NNN REIT, Inc. Announces Second Quarter 2025 Results and Increased 2025 Guidance

Core Insights - NNN REIT, Inc. reported strong financial performance for Q2 2025, with revenues of $226.8 million, a 4.5% increase from $216.8 million in Q2 2024 [2][30] - The company achieved net earnings of $100.5 million, translating to $0.54 per diluted share, compared to $106.7 million or $0.58 per diluted share in the same quarter last year [2][30] - Core FFO and AFFO per diluted share grew by 1.2% year-over-year to $0.84 and $0.85, respectively [3][33] - NNN invested $233 million across 45 properties at an initial cash cap rate of 7.4% during the quarter, contributing to a total of $464.9 million in investments for the first half of 2025 [3][5] Financial Results - Total revenues for the six months ended June 30, 2025, reached $457.7 million, up from $432.2 million in the same period of 2024 [2][30] - FFO for the quarter was $157.2 million, compared to $152.4 million in Q2 2024, while Core FFO for the same period was $157.4 million, up from $152.5 million [2][30] - The company reported a 6.7% increase in Annualized Base Rent (ABR) year-over-year, reaching $893.8 million [3][41] Property Acquisitions and Dispositions - NNN closed on $232.5 million of investments in Q2 2025, with a weighted average lease term of 17.8 years [3][5] - The company sold 23 properties for $51.2 million, including $24.7 million from income-producing properties at a weighted average cap rate of 6.2% [3][7] Capital Markets Activity - NNN raised $10.9 million through the issuance of 254,222 common shares at an average price of $43.03 [8] - The company issued $500 million in senior unsecured notes due 2031, enhancing balance sheet flexibility and increasing total available liquidity to $1.4 billion [9][10] Dividend Information - The company declared a quarterly dividend of $0.60 per share, marking a 3.4% increase and the 36th consecutive annual dividend increase [10][11] 2025 Guidance - NNN updated its 2025 guidance, increasing the midpoint for Core FFO and AFFO per share by $0.01 and raising acquisition volume guidance by $100 million [12][12]