Third Quarter 2024 Operating Results Announced by NNN REIT, Inc.
NNN REIT reported its Q3 2024 financial results with notable growth in key metrics. Revenues increased to $218.6M from $205.1M in Q3 2023. FFO and Core FFO per share both rose 3.7% to $0.84, while AFFO per share grew 2.4% to $0.84. The company maintained a high occupancy rate of 99.3% with a 10-year weighted average lease term.
During Q3, NNN invested $113.6M in property acquisitions at a 7.6% initial cash cap rate and sold nine properties for $20.0M. The company raised $178.9M through common share issuance and narrowed its 2024 Core FFO guidance to $3.28-$3.32 per share.
NNN REIT ha riportato i risultati finanziari del terzo trimestre 2024 con una crescita significativa in metriche chiave. I ricavi sono aumentati a $218,6 milioni rispetto ai $205,1 milioni del terzo trimestre 2023. FFO e Core FFO per azione sono entrambi aumentati del 3,7% a $0,84, mentre AFFO per azione è cresciuto del 2,4% a $0,84. L'azienda ha mantenuto un alto tasso di occupazione del 99,3% con un termine medio di locazione ponderato di 10 anni.
Durante il terzo trimestre, NNN ha investito $113,6 milioni in acquisizioni immobiliari con un tasso di capitalizzazione iniziale in contante del 7,6% e ha venduto nove proprietà per $20,0 milioni. L'azienda ha raccolto $178,9 milioni attraverso l'emissione di azioni ordinarie e ha ristretto le previsioni del 2024 per il Core FFO a $3,28-$3,32 per azione.
NNN REIT reportó sus resultados financieros del tercer trimestre de 2024 con un crecimiento notable en métricas clave. Los ingresos aumentaron a $218,6 millones desde $205,1 millones en el tercer trimestre de 2023. FFO y Core FFO por acción subieron un 3,7% a $0,84, mientras que AFFO por acción creció un 2,4% a $0,84. La compañía mantuvo una alta tasa de ocupación del 99,3% con un plazo medio de arrendamiento ponderado de 10 años.
Durante el tercer trimestre, NNN invirtió $113,6 millones en adquisiciones de propiedades a una tasa de capitalización inicial en efectivo del 7,6% y vendió nueve propiedades por $20,0 millones. La compañía recaudó $178,9 millones a través de la emisión de acciones comunes y ajustó su pronóstico de Core FFO para 2024 a $3,28-$3,32 por acción.
NNN REIT가 2024년 3분기 재무 실적을 발표했으며, 주요 지표에서 주목할 만한 성장을 기록했습니다. 수익은 2023년 3분기 $205.1M에서 $218.6M으로 증가했습니다. FFO 및 Core FFO는 주당 3.7% 증가한 $0.84에 달했으며, AFFO도 주당 2.4% 증가해 $0.84에 도달했습니다. 이 회사는 10년 가중 평균 임대 기간을 가진 99.3%의 높은 점유율을 유지했습니다.
3분기 동안 NNN은 초기 현금 자본화율 7.6%로 부동산 매입에 $113.6M을 투자했으며, $20.0M에 9개 부동산을 매각했습니다. 이 회사는 보통주 발행을 통해 $178.9M을 조달했으며, 2024년 Core FFO 가이던스를 주당 $3.28-$3.32로 좁혔습니다.
NNN REIT a publié ses résultats financiers pour le troisième trimestre 2024, affichant une croissance notable sur des indicateurs clés. Les revenus ont augmenté pour atteindre 218,6 millions de dollars, contre 205,1 millions de dollars au troisième trimestre 2023. FFO et Core FFO par action ont tous deux progressé de 3,7% pour atteindre 0,84 $, tandis que AFFO par action a crû de 2,4% pour atteindre 0,84 $. L'entreprise a maintenu un taux d'occupation élevé de 99,3 % avec une durée moyenne de bail pondérée de 10 ans.
Au cours du troisième trimestre, NNN a investi 113,6 millions de dollars dans des acquisitions immobilières à un taux de capitalisation initial en espèces de 7,6 % et a vendu neuf propriétés pour 20,0 millions de dollars. L'entreprise a levé 178,9 millions de dollars par l'émission d'actions ordinaires et a réduit ses prévisions de Core FFO pour 2024 à 3,28 $-3,32 $ par action.
