THIRD QUARTER 2023 OPERATING RESULTS AND INCREASED 2023 GUIDANCE ANNOUNCED BY NNN REIT, INC.
- FFO and Core FFO per common share increased 2.5% over prior period results
- Maintained high occupancy levels at 99.2%
- Made property investments of $212.5 million
- Core FFO guidance for 2023 was increased
- None.
Operating Results:
- Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
Quarter Ended | Nine Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
Revenues | $ | 205,132 | $ | 193,471 | $ | 611,880 | $ | 574,533 | |||||||||
Net earnings available to common stockholders | $ | 106,787 | $ | 88,421 | $ | 295,658 | $ | 243,964 | |||||||||
Net earnings per common share | $ | 0.59 | $ | 0.50 | $ | 1.63 | $ | 1.38 | |||||||||
FFO available to common stockholders | $ | 147,223 | $ | 139,760 | $ | 437,362 | $ | 406,706 | |||||||||
FFO per common share | $ | 0.81 | $ | 0.79 | $ | 2.41 | $ | 2.31 | |||||||||
Core FFO available to common stockholders | $ | 147,376 | $ | 140,316 | $ | 438,247 | $ | 413,511 | |||||||||
Core FFO per common share | $ | 0.81 | $ | 0.79 | $ | 2.42 | $ | 2.35 | |||||||||
AFFO available to common stockholders | $ | 148,281 | $ | 142,987 | $ | 442,526 | $ | 423,811 | |||||||||
AFFO per common share | $ | 0.82 | $ | 0.81 | $ | 2.44 | $ | 2.41 | |||||||||
Third Quarter 2023 Highlights:
- FFO and Core FFO per common share increased
2.5% over prior period results - AFFO per common share increased
1.2% over prior period results - Maintained high occupancy levels at
99.2% , with a weighted average remaining lease term of 10.1 years, at September 30, 2023 as compared to99.4% at June 30, 2023 and December 31, 2022 $212.5 million 7.4% - Sold 13 properties for
$49.0 million $20.0 million 6.0% - Issued
$500 million 5.600% senior unsecured notes due 2033 - Ended the quarter with
$98.3 million $1.1 billion - Maintained sector leading 12.6 year weighted average debt maturity
Highlights for the nine months ended September 30, 2023:
- FFO per common share increased
4.3% over prior period results - Core FFO per common share increased
3.0% over prior period results - AFFO per common share increased
1.2% over prior year results $550.0 million 7.2% - Sold 26 properties for
$89.2 million $40.2 million 5.8% - Raised
$30.6 million - Issued
$500 million 5.600% senior unsecured notes due 2033
Core FFO guidance for 2023 was increased from a range of
Steve Horn, Chief Executive Officer, commented: "The recent
NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2023, the company owned 3,511 properties in 49 states with a gross leasable area of approximately 35.8 million square feet and with a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years. For more information on the company, visit www.nnnreit.com.
Management will hold a conference call on November 1, 2023, at 10:30 a.m. ET to review its results of operations. The call can be accessed on the NNN REIT website live at http://www.nnnreit.com. For those unable to listen to the live broadcast, a replay will be available on the company's website. In addition, a summary of any earnings guidance given on the call will be posted to the company's website.
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 REIT, and the potential impacts of an epidemic or pandemic (such as the outbreak and worldwide spread of a novel strain of coronavirus, and its variants ("COVID-19")) 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 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, 2022 and (ii) Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023. 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.
