Annual Results Announced By National Retail Properties, Inc.
Operating Results:
- Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
(in thousands, except per share data) |
||||||||||||||
Revenues |
$ |
163,284 |
|
|
$ |
173,376 |
|
|
$ |
660,681 |
|
|
$ |
670,487 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings available to common stockholders |
$ |
56,802 |
(1) |
|
$ |
58,534 |
|
|
$ |
210,859 |
(1) |
|
$ |
258,183 |
|
Net earnings per common share |
$ |
0.33 |
(1) |
|
$ |
0.34 |
|
|
$ |
1.22 |
(1) |
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
||||||||
FFO available to common stockholders |
$ |
107,565 |
|
|
$ |
110,445 |
|
|
$ |
428,236 |
|
|
$ |
446,661 |
|
FFO per common share |
$ |
0.62 |
|
|
$ |
0.65 |
|
|
$ |
2.49 |
|
|
$ |
2.71 |
|
|
|
|
|
|
|
|
|
||||||||
Core FFO available to common stockholders |
$ |
109,331 |
|
|
$ |
120,301 |
|
|
$ |
446,681 |
|
|
$ |
455,186 |
|
Core FFO per common share |
$ |
0.63 |
|
|
$ |
0.70 |
|
|
$ |
2.59 |
|
|
$ |
2.76 |
|
|
|
|
|
|
|
|
|
||||||||
AFFO available to common stockholders |
$ |
119,764 |
(2) |
|
$ |
122,205 |
|
|
$ |
431,444 |
(2) |
|
$ |
462,325 |
|
AFFO per common share |
$ |
0.69 |
(2) |
|
$ |
0.71 |
|
|
$ |
2.51 |
(2) |
|
$ |
2.80 |
|
(1) Includes the write-off of |
|||||||||||||||
(2) Amounts include the net straight-line accrued rent impact of the rent deferrals (repayments) from the COVID-19 rent deferral lease amendments of ( |
2020 Highlights:
- As of
January 31, 2021 , NNN had collected approximately 89.7% of rent originally due for the year endedDecember 31, 2020 - Dividend yield of 5.1% at
December 31, 2020 - Annual dividend per common share increased 2.0% to
$2.07 marking the 31st 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 98.5%, with a weighted average remaining lease term of 10.7 years, at
December 31, 2020 as compared to 98.4% atSeptember 30, 2020 , and 99.0% atDecember 31, 2019 . -
$180.0 million in property investments, including the acquisition of 63 properties with aggregate gross leasable area of approximately 449,000 square feet at an initial cash yield of 6.5% - Sold 38 properties for
$54.5 million , producing$16.2 million of gains on sale, at a cap rate of 6.1% - Raised
$124.3 million in net proceeds from issuance of 3,257,660 common shares - Raised
$395.1 million in net proceeds from the issuance of 2.500% senior unsecured notes due 2030 - Raised
$290.5 million in net proceeds from the issuance of 3.100% senior unsecured notes due 2050 - Redeemed
$325 million principal amount of 3.800% senior unsecured notes due 2022 - Ended the year with
$267.2 million of cash and no amounts drawn on the$900 million bank credit facility - 99.7% 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
Selected Highlights for the quarter ended
- As of
January 31, 2021 , NNN had collected approximately 95.7% of rent originally due for the quarter endedDecember 31, 2020 , and approximately 95.0% of rent originally due inJanuary 2021 -
$102.0 million in property investments, including the acquisition of 42 properties with an aggregate gross leasable area of approximately 150,000 square feet at an initial cash yield of 6.2% - Sold 13 properties with net proceeds of
$12.0 million , producing$2.6 million of gains on sales at a cap rate of 7.2% - Raised
$60.1 million in net proceeds from the issuance of 1,501,322 common shares
During the year ended
The company announced 2021 Core FFO guidance of
Management will hold a conference call on
Statements in this press release that are not strictly historical are "forward-looking" statements. These statements generally are
characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated," or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the company's actual future results to differ materially from expected results. These risks include, among others, 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
Funds From Operations, commonly referred to as FFO, is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the
FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. The company's computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to FFO, as defined by NAREIT, is included in the financial information accompanying this release.
