NNN REIT(US:NNN)2025-11-04 13:33Financial 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].