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 noncontrolling interests 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 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 | Nine Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Income Statement Summary | ||||||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 204,856 | $ | 193,102 | $ | 610,912 | $ | 573,401 | ||||||||
Interest and other income from real estate transactions | 276 | 369 | 968 | 1,132 | ||||||||||||
205,132 | 193,471 | 611,880 | 574,533 | |||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 10,225 | 10,124 | 33,216 | 30,906 | ||||||||||||
Real estate | 6,459 | 5,875 | 20,141 | 19,246 | ||||||||||||
Depreciation and amortization | 59,523 | 56,388 | 178,546 | 166,512 | ||||||||||||
Leasing transaction costs | 96 | 96 | 223 | 260 | ||||||||||||
Impairment losses – real estate, net of recoveries | 1,001 | 971 | 3,675 | 7,221 | ||||||||||||
Executive retirement costs | 153 | 556 | 885 | 6,805 | ||||||||||||
77,457 | 74,010 | 236,686 | 230,950 | |||||||||||||
Gain on disposition of real estate | 19,992 | 5,889 | 40,222 | 10,656 | ||||||||||||
Earnings from operations | 147,667 | 125,350 | 415,416 | 354,239 | ||||||||||||
Other expenses (revenues): | ||||||||||||||||
Interest and other income | (644) | (33) | (751) | (120) | ||||||||||||
Interest expense | 41,524 | 36,962 | 120,509 | 110,400 | ||||||||||||
40,880 | 36,929 | 119,758 | 110,280 | |||||||||||||
Net earnings | 106,787 | 88,421 | 295,658 | 243,959 | ||||||||||||
Loss attributable to noncontrolling interests | — | — | — | 5 | ||||||||||||
Net earnings available to common stockholders | $ | 106,787 | $ | 88,421 | $ | 295,658 | $ | 243,964 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 181,398,273 | 176,900,786 | 181,120,963 | 175,542,356 | ||||||||||||
Diluted | 181,721,467 | 177,367,710 | 181,460,622 | 175,993,907 | ||||||||||||
Net earnings per share available to common stockholders: | ||||||||||||||||
Basic | $ | 0.59 | $ | 0.50 | $ | 1.63 | $ | 1.39 | ||||||||
Diluted | $ | 0.59 | $ | 0.50 | $ | 1.63 | $ | 1.38 | ||||||||
NNN REIT, Inc. | ||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Funds From Operations (FFO) Reconciliation: | ||||||||||||||||
Net earnings available to common stockholders | $ | 106,787 | $ | 88,421 | $ | 295,658 | $ | 243,964 | ||||||||
Real estate depreciation and amortization | 59,427 | 56,257 | 178,251 | 166,177 | ||||||||||||
Gain on disposition of real estate | (19,992) | (5,889) | (40,222) | (10,656) | ||||||||||||
Impairment losses – depreciable real estate, net of recoveries | 1,001 | 971 | 3,675 | 7,221 | ||||||||||||
Total FFO adjustments | 40,436 | 51,339 | 141,704 | 162,742 | ||||||||||||
FFO available to common stockholders | $ | 147,223 | $ | 139,760 | $ | 437,362 | $ | 406,706 | ||||||||
FFO per common share: | ||||||||||||||||
Basic | $ | 0.81 | $ | 0.79 | $ | 2.41 | $ | 2.32 | ||||||||
Diluted | $ | 0.81 | $ | 0.79 | $ | 2.41 | $ | 2.31 | ||||||||
Core Funds From Operations (Core FFO) Reconciliation: | ||||||||||||||||
Net earnings available to common stockholders | $ | 106,787 | $ | 88,421 | $ | 295,658 | $ | 243,964 | ||||||||
Total FFO adjustments | 40,436 | 51,339 | 141,704 | 162,742 | ||||||||||||
FFO available to common stockholders | 147,223 | 139,760 | 437,362 | 406,706 | ||||||||||||
