Second Quarter 2021 Operating Results And Increased 2021 Guidance Announced By National Retail Properties, Inc.

Rhea-AI Summary

National Retail Properties reported solid operating results for Q2 and H1 2021, with revenues of $179 million for the quarter and $358 million year-to-date. Net earnings surged to $68.5 million for the quarter, up from $41.8 million YoY. The company maintained high occupancy at 98.3% and collected about 99% of rent due. NNN invested $102.9 million in property acquisitions and expanded its credit line to $1.1 billion. Core FFO guidance for 2021 was raised to $2.75-$2.80 per share, showcasing a positive outlook for continued growth.

Positive

• Revenues increased to $179 million for Q2 2021, up from $163.7 million in Q2 2020.
• Net earnings rose to $68.5 million for Q2 2021 compared to $41.8 million YoY.
• High occupancy levels maintained at 98.3% with a weighted average lease term of 10.6 years.
• Invested $102.9 million in property acquisitions with a 6.7% initial cash yield.
• Core FFO guidance increased to $2.75-$2.80 per share for 2021.

Negative

• None.

ORLANDO, Fla., Aug. 3, 2021 /PRNewswire/ -- National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and six months ended June 30, 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								Six Months Ended
	June 30,								June 30,
	2021				2020				2021				2020
	(in thousands, except per share data)
Revenues	$	179,011			$	163,701			$	358,789			$	338,764
Net earnings available to common stockholders	$	68,538			$	41,780			$	120,640			$	102,473
Net earnings per common share	$	0.39			$	0.24			$	0.69			$	0.60
FFO available to common stockholders	$	122,862			$	111,738			$	222,683			$	214,247
FFO per common share	$	0.70			$	0.65			$	1.27			$	1.25
Core FFO available to common stockholders	$	122,862			$	111,738			$	244,011			$	230,926
Core FFO per common share	$	0.70			$	0.65			$	1.40			$	1.35
AFFO available to common stockholders	$	134,375		(1)	$	83,240		(2)	$	267,908		(1)	$	204,990		(2)
AFFO per common share	$	0.77		(1)	$	0.49		(2)	$	1.53		(1)	$	1.20		(2)
(1)   Amounts include $8,323 and $17,706 of net straight-line accrued rent from rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and six months ended June 30, 2021, respectively. Excluding such, AFFO per common share would have been $0.72 and $1.43 for the quarter and six months ended June 30, 2021, respectively.
(2)   Amounts exclude $30,223 of net straight-line accrued rent from rent deferral repayments from the COVID-19 rent deferral lease amendments. Including such, AFFO per common share would have been $0.66 and $1.37 for the quarter and six months ended June 30, 2020, respectively.

Second Quarter 2021 Highlights:

• As of July 28, 2021, NNN had collected approximately 99% of rent originally due for the quarter ended June 30, 2021, and approximately 99% of rent originally due in July 2021
• Maintained high occupancy levels at 98.3%, with a weighted average remaining lease term of 10.6 years, at June 30, 2021 as compared to 98.3% at March 31, 2021 and 98.5% at December 31, 2020
• Invested $102.9 million in property investments, including the acquisition of 29 properties with an aggregate 173,000 square feet of gross leasable area at an initial cash yield of 6.7%
• Sold 15 properties for $22.9 million producing $4.2 million of gains on sales
• 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 quarter with $249.6 million of cash and no amounts drawn on the $1.1 billion bank credit facility

First Half of 2021 Highlights:

• Invested $208.6 million in property investments, including the acquisition of 58 properties with an aggregate 528,000 square feet of gross leasable area at an initial cash yield of 6.5%
• Sold 26 properties for $40.4 million producing $8.5 million of gains on sales
• Raised $2.4 million net proceeds from the issuance of 61,430 common shares
• Issued $450 million principal amount of 3.500% senior unsecured notes due 2051
• Redeemed $350 million principal amount of 3.300% senior unsecured notes due 2023
• Weighted average debt maturity increased to 13.0 years

NNN has entered into rent deferral lease amendments with certain tenants for an aggregate $51,799,000 and $4,758,000 of rent originally due for the years ended December 31, 2020 and December 31, 2021, respectively. The rent deferral lease amendments require the deferred rents to be repaid at a later time during the lease term. Approximately $3,259,000 of deferred rent was repaid in 2020 and approximately $21,151,000 of deferred rent was repaid in the six months ending June 30, 2021.

