NNN REIT, Inc. Announces Second Quarter 2025 Results and Increased 2025 Guidance
NNN REIT (NYSE:NNN) reported strong Q2 2025 results and raised its guidance. The company achieved net earnings of $0.54 per share and grew Core FFO and AFFO per share by 1.2% to $0.84 and $0.85 respectively. Key highlights include $232.5 million in investments at a 7.4% initial cash cap rate and property sales of $51.2 million.
The REIT strengthened its balance sheet by issuing $500 million in senior unsecured notes and announced a 3.4% increase in quarterly dividend to $0.60, marking its 36th consecutive annual dividend increase. The company improved its 2025 guidance, increasing acquisition volume by $100 million and raising Core FFO guidance midpoint by $0.01 per share.
Portfolio metrics remain strong with 98.0% occupancy rate across 3,663 properties, and the company maintains a robust liquidity position of $1.4 billion pro forma.
NNN REIT (NYSE:NNN) ha riportato risultati solidi nel secondo trimestre del 2025 e ha rivisto al rialzo le sue previsioni. La societ脿 ha registrato un utile netto di 0,54 dollari per azione e ha incrementato l'FFO Core e l'AFFO per azione dell'1,2%, rispettivamente a 0,84 e 0,85 dollari. Tra i punti salienti figurano 232,5 milioni di dollari in investimenti con un tasso di capitalizzazione iniziale in contanti del 7,4% e vendite di immobili per 51,2 milioni di dollari.
Il REIT ha rafforzato il proprio bilancio emettendo 500 milioni di dollari in obbligazioni senior non garantite e ha annunciato un aumento del dividendo trimestrale del 3,4% a 0,60 dollari, segnando il 36掳 aumento annuale consecutivo del dividendo. La societ脿 ha migliorato le previsioni per il 2025, aumentando il volume di acquisizioni di 100 milioni di dollari e innalzando il valore mediano della guidance sull'FFO Core di 0,01 dollari per azione.
I parametri del portafoglio rimangono solidi con un tasso di occupazione del 98,0% su 3.663 propriet脿, mentre la societ脿 mantiene una posizione di liquidit脿 robusta di 1,4 miliardi di dollari pro forma.
NNN REIT (NYSE:NNN) report贸 s贸lidos resultados en el segundo trimestre de 2025 y elev贸 sus previsiones. La compa帽铆a alcanz贸 un beneficio neto de 0,54 d贸lares por acci贸n y aument贸 el FFO Core y AFFO por acci贸n en un 1,2%, situ谩ndolos en 0,84 y 0,85 d贸lares respectivamente. Entre los aspectos destacados se incluyen 232,5 millones de d贸lares en inversiones con una tasa inicial de capitalizaci贸n en efectivo del 7,4% y ventas de propiedades por 51,2 millones de d贸lares.
El REIT fortaleci贸 su balance emitiendo 500 millones de d贸lares en notas senior no garantizadas y anunci贸 un aumento del dividendo trimestral del 3,4% hasta 0,60 d贸lares, marcando su 36潞 incremento anual consecutivo del dividendo. La compa帽铆a mejor贸 sus previsiones para 2025, aumentando el volumen de adquisiciones en 100 millones de d贸lares y elevando el punto medio de la gu铆a del FFO Core en 0,01 d贸lares por acci贸n.
Los indicadores de la cartera se mantienen s贸lidos con una tasa de ocupaci贸n del 98,0% en 3.663 propiedades, y la empresa mantiene una posici贸n de liquidez robusta de 1.400 millones de d贸lares pro forma.
NNN REIT (NYSE:NNN)電� 2025雲� 2攵勱赴 臧曤牓頃� 鞁れ爜鞚� 氚滍憸頃橂┌ 臧�鞚措崢鞀るゼ 靸來枼 臁办爼頄堨姷雼堧嫟. 須岇偓電� 欤茧嫻 0.54雼煬鞚� 靾滌澊鞚�鞚� 雼劚頄堨溂氅�, 旖旍柎 FFO鞕� AFFO 欤茧嫻 靾橃澋鞚� 臧侁皝 1.2% 歃濌皜鞁滌紲 0.84雼煬鞕� 0.85雼煬毳� 旮半頄堨姷雼堧嫟. 欤检殧 雮挫毄鞙茧電� 7.4% 齑堦赴 順勱笀 鞛愲掣頇旍湪搿� 2鞏� 3,250毵� 雼煬鞚� 韴瀽鞕� 5,120毵� 雼煬鞚� 攵�霃欖偘 毵り皝鞚� 韽暔霅╇媹雼�.
鞚� REIT電� 5鞏� 雼煬 攴滊鞚� 靹犾垳鞙� 氍措嫶氤� 毂勱秾鞚� 氚滍枆頃橃棳 鞛甑“毳� 臧曧檾頄堨溂氅�, 攵勱赴 氚半嫻旮堨潉 3.4% 鞚胳儊頃橃棳 0.60雼煬搿� 氚滍憸頃� 36雲� 鞐办啀 氚半嫻旮� 鞚胳儊鞚� 旮半頄堨姷雼堧嫟. 2025雲� 臧�鞚措崢鞀る弰 臧滌劆頃橃棳 鞚胳垬 攴滊毳� 1鞏� 雼煬 電橂Μ瓿� 旖旍柎 FFO 臧�鞚措崢鞀� 欷戧皠臧掛潉 欤茧嫻 0.01雼煬 靸來枼 臁办爼頄堨姷雼堧嫟.