Executive retirement costs | 153 | 556 | 885 | 6,805 | ||||||||||||
Total Core FFO adjustments | 153 | 556 | 885 | 6,805 | ||||||||||||
Core FFO available to common stockholders | $ | 147,376 | $ | 140,316 | $ | 438,247 | $ | 413,511 | ||||||||
Core FFO per common share: | ||||||||||||||||
Basic | $ | 0.81 | $ | 0.79 | $ | 2.42 | $ | 2.36 | ||||||||
Diluted | $ | 0.81 | $ | 0.79 | $ | 2.42 | $ | 2.35 | ||||||||
NNN REIT, Inc. | |||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Adjusted Funds From Operations (AFFO) Reconciliation: | |||||||||||||||||
Net earnings available to common stockholders | $ | 106,787 | $ | 88,421 | $ | 295,658 | $ | 243,964 | |||||||||
Total FFO adjustments | 40,436 | 51,339 | 141,704 | 162,742 | |||||||||||||
Total Core FFO adjustments | 153 | 556 | 885 | 6,805 | |||||||||||||
Core FFO available to common stockholders | 147,376 | 140,316 | 438,247 | 413,511 | |||||||||||||
Straight-line accrued rent, net of reserves | (493) | 655 | (1,496) | 3,298 | |||||||||||||
Net capital lease rent adjustment | 83 | 76 | 244 | 225 | |||||||||||||
Below-market rent amortization | (115) | (130) | (349) | (410) | |||||||||||||
Stock based compensation expense | 2,678 | 2,343 | 8,254 | 7,734 | |||||||||||||
Capitalized interest expense | (1,248) | (273) | (2,374) | (547) | |||||||||||||
Total AFFO adjustments | 905 | 2,671 | 4,279 | 10,300 | |||||||||||||
AFFO available to common stockholders | $ | 148,281 | $ | 142,987 | $ | 442,526 | $ | 423,811 | |||||||||
AFFO per common share: | |||||||||||||||||
Basic | $ | 0.82 | $ | 0.81 | $ | 2.44 | $ | 2.41 | |||||||||
Diluted | $ | 0.82 | $ | 0.81 | $ | 2.44 | $ | 2.41 | |||||||||
Other Information: | |||||||||||||||||
Rental income from operating leases(1) | $ | 200,287 | $ | 188,840 | $ | 596,099 | $ | 558,942 | |||||||||
Earned income from direct financing leases(1) | $ | 140 | $ | 148 | $ | 427 | $ | 449 | |||||||||
Percentage rent(1) | $ | 336 | $ | 235 | $ | 1,390 | $ | 1,231 | |||||||||
Real estate expense reimbursement from tenants(1) | $ | 4,093 | $ | 3,879 | $ | 12,996 | $ | 12,779 | |||||||||
Real estate expenses | (6,459) | (5,875) | (20,141) | (19,246) | |||||||||||||
Real estate expenses, net of tenant reimbursements | $ | (2,366) | $ | (1,996) | $ | (7,145) | $ | (6,467) | |||||||||
Amortization of debt costs | $ | 1,247 | $ | 1,184 | $ | 3,648 | $ | 3,533 | |||||||||
Scheduled debt principal amortization (excluding maturities) | $ | — | (2) | $ | 166 | $ | 173 | (2) | $ | 494 | |||||||
Non-real estate depreciation expense | $ | 98 | $ | 135 | $ | 303 | $ | 345 | |||||||||
(1) | For the quarters ended September 30, 2023 and 2022, the aggregate of such amounts is |
(2) | In April 2023, NNN repaid the remaining mortgages payable principal balance of |
NNN REIT, Inc.
2023 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.
2023 Guidance | ||
Net earnings per common share excluding any gains on disposition | ||
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) | ||||||||
September 30, | December 31, | |||||||
Balance Sheet Summary | ||||||||
Assets: | ||||||||
Real estate portfolio, net of accumulated depreciation and amortization | $ | 8,346,062 | $ | 8,020,814 | ||||
Cash and cash equivalents | 77,137 | 2,505 | ||||||
Restricted cash and cash held in escrow | 21,126 | 4,273 | ||||||
