RECORD ANNUAL RESULTS AND INCREASED 2022 GUIDANCE ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Rhea-AI Summary

National Retail Properties (NYSE: NNN) reported strong financial results for the year ended December 31, 2021, with revenues increasing to $726.4 million from $660.7 million in 2020. Net earnings rose to $264.2 million, with an annual dividend increase to $2.10, marking 32 consecutive years of dividend growth. The company maintained a high occupancy rate of 99% and made significant property investments totaling $555.4 million. Core FFO guidance for 2022 was raised to a range between $2.93 and $3.00 per share. The company ended the year with $171.3 million in cash.

Positive

• Revenues increased to $726.4 million in 2021, up from $660.7 million in 2020.
• Net earnings available to common stockholders rose to $264.2 million.
• Annual dividend per common share increased to $2.10, marking 32 consecutive years of increases.
• Maintained a high occupancy level of 99% with a weighted average lease term of 10.6 years.
• $555.4 million in property investments, including 156 properties acquired.
• Core FFO guidance for 2022 increased to a range of $2.93 to $3.00 per share.

Negative

• Incurred $7,034 in write-offs for receivables in 2020, impacting net earnings.
• COVID-19 rent deferral lease amendments included deferred rents of $4.76 million.
• Rent deferrals required repayment at a later date, creating future cash flow uncertainties.

ORLANDO, Fla., Feb. 9, 2022 /PRNewswire/ -- National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2021.  Highlights include:

Operating Results:

• Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:

		Quarter Ended								Year Ended
		December 31,								December 31,
		2021				2020				2021				2020
		(in thousands, except per share data)
Revenues		$	187,261			$	163,284			$	726,407			$	660,681
Net earnings available to common stockholders		$	65,129			$	56,802		(1)	$	264,217			$	210,859		(1)
Net earnings per common share		$	0.37			$	0.33		(1)	$	1.51			$	1.22		(1)
FFO available to common stockholders		$	120,529			$	107,565			$	467,833			$	428,236
FFO per common share		$	0.69			$	0.62			$	2.68			$	2.49
Core FFO available to common stockholders		$	131,426			$	109,331			$	500,058			$	446,681
Core FFO per common share		$	0.75			$	0.63			$	2.86			$	2.59
AFFO available to common stockholders		$	135,132		(2)	$	119,764		(3)	$	534,792		(2)	$	431,444		(3)
AFFO per common share		$	0.77		(2)	$	0.69		(3)	$	3.06		(2)	$	2.51		(3)

(1)	Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
(2)	Amounts include ($2,949) and ($24,945) of net straight-line accrued rent from net rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and year ended December 31, 2021, respectively. Excluding such, AFFO per common share would have been $0.76 and $2.92 for the quarter and year ended December 31, 2021, respectively.
(3)	Amounts include ($2,507) and $30,474 of net straight-line accrued rent from net rent deferrals (repayments) from the COVID-19 rent deferral lease amendments for the quarter and year ended December 31, 2020, respectively. Excluding such, AFFO per common share results would have been $0.68 and $2.68 for the quarter and year ended December 31, 2020, respectively.

2021 Highlights:

• Dividend yield of 4.4% at December 31, 2021
• Annual dividend per common share increased to $2.10 marking the 32^nd consecutive year of annual dividend increases - the third longest record of consecutive annual dividend increases of all public REITs and 99% of all public companies
• Maintained high occupancy levels at 99.0%, with a weighted average remaining lease term of 10.6 years, at December 31, 2021 as compared to 98.6% at September 30, 2021, and 98.5% at December 31, 2020
• $555.4 million in property investments, including the acquisition of 156 properties with aggregate gross leasable area of approximately 1,341,000 square feet at an initial cash yield of 6.5%, with a weighted average remaining lease term of 18.2 years
• Sold 74 properties for $122.0 million, producing $23.1 million of gains on sale, at a cap rate of 7.4%
• Raised $3.8 million in net proceeds from issuance of 92,577 common shares
• Issued $450 million principal amount of 3.500% senior unsecured notes due 2051
• Issued $450 million principal amount of 3.000% senior unsecured notes due 2052
• Redeemed $350 million principal amount of 3.300% senior unsecured notes due 2023
• Redeemed all 13,800,000 depositary shares of its 5.200% Series F Preferred Stock for an aggregate redemption price of $25.111944 per depository share
• Weighted average debt maturity increased to 14.7 years (from 10.2 years at December 31, 2020)
• Expanded line of credit borrowing capacity from $900 million to $1.1 billion, reduced pricing from LIBOR plus 87.5 basis points to LIBOR plus 77.5 basis points, and extended maturity to June 2025
• Ended the year with $171.3 million of cash and no amounts drawn on the $1.1 billion bank credit facility
• 99.8% of properties are unencumbered with secured mortgage debt
• Total average annual shareholder return of 12% over the past 25 years exceeds industry and general equity averages