Core FFO guidance for 2021 was increased from a range of $2.70 to $2.75 to a range of $2.75 to $2.80 per share. The 2021 AFFO is estimated to be $2.95 to $3.00 per share. The Core FFO guidance equates to net earnings of $1.60 to $1.65 per share, plus $1.15 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate and any charges for impairments or loss on early extinguishment of debt. 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: "National Retail Properties produced another quarter of strong results, driven by continued high occupancy, impressive rent collections and solid acquisitions from relationship tenants, all supported by a low leverage, flexible balance sheet. In addition to our recently announced increase in the common stock dividend, thus making 2021 our 32nd consecutive year of increased annual dividends, we are pleased today to increase our guidance for 2021 Core FFO per share, reflecting a return to our pre-pandemic strategy to generate consistent mid-single digits per share growth on a multi-year basis. With almost $250M of cash in the bank and no material debt maturities until 2024, we are well positioned for the balance of 2021 and beyond."

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases.  As of June 30, 2021, the company owned 3,173 properties in 48 states with a gross leasable area of approximately 32.7 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 August 3, 2021, 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 (i) Annual Report on Form 10-K for the year ended December 31, 2020 and (ii) Quarterly Report on Form 10-Q for the quarter and six months ended June 30, 2021.  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 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.
(in thousands, except per share data)
(unaudited)
		Quarter Ended								Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2020
Income Statement Summary
Revenues:
Rental income		$	178,004			$	163,479			$	357,202			$	338,026
Interest and other income from real estate transactions		1,007				222				1,587				738
		179,011				163,701				358,789				338,764
Operating expenses:
General and administrative		11,868				9,395				23,616				19,495
Real estate		6,619				6,323				14,344				13,959
Depreciation and amortization		50,875				48,936				100,855				98,124
Leasing transaction costs		22				—				60				36
Impairment losses – real estate, net of recoveries		7,735				21,854				9,866				27,367
		77,119				86,508				148,741				158,981
Gain on disposition of real estate		4,181				719				8,462				13,489
Earnings from operations		106,073				77,912				218,510				193,272
Other expenses (revenues):
Interest and other income		(33)				(106)				(98)				(271)
Interest expense		33,085				31,753				67,672			(1)	65,423			(2)
Loss on early extinguishment of debt		—				—				21,328				16,679
		33,052				31,647				88,902				81,831
Net earnings		73,021				46,265				129,608				111,441
Loss attributable to noncontrolling interests		2				—				2				2
Net earnings attributable to NNN		73,023				46,265				129,610				111,443
Series F preferred stock dividends		(4,485)				(4,485)				(8,970)				(8,970)
Net earnings available to common stockholders		$	68,538			$	41,780			$	120,640			$	102,473
Weighted average common shares outstanding:
Basic		174,611				171,389				174,600				171,214
Diluted		174,727				171,485				174,733				171,374
Net earnings per share available to common stockholders:
Basic		$	0.39			$	0.24			$	0.69			$	0.60
Diluted		$	0.39			$	0.24			$	0.69			$	0.60
(1) Includes $2,078 in connection with the redemption of 3.30% senior unsecured notes due 2023 for the six months ended June 30, 2021.
(2) Includes $2,291 in connection with the redemption of 3.80% senior unsecured notes due 2022 for the six months ended June 30, 2020.