NNN REIT hat seine finanziellen Ergebnisse für das 3. Quartal 2024 vorgelegt und dabei ein bemerkenswertes Wachstum in den wichtigsten Kennzahlen verzeichnet. Die Einnahmen stiegen von $205,1 Millionen im 3. Quartal 2023 auf $218,6 Millionen. FFO und Core FFO pro Anteil erhöhten sich um 3,7% auf $0,84, während AFFO pro Anteil um 2,4% auf $0,84 wuchs. Das Unternehmen behielt eine hohe Belegungsquote von 99,3% mit einer gewichteten durchschnittlichen Mietdauer von 10 Jahren bei.
Im 3. Quartal investierte NNN $113,6 Millionen in den Erwerb von Immobilien mit einer anfänglichen Cash-Kapitalisierungsrate von 7,6% und verkaufte neun Immobilien für $20,0 Millionen. Das Unternehmen beschaffte $178,9 Millionen durch die Ausgabe von Stammaktien und reduzierte seine Prognose für den Core FFO 2024 auf $3,28-$3,32 pro Anteil.
- Revenue growth to $218.6M from $205.1M YoY
- FFO and Core FFO per share increased 3.7% YoY
- High occupancy rate maintained at 99.3%
- Strong property acquisition activity with $113.6M invested at 7.6% cap rate
- Solid balance sheet with $175M cash and $1.2B credit facility available
- No debt maturities until Q4 2025
- Net earnings per share decreased to $0.53 from $0.59 YoY
- Slight decline in occupancy from 99.5% at year-end 2023
- Dilution from issuance of 3.86M new common shares
Insights
NNN REIT delivered solid Q3 2024 performance with
Key financial metrics show healthy growth: FFO and Core FFO per share increased
Management's narrowed 2024 Core FFO guidance of
Operating Results:
- Revenues and net earnings, FFO, Core FFO and AFFO and diluted per share amounts:
Quarter Ended | Nine Months Ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||
Revenues | $ | 218,564 | $ | 205,132 | $ | 650,784 | $ | 611,880 | ||||||||
Net earnings | $ | 97,904 | $ | 106,787 | $ | 298,941 | $ | 295,658 | ||||||||
Net earnings per share | $ | 0.53 | $ | 0.59 | $ | 1.63 | $ | 1.63 | ||||||||
FFO | $ | 154,171 | $ | 147,223 | $ | 457,812 | $ | 437,362 | ||||||||
FFO per share | $ | 0.84 | $ | 0.81 | $ | 2.50 | $ | 2.41 | ||||||||
Core FFO | $ | 154,327 | $ | 147,376 | $ | 458,438 | $ | 438,247 | ||||||||
Core FFO per share | $ | 0.84 | $ | 0.81 | $ | 2.50 | $ | 2.42 | ||||||||
AFFO | $ | 155,701 | $ | 148,281 | $ | 462,556 | $ | 442,526 | ||||||||
AFFO per share | $ | 0.84 | $ | 0.82 | $ | 2.52 | $ | 2.44 | ||||||||
Third Quarter 2024 Highlights:
- FFO and Core FFO per share increased
3.7% over prior year results - AFFO per share increased
2.4% over prior year results - Maintained high occupancy levels at
99.3% , with a weighted average remaining lease term of 10.0 years, at September 30, 2024 as compared to99.3% at June 30, 2024 and99.5% at December 31, 2023 $113.6 million 7.6% - Sold nine properties for
$20.0 million $7.8 million - Raised
$178.9 million - Maintained sector-leading 12.3 year weighted average debt maturity
Highlights for the nine months ended September 30, 2024:
- FFO per share increased
3.7% over prior year results - Core FFO and AFFO per share increased
3.3% over prior year results $348.6 million 7.8% - Sold 29 properties for
$105.9 million $30.2 million - Raised
$213.7 million - Issued
$500 million 5.500% senior unsecured notes due 2034 - Redeemed
$350 million 3.900% senior unsecured notes due 2024 - Expanded line of credit borrowing capacity from
$1.1 billion $1.2 billion
Previous Core FFO per share guidance for 2024 was narrowed from a range of
Steve Horn, Chief Executive Officer, commented: "NNN continues to perform consistently, with a 3.7 percent increase in FFO and Core FFO per share results in the third quarter 2024 compared to prior year results. With over
NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2024, the company owned 3,549 properties in 49 states with a gross leasable area of approximately 36.6 million square feet and a weighted average remaining lease term of 10.0 years. NNN is one of only three publicly traded real estate investment trusts to have increased annual dividends for 35 or more consecutive years. For more information on the company, visit www.nnnreit.com.