Fourth Quarter 2021 Highlights:

• As of January 31, 2022, NNN had collected approximately 99.4% of rent originally due for the quarter ended December 31, 2021
• $100.0 million in property investments, including the acquisition of 49 properties with an aggregate gross leasable area of approximately 251,000 square feet at an initial cash yield of 6.4%, with a weighted average remaining lease term of 19.4 years
• Sold 21 properties with net proceeds of $51.0 million, producing $5.2 million of gains on sales at a cap rate of 8.0%
• Raised $0.7 million in net proceeds from the issuance of 15,911 common shares

NNN entered into rent deferral lease amendments with certain tenants for an aggregate $4,758,000 and $52,019,000 of rent originally due for the year ending December 31, 2021 and 2020, respectively. The rent deferral lease amendments required the deferred rents to be repaid at a later time during the lease term.  Approximately $31,776,000 and $3,259,000 of the deferred rent was repaid in 2021 and 2020, respectively. 

Core FFO guidance for 2022 was increased from a range of $2.90 to $2.97 per share to a range of $2.93 to $3.00 per share. The 2022 AFFO is estimated to be $3.01 to $3.07 per share. The Core FFO guidance equates to net earnings of $1.76 to $1.82 per share, plus $1.18 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, charges for impairments and executive retirement costs. The 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 Securities and Exchange Commission.

Jay Whitehurst, Chief Executive Officer, commented: "2021 was an outstanding year for National Retail Properties.  Every aspect of our business is in great position to address the future.  From a balance sheet that has tremendous capacity to fund new investments, to tenant relationships that generate high quality investments and stable long-term cash flow, to management and board leadership enhancements that put the right people in the right seats for the long-term, National Retail Properties is well-positioned to continue its consistent growth and success."

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases.  As of December 31, 2021, the company owned 3,223 properties in 48 states with a gross leasable area of approximately 32,753,000 million square feet and with a weighted average remaining lease term of 10.6 years.  For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on February 9, 2022, at 10:30 a.m. ET to review these results.  The call can be accessed on the National Retail Properties web site live at http://www.nnnreit.com.  For those unable to listen to the live broadcast, a replay will be available on the company's web site.  In addition, a summary of any earnings guidance given on the call will be posted to the company's web site.

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, the potential impacts of the COVID-19 pandemic on the company's business operations, financial results and financial position and on the world economy, general economic conditions, 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 and risks related to the company's status as a REIT.  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 Securities and Exchange Commission (the "Commission") filings, including, but not limited to, the company's Annual Report on Form 10-K.  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.  National Retail Properties, 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.

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 National Association of Real 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 and noncontrolling interests on the disposition of certain assets, the company's share of these items from the company's unconsolidated partnerships and any impairment charges on a depreciable real estate asset.

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 like transaction related gains, income or expense, impairments on land or commercial mortgage residual interests, preferred stock redemption costs, loss on early extinguishment of debt 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.

 

National Retail Properties, Inc.
Income Statement Summary
(in thousands, except per share data)
(unaudited)
		Quarter Ended								Year Ended
		December 31,								December 31,
		2021				2020				2021				2020
Revenues:
Rental income		$	186,633			$	162,902			$	723,859			$	658,793
Interest and other income from real estate transactions			628				382				2,548				1,888
			187,261				163,284				726,407				660,681
Operating expenses:
General and administrative			9,947				9,247				44,640				38,161
Real estate			7,520				8,059				28,385				28,362
Depreciation and amortization			53,389				49,095				205,220				196,623
Leasing transaction costs			57				40				203				76
Impairment losses – real estate, net of recoveries			7,310				4,380				21,957				37,442
Executive retirement costs			—				1,766				—				1,766
			78,223				72,587				300,405				302,430
Gain on disposition of real estate			5,159				2,601				23,094				16,238
Earnings from operations			114,197				93,298				449,096				374,489
Other expenses (revenues):
Interest and other income			(57)				(73)				(216)				(417)
Interest expense			36,684				32,084				137,874		(1)		129,431		(2)
Loss on early extinguishment of debt			—				—				21,328				16,679
			36,627				32,011				158,986				145,693
Net earnings			77,570				61,287				290,110				228,796
Loss attributable to noncontrolling interests			—				—				3				3
Net earnings attributable to NNN			77,570				61,287				290,113				228,799
Series F preferred stock dividends			(1,544)				(4,485)				(14,999)				(17,940)
Excess of redemption value over carrying value of     preferred shares redeemed			(10,897)				—				(10,897)				—
Net earnings available to common stockholders		$	65,129			$	56,802			$	264,217			$	210,859
Weighted average common shares outstanding:
Basic			174,750				173,310				174,711				172,110
Diluted			174,868				173,453				174,819				172,217
Net earnings per share available to common stockholders:
Basic		$	0.37			$	0.33			$	1.51			$	1.22
Diluted		$	0.37			$	0.33			$	1.51			$	1.22