 

National Retail Properties, Inc. (in thousands, except per share data) (unaudited)
		Quarter Ended								Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2020
Funds From Operations (FFO) Reconciliation:
Net earnings available to common stockholders		$	68,538			$	41,780			$	120,640			$	102,473
Real estate depreciation and amortization		50,770				48,823				100,639				97,896
Gain on disposition of real estate		(4,181)				(719)				(8,462)				(13,489)
Impairment losses – depreciable real estate, net of recoveries		7,735				21,854				9,866				27,367
Total FFO adjustments		54,324				69,958				102,043				111,774
FFO available to common stockholders		$	122,862			$	111,738			$	222,683			$	214,247
FFO per common share:
Basic		$	0.70			$	0.65			$	1.28			$	1.25
Diluted		$	0.70			$	0.65			$	1.27			$	1.25
Core Funds From Operations (Core FFO) Reconciliation:
Net earnings available to common stockholders		$	68,538			$	41,780			$	120,640			$	102,473
Total FFO adjustments		54,324				69,958				102,043				111,774
FFO available to common stockholders		122,862				111,738				222,683				214,247
Loss on early extinguishment of debt		—				—				21,328				16,679
Total Core FFO adjustments		—				—				21,328				16,679
Core FFO available to common stockholders		$	122,862			$	111,738			$	244,011			$	230,926
Core FFO per common share:
Basic		$	0.70			$	0.65			$	1.40			$	1.35
Diluted		$	0.70			$	0.65			$	1.40			$	1.35

 

National Retail Properties, Inc. (in thousands, except per share data) (unaudited)
		Quarter Ended								Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2020
Adjusted Funds From Operations (AFFO) Reconciliation:
Net earnings available to common stockholders		$	68,538			$	41,780			$	120,640			$	102,473
Total FFO adjustments		54,324				69,958				102,043				111,774
Total Core FFO adjustments		—				—				21,328				16,679
Core FFO available to common stockholders		122,862				111,738				244,011				230,926
Straight-line accrued rent, net of reserves		7,359				(30,984)				15,692				(31,045)
Net capital lease rent adjustment		95				22				185				83
Below-market rent amortization		(112)				(190)				(274)				(410)
Stock based compensation expense		4,235				3,074				8,421				6,322
Capitalized interest expense		(64)				(420)				(127)				(886)
Total AFFO adjustments		11,513				(28,498)				23,897				(25,936)
AFFO available to common stockholders		$	134,375		(1)	$	83,240		(2)	$	267,908		(1)	$	204,990		(2)
AFFO per common share:
Basic		$	0.77		(1)	$	0.49		(2)	$	1.53		(1)	$	1.20		(2)
Diluted		$	0.77		(1)	$	0.49		(2)	$	1.53		(1)	$	1.20		(2)
Other Information:
Rental income from operating leases(3)		$	173,371			$	159,300			$	346,954			$	328,033
Earned income from direct financing leases(3)		$	157			$	162			$	315			$	326
Percentage rent(3)		$	231			$	165			$	335			$	568
Real estate expense reimbursement from tenants(3)		$	4,245			$	3,852			$	9,598			$	9,099
Real estate expenses		(6,620)				(6,323)				(14,345)				(13,959)
Real estate expenses, net of tenant reimbursements		$	(2,375)			$	(2,471)			$	(4,747)			$	(4,860)
Amortization of debt costs		$	1,042			$	1,026			$	2,882		(4)	$	2,842		(5)
Scheduled debt principal amortization (excluding maturities)		$	155			$	147			$	312			$	294
Non-real estate depreciation expense		$	108			$	115			$	222			$	233

(1)	Amounts include the net straight-line accrued rent impact of the rent deferral repayments from the COVID-19 rent deferral lease amendments of $8,323 and $17,706 for the quarter and six months ended June 30, 2021, respectively. Excluding such, AFFO per common share would have been $0.72 and $1.43 for the quarter and six months ended June 30, 2021, respectively.
(2)	Amounts exclude $30,223 of straight-line accrued rent from rent deferral repayments from the COVID-19 rent deferral lease amendments. Including such, AFFO per common share would have been $0.66 and $1.37 for the quarter and six months ended June 30, 2020, respectively.
(3)	For the quarter and six months ended June 30, 2021, the aggregate of such amounts is $178,004 and $357,202, respectively, and is classified as rental income on the income statement summary. For the quarter and six months ended June 30, 2020, the aggregate of such amounts is $163,479 and $338,026, respectively.
(4)	Includes $745 in connection with the redemption of the 3.30% senior unsecured notes due 2023 for the six months ended June 30, 2021.
(5)	Includes $851 in connection with the redemption of the 3.80% senior unsecured notes due 2022 for the six months ended June 30, 2020.

