Second Quarter 2024 Operating Results and Increased 2024 Guidance Announced by NNN REIT, Inc.
Operating Results:
- Revenues and net earnings, FFO, Core FFO and AFFO and diluted per share amounts:
|
|
Quarter Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
(dollars in thousands, except per share data) |
|
|||||||||||||
Revenues |
|
$ |
216,813 |
|
|
$ |
202,640 |
|
|
$ |
432,220 |
|
|
$ |
406,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
106,666 |
|
|
$ |
98,704 |
|
|
$ |
201,037 |
|
|
$ |
188,871 |
|
Net earnings per share |
|
$ |
0.58 |
|
|
$ |
0.54 |
|
|
$ |
1.10 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO |
|
$ |
152,380 |
|
|
$ |
144,590 |
|
|
$ |
303,641 |
|
|
$ |
290,139 |
|
FFO per share |
|
$ |
0.83 |
|
|
$ |
0.80 |
|
|
$ |
1.66 |
|
|
$ |
1.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Core FFO |
|
$ |
152,533 |
|
|
$ |
144,899 |
|
|
$ |
304,111 |
|
|
$ |
290,871 |
|
Core FFO per share |
|
$ |
0.83 |
|
|
$ |
0.80 |
|
|
$ |
1.67 |
|
|
$ |
1.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFFO |
|
$ |
153,596 |
|
|
$ |
146,079 |
|
|
$ |
306,855 |
|
|
$ |
294,245 |
|
AFFO per share |
|
$ |
0.84 |
|
|
$ |
0.80 |
|
|
$ |
1.68 |
|
|
$ |
1.62 |
|
Second Quarter 2024 Highlights:
- FFO and Core FFO per share increased 3.8% over prior year results
- AFFO per share increased 5.0% over prior year results
- Maintained high occupancy levels at 99.3%, with a weighted average remaining lease term of 10.0 years, at
June 30, 2024 as compared to 99.4% atMarch 31, 2024 and 99.5% atDecember 31, 2023 -
$110.5 million in property investments, including the acquisition of 16 properties with an aggregate gross leasable area of approximately 272,000 square feet at an initial cash cap rate of 7.9% - Sold 14 properties for
$67.3 million , producing$17.6 million of gains on sales - Raised
$13.3 million in net proceeds from the issuance of 318,258 common shares - Issued
$500 million principal amount of 5.500% senior unsecured notes due 2034 - Redeemed
$350 million principal amount of 3.900% senior unsecured notes due 2024 - Expanded line of credit borrowing capacity from
$1.1 billion to$1.2 billion and extended maturity toApril 2028 - Maintained sector-leading 12.6 year weighted average debt maturity
First Half of 2024 Highlights:
- FFO per share increased 3.8% over prior year results
- Core FFO per share increased 4.4% over prior year results
- AFFO per share increased 3.7% over prior year results
-
$235.0 million in property investments, including the acquisition of 36 properties with an aggregate gross leasable area of approximately 555,000 square feet at an initial cash cap rate of 8.0% - Sold 20 properties for
$85.8 million , producing$22.4 million of gains on sales - Raised
$34.8 million in net proceeds from the issuance of 837,752 common shares
Core FFO guidance for 2024 was increased from a range of
NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of
Management will hold a conference call on
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 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
Funds From Operations, commonly referred to as "FFO", 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
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. The company's computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to FFO, as defined by NAREIT, is included in the financial information accompanying this release.
Core Funds From Operations ("Core FFO") 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 or commercial mortgage residual interests, executive retirement costs or other non-core amounts as they occur. The company's computation of Core FFO may differ from the methodology for calculating Core FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to Core FFO is included in the financial information accompanying this release.
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 income 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. The company's computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to AFFO is included in the financial information accompanying this release.