韽姼韽措Μ鞓� 歆�響滊姅 3,663臧� 攵�霃欖偘鞐愳劀 98.0%鞚� 鞝愳湢鞙�鞚� 鞙犾頃橂┌ 瓴碃頃橁碃, 須岇偓電� 頂勲韽 旮办 14鞏� 雼煬鞚� 韮勴儎頃� 鞙犽彊靹彪弰 頇曤炒頃橁碃 鞛堨姷雼堧嫟.
NNN REIT (NYSE:NNN) a publi茅 de solides r茅sultats pour le deuxi猫me trimestre 2025 et a relev茅 ses pr茅visions. La soci茅t茅 a r茅alis茅 un b茅n茅fice net de 0,54 $ par action et a augment茅 le FFO Core et l'AFFO par action de 1,2 %, atteignant respectivement 0,84 $ et 0,85 $. Parmi les points forts, on note 232,5 millions de dollars d'investissements avec un taux de capitalisation initial en esp猫ces de 7,4 % et des ventes de propri茅t茅s de 51,2 millions de dollars.
Le REIT a renforc茅 son bilan en 茅mettant 500 millions de dollars de billets senior non garantis et a annonc茅 une augmentation de 3,4 % du dividende trimestriel 脿 0,60 $, marquant sa 36e augmentation annuelle cons茅cutive du dividende. La soci茅t茅 a am茅lior茅 ses pr茅visions pour 2025, augmentant le volume d'acquisitions de 100 millions de dollars et relevant le point m茅dian des pr茅visions de FFO Core de 0,01 $ par action.
Les indicateurs du portefeuille restent solides avec un taux d'occupation de 98,0 % sur 3 663 propri茅t茅s, et la soci茅t茅 maintient une position de liquidit茅 robuste de 1,4 milliard de dollars pro forma.
NNN REIT (NYSE:NNN) meldete starke Ergebnisse f眉r das zweite Quartal 2025 und hob seine Prognose an. Das Unternehmen erzielte Nettoeinnahmen von 0,54 USD je Aktie und steigerte das Core FFO und AFFO je Aktie um 1,2 % auf jeweils 0,84 bzw. 0,85 USD. Zu den Highlights z盲hlen Investitionen in H枚he von 232,5 Millionen USD bei einer anf盲nglichen Cash-Cap-Rate von 7,4 % sowie Immobilienverk盲ufe im Wert von 51,2 Millionen USD.
Der REIT st盲rkte seine Bilanz durch die Ausgabe von 500 Millionen USD an unbesicherten Senior Notes und k眉ndigte eine 3,4%ige Erh枚hung der quartalsweisen Dividende auf 0,60 USD an, was die 36. aufeinanderfolgende j盲hrliche Dividendenerh枚hung markiert. Das Unternehmen verbesserte seine Prognose f眉r 2025, erh枚hte das Akquisitionsvolumen um 100 Millionen USD und hob den Mittelwert der Core FFO-Guidance um 0,01 USD je Aktie an.
Die Portfoliokennzahlen bleiben mit einer Belegungsrate von 98,0% 眉ber 3.663 Immobilien hinweg stark, und das Unternehmen h盲lt eine robuste Liquidit盲tsposition von 1,4 Milliarden USD pro forma.
- Core FFO and AFFO per share grew 1.2% year-over-year
- Achieved 7.4% initial cash cap rate on $232.5M of new investments
- Increased quarterly dividend by 3.4% to $0.60, marking 36th consecutive annual increase
- Strong balance sheet with $1.4B in available liquidity and no floating rate debt
- Improved 2025 guidance with $100M increase in acquisition volume
- Maintained high occupancy rate of 98.0%
- ABR growth of 6.7% over prior year
- Net earnings per share decreased from $0.58 to $0.54 year-over-year
- Occupancy rate declined from 99.3% to 98.0% year-over-year
- Net Debt to annualized EBITDAre ratio at 5.7x indicates relatively high leverage
Insights
NNN REIT delivered solid Q2 results with 6.7% ABR growth, raised guidance, and announced its 36th consecutive annual dividend increase.
NNN REIT's Q2 2025 results demonstrate the company's continued execution of its strategy as a net lease REIT specializing in single-tenant retail properties. The 6.7% year-over-year growth in annual base rent (ABR) to
The quarter featured
NNN's balance sheet management deserves attention. Following their
The
One potential concern is the slight decrease in occupancy rate to
The company's revised guidance showing increases to both FFO and AFFO estimates, along with higher acquisition targets, indicates management's confidence in their business model and ability to source accretive investments for the remainder of 2025.