Core Funds From Operations ("Core FFO") is a non-GAAP measure of operating performance that adjusts FFO to eliminate the impact of certain GAAP income and expense amounts that the company believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the REIT industry, and management believes that presentation of Core FFO provides investors with a potential metric to assist in their evaluation of the company's operating performance across multiple periods and in comparison to the operating performance of its peers because it removes the effect of unusual items that are not expected to impact the company's operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of the company's core business operations and is a factor in determining management compensation. Items included in calculating FFO that may be excluded in calculating Core FFO may include items 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.
(in thousands, except per share data) (unaudited) |
||||||||||||||||
|
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Income Statement Summary |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Rental income |
|
$ |
162,902 |
|
|
$ |
173,163 |
|
|
$ |
658,793 |
|
|
$ |
669,009 |
|
Interest and other income from real estate transactions |
|
382 |
|
|
213 |
|
|
1,888 |
|
|
1,478 |
|
||||
|
|
163,284 |
|
|
173,376 |
|
|
660,681 |
|
|
670,487 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
General and administrative |
|
9,247 |
|
|
10,127 |
|
|
38,161 |
|
|
37,651 |
|
||||
Real estate |
|
8,059 |
|
|
7,258 |
|
|
28,362 |
|
|
27,656 |
|
||||
Depreciation and amortization |
|
49,095 |
|
|
48,102 |
|
|
196,623 |
|
|
188,871 |
|
||||
Leasing transaction costs |
|
40 |
|
|
83 |
|
|
76 |
|
|
261 |
|
||||
Impairment losses – real estate, net of recoveries |
|
4,380 |
|
|
10,868 |
|
|
37,442 |
|
|
31,992 |
|
||||
Retirement severance costs |
|
1,766 |
|
|
— |
|
|
1,766 |
|
|
— |
|
||||
|
|
72,587 |
|
|
76,438 |
|
|
302,430 |
|
|
286,431 |
|
||||
Gain on disposition of real estate |
|
2,601 |
|
|
6,955 |
|
|
16,238 |
|
|
32,463 |
|
||||
Earnings from operations |
|
93,298 |
|
|
103,893 |
|
|
374,489 |
|
|
416,519 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other expenses (revenues): |
|
|
|
|
|
|
|
|
||||||||
Interest and other income |
|
(73) |
|
|
(200) |
|
|
(417) |
|
|
(3,112) |
|
||||
Interest expense(1) |
|
32,084 |
|
|
30,307 |
|
|
129,431 |
|
|
120,023 |
|
||||
Loss on early extinguishment of debt |
|
— |
|
|
— |
|
|
16,679 |
|
|
— |
|
||||
|
|
32,011 |
|
|
30,107 |
|
|
145,693 |
|
|
116,911 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
|
61,287 |
|
|
73,786 |
|
|
228,796 |
|
|
299,608 |
|
||||
Loss (earnings) attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
3 |
|
|
(428) |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net earnings attributable to NNN |
|
61,287 |
|
|
73,786 |
|
|
228,799 |
|
|
299,180 |
|
||||
Series E preferred stock dividends |
|
— |
|
|
(911) |
|
|
— |
|
|
(13,201) |
|
||||
Series F preferred stock dividends |
|
(4,485) |
|
|
(4,485) |
|
|
(17,940) |
|
|
(17,940) |
|
||||
Excess of redemption value over carrying value of preferred shares redeemed |
|
— |
|
|
(9,856) |
|
|
— |
|
|
(9,856) |
|
||||
Net earnings available to common stockholders |