Receivables, net of allowance of | 2,142 | 3,612 | ||||||
Accrued rental income, net of allowance of | 28,777 | 27,795 | ||||||
Debt costs, net of accumulated amortization of | 3,761 | 5,352 | ||||||
Other assets | 82,303 | 81,694 | ||||||
Total assets | $ | 8,561,308 | $ | 8,146,045 | ||||
Liabilities: | ||||||||
Line of credit payable | $ | — | $ | 166,200 | ||||
Mortgages payable, including unamortized premium and net of unamortized debt cost | — | 9,964 | ||||||
Notes payable, net of unamortized discount and unamortized debt costs | 4,227,164 | 3,739,890 | ||||||
Accrued interest payable | 60,765 | 23,826 | ||||||
Other liabilities | 115,321 | 82,663 | ||||||
Total liabilities | 4,403,250 | 4,022,543 | ||||||
Stockholders' equity of NNN | 4,158,058 | 4,123,502 | ||||||
Total liabilities and equity | $ | 8,561,308 | $ | 8,146,045 | ||||
Common shares outstanding | 182,440,174 | 181,424,670 | ||||||
Gross leasable area, Property Portfolio (square feet) | 35,797,000 | 35,010,000 | ||||||
NNN REIT, Inc. | ||||||||||||||||||||
Debt Summary | ||||||||||||||||||||
As of September 30, 2023 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Unsecured Debt | Principal | Principal, | Stated | Effective | Maturity Date | |||||||||||||||
Line of credit payable | $ | — | $ | — | SOFR + | — | June 2025 | |||||||||||||
Unsecured notes payable: | ||||||||||||||||||||
2024 | 350,000 | 349,941 | 3.900 | % | 3.924 | % | June 2024 | |||||||||||||
2025 | 400,000 | 399,763 | 4.000 | % | 4.029 | % | November 2025 | |||||||||||||
2026 | 350,000 | 348,604 | 3.600 | % | 3.733 | % | December 2026 | |||||||||||||
2027 | 400,000 | 399,278 | 3.500 | % | 3.548 | % | October 2027 | |||||||||||||
2028 | 400,000 | 398,417 | 4.300 | % | 4.388 | % | October 2028 | |||||||||||||
2030 | 400,000 | 399,130 | 2.500 | % | 2.536 | % | April 2030 | |||||||||||||
2033 | 500,000 | 488,486 | 5.600 | % | 5.905 | % | October 2033 | |||||||||||||
2048 | 300,000 | 296,116 | 4.800 | % | 4.890 | % | October 2048 | |||||||||||||
2050 | 300,000 | 294,389 | 3.100 | % | 3.205 | % | April 2050 | |||||||||||||
2051 | 450,000 | 442,010 | 3.500 | % | 3.602 | % | April 2051 | |||||||||||||
2052 | 450,000 | 440,004 | 3.000 | % | 3.118 | % | April 2052 | |||||||||||||
Total | 4,300,000 | 4,256,138 | ||||||||||||||||||
Total unsecured debt(1) | $ | 4,300,000 | $ | 4,256,138 | ||||||||||||||||
Debt costs | $ | (42,595) | ||||||||||||||||||
Accumulated amortization | 13,621 | |||||||||||||||||||
Debt costs, net of accumulated amortization | (28,974) | |||||||||||||||||||
Notes payable, net of unamortized discount and | $ | 4,227,164 | ||||||||||||||||||
(1) | Unsecured debt has a weighted average interest rate of | ||||||||||||||||||
As of September 30, 2023, Net Debt / EBITDA based on current quarter EBITDA annualized is 5.4x.
NNN REIT, Inc.
Debt Summary – Continued
As of September 30, 2023
(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
Unsecured Credit Facility Key Covenants | Required | September 30, 2023 | ||
Maximum leverage ratio | < 0.60 | 0.38 | ||
Minimum fixed charge coverage ratio | > 1.50 | 4.65 | ||
Maximum secured indebtedness ratio | < 0.40 | — | ||
Unencumbered asset value ratio | > 1.67 | 2.67 | ||
Unencumbered interest ratio | > 1.75 | 4.63 | ||
Unsecured Notes Key Covenants | Required | September 30, 2023 | ||