Second Quarter 2025 Highlights:
- Reported net earnings of
$0.54 - Grew Core FFO and AFFO per diluted share by
1.2% over prior year results, to$0.84 $0.85 - Increased ABR by
6.7% over prior year results - Closed on
$232.5 million 7.4% , with a weighted average lease term of 17.8 years and$464.9 million 85% of the initial full year acquisition plan at the midpoint - Sold 23 properties for
$51.2 million $24.7 million 6.2% - Raised
$10.9 million $43.03 - Improved balance sheet flexibility, following the end of the quarter, through the issuance of
$500 million 4.600% senior unsecured notes due 2031 ("2031 Notes") and the repayment of the outstanding balance on the unsecured revolving line of credit - Pro forma for the 2031 Notes, the Company had a sector leading weighted average debt maturity of 11.0 years, no encumbered assets, no floating rate debt and
$1.4 billion - Paid a
$0.58 5.4% annualized dividend yield and68% AFFO payout ratio
Additional Highlights:
- Announced a
3.4% increase in the third quarter 2025 quarterly dividend to$0.60 - Published the Company's third annual Corporate Sustainability Report
- Increased the midpoint of 2025 Core FFO and AFFO per share guidance by
$0.01 - Increased 2025 acquisition volume guidance by
$100 million
Steve Horn, Chief Executive Officer, commented: "NNN delivered another strong quarter, investing
FINANCIAL RESULTS
Revenues and net earnings, FFO, Core FFO and AFFO and diluted per share amounts:
Quarter Ended | Six Months Ended | |||||||||||||||
(dollars in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Revenues | $ | 226,802 | $ | 216,813 | $ | 457,656 | $ | 432,220 | ||||||||
Net earnings | $ | 100,529 | $ | 106,666 | $ | 196,987 | $ | 201,037 | ||||||||
Net earnings per share | $ | 0.54 | $ | 0.58 | $ | 1.05 | $ | 1.10 | ||||||||
FFO | $ | 157,175 | $ | 152,380 | $ | 315,909 | $ | 303,641 | ||||||||
FFO per share | $ | 0.84 | $ | 0.83 | $ | 1.69 | $ | 1.66 | ||||||||
Core FFO | $ | 157,366 | $ | 152,533 | $ | 318,273 | $ | 304,111 | ||||||||
Core FFO per share | $ | 0.84 | $ | 0.83 | $ | 1.70 | $ | 1.67 | ||||||||
AFFO | $ | 158,523 | $ | 153,596 | $ | 321,538 | $ | 306,855 | ||||||||
AFFO per share | $ | 0.85 | $ | 0.84 | $ | 1.72 | $ | 1.68 | ||||||||
PORTFOLIO SNAPSHOT
(dollars in thousands) | 闯耻苍别听30, 2025 | March听31, 2025 | 闯耻苍别听30, 2024 | |||||||||
Number of properties | 3,663 | 3,641 | 3,548 | |||||||||
Total gross leasable area (square feet) | 38,322,000 | 37,311,000 | 36,095,000 | |||||||||
Occupancy rate | 98.0 | % | 97.7 | % | 99.3 | % | ||||||
Weighted average remaining lease term (years) | 9.8 | 9.9 | 10.0 | |||||||||
ABR | $ | 893,782 | $ | 874,301 | $ | 837,568 | ||||||
PROPERTY ACQUISITIONS
(dollars in thousands) | Quarter Ended | Six Months Ended | ||||||
Total dollars invested(1) | $ | 232,536 | $ | 464,929 | ||||
Number of properties | 45 | 127 | ||||||
Gross leasable area (square feet)(2) | 1,399,000 | 2,230,000 | ||||||
Weighted average cap rate(3) | 7.4 | % | 7.4 | % | ||||
Weighted average lease term (years) | 17.8 | 18.0 | ||||||
(1) | Includes dollars invested in projects under construction or tenant improvements. |
(2) | Includes additional square footage from completed construction on existing properties. |
(3) | Calculated as the initial cash annual base rent divided by the total purchase price of the properties. |
PROPERTY DISPOSITIONS
Quarter Ended 闯耻苍别听30, 2025 | Six Months Ended 闯耻苍别听30, 2025 | |||||||||||||||||||||||
(dollars in thousands) | Occupied | Vacant | Total | Occupied | Vacant | Total | ||||||||||||||||||
Number of properties | 10 | 13 | 23 | 19 | 14 | 33 | ||||||||||||||||||
Gross leasable area (square feet) | 162,000 | 196,000 | 358,000 | 220,000 | 210,000 | 430,000 | ||||||||||||||||||
Net sale proceeds | $ | 24,727 | $ | 26,521 | $ | 51,248 | $ | 38,067 | $ | 29,020 | $ | 67,087 | ||||||||||||
Weighted average cap rate(1) | 6.2 | % | 鈥� | 6.2 | % | 5.7 | % | 鈥� | 5.7 | % | ||||||||||||||
(1) | Calculated as the cash annual base rent divided by the total gross proceeds received for the properties. |
CAPITAL MARKETS ACTIVITY
During the second quarter 2025, NNN issued 254,222 common shares, raising
On July 1, 2025, NNN issued the 2031 Notes and used the proceeds from the offering to repay the outstanding balance on the Company's unsecured revolving line of credit.
