Core Viewpoint - NNN REIT, Inc. is a retail-focused REIT with a strong history of dividend growth and a stable income-generating portfolio, primarily through triple-net leases with national and regional tenants [1][2]. Group 1: Dividend Growth - In 2025, NNN delivered its 36th consecutive year of dividend growth, placing it among a select group of REITs and publicly traded companies that have achieved such a milestone [2]. - The company's payout ratio is below 70% of FFO, indicating a sustainable capacity for continued dividend increases [3]. Group 2: Financial Stability - NNN maintains a conservative balance sheet with leverage around 5.6x, providing ample room for growth while rewarding shareholders [3]. - The company is actively pursuing new property acquisitions, targeting $850 million to $950 million, partially funded by selling $170 million to $200 million of assets [4]. Group 3: Investment Strategy - A significant portion of NNN's investments, approximately 72% since 2010, has been through long-standing tenant relationships, often via sale-leaseback deals, ensuring a steady pipeline of income-producing properties [4].

Financial Data and Key Metrics Changes - In 2025, the company achieved over 4.5% growth in AFFO per share, with a total investment of $1.55 billion across its platforms, marking over 60% year-over-year growth [6][8] - Core FFO per share for Q4 was $1.10, representing a 7.3% year-over-year increase, while full-year Core FFO per share was $4.28, reflecting a 5.1% increase [21] - AFFO per share for Q4 was $1.11, a 6.5% year-over-year increase, and for the full year, it was $4.33, indicating 4.6% year-over-year growth [21][22] Business Line Data and Key Metrics Changes - In Q4, the company invested approximately $377 million in 94 retail net lease properties, with a weighted average cap rate of 7.1% and a weighted average lease term of 9.6 years [11][12] - For the full year 2025, nearly $1.6 billion was invested in 338 retail net lease properties, with over $1.4 billion originating from the acquisition platform [12][13] - The development and DFP platforms had a record year with 34 projects, representing approximately $225 million of committed capital [13] Market Data and Key Metrics Changes - The company's investment-grade exposure at year-end stood at nearly 67%, with occupancy increasing to 99.7%, reflecting a 50 basis point improvement since Q1 [16] - The properties acquired during Q4 were leased to leading operators in various sectors, including home improvement and grocery stores, indicating a diverse market presence [12] Company Strategy and Development Direction - The company aims to increase its 2026 investment guidance to a range of $1.4 billion-$1.6 billion, representing a 10% increase from the prior range [9] - The company is focused on maintaining a fortress balance sheet and executing on its investment guidance without raising additional equity capital [20] - The company is enhancing operational efficiencies through IT improvements and anticipates a material reduction in G&A as a percentage of revenue [8][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals supporting the company's outlook, citing a strong portfolio and exceptional team depth [6] - The management highlighted the ongoing challenges faced by middle-income consumers due to rising costs, which may impact retail trends [101] - The company expects to maintain a growth trajectory with a goal of delivering 10% operational returns and achieving two-year stacked AFFO growth [108] Other Important Information - The company raised approximately $1.5 billion in capital during 2025, including a $400 million bond offering and a $350 million term loan [17][18] - The company achieved an A- rating from Fitch, validating its strong balance sheet and disciplined capital allocation [20][21] Q&A Session Summary Question: Increase in 2026 investment guidance - Management noted that the increase is due to secured transactions, including sale-leaseback deals and increased confidence in development projects [26] Question: Non-core asset sales - Management explained that capital recycling focuses on opportunistic sales of non-core assets, driven by valuations and confidence in future performance [27] Question: Cap rate trends - Management indicated no material changes in cap rates and noted that rent escalators have been embedded with historic inflation [31][32] Question: Sale-leaseback interest - Management stated that while there hasn't been a significant increase in sale-leaseback velocity, they have specific transactions lined up with existing tenants [40] Question: Development investment commitments - Management expressed optimism about growth in development investments but noted that timing is often subject to third-party approvals [69] Question: Credit loss assumptions - Management indicated that the assumed credit loss for 2026 guidance is 25-50 basis points, consistent with 2025 performance [70]