NNN REIT, Inc. |
||||||||||||||||
(dollars in thousands, except per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
||||||||||||||||
|
|
Quarter Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Income Statement Summary |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income |
|
$ |
216,140 |
|
|
$ |
202,426 |
|
|
$ |
430,965 |
|
|
$ |
406,056 |
|
Interest and other income from real estate transactions |
|
|
673 |
|
|
|
214 |
|
|
|
1,255 |
|
|
|
692 |
|
|
|
|
216,813 |
|
|
|
202,640 |
|
|
|
432,220 |
|
|
|
406,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative |
|
|
11,789 |
|
|
|
10,740 |
|
|
|
24,373 |
|
|
|
22,991 |
|
Real estate |
|
|
6,758 |
|
|
|
6,836 |
|
|
|
13,912 |
|
|
|
13,682 |
|
Depreciation and amortization |
|
|
62,503 |
|
|
|
59,875 |
|
|
|
123,118 |
|
|
|
119,023 |
|
Leasing transaction costs |
|
|
20 |
|
|
|
52 |
|
|
|
53 |
|
|
|
127 |
|
Impairment losses – real estate, net of recoveries |
|
|
944 |
|
|
|
34 |
|
|
|
2,148 |
|
|
|
2,674 |
|
Executive retirement costs |
|
|
153 |
|
|
|
309 |
|
|
|
470 |
|
|
|
732 |
|
|
|
|
82,167 |
|
|
|
77,846 |
|
|
|
164,074 |
|
|
|
159,229 |
|
Gain on disposition of real estate |
|
|
17,621 |
|
|
|
13,930 |
|
|
|
22,442 |
|
|
|
20,230 |
|
Earnings from operations |
|
|
152,267 |
|
|
|
138,724 |
|
|
|
290,588 |
|
|
|
267,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other expenses (revenues): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and other income |
|
|
(976) |
|
|
|
(74) |
|
|
|
(1,095) |
|
|
|
(107) |
|
Interest expense |
|
|
46,577 |
|
|
|
40,094 |
|
|
|
90,646 |
|
|
|
78,985 |
|
|
|
|
45,601 |
|
|
|
40,020 |
|
|
|
89,551 |
|
|
|
78,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
106,666 |
|
|
$ |
98,704 |
|
|
$ |
201,037 |
|
|
$ |
188,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
182,438,791 |
|
|
|
181,092,031 |
|
|
|
182,119,471 |
|
|
|
180,969,809 |
|
Diluted |
|
|
182,807,374 |
|
|
|
181,627,857 |
|
|
|
182,528,333 |
|
|
|
181,544,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings per share available to stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.58 |
|
|
$ |
0.54 |
|
|
$ |
1.10 |
|
|
$ |
1.04 |
|
Diluted |
|
$ |
0.58 |
|
|
$ |
0.54 |
|
|
$ |
1.10 |
|
|
$ |
1.04 |
|
NNN REIT, Inc. |
||||||||||||||||
(dollars in thousands, except per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
||||||||||||||||
|
|
Quarter Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Funds From Operations ("FFO") Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
106,666 |
|
|
$ |
98,704 |
|
|
$ |
201,037 |
|
|
$ |
188,871 |
|
Real estate depreciation and amortization |
|
|
62,391 |
|
|
|
59,782 |
|
|
|
122,898 |
|
|
|
118,824 |
|
Gain on disposition of real estate |
|
|
(17,621) |
|
|
|
(13,930) |
|
|
|
(22,442) |
|
|
|
(20,230) |
|
Impairment losses – depreciable real estate, |
|
|
944 |
|
|
|
34 |
|
|
|
2,148 |
|
|
|
2,674 |
|
Total FFO adjustments |
|
|
45,714 |
|
|
|
45,886 |
|
|
|
102,604 |
|
|
|
101,268 |
|
FFO |
|
$ |
152,380 |
|
|
$ |
144,590 |
|
|
$ |
303,641 |
|
|
$ |
290,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.84 |
|
|
$ |
0.80 |
|
|
$ |
1.67 |
|
|
$ |
1.60 |
|
Diluted |
|
$ |
0.83 |
|
|
$ |
0.80 |
|
|
$ |
1.66 |
|
|
$ |
1.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Core Funds From Operations ("Core FFO") Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
106,666 |
|
|
$ |
98,704 |
|
|
$ |
201,037 |
|
|
$ |
188,871 |