BALANCE SHEET AND LIQUIDITY
As of 闯耻苍别听30, 2025, Gross Debt was
DIVIDEND
As previously announced, on July 15, 2025, the Board of Directors of NNN declared a quarterly dividend of
2025 GUIDANCE
The Company increased previously provided 2025 guidance as summarized below:
(dollars in millions, except per diluted share data) | Previous 2025 | Updated 2025 | ||
Net earnings per share excluding any gains on disposition of real estate, | ||||
AG真人官方 estate depreciation and amortization per share | ||||
Core FFO per share | ||||
AFFO per share | ||||
General and administrative expenses | ||||
AG真人官方 estate expenses, net of tenant reimbursements | ||||
Acquisition volume | ||||
Disposition volume |
Guidance is based on current plans and assumptions and is subject to risks and uncertainties more fully described in this press release and the Company's reports filed with the Securities and Exchange Commission (the "Commission").
CONFERENCE CALL INFORMATION
The Company will host a conference call on Tuesday, August 5, 2025 at 10:30 a.m. ET to discuss second quarter results. A live webcast of the conference call will be available on the Company's website at 听or by using the following . The conference call can also be accessed by dialing 888-506-0062 in the
A telephonic replay of the call will be available through August 12, 2025, by dialing 877-481-4010 in the
ABOUT NNN REIT, INC.
NNN invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of 闯耻苍别听30, 2025, the Company owned 3,663 properties in 50 states with a gross leasable area of approximately 38.3 million square feet and a weighted average remaining lease term of 10 years. NNN is one of only three publicly traded real estate investment trusts to have increased annual dividends for 36 or more consecutive years. For more information on the Company, visit .
FORWARD-LOOKING STATEMENTS
Statements in this press release that are not strictly historical are "forward-looking" statements. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated" or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, including inflation, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the Company's tenants, the availability of capital, risks related to the Company's status as a听real estate investment trust ("REIT"), and the potential impacts of an epidemic or pandemic on the Company's business operations, financial results and financial position on the world economy. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the Company's Commission filings, including, but not limited to, the Company's (i) Annual Report on Form 10-K for the year ended December听31, 2024 and (ii) Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025. Copies of each filing may be obtained from the Company or the Commission. Such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. NNN REIT, Inc. undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.
DEFINITIONS
Funds From Operations ("FFO")听is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the National Association of AG真人官方 Estate Investment Trusts ("Nareit") and is used by the Company as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses), any applicable taxes on the disposition of certain assets and any impairment charges on a depreciable real estate asset, net of recoveries.
FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the Company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure.
Core Funds From Operations ("Core FFO")听is a non-GAAP measure of operating performance that adjusts FFO to eliminate the impact of certain GAAP income and expense amounts that the Company believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the REIT industry, and management believes that presentation of Core FFO provides investors with a potential metric to assist in their evaluation of the Company's operating performance across multiple periods and in comparison to the operating performance of its peers because it removes the effect of unusual items that are not expected to impact the Company's operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of the Company's core business operations and is a factor in determining management compensation. Items included in calculating FFO that may be excluded in calculating Core FFO may include items such as transaction related gains, income or expense, impairments on land, retirement and severance costs or other non-core amounts as they occur.
Adjusted Funds From Operations ("AFFO") is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO adjusts FFO for certain non-cash items that reduce or increase net earnings in accordance with GAAP. AFFO should not be considered an alternative to net earnings, as an indication of the Company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the Company's performance.
Earnings Before Interest, Taxes, Depreciation and Amortization for AG真人官方 Estate as defined by Nareit ("EBITDAre")听is a metric established by Nareit and commonly used by real estate companies. The measure is a result of net earnings (computed in accordance with GAAP), plus interest expense, income tax expense, depreciation and amortization, excluding any gains (or including any losses) on disposition of real estate, any impairment charges, net of recoveries and after adjustments for income and losses attributable to noncontrolling interests. Management considers the non-GAAP measure of EBITDAre to be an appropriate measure of the Company's performance and should be considered in addition to, net earnings or loss, as a measure of the Company's operating performance.
Total Cash is comprised of cash and cash equivalents and restricted cash and cash held in escrow per GAAP as reported on the balance sheet summary.
Gross Assets represents total assets (reported in accordance with GAAP) adjusted to exclude accumulated amortization and depreciation and amortization of direct financing leases. The result provides an estimate of the investments made by the Company.
Total Debt is defined by the Company as total debt per GAAP as reported on the balance sheet summary including line of credit payable, notes payable, net of unamortized discount and unamortized debt costs and mortgages payable, net of unamortized premium and debt costs, as applicable.
Gross Debt is defined by the Company as Total Debt adjusted to exclude unamortized debt discounts and premiums and unamortized debt costs.
Net Debt听is defined by the Company as Gross Debt less Total Cash.
Management considers the non-GAAP measures of Gross Debt and Net Debt each to be a key supplemental measure of the Company's overall liquidity, capital structure and leverage.