(1)	Includes $2,078 in connection with the redemption of 3.30% senior unsecured notes due 2023 for the year ended December 31, 2021
(2)	Includes $2,291 in connection with the redemption of 3.80% senior unsecured notes due 2022 for the year ended December 31, 2020

 

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)
		Quarter Ended								Year Ended
		December 31,								December 31,
		2021				2020				2021				2020
Funds From Operations (FFO) Reconciliation:
Net earnings available to common stockholders		$	65,129			$	56,802		(1)	$	264,217			$	210,859		(1)
Real estate depreciation and amortization			53,249				48,984				204,753				196,173
Gain on disposition of real estate			(5,159)				(2,601)				(23,094)				(16,238)
Impairment losses – depreciable real estate, net of     recoveries			7,310				4,380				21,957				37,442
Total FFO adjustments			55,400				50,763				203,616				217,377
FFO available to common stockholders		$	120,529			$	107,565			$	467,833			$	428,236
FFO per common share:
Basic		$	0.69			$	0.62			$	2.68			$	2.49
Diluted		$	0.69			$	0.62			$	2.68			$	2.49
Core Funds From Operations (Core FFO) Reconciliation:
Net earnings available to common stockholders		$	65,129			$	56,802		(1)	$	264,217			$	210,859		(1)
Total FFO adjustments			55,400				50,763				203,616				217,377
FFO available to common stockholders			120,529				107,565				467,833				428,236
Executive retirement costs			—				1,766				—				1,766
Loss on early extinguishment of debt			—				—				21,328				16,679
Excess of redemption value over carrying value of     preferred shares redeemed			10,897				—				10,897				—
Total Core FFO adjustments			10,897				1,766				32,225				18,445
Core FFO available to common stockholders		$	131,426			$	109,331			$	500,058			$	446,681
Core FFO per common share:
Basic		$	0.75			$	0.63			$	2.86			$	2.60
Diluted		$	0.75			$	0.63			$	2.86			$	2.59

(1)	Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.

 

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)
		Quarter Ended								Year Ended
		December 31,								December 31,
		2021				2020				2021				2020
Adjusted Funds From Operations (AFFO) Reconciliation:
Net earnings available to common stockholders		$	65,129			$	56,802		(1)	$	264,217			$	210,859		(1)
Total FFO adjustments			55,400				50,763				203,616				217,377
Total Core FFO adjustments			10,897				1,766				32,225				18,445
Core FFO available to common stockholders			131,426				109,331				500,058				446,681
Straight-line accrued rent, net of reserves			2,046				7,437				21,137				(26,027)
Net capital lease rent adjustment			79				66				340				210
Below-market rent amortization			(280)				(175)				(710)				(887)
Stock based compensation expense			1,975				3,275				14,295				12,855
Capitalized interest expense			(114)				(170)				(328)				(1,388)
Total AFFO adjustments			3,706				10,433				34,734				(15,237)
AFFO available to common stockholders		$	135,132		(2)	$	119,764		(3)	$	534,792		(2)	$	431,444		(3)
AFFO per common share:
Basic		$	0.77		(2)	$	0.69		(3)	$	3.06		(2)	$	2.51		(3)
Diluted		$	0.77		(2)	$	0.69		(3)	$	3.06		(2)	$	2.51		(3)
Other Information:
Rental income from operating leases(4)		$	181,078			$	157,408			$	703,865			$	639,265
Earned income from direct financing leases(4)		$	154			$	160			$	623			$	647
Percentage rent(4)		$	176			$	114			$	706			$	842
Real estate expense reimbursement from tenants(4)		$	5,225			$	5,220			$	18,665			$	18,039
Real estate expenses			(7,520)				(8,059)				(28,385)				(28,362)
Real estate expenses, net of tenant reimbursements		$	(2,295)			$	(2,839)			$	(9,720)			$	(10,323)
Amortization of debt costs		$	1,164			$	1,085			$	5,186			$	5,009
Scheduled debt principal amortization (excluding    maturities)		$	161			$	153			$	630			$	596
Non-real estate depreciation expense		$	116			$	114			$	451			$	461