|
Total FFO adjustments |
|
|
45,714 |
|
|
|
45,886 |
|
|
|
102,604 |
|
|
|
101,268 |
|
FFO |
|
|
152,380 |
|
|
|
144,590 |
|
|
|
303,641 |
|
|
|
290,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Executive retirement costs |
|
|
153 |
|
|
|
309 |
|
|
|
470 |
|
|
|
732 |
|
Total Core FFO adjustments |
|
|
153 |
|
|
|
309 |
|
|
|
470 |
|
|
|
732 |
|
Core FFO |
|
$ |
152,533 |
|
|
$ |
144,899 |
|
|
$ |
304,111 |
|
|
$ |
290,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Core FFO per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.84 |
|
|
$ |
0.80 |
|
|
$ |
1.67 |
|
|
$ |
1.61 |
|
Diluted |
|
$ |
0.83 |
|
|
$ |
0.80 |
|
|
$ |
1.67 |
|
|
$ |
1.60 |
|
NNN REIT, Inc. |
|||||||||||||||||
(dollars in thousands, except per share data) |
|||||||||||||||||
(unaudited) |
|||||||||||||||||
|
|||||||||||||||||
|
|
Quarter Ended |
|
|
Six Months Ended |
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
||||
Adjusted Funds From Operations ("AFFO") Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
106,666 |
|
|
$ |
98,704 |
|
|
$ |
201,037 |
|
|
$ |
188,871 |
|
|
Total FFO adjustments |
|
|
45,714 |
|
|
|
45,886 |
|
|
|
102,604 |
|
|
|
101,268 |
|
|
Total Core FFO adjustments |
|
|
153 |
|
|
|
309 |
|
|
|
470 |
|
|
|
732 |
|
|
Core FFO |
|
|
152,533 |
|
|
|
144,899 |
|
|
|
304,111 |
|
|
|
290,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line accrued rent, net of reserves |
|
|
95 |
|
|
|
(534) |
|
|
|
131 |
|
|
|
(1,003) |
|
|
Net capital lease rent adjustment |
|
|
54 |
|
|
|
82 |
|
|
|
108 |
|
|
|
161 |
|
|
Below-market rent amortization |
|
|
(125) |
|
|
|
(122) |
|
|
|
(242) |
|
|
|
(234) |
|
|
Stock based compensation expense |
|
|
2,656 |
|
|
|
2,475 |
|
|
|
6,223 |
|
|
|
5,576 |
|
|
Capitalized interest expense |
|
|
(1,617) |
|
|
|
(721) |
|
|
|
(3,476) |
|
|
|
(1,126) |
|
|
Total AFFO adjustments |
|
|
1,063 |
|
|
|
1,180 |
|
|
|
2,744 |
|
|
|
3,374 |
|
|
AFFO |
|
$ |
153,596 |
|
|
$ |
146,079 |
|
|
$ |
306,855 |
|
|
$ |
294,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFFO per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.84 |
|
|
$ |
0.81 |
|
|
$ |
1.68 |
|
|
$ |
1.63 |
|
|
Diluted |
|
$ |
0.84 |
|
|
$ |
0.80 |
|
|
$ |
1.68 |
|
|
$ |
1.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income from operating leases(1) |
|
$ |
211,557 |
|
|
$ |
197,629 |
|
|
$ |
420,641 |
|
|
$ |
395,812 |
|
|
Earned income from direct financing leases(1) |
|
$ |
118 |
|
|
$ |
143 |
|
|
$ |
237 |
|
|
$ |
287 |
|
|
Percentage rent(1) |
|
$ |
259 |
|
|
$ |
291 |
|
|
$ |
1,147 |
|
|
$ |
1,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate expense reimbursement from tenants(1) |
|
$ |
4,206 |
|
|
$ |
4,363 |
|
|
$ |
8,940 |
|
|
$ |
8,903 |
|
|
Real estate expenses |
|
|
(6,758) |
|
|
|
(6,836) |
|
|
|
(13,912) |
|
|
|
(13,682) |
|
|
Real estate expenses, net of tenant reimbursements |
|
$ |
(2,552) |
|
|
$ |
(2,473) |
|
|
$ |
(4,972) |
|
|
$ |
(4,779) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of debt costs |
|
$ |
1,787 |
|
|
$ |
1,202 |
|
|
$ |
3,088 |
|
|
$ |
2,401 |
|
|
Scheduled debt principal amortization (excluding maturities) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
173 |
|
(2) |
Non-real estate depreciation expense |
|
$ |
115 |
|
|
$ |
97 |
|
|
$ |
226 |
|
|
$ |
205 |
|
|
|
|
(1) |
For the quarters ended |
|
|
(2) |
In |
2024 Earnings Guidance
Guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Commission.