The Company's computation of FFO, Core FFO, AFFO, EBITDAre, Total Cash, Gross Assets, Gross Debt and Net Debt may differ from the methodology for calculating these non-GAAP financial measures used by other REITs, and therefore, may not be comparable to such other REITs. Reconciliations of net earnings, Total Debt and total assets (all computed in accordance with GAAP) to FFO, Core FFO, AFFO, EBITDAre, Gross Assets, Gross Debt and Net Debt (each of which is a non-GAAP financial measure), as applicable, are included in the financial information accompanying this release.
Annualized Base Rent ("ABR") represents the monthly cash base rent for all leases in place as of the end of the period multiplied by 12. Accordingly, this methodology produces an annualized amount as of a point in time but does not take into consideration future (i) scheduled rent increases, (ii) leasing activity, or (iii) lease expirations.
听
NNN REIT, Inc. Balance Sheet Summary (dollars in thousands) (unaudited) | ||||||||
闯耻苍别听30, | December听31, | |||||||
Assets: | ||||||||
AG真人官方 estate portfolio, net of accumulated depreciation and amortization | $ | 9,023,171 | $ | 8,746,168 | ||||
Cash and cash equivalents | 5,973 | 8,731 | ||||||
Restricted cash and cash held in escrow | 775 | 331 | ||||||
Receivables, net of allowance of | 2,499 | 2,975 | ||||||
Accrued rental income, net of allowance of | 33,594 | 34,005 | ||||||
Debt costs, net of accumulated amortization of | 7,698 | 8,958 | ||||||
Other assets | 74,967 | 71,560 | ||||||
Total assets | $ | 9,148,677 | $ | 8,872,728 | ||||
Liabilities: | ||||||||
Line of credit payable | $ | 267,700 | $ | 鈥� | ||||
Notes payable, net of unamortized discount and unamortized debt costs | 4,376,893 | 4,373,803 | ||||||
Accrued interest payable | 30,685 | 29,699 | ||||||
Other liabilities | 110,994 | 106,951 | ||||||
Total liabilities | 4,786,272 | 4,510,453 | ||||||
Total equity | 4,362,405 | 4,362,275 | ||||||
Total liabilities and equity | $ | 9,148,677 | $ | 8,872,728 | ||||
Common shares outstanding | 188,206,484 | 187,540,929 | ||||||
听
NNN REIT, Inc. Income Statement Summary (dollars in thousands, except per share data) (unaudited) | ||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 226,498 | $ | 216,140 | $ | 457,072 | $ | 430,965 | ||||||||
Interest and other income from real estate transactions | 304 | 673 | 584 | 1,255 | ||||||||||||
226,802 | 216,813 | 457,656 | 432,220 | |||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 11,217 | 11,789 | 24,225 | 24,373 | ||||||||||||
AG真人官方 estate | 8,838 | 6,758 | 18,213 | 13,912 | ||||||||||||
Depreciation and amortization | 68,349 | 62,503 | 132,966 | 123,118 | ||||||||||||
Leasing transaction costs | 74 | 20 | 204 | 53 | ||||||||||||
Impairment losses 鈥� real estate, net of recoveries | 4,535 | 944 | 6,047 | 2,148 | ||||||||||||
Retirement and severance costs | 191 | 153 | 2,364 | 470 | ||||||||||||
93,204 | 82,167 | 184,019 | 164,074 | |||||||||||||
Gain on disposition of real estate | 16,198 | 17,621 | 20,011 | 22,442 | ||||||||||||
Earnings from operations | 149,796 | 152,267 | 293,648 | 290,588 | ||||||||||||
Other expenses (revenues): | ||||||||||||||||
Interest and other income | (15) | (976) | (344) | (1,095) | ||||||||||||
Interest expense | 49,282 | 46,577 | 97,005 | 90,646 | ||||||||||||
49,267 | 45,601 | 96,661 | 89,551 | |||||||||||||
Net earnings | $ | 100,529 | $ | 106,666 | $ | 196,987 | $ | 201,037 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 186,876,693 | 182,438,791 | 186,865,955 | 182,119,471 | ||||||||||||
Diluted | 187,070,288 | 182,807,374 | 187,088,160 | 182,528,333 | ||||||||||||
Net earnings per share available to stockholders: | ||||||||||||||||
Basic | $ | 0.54 | $ | 0.58 | $ | 1.05 | $ | 1.10 | ||||||||
Diluted | $ | 0.54 | $ | 0.58 | $ | 1.05 | $ | 1.10 | ||||||||