|
$ |
56,802 |
|
|
$ |
58,534 |
|
|
$ |
210,859 |
|
|
$ |
258,183 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
173,310 |
|
|
170,763 |
|
|
172,110 |
|
|
164,688 |
|
||||
Diluted |
|
173,453 |
|
|
171,175 |
|
|
172,217 |
|
|
165,084 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per share available to common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.33 |
|
|
$ |
0.34 |
|
|
$ |
1.22 |
|
|
$ |
1.56 |
|
Diluted |
|
$ |
0.33 |
|
|
$ |
0.34 |
|
|
$ |
1.22 |
|
|
$ |
1.56 |
|
|
||||||||||||||||
(1) Includes |
(in thousands, except per share data) (unaudited) |
||||||||||||||||
|
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Funds From Operations (FFO) Reconciliation: |
|
|
|
|
|
|
|
|
||||||||
Net earnings available to common stockholders |
|
$ |
56,802 |
(1) |
|
$ |
58,534 |
|
|
$ |
210,859 |
(1) |
|
$ |
258,183 |
|
Real estate depreciation and amortization |
|
48,984 |
|
|
47,998 |
|
|
196,173 |
|
|
188,537 |
|
||||
Gain on disposition of real estate, net of noncontrolling interests |
|
(2,601) |
|
|
(6,955) |
|
|
(16,238) |
|
|
(32,051) |
|
||||
Impairment losses – depreciable real estate, net of recoveries |
|
4,380 |
|
|
10,868 |
|
|
37,442 |
|
|
31,992 |
|
||||
Total FFO adjustments |
|
50,763 |
|
|
51,911 |
|
|
217,377 |
|
|
188,478 |
|
||||
FFO available to common stockholders |
|
$ |
107,565 |
|
|
$ |
110,445 |
|
|
$ |
428,236 |
|
|
$ |
446,661 |
|
|
|
|
|
|
|
|
|
|
||||||||
FFO per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.62 |
|
|
$ |
0.65 |
|
|
$ |
2.49 |
|
|
$ |
2.71 |
|
Diluted |
|
$ |
0.62 |
|
|
$ |
0.65 |
|
|
$ |
2.49 |
|
|
$ |
2.71 |
|
|
|
|
|
|
|
|
|
|
||||||||
Core Funds From Operations Reconciliation: |
|
|
|
|
|
|
|
|
||||||||
Net earnings available to common stockholders |
|
$ |
56,802 |
(1) |
|
$ |
58,534 |
|
|
$ |
210,859 |
(1) |
|
$ |
258,183 |
|
Total FFO adjustments |
|
50,763 |
|
|
51,911 |
|
|
217,377 |
|
|
188,478 |
|
||||
FFO available to common stockholders |
|
107,565 |
|
|
110,445 |
|
|
428,236 |
|
|
446,661 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Excess of redemption value over carrying value of preferred share redemption |
|
— |
|
|
9,856 |
|
|
— |
|
|
9,856 |
|
||||
Retirement severance costs |
|
1,766 |
|
|
— |
|
|
1,766 |
|
|
— |
|
||||
Gain on sale of equity investments |
|
— |
|
|
— |
|
|
— |
|
|
(1,331) |
|
||||
Loss on early extinguishment of debt |
|
— |
|
|
— |
|
|
16,679 |
|
|
— |
|
||||
Total Core FFO adjustments |
|
1,766 |
|
|
9,856 |
|
|
18,445 |
|
|
8,525 |
|
||||
Core FFO available to common stockholders |
|
$ |
109,331 |
|
|
$ |
120,301 |
|
|
$ |
446,681 |
|
|
$ |
455,186 |
|
|
|
|
|
|
|
|
|
|
||||||||
Core FFO per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.63 |
|
|
$ |
0.70 |
|
|
$ |
2.60 |
|
|
$ |
2.76 |
|
Diluted |
|
$ |
0.63 |
|
|
$ |
0.70 |
|
|
$ |
2.59 |
|
|
$ |
2.76 |
|
|
||||||||||||||||
(1) Includes the write-off of |
|
||||||||||||||||
|
||||||||||||||||
|
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Adjusted Funds From Operations (AFFO) Reconciliation: |
|
|
|
|
|
|
|
|
||||||||
Net earnings available to common stockholders |
|
$ |
56,802 |
(1) |
|
$ |
58,534 |
|
|
$ |
210,859 |
(1) |
|
$ |
258,183 |
|
Total FFO adjustments |
|
50,763 |
|
|
51,911 |
|
|