(1)	Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
(2)	Amounts include ($2,949) and ($24,945) of net straight-line accrued rent from net rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and year ended December 31, 2021, respectively. Excluding such, AFFO per common share would have been $0.76 and $2.92 for the quarter and year ended December 31, 2021, respectively.
(3)	Amounts include ($2,507) and $30,474 of net straight-line accrued net rent deferrals (repayments) from the COVID-19 rent deferral lease amendments for the quarter and year ended December 31, 2020, respectively. Excluding such, AFFO per common share results would have been $0.68 and $2.68 for the quarter and year ended December 31, 2020, respectively.
(4)	For the quarter and year ended December 31, 2021, the aggregate of such amounts is $186,633 and $723,859, respectively, classified as rental income on the income statement summary. For the quarter and year ended December 31, 2020, the aggregate of such amounts is $162,902 and $658,793, respectively.

 

 

2022 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.
		2022 Guidance
Net earnings per common share excluding any gains on disposition     of real estate, impairment charges, and executive retirement costs		$1.76 - $1.82 per share
Real estate depreciation and amortization per share		$1.18 per share
Core FFO per share		$2.93 - $3.00 per share
AFFO per share(1)		$3.01 - $3.07 per share
General and administrative expenses		$42 - $44 Million
Real estate expenses, net of tenant reimbursements		$10 - $12 Million
Acquisition volume		$550 - $650 Million
Disposition volume		$80 - $100 Million

(1)	Estimates include the net straight-line accrued rent impact of the net rent repayment from the COVID-19 rent deferral lease amendments of $5.4 million for 2022. Excluding such, AFFO per common share guidance would have been $2.98 - $3.04 for 2022.

 

National Retail Properties, Inc.
Balance Sheet Summary
(in thousands)
(unaudited)
		December 31, 2021				December 31, 2020
Assets:
Real estate portfolio		$	7,444,289			$	7,212,655
Real estate held for sale			5,557				5,671
Cash and cash equivalents			171,322				267,236
Receivables, net of allowance of $782 and $835, respectively			3,154				4,338
Accrued rental income, net of allowance of $4,587 and $6,947, respectively			31,942				53,958
Debt costs, net of accumulated amortization of $19,377 and $17,294, respectively			7,443				1,917
Other assets			87,347				92,069
Total assets		$	7,751,054			$	7,637,844
Liabilities:
Line of credit payable		$	—			$	—
Mortgages payable, including unamortized premium and net of unamortized debt costs			10,697				11,395
Notes payable, net of unamortized discount and unamortized debt costs			3,735,769				3,209,527
Accrued interest payable			23,923				19,401
Other liabilities			79,002				78,217
Total liabilities			3,849,391				3,318,540
Stockholders' equity of NNN			3,901,662				4,319,300
Noncontrolling interests			1				4
Total equity			3,901,663				4,319,304
Total liabilities and equity		$	7,751,054			$	7,637,844
Common shares outstanding			175,636				175,233
Gross leasable area, Property Portfolio (square feet)			32,753				32,461

 

 

National Retail Properties, Inc.
Debt Summary
As of December 31, 2021
(in thousands)
(unaudited)
Unsecured Debt		Principal				Principal, Net of Unamortized Discount				Stated Rate				Effective Rate				Maturity Date
Line of credit payable		$	—			$	—			L + 77.5 bps					—	%		June 2025
Unsecured notes payable:
2024			350,000				349,801				3.900	%			3.924	%		June 2024
2025			400,000				399,583				4.000	%			4.029	%		November 2025
2026			350,000				347,909				3.600	%			3.733	%		December 2026
2027			400,000				398,995				3.500	%			3.548	%		October 2027
2028			400,000				397,944				4.300	%			4.388	%		October 2028
2030			400,000				398,921				2.500	%			2.536	%		April 2030
2048			300,000				295,982				4.800	%			4.890	%		October 2048
2050			300,000				294,160				3.100	%			3.205	%		April 2050
2051			450,000				441,721				3.500	%			3.602	%		April 2051
2052			450,000				439,636				3.000	%			3.118	%		April 2052
Total			3,800,000				3,764,652
Total unsecured debt(1)		$	3,800,000			$	3,764,652
Debt costs						$	(38,145)
Accumulated amortization							9,262
Debt costs, net of accumulated amortization							(28,883)
Notes payable, net of unamortized discount and     unamortized debt costs						$	3,735,769