听
NNN REIT, Inc. Other Information (dollars in thousands) (unaudited) | ||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Rental income from operating leases(1) (2) | $ | 221,714 | $ | 211,557 | $ | 445,770 | $ | 420,641 | ||||||||
Earned income from direct financing leases(1) | $ | 112 | $ | 118 | $ | 226 | $ | 237 | ||||||||
Percentage rent(1) | $ | 284 | $ | 259 | $ | 1,170 | $ | 1,147 | ||||||||
AG真人官方 estate expenses reimbursed from tenants(1) | $ | 4,388 | $ | 4,206 | $ | 9,906 | $ | 8,940 | ||||||||
AG真人官方 estate expenses | (8,838) | (6,758) | (18,213) | (13,912) | ||||||||||||
AG真人官方 estate expenses, net of tenant reimbursements | $ | (4,450) | $ | (2,552) | $ | (8,307) | $ | (4,972) | ||||||||
Amortization of debt costs | $ | 1,478 | $ | 1,787 | $ | 2,944 | $ | 3,088 | ||||||||
Non-real estate depreciation expense | $ | 43 | $ | 115 | $ | 86 | $ | 226 | ||||||||
(1) | For the quarters ended 闯耻苍别听30, 2025 and 2024, the aggregate of such amounts is |
(2) | Includes lease termination fees of |
听
NNN REIT, Inc. Reconciliation of Non-GAAP Financial Measures (dollars in thousands, except per share data) (unaudited) | ||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net earnings | $ | 100,529 | $ | 106,666 | $ | 196,987 | $ | 201,037 | ||||||||
AG真人官方 estate depreciation and amortization | 68,309 | 62,391 | 132,886 | 122,898 | ||||||||||||
Gain on disposition of real estate | (16,198) | (17,621) | (20,011) | (22,442) | ||||||||||||
Impairment losses 鈥� depreciable real estate, net of | 4,535 | 944 | 6,047 | 2,148 | ||||||||||||
FFO | 157,175 | 152,380 | 315,909 | 303,641 | ||||||||||||
Retirement and severance costs | 191 | 153 | 2,364 | 470 | ||||||||||||
Core FFO | 157,366 | 152,533 | 318,273 | 304,111 | ||||||||||||
Straight-line accrued rent, net of reserves | 425 | 95 | (84) | 131 | ||||||||||||
Net capital lease rent adjustment | 62 | 54 | 122 | 108 | ||||||||||||
Below-market rent amortization | (1,620) | (125) | (1,713) | (242) | ||||||||||||
Stock based compensation expense | 2,832 | 2,656 | 6,403 | 6,223 | ||||||||||||
Capitalized interest expense | (542) | (1,617) | (1,463) | (3,476) | ||||||||||||
AFFO | $ | 158,523 | $ | 153,596 | $ | 321,538 | $ | 306,855 | ||||||||
FFO per share: | ||||||||||||||||
Basic | $ | 0.84 | $ | 0.84 | $ | 1.69 | $ | 1.67 | ||||||||
Diluted | $ | 0.84 | $ | 0.83 | $ | 1.69 | $ | 1.66 | ||||||||
Core FFO per share: | ||||||||||||||||
Basic | $ | 0.84 | $ | 0.84 | $ | 1.70 | $ | 1.67 | ||||||||
Diluted | $ | 0.84 | $ | 0.83 | $ | 1.70 | $ | 1.67 | ||||||||
AFFO per share: | ||||||||||||||||
Basic | $ | 0.85 | $ | 0.84 | $ | 1.72 | $ | 1.68 | ||||||||
Diluted | $ | 0.85 | $ | 0.84 | $ | 1.72 | $ | 1.68 | ||||||||
Dividend per share | $ | 0.5800 | $ | 0.5650 | $ | 1.1600 | $ | 1.1300 | ||||||||
AFFO payout ratio(1) | 68 | % | 67 | % | 67 | % | 67 | % | ||||||||
(1) | Calculated as total dividends paid as a percentage of AFFO for each respective period. |
听
NNN REIT, Inc. Reconciliation of Non-GAAP Financial Measures (continued) (dollars in thousands, except per share data) (unaudited) | ||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net earnings | $ | 100,529 | $ | 106,666 | $ | 196,987 | $ | 201,037 | ||||||||
Interest expense | 49,282 | 46,577 | 97,005 | 90,646 | ||||||||||||
Depreciation and amortization | 68,349 | 62,503 | 132,966 | 123,118 | ||||||||||||
Gain on disposition of real estate | (16,198) | (17,621) | (20,011) | (22,442) | ||||||||||||
Impairment losses 鈥� real estate, net of | 4,535 | 944 | 6,047 | 2,148 | ||||||||||||
EBITDAre | $ | 206,497 | $ | 199,069 | $ | 412,994 | $ | 394,507 | ||||||||
Interest expense | $ | 49,282 | $ | 46,577 | $ | 97,005 | $ | 90,646 | ||||||||
Add back: capitalized interest | 542 | 1,617 | 1,463 | 3,476 | ||||||||||||