Management will hold a conference call on October 31, 2024, at 10:30 a.m. ET to review its results of operations. The call can be accessed on the NNN REIT website live at 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 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 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, 2023 and (ii) Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024. 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, net of recoveries.
FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. 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 | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Income Statement Summary | ||||||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 218,155 | $ | 204,856 | $ | 649,120 | $ | 610,912 | ||||||||
Interest and other income from real estate transactions | 409 | 276 | 1,664 | 968 | ||||||||||||
218,564 | 205,132 | 650,784 | 611,880 | |||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 11,209 | 10,225 | 35,582 | 33,216 | ||||||||||||
Real estate | 7,263 | 6,459 | 21,175 | 20,141 | ||||||||||||
Depreciation and amortization | 63,369 | 59,523 | 186,487 | 178,546 | ||||||||||||
Leasing transaction costs | 22 | 96 | 75 | 223 | ||||||||||||
Impairment losses – real estate, net of recoveries | 760 | 1,001 | 2,908 | 3,675 | ||||||||||||
Executive retirement costs | 156 | 153 | 626 | 885 | ||||||||||||
82,779 | 77,457 | 246,853 | 236,686 | |||||||||||||
Gain on disposition of real estate | 7,765 | 19,992 | 30,207 | 40,222 | ||||||||||||
Earnings from operations | 143,550 | 147,667 | 434,138 | 415,416 | ||||||||||||
Other expenses (revenues): | ||||||||||||||||
Interest and other income | (845) | (644) | (1,940) | (751) | ||||||||||||
Interest expense | 46,491 | 41,524 | 137,137 | 120,509 | ||||||||||||
45,646 | 40,880 | 135,197 | 119,758 | |||||||||||||
Net earnings | $ | 97,904 | $ | 106,787 | $ | 298,941 | $ | 295,658 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 184,007,176 | 181,398,273 | 182,757,097 | 181,120,963 | ||||||||||||
Diluted | 184,561,431 | 181,721,467 | 183,301,570 | 181,460,622 | ||||||||||||
Net earnings per share available to stockholders: | ||||||||||||||||
Basic | $ | 0.53 | $ | 0.59 | $ | 1.63 | $ | 1.63 | ||||||||
Diluted | $ | 0.53 | $ | 0.59 | $ | 1.63 | $ | 1.63 | ||||||||
NNN REIT, Inc. (dollars in thousands, except per share data) (unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Funds From Operations ("FFO") Reconciliation: | ||||||||||||||||
Net earnings | $ | 97,904 | $ | 106,787 | $ | 298,941 | $ | 295,658 | ||||||||
Real estate depreciation and amortization | 63,272 | 59,427 | 186,170 | 178,251 | ||||||||||||
Gain on disposition of real estate | (7,765) | (19,992) | (30,207) | (40,222) | ||||||||||||
Impairment losses – depreciable real estate, | 760 | 1,001 | 2,908 | 3,675 | ||||||||||||
Total FFO adjustments | 56,267 | 40,436 | 158,871 | 141,704 | ||||||||||||
FFO | $ | 154,171 | $ | 147,223 | $ | 457,812 | $ | 437,362 | ||||||||
FFO per share: | ||||||||||||||||