|
|
2024 Guidance |
Net earnings per share excluding any gains on disposition of real |
|
|
Real estate depreciation and amortization per share |
|
|
Core FFO per share |
|
|
AFFO per share |
|
|
General and administrative expenses |
|
|
Real estate expenses, net of tenant reimbursements |
|
|
Acquisition volume |
|
|
Disposition volume |
|
|
NNN REIT, Inc. |
||||||||
(dollars in thousands) |
||||||||
(unaudited) |
||||||||
|
||||||||
|
|
|
|
|
|
|
||
Balance Sheet Summary |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Assets: |
|
|
|
|
|
|
||
Real estate portfolio, net of accumulated depreciation and amortization |
|
$ |
8,586,936 |
|
|
$ |
8,535,851 |
|
Cash and cash equivalents |
|
|
2,130 |
|
|
|
1,189 |
|
Restricted cash and cash held in escrow |
|
|
14,672 |
|
|
|
3,966 |
|
Receivables, net of allowance of |
|
|
2,551 |
|
|
|
3,649 |
|
Accrued rental income, net of allowance of |
|
|
33,956 |
|
|
|
34,611 |
|
Debt costs, net of accumulated amortization of |
|
|
10,460 |
|
|
|
3,243 |
|
Other assets |
|
|
76,590 |
|
|
|
79,459 |
|
Total assets |
|
$ |
8,727,295 |
|
|
$ |
8,661,968 |
|
|
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Line of credit payable |
|
$ |
12,000 |
|
|
$ |
132,000 |
|
Notes payable, net of unamortized discount and unamortized debt costs |
|
|
4,370,807 |
|
|
|
4,228,544 |
|
Accrued interest payable |
|
|
30,931 |
|
|
|
34,374 |
|
Other liabilities |
|
|
118,635 |
|
|
|
109,593 |
|
Total liabilities |
|
|
4,532,373 |
|
|
|
4,504,511 |
|
|
|
|
|
|
|
|
||
Total equity |
|
|
4,194,922 |
|
|
|
4,157,457 |
|
|
|
|
|
|
|
|
||
Total liabilities and equity |
|
$ |
8,727,295 |
|
|
$ |
8,661,968 |
|
|
|
|
|
|
|
|
||
Common shares outstanding |
|
|
183,666,067 |
|
|
|
182,474,770 |
|
|
|
|
|
|
|
|
||
Gross leasable area, Property Portfolio (square feet) |
|
|
36,095,000 |
|
|
|
35,966,000 |
|
NNN REIT, Inc. |
||||||||||||||||||||||||||||||||||||
Debt Summary |
||||||||||||||||||||||||||||||||||||
As of June 30, 2024 |
||||||||||||||||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Unsecured Debt |
|
Principal |
|
|
Principal, |
|
|
Stated |
|
|
Effective |
|
|
Maturity Date |
||||||||||||||||||||||
Line of credit payable |
|
$ |
12,000 |
|
|
$ |
12,000 |
|
|
SOFR + |
|
|
|
6.185 |
% |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Unsecured notes payable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
2025 |
|
|
400,000 |
|
|
|
399,844 |
|
|
|
4.000 |
% |
|
|
4.029 |
% |
|
|
||||||||||||||||||
2026 |
|
|
350,000 |
|
|
|
348,916 |
|
|
|
3.600 |
% |
|
|
3.733 |
% |
|
|
||||||||||||||||||
2027 |
|
|
400,000 |
|
|
|
399,404 |
|
|
|
3.500 |
% |
|
|
3.548 |
% |
|
|
||||||||||||||||||
2028 |
|
|
400,000 |
|
|
|
398,631 |
|
|
|
4.300 |
% |
|
|
4.388 |
% |
|
|
