Company owned 3 546 properties across 49 states leased to 385 tenants operating within 35 lines of trade. Regarding the type of agreements NNN signs, triple net leases are the most favourable contracts from the landlord's perspective as they involve the tenant in covering substantial costs related to operating an ...

Co-authored by Treading Softly (1) Based on the annual base rent of $831,010,000, which is the annualized base rent for all leases in place as of March 31, 2024. (2) As of March 31, 2024, the weighted average remaining lease term is 10.0 years. (30) Square feet. Nikola Stojadinovic/E+ via Getty Images NNN REIT, Inc. (NNN) is a REIT that invests in real estate that utilizes the NNN or "triple-net" lease structure. NNN leases are leases that make most of the propertylevel expenses the tenant's responsibility. ...

-- Marks 35th Consecutive Annual Dividend Increase -- Steve Horn, Chief Executive Officer, commented: "Maintaining a multi-year perspective has kept NNN in position to increase the annual dividend for the 35th consecutive year in 2024. A disciplined capital deployment strategy and a strong, flexible balance sheet have allowed NNN to continue this impressive track record of consistent growth." SOURCE NNN REIT, Inc. ORLANDO, Fla., July 15, 2024 /PRNewswire/ -- The Board of Directors of NNN REIT, Inc. (NYSE: N ...

I think there is potential for double-digit returns in the short term here because of the current price and the AFFO expectations. The yield is high enough that it creates a get-paid-to-wait situation. With low leverage, strong liquidity, and very low expenses, the risks are low enough to make NNN worthy of consideration for both dividend and value portfolios. Seeking Alpha However, after interest rates started rising, its performance has been more modest while the market has been anything but recently: VAL ...

National Retail Properties Inc. (NYSE:NNN) is a well-managed, well-diversified commercial real estate investment trust with long-term dividend growth potential. My Rating History National Retail Properties is a large owner of single-tenant, retail-focused real properties that are leased to tenants on a net-lease basis. As of March 31, 2024, National Retail Properties owned 3,546 properties across that country that were leased to more than 385 different tenants, Texas is by far the largest state in terms of ...