Basic | $ | 0.84 | $ | 0.81 | $ | 2.51 | $ | 2.41 | ||||||||
Diluted | $ | 0.84 | $ | 0.81 | $ | 2.50 | $ | 2.41 | ||||||||
Core Funds From Operations ("Core FFO") Reconciliation: | ||||||||||||||||
Net earnings | $ | 97,904 | $ | 106,787 | $ | 298,941 | $ | 295,658 | ||||||||
Total FFO adjustments | 56,267 | 40,436 | 158,871 | 141,704 | ||||||||||||
FFO | 154,171 | 147,223 | 457,812 | 437,362 | ||||||||||||
Executive retirement costs | 156 | 153 | 626 | 885 | ||||||||||||
Total Core FFO adjustments | 156 | 153 | 626 | 885 | ||||||||||||
Core FFO | $ | 154,327 | $ | 147,376 | $ | 458,438 | $ | 438,247 | ||||||||
Core FFO per share: | ||||||||||||||||
Basic | $ | 0.84 | $ | 0.81 | $ | 2.51 | $ | 2.42 | ||||||||
Diluted | $ | 0.84 | $ | 0.81 | $ | 2.50 | $ | 2.42 | ||||||||
NNN REIT, Inc. (dollars in thousands, except per share data) (unaudited) | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Adjusted Funds From Operations ("AFFO") Reconciliation: | |||||||||||||||||
Net earnings | $ | 97,904 | $ | 106,787 | $ | 298,941 | $ | 295,658 | |||||||||
Total FFO adjustments | 56,267 | 40,436 | 158,871 | 141,704 | |||||||||||||
Total Core FFO adjustments | 156 | 153 | 626 | 885 | |||||||||||||
Core FFO | 154,327 | 147,376 | 458,438 | 438,247 | |||||||||||||
Straight-line accrued rent, net of reserves | (123) | (493) | 8 | (1,496) | |||||||||||||
Net capital lease rent adjustment | 56 | 83 | 164 | 244 | |||||||||||||
Below-market rent amortization | (109) | (115) | (351) | (349) | |||||||||||||
Stock based compensation expense | 2,818 | 2,678 | 9,041 | 8,254 | |||||||||||||
Capitalized interest expense | (1,268) | (1,248) | (4,744) | (2,374) | |||||||||||||
Total AFFO adjustments | 1,374 | 905 | 4,118 | 4,279 | |||||||||||||
AFFO | $ | 155,701 | $ | 148,281 | $ | 462,556 | $ | 442,526 | |||||||||
AFFO per share: | |||||||||||||||||
Basic | $ | 0.85 | $ | 0.82 | $ | 2.53 | $ | 2.44 | |||||||||
Diluted | $ | 0.84 | $ | 0.82 | $ | 2.52 | $ | 2.44 | |||||||||
Other Information: | |||||||||||||||||
Rental income from operating leases(1) | $ | 213,447 | $ | 200,287 | $ | 634,088 | $ | 596,099 | |||||||||
Earned income from direct financing leases(1) | $ | 116 | $ | 140 | $ | 353 | $ | 427 | |||||||||
Percentage rent(1) | $ | 200 | $ | 336 | $ | 1,347 | $ | 1,390 | |||||||||
Real estate expenses reimbursed from tenants(1) | $ | 4,392 | $ | 4,093 | $ | 13,332 | $ | 12,996 | |||||||||
Real estate expenses | (7,263) | (6,459) | (21,175) | (20,141) | |||||||||||||
Real estate expenses, net of tenant reimbursements | $ | (2,871) | $ | (2,366) | $ | (7,843) | $ | (7,145) | |||||||||
Amortization of debt costs | $ | 1,450 | $ | 1,247 | $ | 4,538 | $ | 3,648 | |||||||||
Scheduled debt principal amortization (excluding maturities) | $ | — | $ | — | $ | — | $ | 173 | (2) | ||||||||
Non-real estate depreciation expense | $ | 101 | $ | 98 | $ | 327 | $ | 303 | |||||||||
(1) | For the quarters ended September 30, 2024 and 2023, the aggregate of such amounts is |
(2) | In April 2023, NNN repaid the remaining mortgages payable principal balance of |
NNN REIT, Inc.
