NNN REIT, Inc. Announces 2025 Annual Results and Initial 2026 Guidance

Core Insights - NNN REIT, Inc. reported a 2.7% growth in AFFO per share and a record investment of over $900 million in real estate for 2025, positioning the company for solid growth in 2026 [3][5][16] Financial Results - For the fourth quarter of 2025, revenues increased to $238.4 million from $218.5 million in 2024, while net earnings slightly decreased to $95.9 million from $97.9 million [4][5] - Full-year revenues reached $926.2 million, up from $869.3 million in 2024, with net earnings of $389.8 million compared to $396.8 million in the previous year [4][5] - FFO for the fourth quarter was $163.8 million, up from $152.7 million in 2024, and for the full year, FFO was $638.4 million compared to $610.5 million [4][6] Portfolio Snapshot - As of December 31, 2025, NNN owned 3,692 properties with a total gross leasable area of approximately 39.6 million square feet and an occupancy rate of 98.3% [7][18] - The weighted average remaining lease term was 10.2 years, and the annualized base rent (ABR) increased by 7.8% to $928.1 million [5][7] Property Acquisitions and Dispositions - In 2025, NNN closed on $931 million of investments at a cash cap rate of 7.4%, with a weighted average remaining lease term of 17.6 years [5][8] - The company sold 116 properties for $190.5 million, including $90.7 million of income-producing properties, at a weighted average cap rate of 6.4% [5][10] Capital Markets Activity - NNN raised $85.4 million through the issuance of 1,992,955 common shares at an average price of $42.86 [11] - The company issued $500 million in senior unsecured notes due February 2031 and redeemed $400 million in notes due November 2025 [12][13] Balance Sheet and Liquidity - As of December 31, 2025, NNN's gross debt was $4.9 billion with a weighted average interest rate of 4.2% and a maturity of 10.8 years [14][41] - The company maintained $1.2 billion in total available liquidity, including $851.9 million in unused line of credit capacity [14] Dividend Information - NNN declared a quarterly dividend of $0.60 per share, representing an annualized dividend of $2.40 and a yield of 6.1% as of December 31, 2025 [15] 2026 Guidance - The company provided initial guidance for 2026, projecting AFFO per share between $3.52 and $3.58, indicating a 3.2% increase from the previous year [16]