NNN REIT(NNN) - 2025 Q1 - Quarterly Report

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$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$70,342,000 for the quarter ended March 31, 2025, down from $116,067,000 with a 6.26$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$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].