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) | ||||||||
September 30, | December 31, | |||||||
Balance Sheet Summary | ||||||||
Assets: | ||||||||
Real estate portfolio, net of accumulated depreciation and amortization | $ | 8,625,489 | $ | 8,535,851 | ||||
Cash and cash equivalents | 173,526 | 1,189 | ||||||
Restricted cash and cash held in escrow | 4,986 | 3,966 | ||||||
Receivables, net of allowance of | 2,224 | 3,649 | ||||||
Accrued rental income, net of allowance of | 33,849 | 34,611 | ||||||
Debt costs, net of accumulated amortization of | 9,656 | 3,243 | ||||||
Other assets | 73,913 | 79,459 | ||||||
Total assets | $ | 8,923,643 | $ | 8,661,968 | ||||
Liabilities: | ||||||||
Line of credit payable | $ | — | $ | 132,000 | ||||
Notes payable, net of unamortized discount and unamortized debt costs | 4,372,293 | 4,228,544 | ||||||
Accrued interest payable | 75,399 | 34,374 | ||||||
Other liabilities | 107,025 | 109,593 | ||||||
Total liabilities | 4,554,717 | 4,504,511 | ||||||
Total equity | 4,368,926 | 4,157,457 | ||||||
Total liabilities and equity | $ | 8,923,643 | $ | 8,661,968 | ||||
Common shares outstanding | 187,525,891 | 182,474,770 | ||||||
Gross leasable area, Property Portfolio (square feet) | 36,550,000 | 35,966,000 | ||||||
NNN REIT, Inc. Debt Summary As of September 30, 2024 (dollars in thousands) (unaudited) | |||||||||||||||||||
Unsecured Debt | Principal | Principal, | Stated | Effective | Maturity Date | ||||||||||||||
Line of credit payable | $ | — | $ | — | SOFR + | — | April 2028 | ||||||||||||
Unsecured notes payable: | |||||||||||||||||||
2025 | 400,000 | 399,872 | 4.000 | % | 4.029 | % | November 2025 | ||||||||||||
2026 | 350,000 | 349,022 | 3.600 | % | 3.733 | % | December 2026 | ||||||||||||
2027 | 400,000 | 399,447 | 3.500 | % | 3.548 | % | October 2027 | ||||||||||||
2028 | 400,000 | 398,704 | 4.300 | % | 4.388 | % | October 2028 | ||||||||||||
2030 | 400,000 | 399,254 | 2.500 | % | 2.536 | % | April 2030 | ||||||||||||
2033 | 500,000 | 489,352 | 5.600 | % | 5.905 | % | October 2033 | ||||||||||||
2034 | 500,000 | 494,002 | 5.500 | % | 5.662 | % | June 2034 | ||||||||||||
2048 | 300,000 | 296,197 | 4.800 | % | 4.890 | % | October 2048 | ||||||||||||
2050 | 300,000 | 294,526 | 3.100 | % | 3.205 | % | April 2050 | ||||||||||||
2051 | 450,000 | 442,184 | 3.500 | % | 3.602 | % | April 2051 | ||||||||||||
2052 | 450,000 | 440,226 | 3.000 | % | 3.118 | % | April 2052 | ||||||||||||
Total | 4,450,000 | 4,402,786 | |||||||||||||||||
Total unsecured debt(1) | $ | 4,450,000 | $ | 4,402,786 | |||||||||||||||
Debt costs | $ | (43,820) | |||||||||||||||||
Accumulated amortization | 13,327 | ||||||||||||||||||
Debt costs, net of accumulated amortization | (30,493) | ||||||||||||||||||
Notes payable, net of unamortized discount and | $ | 4,372,293 | |||||||||||||||||
(1) | Unsecured debt has a weighted average interest rate of | |
NNN REIT, Inc.
Debt Summary – Continued
As of September 30, 2024
(unaudited)
Credit Facility and Notes Covenants
The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on
Key Covenants | Required | September 30, | ||
Unsecured Bank Credit Facility: | ||||
Maximum leverage ratio | < 0.60 | 0.37 | ||
Minimum fixed charge coverage ratio | > 1.50 | 4.29 | ||
Maximum secured indebtedness ratio | < 0.40 | — | ||
Unencumbered asset value ratio | > 1.67 | 2.71 | ||
Unencumbered interest ratio | > 1.75 | 4.22 | ||
Unsecured Notes: | ||||
Limitation on incurrence of total debt | ≤ | 40.0 % | ||