 

2021 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.
		2021 Guidance
Net earnings per common share excluding any gains on disposition of real estate, impairment charges and loss on early extinguishment of debt		$1.60 - $1.65 per share
Real estate depreciation and amortization per share		$1.15 per share
Core FFO per share		$2.75 - $2.80 per share
AFFO per share(1)		$2.95 - $3.00 per share
General and administrative expenses		$46 - $48 Million
Real estate expenses, net of tenant reimbursements		$10 - $12 Million
Acquisition volume		$400 - $500 Million
Disposition volume		$80 - $100 Million

(1)	Estimates include the net straight-line accrued rent impact of the rent repayment from the COVID-19 rent deferral lease amendments of $24,953,000 for 2021. Absent such, AFFO per common share guidance would have been $2.81 - $2.86 per share for 2021.

 

National Retail Properties, Inc.
(in thousands)
(unaudited)
		June 30, 2021				December 31, 2020
Balance Sheet Summary
Assets:
Real estate portfolio		$	7,270,513			$	7,212,655
Real estate held for sale		12,736				5,671
Cash and cash equivalents		249,558				267,236
Receivables, net of allowance of $779 and $835, respectively		3,613				4,338
Accrued rental income, net of allowance of $5,294 and $6,947, respectively		37,870				53,958
Debt costs, net of accumulated amortization of $18,243 and $17,294, respectively		8,508				1,917
Other assets		93,002				92,069
Total assets		$	7,675,800			$	7,637,844
Liabilities:
Line of credit payable		$	—			$	—
Mortgages payable, including unamortized premium and net of unamortized debt cost		11,049				11,395
Notes payable, net of unamortized discount and unamortized debt costs		3,299,218				3,209,527
Accrued interest payable		21,816				19,401
Other liabilities		72,839				78,217
Total liabilities		3,404,922				3,318,540
Stockholders' equity of NNN		4,270,876				4,319,300
Noncontrolling interests		2				4
Total equity		4,270,878				4,319,304
Total liabilities and equity		$	7,675,800			$	7,637,844
Common shares outstanding		175,599				175,233
Gross leasable area, Property Portfolio (square feet)		32,664				32,461

 

National Retail Properties, Inc. Debt Summary As of June 30, 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				349,763				3.900	%		3.924	%		June 2024
2025		400,000				399,533				4.000	%		4.029	%		November 2025
2026		350,000				347,719				3.600	%		3.733	%		December 2026
2027		400,000				398,918				3.500	%		3.548	%		October 2027
2028		400,000				397,815				4.300	%		4.388	%		October 2028
2030		400,000				398,863				2.500	%		2.536	%		April 2030
2048		300,000				295,946				4.800	%		4.890	%		October 2048
2050		300,000				294,096				3.100	%		3.205	%		April 2050
2051		450,000				441,641				3.500	%		3.602	%		April 2051
Total		3,350,000				3,324,294
Total unsecured debt(1)		$	3,350,000			$	3,324,294
Debt costs						(33,178)
Accumulated amortization						8,102
Debt costs, net of accumulated amortization						(25,076)
Notes payable, net of unamortized discount and unamortized debt costs						$	3,299,218
(1)  Unsecured notes payable have a weighted average interest rate of 3.7% and a weighted average maturity of 13.0 years.

 

Mortgages Payable		Principal Balance				Interest Rate			Maturity Date
Mortgage(1)		$	11,080			5.230	%		July 2023
Debt costs		(147)
Accumulated amortization		116
Debt costs, net of accumulated amortization		(31)
Mortgages payable, including unamortized premium and net of unamortized debt costs		$	11,049
(1)   Includes unamortized premium

National Retail Properties, Inc.
Debt Summary
As of June 30, 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 June 30, 2021, the company believes it is in compliance with the covenants.