Financial Data and Key Metrics Changes - GAAP net income for Q4 2025 was $7 million or $0.08 per share, while full-year net income was $144 million or $1.72 per share [10] - GAAP book value at the end of Q4 was $19.70 per share, with an economic return on GAAP book value of -0.9% for Q4 and +7.4% for the full year [11] - Earnings available for distribution (EAD) for Q4 was $45 million or $0.53 per share, and for the full year, it was $141 million or $1.68 per share [11] Business Line Data and Key Metrics Changes - The investment portfolio segment reported economic net interest income of $65 million for Q4, with a yield on average interest-earning assets of 5.9% and a net interest spread of 1.4% [12] - HomeXpress funded $1 billion in production during Q4 with a gain-on-sale premium of 358 basis points, and its EBITDA was $11 million for the quarter [13] Market Data and Key Metrics Changes - The company ended the year with $528 million in total cash and unencumbered assets, down from $752 million at the end of Q3 [14] - Agency swap OAS tightened by approximately 22 basis points in Q4, while generic non-QM AAAs firmed by 5 basis points [20] Company Strategy and Development Direction - The company aims to build a hybrid REIT focused on diversification, liquidity, and fee-based income, with a clear plan to grow Agency RMBS and acquire MSRs [5][9] - The acquisition of HomeXpress is expected to enhance capabilities and reach, contributing to a diversified residential platform [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, focusing on unlocking capital and redeploying into earnings-accretive investments [24] - The company anticipates strong demand for non-QM loans and related securitized products, projecting significant growth in the market [25] Other Important Information - Compensation, general, and administrative expenses increased by $22 million year-over-year due to staffing costs related to acquisitions [16] - The company generated over $600 million of capital through portfolio and capital markets activity, supporting its portfolio realignment [18] Q&A Session Summary Question: Update on HomeXpress volume and gain on sale - Management noted typical seasonal reduction in volume but expects a strong first quarter compared to last year, with good gain on sale premiums [32][33] Question: Context for dividend increase - The company balanced dividend size with the need to retain capital for growth, ensuring sufficient EAD coverage [40][41] Question: Originating second liens and non-QM volume outlook - Currently not originating second mortgages but sees significant growth potential in non-QM loans, projecting a 20%-25% market growth in 2026 [46][48] Question: Change in book value and securitized debt - The decline in book value is attributed to faster increases in the value of securitized debt compared to loan values, but this does not affect economic risk [49][50] Question: Credit enhancement levels in securitization trusts - Management does not expect a material decline in credit enhancement levels, viewing securitization as an economic consideration [53][54]

Financial Data and Key Metrics Changes - The company generated FFO as adjusted of $1.43 per share for 2025, representing a 6% growth compared to 2024, driven by strong leasing activity and same-property NOI growth of 5% [5][18] - Full-year same-property NOI increased by 5%, while the fourth quarter saw a 2.9% increase, impacted by higher snow removal expenses [18] - The balance sheet remains strong with total liquidity of $849 million and no amounts drawn on the line of credit [19] Business Line Data and Key Metrics Changes - The company executed 58 new leases at a record same-space cash rent spread of 32%, with total new leases covering over 360,000 sq ft [5][10] - The signed but not open pipeline is expected to generate an additional $22 million of annual gross rent, representing 8% of current NOI [6] - The company completed 14 projects totaling $55 million, generating unlevered yields of 19% [7] Market Data and Key Metrics Changes - National shopping center vacancy remains near historic lows, with supply constraints particularly pronounced in the Northeast [11][12] - The company noted that finding land and securing entitlements is extremely difficult in its markets, which supports expectations for healthy rent growth [12] Company Strategy and Development Direction - The company aims for FFO as adjusted growth of at least 4.5% in 2026, with same-property NOI growth above 3% [8] - The growth outlook is supported by six anchor repositioning projects expected to drive significant NOI growth through 2027 [9] - The company is focused on capital recycling, acquiring high-quality shopping centers while disposing of non-core assets [8][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong leasing momentum and achieving healthy rent growth due to limited supply and high demand for quality retail spaces [5][6] - The company anticipates that new lease spreads will remain above 20% in 2026, reflecting ongoing demand [5] - Management highlighted a positive outlook for 2027, expecting approximately 5% NOI growth driven by executed leases and contractual rent increases [9] Other Important Information - The company has a redevelopment pipeline of $166 million, with a projected unlevered yield of 14% [22] - An 11% increase in the annualized dividend to $0.84 per share was approved, reflecting a payout ratio of about 56% [22] Q&A Session Summary Question: Expectations for shop occupancy growth - Management expects shop occupancy to stabilize around 94%-96%, with opportunities to improve leasing on occupied spaces [25][26][27] Question: Insights on capital recycling and acquisition pipeline - The acquisition market is competitive, with cap rates decreasing, but the company remains optimistic about capital recycling opportunities [28][29] Question: Same-property NOI growth path - The deceleration in 2026 is attributed to tenant fallout and one-time benefits in 2025, while growth visibility from the signed but not open pipeline supports a rebound in 2027 [34][35][36] Question: Impact of snow removal costs on guidance - Guidance for 2026 accounts for snow removal costs incurred in January, with appropriate provisions made [43][44] Question: Redevelopment pipeline opportunities - The company is focused on both small-scale and larger redevelopment projects, with a strong emphasis on enhancing existing assets [45][46][48] Question: Capital recycling avenues - Management is exploring opportunities to dispose of low-growth anchor tenants while maintaining control over the centers [53][54] Question: Specific asset performance inquiries - Gateway has long-term leases limiting immediate rent optimization, while Bruckner is undergoing significant redevelopment to enhance its value [63][66][68]