Limitation on incurrence of secured debt | ≤ | — | ||
Debt service coverage ratio | ≥ 1.50 | 4.2 | ||
Maintenance of total unencumbered assets | ≥ | 250 % |
NNN REIT, Inc. Property Portfolio As of September 30, 2024 | ||||||||||
Top 20 Lines of Trade | ||||||||||
As of September 30, | ||||||||||
Lines of Trade | 2024(1) | 2023(2) | ||||||||
1. | Automotive service | 16.8 % | 14.7 % | |||||||
2. | Convenience stores | 15.9 % | 16.8 % | |||||||
3. | Restaurants – limited service | 8.4 % | 8.8 % | |||||||
4. | Restaurants – full service | 8.3 % | 8.8 % | |||||||
5. | Family entertainment centers | 7.2 % | 5.8 % | |||||||
6. | Recreational vehicle dealers, parts and accessories | 5.1 % | 4.7 % | |||||||
7. | Theaters | 4.0 % | 4.2 % | |||||||
8. | Health and fitness | 4.0 % | 4.6 % | |||||||
9. | Equipment rental | 3.2 % | 3.0 % | |||||||
10. | Wholesale clubs | 2.4 % | 2.5 % | |||||||
11. | Automotive parts | 2.4 % | 2.5 % | |||||||
12. | Drug stores | 2.2 % | 2.5 % | |||||||
13. | Home improvement | 2.1 % | 2.3 % | |||||||
14. | Furniture | 1.9 % | 2.1 % | |||||||
15. | Medical service providers | 1.8 % | 1.8 % | |||||||
16. | General merchandise | 1.4 % | 1.5 % | |||||||
17. | Pet supplies and services | 1.3 % | 1.0 % | |||||||
18. | Home furnishings | 1.3 % | 1.3 % | |||||||
19. | Consumer electronics | 1.3 % | 1.4 % | |||||||
20. | Travel plazas | 1.2 % | 1.3 % | |||||||
Other | 7.8 % | 8.4 % | ||||||||
Total | 100.0 % | 100.0 % | ||||||||
Top 10 States | ||||||||||
State | % of | State | % of | |||||||
1. | 17.3 % | 6. | 3.9 % | |||||||
2. | 9.2 % | 7. | 3.8 % | |||||||
3. | 5.1 % | 8. | 3.6 % | |||||||
4. | 4.7 % | 9. | 3.3 % | |||||||
5. | 4.6 % | 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 September 30, 2024
| ||||||
Top 20 Tenants | ||||||
Tenant | # of | % of | ||||
1. | 7-Eleven | 146 | 4.6 % | |||
2. | Mister Car Wash | 121 | 4.1 % | |||
3. | Dave & Buster's | 34 | 3.9 % | |||
4. | Camping World | 48 | 3.8 % | |||
5. | GPM Investments (convenience stores) | 150 | 2.9 % | |||
6. | Flynn Restaurant Group (Taco Bell/Arby's) | 204 | 2.7 % | |||
7. | AMC Theatre | 20 | 2.6 % | |||
8. | LA Fitness | 26 | 2.5 % | |||
9. | BJ's Wholesale Club | 13 | 2.4 % | |||
10. | Mavis Tire Express Services | 140 | 2.2 % | |||
11. | Couche Tard (Pantry) | 92 | 2.2 % | |||
12. | Chuck-E-Cheese | 53 | 1.8 % | |||
13. | Walgreens | 49 | 1.8 % | |||
14. | Sunoco | 53 | 1.8 % | |||
15. | United Rentals | 49 | 1.6 % | |||
16. | Fikes (convenience stores) | 58 | 1.5 % | |||
17. | Frisch's Restaurants | 64 | 1.5 % | |||
18. | Tidal Wave Auto Spa | 35 | 1.3 % | |||
19. | Bob | 106 | 1.3 % | |||
20. | Life Time Fitness | 3 | 1.3 % | |||
Lease Expirations(2) | ||||||||||||||
% of | # of | Gross Leasable | % of | # of | Gross Leasable | |||||||||
2024 | 0.1 % | 8 | 52,000 | 2030 | 3.9 % | 128 | 1,691,000 | |||||||
2025 | 3.8 % | 153 | 1,254,000 | 2031 | 7.0 % | 184 | 2,655,000 | |||||||
2026 | 4.2 % | 205 | 1,992,000 | 2032 | 5.7 % | 215 | 2,361,000 | |||||||
2027 | 7.8 % | 232 | 3,542,000 | 2033 | 4.6 % | 135 | 1,403,000 | |||||||
2028 | 5.5 % | 228 | 2,109,000 | Thereafter | 52.8 % | 1,893 | 17,101,000 | |||||||
2029 | 4.6 % | 143 | 2,083,000 | |||||||||||
(1) | Based on the annual base rent of | |
(2) | As of September 30, 2024, the weighted average remaining lease term is 10.0 years. | |
(3) | Square feet. |
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SOURCE NNN REIT, Inc.
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