Unsecured Credit Facility Key Covenants		Required		June 30, 2021
Maximum leverage ratio		< 0.60		0.34
Minimum fixed charge coverage ratio		> 1.50		4.27
Maximum secured indebtedness ratio		< 0.40		0.001
Unencumbered asset value ratio		> 1.67		2.96
Unencumbered interest ratio		> 1.75		4.93
Unsecured Notes Key Covenants		Required		June 30, 2021
Limitation on incurrence of total debt		≤ 60%		36.5%
Limitation on incurrence of secured debt		≤ 40%		0.1%
Debt service coverage ratio		≥ 1.50		4.43
Maintenance of total unencumbered assets		≥ 150%		274%

 

National Retail Properties, Inc.
Property Portfolio
Top 20 Lines of Trade
										% of Rent Collections Quarter Ended June 30, 2021(3)
				As of June 30,
		Line of Trade		2021(1)			2020(2)
1.		Convenience stores		18.0	%		18.1	%		99.9	%
2.		Automotive service		11.4	%		10.2	%		99.7	%
3.		Restaurants – full service		9.9	%		10.6	%		93.9	%
4.		Restaurants – limited service		9.2	%		8.8	%		99.7	%
5.		Family entertainment centers		6.1	%		6.7	%		99.9	%
6.		Health and fitness		5.2	%		5.2	%		99.3	%
7.		Theaters		4.6	%		4.7	%		94.9	%
8.		Recreational vehicle dealers, parts and accessories		3.5	%		3.5	%		100.0	%
9.		Equipment rental		3.2	%		2.6	%		100.0	%
10.		Automotive parts		3.1	%		3.1	%		100.0	%
11.		Home improvement		2.6	%		2.6	%		100.0	%
12.		Wholesale clubs		2.5	%		2.5	%		100.0	%
13.		Medical service providers		2.2	%		2.1	%		98.6	%
14.		General merchandise		1.7	%		1.7	%		98.7	%
15.		Furniture		1.6	%		1.7	%		99.5	%
16.		Consumer electronics		1.6	%		1.5	%		100.0	%
17.		Home furnishings		1.6	%		1.6	%		100.0	%
18.		Travel plazas		1.5	%		1.5	%		100.0	%
19.		Drug stores		1.4	%		1.5	%		100.0	%
20.		Bank		1.3	%		1.3	%		100.0	%
		Other		7.8	%		8.5	%		98.6	%
		Total		100.0	%		100.0	%		98.9	%

 

Top 10 States
	State			% of Total(1)				State			% of Total(1)
1.	Texas			17.2	%		6.	Georgia			4.3	%
2.	Florida			8.9	%		7.	Indiana			3.9	%
3.	Ohio			5.6	%		8.	Tennessee			3.6	%
4.	Illinois			5.5	%		9.	California			3.4	%
5.	North Carolina			4.4	%		10.	Virginia			3.3	%
	As a percentage of annual base rent, which is the annualized base rent for all leases in place.
	(1) $689,364,000 as of June 30, 2021.
	(2) $676,538,000 as of June 30, 2020.
	(3) Rent collections received as of July 28, 2021, excluding the repayment of amounts previously deferred according to the rent deferral lease amendments.

 

National Retail Properties, Inc.
Property Portfolio
Top 20 Tenants
			Properties			% of Total(1)
1.	7-Eleven		139			5.0	%
2.	Mister Car Wash		120			4.7	%
3.	Camping World		47			4.3	%
4.	LA Fitness		30			3.8	%
5.	GPM Investments (Convenience Stores)		153			3.3	%
6.	Flynn Restaurant Group (Taco Bell/Arby's)		204			3.2	%
7.	AMC Theatre		20			3.0	%
8.	Couche Tard (Pantry)		83			2.7	%
9.	BJ's Wholesale Club		11			2.5	%
10.	Sunoco		59			2.2	%
11.	Mavis Tire Express Services		123			2.1	%
12.	Main Event		18			1.8	%
13.	Frisch's Restaurants		73			1.8	%
14.	Fikes (Convenience Stores)		56			1.6	%
15.	Chuck E. Cheese's		53			1.6	%
16.	Best Buy		16			1.5	%
17.	Bob Evans		106			1.5	%
18.	Life Time Fitness		3			1.4	%
19.	Dave & Buster's		11			1.4	%
20.	Ahern Rentals		35			1.4	%