Fixed charges | $ | 49,824 | $ | 48,194 | $ | 98,468 | $ | 94,122 | ||||||||
闯耻苍别听30, | December听31, | |||||||||||||||
Total assets | $ | 9,148,677 | $ | 8,872,728 | ||||||||||||
Accumulated depreciation & amortization | 2,171,731 | 2,065,520 | ||||||||||||||
Amortization of direct financing leases | 2,777 | 2,655 | ||||||||||||||
Gross Assets | $ | 11,323,185 | $ | 10,940,903 | ||||||||||||
Debt outstanding: | ||||||||||||||||
Line of credit | $ | 267,700 | $ | 鈥� | ||||||||||||
Notes payable, net of unamortized discount and | 4,376,893 | 4,373,803 | ||||||||||||||
Total Debt | 4,644,593 | 4,373,803 | ||||||||||||||
Unamortized note discount | 44,844 | 46,437 | ||||||||||||||
Unamortized debt costs | 28,263 | 29,760 | ||||||||||||||
Gross Debt | 4,717,700 | 4,450,000 | ||||||||||||||
Total Cash | (6,748) | (9,062) | ||||||||||||||
Net Debt | $ | 4,710,952 | $ | 4,440,938 | ||||||||||||
听
NNN REIT, Inc. Debt Summary As of 闯耻苍别听30, 2025 (dollars in thousands) (unaudited) 听 | ||||||||||||||||||
Unsecured Debt | Principal | Principal, | Stated | Effective | Maturity Date | |||||||||||||
Line of credit payable(1) | $ | 267,700 | $ | 267,700 | SOFR + | 5.165 | % | April 2028 | ||||||||||
Unsecured notes payable: | ||||||||||||||||||
2025 | 400,000 | 399,957 | 4.000 | % | 4.029 | % | November 2025 | |||||||||||
2026 | 350,000 | 349,345 | 3.600 | % | 3.733 | % | December 2026 | |||||||||||
2027 | 400,000 | 399,578 | 3.500 | % | 3.548 | % | October 2027 | |||||||||||
2028 | 400,000 | 398,928 | 4.300 | % | 4.388 | % | October 2028 | |||||||||||
2030 | 400,000 | 399,349 | 2.500 | % | 2.536 | % | April 2030 | |||||||||||
2033 | 500,000 | 490,040 | 5.600 | % | 5.905 | % | October 2033 | |||||||||||
2034 | 500,000 | 494,352 | 5.500 | % | 5.662 | % | June 2034 | |||||||||||
2048 | 300,000 | 296,261 | 4.800 | % | 4.890 | % | October 2048 | |||||||||||
2050 | 300,000 | 294,631 | 3.100 | % | 3.205 | % | April 2050 | |||||||||||
2051 | 450,000 | 442,318 | 3.500 | % | 3.602 | % | April 2051 | |||||||||||
2052 | 450,000 | 440,397 | 3.000 | % | 3.118 | % | April 2052 | |||||||||||
Total | 4,450,000 | 4,405,156 | ||||||||||||||||
Total unsecured debt(1) (2) | $ | 4,717,700 | $ | 4,672,856 | ||||||||||||||
Debt costs | $ | (43,820) | ||||||||||||||||
Accumulated amortization | 15,557 | |||||||||||||||||
Debt costs, net of accumulated amortization | (28,263) | |||||||||||||||||
Notes payable, net of unamortized discount and | $ | 4,376,893 | ||||||||||||||||
(1) | On July 1, 2025, NNN issued the 2031 Notes and used the proceeds from the offering to repay the outstanding balance on the Company's unsecured revolving line of credit. | |
(2) | Unsecured debt has a weighted average interest rate of |
听
NNN REIT, Inc.
Debt Summary 鈥� Continued
As of 闯耻苍别听30, 2025
(unaudited)
Credit Metrics
闯耻苍别听30, | December 31, | |||
Gross Debt / Gross Assets | 41.7听% | 40.7听% | ||
Net Debt / EBITDAre (last quarter annualized) | 5.7 | 5.6 | ||
EBITDAre / fixed charges | 4.2 | 4.2 |
Credit Facility and Notes Covenants
The following is a summary of key financial covenants for the Company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the Company's filings with the Commission. These calculations, which are not based on
Key Covenants | Required | 闯耻苍别听30, | ||
Unsecured Bank Credit Facility: | ||||
Maximum leverage ratio | < 0.60 | 0.39 | ||
Minimum fixed charge coverage ratio | > 1.50 | 4.26 | ||
Maximum secured indebtedness ratio | < 0.40 | 鈥� | ||
Unencumbered asset value ratio | > 1.67 | 2.65 | ||
Unencumbered interest ratio | > 1.75 | 4.17 | ||
Unsecured Notes: | ||||
Limitation on incurrence of total debt | 鈮� | 41听% | ||
Limitation on incurrence of secured debt | 鈮� | 鈥� | ||
Debt service coverage ratio | 鈮� 1.5 | 4.2 | ||
Maintenance of total unencumbered assets | 鈮� | 244听% |
听
NNN REIT, Inc.