Limitation on incurrence of total debt | ≤ | 40.8 % | ||
Limitation on incurrence of secured debt | ≤ | — | ||
Debt service coverage ratio | ≥ 1.50 | 4.6 | ||
Maintenance of total unencumbered assets | ≥ | 245 % |
NNN REIT, Inc. | ||||||
Property Portfolio | ||||||
Top 20 Lines of Trade | ||||||
As of September 30, | ||||||
Lines of Trade | 2023(1) | 2022(2) | ||||
1. | Convenience stores | 16.8 % | 16.7 % | |||
2. | Automotive service | 14.7 % | 13.6 % | |||
3. | Restaurants – full service | 8.8 % | 9.4 % | |||
4. | Restaurants – limited service | 8.8 % | 9.0 % | |||
5. | Family entertainment centers | 5.8 % | 6.0 % | |||
6. | Recreational vehicle dealers, parts and accessories | 4.7 % | 4.1 % | |||
7. | Health and fitness | 4.6 % | 4.9 % | |||
8. | Theaters | 4.2 % | 4.3 % | |||
9. | Equipment rental | 3.0 % | 3.2 % | |||
10. | Wholesale clubs | 2.5 % | 2.4 % | |||
11. | Drug stores | 2.5 % | 1.2 % | |||
12. | Automotive parts | 2.5 % | 2.9 % | |||
13. | Home improvement | 2.3 % | 2.4 % | |||
14. | Furniture | 2.1 % | 2.3 % | |||
15. | Medical service providers | 1.8 % | 1.9 % | |||
16. | General merchandise | 1.5 % | 1.6 % | |||
17. | Consumer electronics | 1.4 % | 1.5 % | |||
18. | Home furnishings | 1.3 % | 1.5 % | |||
19. | Travel plazas | 1.3 % | 1.5 % | |||
20. | Automobile auctions, wholesale | 1.2 % | 1.3 % | |||
Other | 8.2 % | 8.3 % | ||||
Total | 100.0 % | 100.0 % | ||||
Top 10 States | ||||||||||
State | % of | State | % of | |||||||
1. | 17.1 % | 6. | 4.0 % | |||||||
2. | 9.3 % | 7. | 3.8 % | |||||||
3. | 5.2 % | 8. | 3.8 % | |||||||
4. | 5.0 % | 9. | 3.4 % | |||||||
5. | 4.6 % | 10. | 3.4 % | |||||||
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 | ||||||
Top 20 Tenants | ||||||
Tenant | # of | % of | ||||
1. | 7-Eleven | 138 | 4.5 % | |||
2. | Mister Car Wash | 121 | 4.3 % | |||
3. | Camping World | 47 | 3.9 % | |||
4. | LA Fitness | 29 | 3.2 % | |||
5. | GPM Investments (Convenience Stores) | 152 | 3.1 % | |||
6. | Flynn Restaurant Group (Taco Bell/Arby's) | 204 | 2.8 % | |||
7. | Dave & Busters | 28 | 2.8 % | |||
8. | AMC Theatre | 20 | 2.8 % | |||
9. | BJ's Wholesale Club | 13 | 2.5 % | |||
10. | Couche Tard (Pantry) | 91 | 2.3 % | |||
11. | Mavis Tire Express Services | 138 | 2.2 % | |||
12. | Sunoco | 61 | 2.1 % | |||
13. | Walgreens | 49 | 1.9 % | |||
14. | Chuck-E-Cheese | 53 | 1.9 % | |||
15. | United Rentals | 51 | 1.8 % | |||
16. | Frisch's Restaurants | 68 | 1.6 % | |||
17. | Fikes (Convenience Stores) | 58 | 1.6 % | |||
18. | Life Time Fitness | 3 | 1.4 % | |||
19. | Bob | 106 | 1.4 % | |||
20. | Best Buy | 16 | 1.4 % | |||
Lease Expirations(2) | ||||||||||||||
% of | # of | Gross Leasable | % of | # of | Gross Leasable | |||||||||
2023 | 0.2 % | 12 | 134,000 | 2029 | 3.9 % | 107 | 1,603,000 | |||||||
2024 | 1.8 % | 64 | 868,000 | 2030 | 3.4 % | 109 | 1,221,000 | |||||||
2025 | 5.2 % | 184 | 1,936,000 | 2031 | 7.5 % | 187 | 2,717,000 | |||||||
2026 | 4.9 % | 213 | 2,131,000 | 2032 | 6.1 % | 216 | 2,329,000 | |||||||
2027 | 8.3 % | 235 | 3,591,000 | 2033 | 4.9 % | 137 | 1,427,000 | |||||||
2028 | 5.8 % | 228 | 2,161,000 | Thereafter | 48.0 % | 1,790 | 15,344,000 | |||||||
(1) | Based on the annual base rent of | |
(2) | As of September 30, 2023, the weighted average remaining lease term is 10.1 years. | |
(3) | Square feet. |
NNN REIT, Inc.