Financial Data and Key Metrics Changes - GAAP net income for Q4 2025 was $7 million or $0.08 per share, while for the full year it was $144 million or $1.72 per share [10] - GAAP book value at the end of Q4 was $19.70 per share, with an economic return on GAAP book value of -0.9% for the quarter and +7.4% for the full year [11] - Earnings available for distribution (EAD) for Q4 was $45 million or $0.53 per share, and for the full year, it was $141 million or $1.68 per share [11] Business Line Data and Key Metrics Changes - The investment portfolio segment reported economic net interest income of $65 million in Q4, with a yield on average interest-earning assets of 5.9% and a net interest spread of 1.4% [12] - Home Express funded $1 billion in production in Q4 with a gain-on-sale premium of 358 basis points, and its EBITDA was $11 million for the quarter [13] Market Data and Key Metrics Changes - The company ended the year with $528 million in total cash and unencumbered assets, down from $752 million at the end of Q3 [14] - Agency swap OAS tightened by approximately 22 basis points in Q4, while generic non-QM AAAs firmed by 5 basis points [20] Company Strategy and Development Direction - The company aims to build a hybrid REIT focused on diversification, liquidity, and fee-based income, with a clear plan to grow Agency RMBS and acquire MSRs [5][9] - The acquisition of Home Express is expected to enhance capabilities and reach, contributing to a diversified residential platform [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, focusing on unlocking capital and redeploying into earnings-accretive investments [24] - The company anticipates strong demand for non-QM loans and related securitized products, projecting significant growth in the non-QM market [25][48] Other Important Information - Compensation, general, and administrative expenses increased by $22 million year-over-year due to staffing costs related to acquisitions [16] - The company generated over $600 million of capital through portfolio and capital markets activity, supporting its portfolio realignment [18][19] Q&A Session Summary Question: Update on HomeXpress volume and gain on sale - Management noted typical seasonal reduction in volume post-holidays but remains optimistic about Q1 2026 performance compared to last year [33] Question: Relative value between adding more agencies versus securitizations - Management emphasized the importance of portfolio construction and maintaining a balance between agency and credit components [35] Question: Context for dividend increase - The company aims to balance dividend payouts with sufficient EAD coverage to support growth in operating aspects of the business [40] Question: Non-QM volume outlook for 2026 - Management anticipates significant growth in the non-QM market, projecting origination volumes to increase by 20%-25% [46][48] Question: Change in book value and securitized debt - Management explained that while loan values increased, the faster increase in securitized debt value led to a reduction in reported book value [49][50]