Property Portfolio
As of 闯耻苍别听30, 2025
Top 20 Lines of Trade
% of ABR | ||||||
As of 闯耻苍别听30, | ||||||
Lines of Trade | 2025 | 2024 | ||||
1. | Automotive service | 18.2听% | 16.9听% | |||
2. | Convenience stores | 16.5听% | 16.2听% | |||
3. | Restaurants 鈥� limited service | 8.2听% | 8.5听% | |||
4. | Entertainment | 7.3听% | 6.6听% | |||
5. | Restaurants 鈥� full service | 7.0听% | 8.4听% | |||
6. | Dealerships | 6.7听% | 5.4听% | |||
7. | Health and fitness | 4.1听% | 4.0听% | |||
8. | Theaters | 3.8听% | 4.1听% | |||
9. | Equipment rental | 3.1听% | 3.3听% | |||
10. | Automotive parts | 2.4听% | 2.4听% | |||
11. | Wholesale clubs | 2.3听% | 2.4听% | |||
12. | Drug stores | 2.1听% | 2.3听% | |||
13. | Home improvement | 2.0听% | 2.2听% | |||
14. | Medical service providers | 1.9听% | 1.8听% | |||
15. | Pet supplies and services | 1.6听% | 1.2听% | |||
16. | Discount retail | 1.4听% | 1.6听% | |||
17. | Furniture | 1.3听% | 2.0听% | |||
18. | Travel plazas | 1.2听% | 1.3听% | |||
19. | Consumer electronics | 1.2听% | 1.3听% | |||
20. | Home furnishings | 1.1听% | 1.3听% | |||
Other | 6.6听% | 6.8听% | ||||
Total | 100.0听% | 100.0听% | ||||
听
NNN REIT, Inc.
Property Portfolio 鈥� Continued
As of June 30, 2025
Top 20 States
State | # of | % of | ||||
1. | 590 | 18.8听% | ||||
2. | 271 | 8.7听% | ||||
3. | 169 | 4.9听% | ||||
4. | 173 | 4.4听% | ||||
5. | 226 | 4.4听% | ||||
6. | 164 | 3.7听% | ||||
7. | 154 | 3.7听% | ||||
8. | 158 | 3.6听% | ||||
9. | 121 | 3.4听% | ||||
10. | 81 | 3.4听% | ||||
11. | 120 | 3.4听% | ||||
12. | 72 | 2.9听% | ||||
13. | 150 | 2.8听% | ||||
14. | 89 | 2.5听% | ||||
15. | 33 | 2.4听% | ||||
16. | 106 | 2.4听% | ||||
17. | 50 | 2.1听% | ||||
18. | 45 | 2.0听% | ||||
19. | 81 | 1.9听% | ||||
20. | 89 | 1.7听% | ||||
Other | 721 | 16.9听% | ||||
Total | 3,663 | 100.0听% | ||||
听
NNN REIT, Inc.
Property Portfolio 鈥� Continued
As of 闯耻苍别听30, 2025
Top 20 Tenants
Tenant | # of | % of | ||||
1. | 7-Eleven | 146 | 4.4听% | |||
2. | Mister Car Wash | 121 | 4.0听% | |||
3. | Dave & Buster's | 34 | 3.7听% | |||
4. | Camping World | 46 | 3.6听% | |||
5. | GPM Investments (convenience stores) | 147 | 2.7听% | |||
6. | Flynn Restaurant Group (Taco Bell/Arby's) | 204 | 2.6听% | |||
7. | AMC Theatres | 20 | 2.5听% | |||
8. | BJ's Wholesale Club | 13 | 2.3听% | |||
9. | LA Fitness | 25 | 2.3听% | |||
10. | Kent Distributors (convenience stores) | 49 | 2.3听% | |||
11. | Mavis Tire Express Services | 140 | 2.1听% | |||
12. | Couche Tard (Pantry) | 91 | 2.1听% | |||
13. | Walgreens | 49 | 1.7听% | |||
14. | Sunoco | 53 | 1.7听% | |||
15. | Chuck E. Cheese | 51 | 1.7听% | |||
16. | Casey's General Stores (convenience stores) | 62 | 1.6听% | |||
17. | United Rentals | 49 | 1.6听% | |||
18. | Tidal Wave Auto Spa | 35 | 1.4听% | |||
19. | Super Star Car Wash | 33 | 1.3听% | |||
20. | Bob Evans Restaurants | 105 | 1.2听% | |||
Other | 2,190 | 53.2听% | ||||
Total | 3,663 | 100.0听% |
听
Lease Expirations(1)
% of | # of | Gross Leasable | % of | # of | Gross Leasable | |||||||||
2025 | 2.2听% | 90 | 512,000 | 2031 | 6.8听% | 191 | 2,668,000 | |||||||
2026 | 3.9听% | 196 | 1,899,000 | 2032 | 5.1听% | 190 | 1,846,000 | |||||||
2027 | 7.1听% | 216 | 3,277,000 | 2033 | 4.5听% | 136 | 1,411,000 | |||||||
2028 | 5.6听% | 253 | 2,270,000 | 2034 | 5.5听% | 180 | 2,334,000 | |||||||
2029 | 4.4听% | 141 | 2,071,000 | Thereafter | 50.2听% | 1,816 | 16,913,000 | |||||||
2030 | 4.7听% | 179 | 2,275,000 |
(1) | As of 闯耻苍别听30, 2025, the weighted average remaining lease term is 9.8 years. | |
(2) | Square feet. |
听
View original content to download multimedia:
SOURCE NNN REIT, Inc.
FAQ
What were NNN REIT's (NYSE:NNN) key financial results for Q2 2025?
How much did NNN REIT increase its dividend in Q3 2025?
What was NNN REIT's acquisition activity in Q2 2025?
What is NNN REIT's updated guidance for 2025?
What is NNN REIT's current liquidity position?