||||||||||||||||||
2030 |
|
|
400,000 |
|
|
|
399,223 |
|
|
|
2.500 |
% |
|
|
2.536 |
% |
|
|
||||||||||||||||||
2033 |
|
|
500,000 |
|
|
|
489,131 |
|
|
|
5.600 |
% |
|
|
5.905 |
% |
|
|
||||||||||||||||||
2034 |
|
|
500,000 |
|
|
|
493,894 |
|
|
|
5.500 |
% |
|
|
5.662 |
% |
|
|
||||||||||||||||||
2048 |
|
|
300,000 |
|
|
|
296,177 |
|
|
|
4.800 |
% |
|
|
4.890 |
% |
|
|
||||||||||||||||||
2050 |
|
|
300,000 |
|
|
|
294,491 |
|
|
|
3.100 |
% |
|
|
3.205 |
% |
|
|
||||||||||||||||||
2051 |
|
|
450,000 |
|
|
|
442,140 |
|
|
|
3.500 |
% |
|
|
3.602 |
% |
|
|
||||||||||||||||||
2052 |
|
|
450,000 |
|
|
|
440,170 |
|
|
|
3.000 |
% |
|
|
3.118 |
% |
|
|
||||||||||||||||||
Total |
|
|
4,450,000 |
|
|
|
4,402,021 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total unsecured debt(1) |
|
$ |
4,462,000 |
|
|
$ |
4,414,021 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Debt costs |
|
|
|
|
$ |
(43,820) |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Accumulated amortization |
|
|
|
12,606 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Debt costs, net of accumulated amortization |
|
|
|
(31,214) |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Notes payable, net of unamortized discount and |
|
|
$ |
4,370,807 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Unsecured debt has a weighted average interest rate of 4.1% and a weighted average maturity of 12.6 years. |
|
As of |
|
Debt Summary – Continued
As of
(unaudited)
Credit Facility and Note 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 |
|
|
Unsecured Bank Credit Facility: |
|
|
|
|
Maximum leverage ratio |
|
< 0.60 |
|
0.38 |
Minimum fixed charge coverage ratio |
|
> 1.50 |
|
4.34 |
Maximum secured indebtedness ratio |
|
< 0.40 |
|
— |
Unencumbered asset value ratio |
|
> 1.67 |
|
2.64 |
Unencumbered interest ratio |
|
> 1.75 |
|
4.26 |
Unsecured Notes: |
|
|
|
|
Limitation on incurrence of total debt |
|
≤ 60% |
|
41.0 % |
Limitation on incurrence of secured debt |
|
≤ 40% |
|
— |
Debt service coverage ratio |
|
≥ 1.50 |
|
4.3 |
Maintenance of total unencumbered assets |
|
≥ 150% |
|
244 % |
NNN REIT, Inc. |
||||||
Property Portfolio |
||||||
As of |
||||||
Top 20 Lines of Trade |
||||||
|
||||||
|
|
|
|
As of |
||
|
|
Lines of Trade |
|
2024(1) |
|
2023(2) |
1. |
|
Automotive service |
|
16.7 % |
|
14.5 % |
2. |
|
Convenience stores |
|
16.2 % |
|
16.9 % |
3. |
|
Restaurants – limited service |
|
8.5 % |
|
8.8 % |
4. |
|
Restaurants – full service |
|
8.4 % |
|
8.9 % |
5. |
|
Family entertainment centers |
|
6.6 % |
|
5.7 % |
6. |
|
Recreational vehicle dealers, parts and accessories |
|
5.0 % |
|
4.2 % |
7. |
|
Theaters |
|
4.1 % |
|
4.3 % |
8. |
|
Health and fitness |
|
4.0 % |
|
4.7 % |
9. |
|
Equipment rental |