 

Lease Expirations(2)
		% of Total(1)			# of Properties			Gross Leasable Area(3)					% of Total(1)			# of Properties			Gross Leasable Area(3)
2021		0.9	%		29			410,000			2027		6.5	%		179			2,638,000
2022		4.9	%		115			1,404,000			2028		4.7	%		156			1,178,000
2023		2.7	%		113			1,401,000			2029		3.0	%		74			1,041,000
2024		3.4	%		93			1,455,000			2030		3.7	%		105			1,185,000
2025		6.2	%		197			2,087,000			2031		8.8	%		198			2,966,000
2026		5.6	%		212			2,122,000			Thereafter		49.6	%		1,646			14,070,000

(1)	Based on the annual base rent of $689,364,000, which is the annualized base rent for all leases in place as of June 30, 2021.
(2)	As of June 30, 2021, the weighted average remaining lease term is 10.6 years.
(3)	Square feet.

 

National Retail Properties, Inc.
Rent Deferral Lease Amendments
(in thousands)
The following table outlines the rent deferred and corresponding recapture payback by quarter of the rent deferral lease amendments executed as of June 30, 2021 (dollars in thousands):
			Deferred																Scheduled Repayment
			Accrual Basis				Cash Basis				Total				% of Total				Accrual Basis				Cash Basis				Total				% of Total			Cumulative Total
2020			$	33,602			$	18,197			$	51,799			91.6	%			$	3,239			$	20			$	3,259			5.8	%		5.8	%
2021	Q1		678				2,018				2,696				4.8	%			10,061				674				10,735				19.0	%		24.8	%
	Q2		278				750				1,028				1.8	%			8,601				1,815				10,416				18.4	%		43.2	%
	Q3		34				750				784				1.4	%			4,330				1,804				6,134				10.8	%		54.0	%
	Q4		—				250				250				0.4	%			2,951				1,804				4,755				8.4	%		62.4	%
			990				3,768				4,758				8.4	%			25,943				6,097				32,040				56.6	%		62.4	%
2022	Q1		—				—				—				—				1,780				2,223				4,003				7.1	%		69.5	%
	Q2		—				—				—				—				1,729				2,223				3,952				7.0	%		76.5	%
	Q3		—				—				—				—				1,201				2,223				3,424				6.0	%		82.5	%
	Q4		—				—				—				—				681				2,223				2,904				5.1	%		87.6	%
			—				—				—				—				5,391				8,892				14,283				25.2	%		87.6	%
2023			—				—				—				—				19				3,092				3,111				5.4	%		93.0	%
2024			—				—				—				—				—				1,932				1,932				3.5	%		96.5	%
2025			—				—				—				—				—				1,932				1,932				3.5	%		100.0	%
			$	34,592			$	21,965			$	56,557							$	34,592			$	21,965			$	56,557

 

 

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SOURCE National Retail Properties, Inc.

FAQ

What are the Q2 2021 results for NNN?

National Retail Properties reported Q2 2021 revenues of $179 million and net earnings of $68.5 million.

How much rent did NNN collect in Q2 2021?

NNN collected approximately 99% of rent originally due for Q2 2021.

What is the updated Core FFO guidance for NNN in 2021?

The updated Core FFO guidance for 2021 is between $2.75 and $2.80 per share.

What was the occupancy rate for NNN as of June 30, 2021?

The occupancy rate for NNN was 98.3% as of June 30, 2021.

How much did NNN invest in property acquisitions in Q2 2021?

NNN invested $102.9 million in property acquisitions in Q2 2021.