(1)	Unsecured notes payable have a weighted average interest rate of 3.7% and a weighted average maturity of 14.7 years

 

Mortgages Payable		Principal Balance				Interest Rate				Maturity Date
Mortgage(1)		$	10,719				5.230	%		July 2023
Debt costs			(147)
Accumulated amortization			125
Debt costs, net of accumulated amortization			(22)
Mortgages payable, including unamortized    premium and net of unamortized debt costs		$	10,697

(1)	Includes unamortized premium

 

 

National Retail Properties, Inc.
Debt Summary
As of December 31, 2021
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 U.S. GAAP measurements, are presented to investors to show that as of December 31, 2021, the company believes it is in compliance with the covenants.
Unsecured Credit Facility Key Covenants		Required		December 31, 2021
Maximum leverage ratio		< 0.60		0.37
Minimum fixed charge coverage ratio		> 1.50		4.48
Maximum secured indebtedness ratio		< 0.40		N/C
Unencumbered asset value ratio		> 1.67		2.78
Unencumbered interest ratio		> 1.75		4.94
Unsecured Notes Key Covenants		Required		December 31, 2021
Limitation on incurrence of total debt		≤ 60%		40.6%
Limitation on incurrence of secured debt		≤ 40%		0.1%
Debt service coverage ratio		≥ 1.50		4.57
Maintenance of total unencumbered assets		≥ 150%		246%

 

 

National Retail Properties, Inc.
Property Portfolio
Top 20 Lines of Trade
				As of December 31,				% of Rent Collections Quarter Ended December 31,
		Lines of Trade		2021(1)		2020(2)		2021(3)
1.		Convenience stores		17.9%		18.2%		100.0%
2.		Automotive service		12.3%		10.3%		99.5%
3.		Restaurants – full service		9.8%		10.5%		97.3%
4.		Restaurants – limited service		9.4%		9.7%		99.6%
5.		Family entertainment centers		5.9%		5.9%		99.9%
6.		Health and fitness		5.2%		5.3%		98.9%
7.		Theaters		4.5%		4.4%		99.9%
8.		Recreational vehicle dealers, parts and accessories		3.9%		3.5%		99.9%
9.		Equipment rental		3.2%		2.6%		100.0%
10.		Automotive parts		3.0%		3.1%		99.7%
11.		Wholesale clubs		2.5%		2.6%		100.0%
12.		Home improvement		2.5%		2.6%		100.0%
13.		Medical service providers		2.0%		2.2%		98.4%
14.		Furniture		1.7%		1.7%		100.0%
15.		General merchandise		1.7%		1.7%		100.0%
16.		Consumer electronics		1.5%		1.5%		100.0%
17.		Home furnishings		1.5%		1.6%		100.0%
18.		Travel plazas		1.5%		1.5%		98.9%
19.		Automobile auctions, wholesale		1.3%		1.1%		99.9%
20.		Drug stores		1.3%		1.5%		100.0%
		Other		7.4%		8.5%		98.4%
		Total		100.0%		100.0%		99.4%

 

 

Top 10 States
		State		% of Total(1)				State		% of Total(1)
1.		Texas		16.9%		6.		Georgia		4.6%
2.		Florida		8.6%		7.		Indiana		4.0%
3.		Ohio		5.5%		8.		Tennessee		3.8%
4.		Illinois		5.5%		9.		Virginia		3.4%
5.		North Carolina		4.7%		10.		California		3.3%

As a percentage of annual base rent, which is the annualized base rent for all leases in place.
		(1) $713,169,000 as of December 31, 2021.
		(2) $675,120,000 as of December 31, 2020.
(3)		Rent collections received as of January 31, 2022, excluding the repayment of amounts previously deferred according to the rent deferral lease amendments.