|
3.3 % |
|
3.0 % |
10. |
|
Wholesale clubs |
|
2.4 % |
|
2.5 % |
11. |
|
Automotive parts |
|
2.4 % |
|
2.5 % |
12. |
|
Drug stores |
|
2.3 % |
|
2.5 % |
13. |
|
Home improvement |
|
2.2 % |
|
2.3 % |
14. |
|
Furniture |
|
2.0 % |
|
2.1 % |
15. |
|
Medical service providers |
|
1.8 % |
|
1.8 % |
16. |
|
General merchandise |
|
1.4 % |
|
1.5 % |
17. |
|
Home furnishings |
|
1.3 % |
|
1.5 % |
18. |
|
Consumer electronics |
|
1.3 % |
|
1.4 % |
19. |
|
Travel plazas |
|
1.3 % |
|
1.3 % |
20. |
|
Pet supplies and services |
|
1.2 % |
|
1.0 % |
|
|
Other |
|
7.6 % |
|
8.6 % |
|
|
Total |
|
100.0 % |
|
100.0 % |
Top 10 States |
||||||||||
|
||||||||||
|
|
State |
|
% of |
|
|
|
State |
|
% of |
1. |
|
|
|
16.9 % |
|
6. |
|
|
|
3.8 % |
2. |
|
|
|
9.4 % |
|
7. |
|
|
|
3.7 % |
3. |
|
|
|
5.2 % |
|
8. |
|
|
|
3.7 % |
4. |
|
|
|
4.8 % |
|
9. |
|
|
|
3.3 % |
5. |
|
|
|
4.7 % |
|
10. |
|
|
|
3.2 % |
|
||
As a percentage of annual base rent, which is the annualized base rent for all leases in place. |
||
|
(1) |
|
|
(2) |
|
NNN REIT, Inc. |
||||||
Property Portfolio – Continued |
||||||
As of |
||||||
|
||||||
Top 20 Tenants |
||||||
|
||||||
|
|
Tenant |
|
# of |
|
% of |
1. |
|
|
|
146 |
|
4.6 % |
2. |
|
Mister Car Wash |
|
121 |
|
4.1 % |
3. |
|
Camping World |
|
47 |
|
3.7 % |
4. |
|
Dave & Buster's |
|
32 |
|
3.5 % |
5. |
|
|
|
150 |
|
2.9 % |
6. |
|
|
|
204 |
|
2.7 % |
7. |
|
|
|
26 |
|
2.7 % |
8. |
|
|
|
20 |
|
2.7 % |
9. |
|
BJ's Wholesale Club |
|
13 |
|
2.4 % |
10. |
|
Mavis Tire Express Services |
|
140 |
|
2.2 % |
11. |
|
|
|
93 |
|
2.2 % |
12. |
|
Walgreens |
|
49 |
|
1.8 % |
13. |
|
|
|
53 |
|
1.8 % |
14. |
|
Sunoco |
|
53 |
|
1.8 % |
15. |
|
United Rentals |
|
49 |
|
1.6 % |
16. |
|
|
|
66 |
|
1.5 % |
17. |
|
Fikes (convenience stores) |
|
58 |
|
1.5 % |
18. |
|
|
|
106 |
|
1.3 % |
19. |
|
|
|
3 |
|
1.3 % |
20. |
|
|
|
35 |
|
1.3 % |
Lease Expirations (2) |
||||||||||||||
|
||||||||||||||
|
|
% of |
|
# of |
|
Gross Leasable |
|
|
|
% of |
|
# of |
|
Gross Leasable |
2024 |
|
0.2 % |
|
10 |
|
107,000 |
|
2030 |
|
3.7 % |
|
118 |
|
1,576,000 |
2025 |
|
4.3 % |
|
169 |
|
1,451,000 |
|
2031 |
|
7.1 % |
|
184 |
|
2,684,000 |
2026 |
|
4.5 % |
|
209 |
|
2,024,000 |
|
2032 |
|
5.8 % |
|
213 |
|
2,317,000 |
2027 |
|
8.0 % |
|
234 |
|
3,565,000 |
|
2033 |
|
4.7 % |
|
135 |
|
1,403,000 |
2028 |
|
5.6 % |
|
229 |
|
2,120,000 |
|
Thereafter |
|
51.5 % |
|
1,878 |
|
16,434,000 |
2029 |
|
4.6 % |
|
142 |
|
2,066,000 |
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Based on the annual base rent of |
(2) |
|
As of |
(3) |
|
Square feet. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/second-quarter-2024-operating-results-and-increased-2024-guidance-announced-by-nnn-reit-inc-302211548.html
SOURCE