Rent Deferral Lease Amendments
The following table outlines the rent deferred and corresponding scheduled repayment of the COVID-19 rent deferral lease amendments executed as of September 30, 2023 (dollars in thousands):
Deferred | Scheduled Repayment | |||||||||||||||||||||||||||||||||||||
Accrual | Cash | Total | % of | Accrual | Cash | Total | % of | Cumulative | ||||||||||||||||||||||||||||||
2020 | $ | 33,594 | $ | 18,129 | $ | 51,723 | 91.6 | % | $ | 3,239 | $ | 20 | $ | 3,259 | 5.8 | % | 5.8 | % | ||||||||||||||||||||
2021 | 990 | 3,732 | 4,722 | 8.4 | % | 25,935 | 5,841 | 31,776 | 56.3 | % | 62.1 | % | ||||||||||||||||||||||||||
2022 | Q1 | — | — | — | — | 1,780 | 2,277 | 4,057 | 7.2 | % | 69.3 | % | ||||||||||||||||||||||||||
Q2 | — | — | — | — | 1,729 | 2,276 | 4,005 | 7.1 | % | 76.4 | % | |||||||||||||||||||||||||||
Q3 | — | — | — | — | 1,201 | 2,257 | 3,458 | 6.1 | % | 82.5 | % | |||||||||||||||||||||||||||
Q4 | — | — | — | — | 681 | 2,277 | 2,958 | 5.3 | % | 87.8 | % | |||||||||||||||||||||||||||
— | — | — | — | 5,391 | 9,087 | 14,478 | 25.7 | % | 87.8 | % | ||||||||||||||||||||||||||||
2023 | Q1 | — | — | — | — | 9 | 1,677 | 1,686 | 3.0 | % | 90.8 | % | ||||||||||||||||||||||||||
Q2 | — | — | — | — | 10 | 476 | 486 | 0.9 | % | 91.7 | % | |||||||||||||||||||||||||||
Q3 | — | — | — | — | — | 476 | 476 | 0.8 | % | 92.5 | % | |||||||||||||||||||||||||||
Q4 | — | — | — | — | — | 476 | 476 | 0.8 | % | 93.3 | % | |||||||||||||||||||||||||||
— | — | — | — | 19 | 3,105 | 3,124 | 5.5 | % | 93.3 | % | ||||||||||||||||||||||||||||
2024 | Q1 | — | — | — | — | — | 476 | 476 | 0.8 | % | 94.1 | % | ||||||||||||||||||||||||||
Q2 | — | — | — | — | — | 476 | 476 | 0.8 | % | 94.9 | % | |||||||||||||||||||||||||||
Q3 | — | — | — | — | — | 476 | 476 | 0.8 | % | 95.7 | % | |||||||||||||||||||||||||||
Q4 | — | — | — | — | — | 476 | 476 | 0.9 | % | 96.6 | % | |||||||||||||||||||||||||||
— | — | — | — | — | 1,904 | 1,904 | 3.3 | % | 96.6 | % | ||||||||||||||||||||||||||||
2025 | — | — | — | — | — | 1,904 | 1,904 | 3.4 | % | 100.0 | % | |||||||||||||||||||||||||||
$ | 34,584 | $ | 21,861 | $ | 56,445 | 100.0 | % | $ | 34,584 | $ | 21,861 | $ | 56,445 | 100.0 | % | |||||||||||||||||||||||
Adjusted Results
The following table outlines the adjusted effects of excluding the scheduled repayments of the COVID-19 rent deferral lease amendments executed as of September 30, 2023:
Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||
Core FFO per common share: | ||||||||||||||||||||||||
As reported | $ | 0.81 | $ | 0.79 | 2.5 | % | $ | 2.42 | $ | 2.35 | 3.0 | % | ||||||||||||
Adjusted(1) | $ | 0.81 | $ | 0.78 | 3.8 | % | $ | 2.40 | $ | 2.31 | 3.9 | % | ||||||||||||
AFFO per common share: | ||||||||||||||||||||||||
As reported | $ | 0.82 | $ | 0.81 | 1.2 | % | $ | 2.44 | $ | 2.41 | 1.2 | % | ||||||||||||
Adjusted(2) | $ | 0.81 | $ | 0.79 | 2.5 | % | $ | 2.42 | $ | 2.34 | 3.4 | % | ||||||||||||
(1) | Excludes the cash basis rent repayments from the Rent Deferral Lease Amendments table above. |
(2) | Excludes the cash and accrual basis rent repayments from the Rent Deferral Lease Amendments table above. |
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SOURCE NNN REIT, Inc.
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