 

 

 

National Retail Properties, Inc.
Property Portfolio
Top 20 Tenants
		Tenant		# of Properties		% of Total(1)
1.		7-Eleven		139		4.9%
2.		Mister Car Wash		121		4.6%
3.		Camping World		44		3.8%
4.		LA Fitness		30		3.7%
5.		GPM Investments (Convenience Stores)		152		3.2%
6.		Flynn Restaurant Group (Taco Bell/Arby's)		204		3.1%
7.		AMC Theatre		20		2.9%
8.		Couche Tard (Pantry)		82		2.7%
9.		BJ's Wholesale Club		12		2.5%
10.		Sunoco		59		2.1%
11.		Mavis Tire Express Services		123		2.1%
12.		Frisch's Restaurants		69		1.9%
13.		Main Event		18		1.8%
14.		Fikes (Convenience Stores)		59		1.7%
15.		Chuck E. Cheese's		53		1.5%
16.		Life Time Fitness		3		1.5%
17.		Best Buy		16		1.5%
18.		Bob Evans		106		1.5%
19.		Dave & Buster's		11		1.4%
20.		Pull-A-Part		20		1.3%

 

 

Lease Expirations(3)
		% of Total(1)		# of Properties		Gross Leasable Area (2)				% of Total(1)		# of Properties		Gross Leasable Area (2)
2022		2.8%		75		739,000		2028		4.7%		157		1,245,000
2023		2.6%		113		1,402,000		2029		2.8%		71		987,000
2024		3.3%		93		1,455,000		2030		3.7%		106		1,194,000
2025		5.9%		192		2,013,000		2031		8.3%		190		2,781,000
2026		5.5%		217		2,139,000		2032		5.1%		165		1,396,000
2027		8.5%		224		3,375,000		Thereafter		46.8%		1,586		13,669,000

(1)	Based on the annual base rent of $713,169,000, which is the annualized base rent for all leases in place as of December 31, 2021.
(2)	Square feet.
(3)	As of December 31, 2021, the weighted average remaining lease term is 10.6 years.

 

 

National Retail Properties, Inc.
Rent Deferral Lease Amendments
(in thousands)
The following table outlines the rent deferred and corresponding scheduled repayment by quarter of the rent deferral lease amendments executed as of December 31, 2021 (dollars in thousands):
			Deferred																	Scheduled Repayment
			Accrual Basis				Cash Basis				Total				% of Total					Accrual Basis				Cash Basis				Total				% of Total				Cumulative Total
2020			$	33,594			$	18,425			$	52,019				91.7	%			$	3,239			$	20			$	3,259				5.7	%			5.7	%
2021	Q1			678				2,018				2,696				4.7	%				10,059				610				10,669				18.8	%			24.5	%
	Q2			278				750				1,028				1.8	%				8,599				1,751				10,350				18.2	%			42.7	%
	Q3			34				750				784				1.4	%				4,328				1,740				6,068				10.7	%			53.4	%
	Q4			—				250				250				0.4	%				2,949				1,740				4,689				8.3	%			61.7	%
				990				3,768				4,758				8.3	%				25,935				5,841				31,776				56.0	%			61.7	%
2022	Q1			—				—				—				—					1,780				2,283				4,063				7.2	%			68.9	%
	Q2			—				—				—				—					1,729				2,284				4,013				7.1	%			76.0	%
	Q3			—				—				—				—					1,201				2,284				3,485				6.1	%			82.1	%
	Q4			—				—				—				—					681				2,284				2,965				5.2	%			87.3	%
				—				—				—				—					5,391				9,135				14,526				25.6	%			87.3	%
2023				—				—				—				—					19				3,334				3,353				5.9	%			93.2	%
2024				—				—				—				—					—				1,932				1,932				3.4	%			96.6	%
2025				—				—				—				—					—				1,931				1,931				3.4	%			100.0	%
			$	34,584			$	22,193			$	56,777								$	34,584			$	22,193			$	56,777

 

 

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SOURCE National Retail Properties, Inc.

FAQ

What were the revenue figures for National Retail Properties (NNN) in 2021?

National Retail Properties reported revenues of $726.4 million for the year ended December 31, 2021.

How much did the annual dividend increase for NNN in 2021?

The annual dividend per common share for NNN increased to $2.10 in 2021.

What is the occupancy rate for National Retail Properties (NNN) as of December 31, 2021?

The occupancy rate for NNN was maintained at 99% as of December 31, 2021.

What is the Core FFO guidance for National Retail Properties (NNN) for 2022?

The Core FFO guidance for NNN in 2022 was raised to a range of $2.93 to $3.00 per share.