Financial Data and Key Metrics Changes - GAAP net income for Q4 2025 was $7 million or $0.08 per share, while for the full year it was $144 million or $1.72 per share [11] - GAAP book value at the end of Q4 was $19.70 per share, with an economic return on GAAP book value of -0.9% for the quarter and +7.4% for the full year [12] - Earnings available for distribution (EAD) for Q4 was $45 million or $0.53 per share, and for the full year, it was $141 million or $1.68 per share [12] Business Line Data and Key Metrics Changes - The investment portfolio segment reported an economic net interest income of $65 million for Q4, with a yield on average interest-earning assets of 5.9% and a net interest spread of 1.4% [13] - Home Express funded $1 billion in production during Q4 with a gain-on-sale premium of 358 basis points, and its EBITDA was $11 million for the quarter [13][27] - The company ended the year with a total leverage of 5.1-to-1, compared to the REIT average of 2.4-to-1 [13] Market Data and Key Metrics Changes - Agency swap OAS tightened by approximately 22 basis points in Q4, while generic non-QM AAAs firmed by 5 basis points [19] - Treasury yields had a tightening bias, with the two-year, ten-year Treasury spread ending the year at 69 basis points, approximately 37 wider than at the beginning of the year [20] - Mortgage rates decreased by approximately 70 basis points for the year, ending at 6.15% [20] Company Strategy and Development Direction - The company aims to build a diversified residential platform capable of generating long-term value, focusing on portfolio diversification, liquidity expansion, and fee-based income growth [10] - The acquisition of Home Express is a key part of the strategy to enhance capabilities and reach within the residential mortgage market [6][10] - The company is committed to maintaining a long-term orientation while adapting to market conditions and evolving its operational capabilities [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter of 2026, expecting strong revenue and gain on sale premiums despite typical seasonal reductions in volume [33] - The company anticipates continued growth in the non-QM and business purpose loan markets, projecting a market growth of 20%-25% in 2026 [46] - Management emphasized the importance of capital allocation and the balance between dividend payouts and reinvestment for growth [39] Other Important Information - The company raised approximately $120 million in unsecured debt, with the majority of funding for transformation coming from its own portfolio [6] - Compensation, general, and administrative expenses increased by $22 million year-over-year, primarily due to staffing costs related to acquisitions [16] - The company is focused on managing capital at risk and evaluating cash flow generating capital rather than short-term valuation movements [50] Q&A Session Summary Question: Update on Home Express volume and gain on sale - Management noted a typical seasonal reduction in volume but expressed optimism for Q1 2026, expecting good revenue compared to the previous year [33] Question: Relative value between adding more agencies versus securitizations - Management highlighted the importance of portfolio construction and maintaining a balance between agency and credit components, with a focus on MSR allocation [34][35] Question: Context of dividend increase - Management explained that the dividend increase was sized to ensure sufficient EAD coverage while allowing for growth in operating aspects of the business [39] Question: Originating second liens and non-QM volume outlook - Management confirmed they are not currently originating second mortgages but anticipate significant growth in the non-QM market in 2026 [46] Question: Change in book value and securitized debt - Management clarified that the reduction in book value was due to the faster increase in the value of securitized debt compared to loan values, emphasizing the focus on managing capital at risk [49][50]

Blackstone Mortgage Trust, Inc. Q4 2025 Company Presentation FEBRUARY 2026 Blackstone Mortgage Trust, Inc. BLACKSTONE MORTGAGE TRUST OVERVIEW Blackstone Mortgage Trust (BXMT) is a publicly traded commercial mortgage REIT focused on real estate credit investments in North America, Europe, and Australia | B | X | M | T | i | d | b | B | l | k | h | l | f | i | l | l | t | t | t |  | g | g | s | m | a | n | a | e | y | a | c | s | o | n | e, | e | a | r | e | s | o | w | n | e | r | o | c | o | m | m | e | r ...

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]

Core Viewpoint - MFA Financial is a specialty finance REIT with a long history of dividend payments, but its current high yield raises concerns about the sustainability of its dividends due to poor earnings coverage and elevated leverage [2][4]. Financial Metrics - The annual dividend is $1.44 per share, resulting in a dividend yield of 14.8% [3]. - The most recent dividend increase was 2.9% in Q1 2025, marking a stable period from 2023 to 2025 [3]. Earnings and Payout Ratios - For Q3 2025, the company reported distributable earnings of $0.20 per share while paying out $0.36 per share in dividends, leading to a payout ratio of 180% [4]. - Over the trailing twelve months, earnings totaled $1.12 per share against dividends of $1.44, resulting in a payout ratio of 128.6% [4]. - The trailing twelve months (TTM) earnings payout ratio is 166.3%, deemed unsustainable [5]. Cash Flow Analysis - Operating cash flow for 2024 was $200.1 million, covering the $176.7 million dividend obligation at a ratio of 1.13x, indicating tight coverage [5]. - However, in the first nine months of 2025, operating cash flow dropped to $38.6 million against $140.5 million in dividends, yielding a coverage ratio of only 0.27x [5][7]. Leverage and Financial Health - As of Q3 2025, MFA's total debt stood at $6.60 billion against equity of $1.82 billion, resulting in a debt-to-equity ratio of 3.62x, which is considered elevated for a mortgage REIT [6]. - Cash on hand was limited at $305 million, covering only 4.6% of total debt [6]. - The company has negative retained earnings of -$1.88 billion, indicating cumulative losses exceed profits over time, suggesting dividends have been paid from capital rather than sustainable earnings [6]. Dividend History - MFA maintained a stable dividend of $0.20 per quarter from 2014 to 2019, but cut the dividend to $0.05 per quarter during the 2020 pandemic [8]. - The dividend gradually recovered to $0.35 per quarter by 2022 and remained stable through 2024, with a recent increase to $0.36 in Q1 2025 marking the first raise in three years [8].

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