217,377 |
|
|
188,478 |
|
||||
Total Core FFO adjustments |
|
1,766 |
|
|
9,856 |
|
|
18,445 |
|
|
8,525 |
|
||||
Core FFO available to common stockholders |
|
109,331 |
|
|
120,301 |
|
|
446,681 |
|
|
455,186 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Straight-line accrued rent, net of reserves |
|
7,437 |
|
|
(631) |
|
|
(26,027) |
|
|
(2,333) |
|
||||
Net capital lease rent adjustment |
|
66 |
|
|
94 |
|
|
210 |
|
|
602 |
|
||||
Below market rent amortization |
|
(175) |
|
|
(189) |
|
|
(887) |
|
|
(768) |
|
||||
Stock based compensation expense |
|
3,275 |
|
|
2,932 |
|
|
12,855 |
|
|
10,737 |
|
||||
Capitalized interest expense |
|
(170) |
|
|
(302) |
|
|
(1,388) |
|
|
(1,099) |
|
||||
Total AFFO adjustments |
|
10,433 |
|
|
1,904 |
|
|
(15,237) |
|
|
7,139 |
|
||||
AFFO available to common stockholders |
|
$ |
119,764 |
(2) |
|
$ |
122,205 |
|
|
$ |
431,444 |
(2) |
|
$ |
462,325 |
|
|
|
|
|
|
|
|
|
|
||||||||
AFFO per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.69 |
(2) |
|
$ |
0.72 |
|
|
$ |
2.51 |
(2) |
|
$ |
2.81 |
|
Diluted |
|
$ |
0.69 |
(2) |
|
$ |
0.71 |
|
|
$ |
2.51 |
(2) |
|
$ |
2.80 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other Information: |
|
|
|
|
|
|
|
|
||||||||
Rental income from operating leases(3) |
|
$ |
157,408 |
|
|
$ |
167,805 |
|
|
$ |
639,265 |
|
|
$ |
650,112 |
|
Earned income from direct financing leases(3) |
|
$ |
160 |
|
|
$ |
174 |
|
|
$ |
647 |
|
|
$ |
798 |
|
Percentage rent(3) |
|
$ |
114 |
|
|
$ |
260 |
|
|
$ |
842 |
|
|
$ |
1,310 |
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate expense reimbursement from tenants(3) |
|
$ |
5,220 |
|
|
$ |
4,924 |
|
|
$ |
18,039 |
|
|
$ |
16,789 |
|
Real estate expenses |
|
(8,058) |
|
|
(7,258) |
|
|
(28,362) |
|
|
(27,656) |
|
||||
Real estate expenses, net of tenant reimbursements |
|
$ |
(2,838) |
|
|
$ |
(2,334) |
|
|
$ |
(10,323) |
|
|
$ |
(10,867) |
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of debt costs |
|
$ |
1,085 |
|
|
$ |
944 |
|
|
$ |
5,009 |
(4) |
|
$ |
3,731 |
|
Scheduled debt principal amortization (excluding maturities) |
|
$ |
153 |
|
|
$ |
145 |
|
|
$ |
596 |
|
|
$ |
567 |
|
Non-real estate depreciation expense |
|
$ |
114 |
|
|
$ |
108 |
|
|
$ |
461 |
|
|
$ |
346 |
|
|
||||||||||||||||
(1) Includes the write-off of |
||||||||||||||||
|
||||||||||||||||
(2) Amounts include the net straight-line accrued rent impact of the rent deferrals (repayments) from the COVID-19 rent deferral lease amendments of ( |
||||||||||||||||
|
||||||||||||||||
(3) The consolidated financial statements for the quarter and year ended |
||||||||||||||||
|
||||||||||||||||
(4) Includes |
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 |
|
|
||||||
Real estate depreciation and amortization per share |
|
|
||||||
Core FFO per share |
|
|
||||||
AFFO per share(1) |
|
|
||||||
General and administrative expenses |
|
|
||||||
Real estate expenses, net of tenant reimbursements |
|
|
||||||
Acquisition volume |
|
|
||||||
Disposition volume |
|
|
||||||
|
||||||||
(1) Estimates include the net straight-line accrued rent impact of the rent repayment from the COVID-19 rent deferral lease amendments of |
(in thousands) (unaudited) |
||||||||
|
|
|
|
|
||||
Balance Sheet Summary |
|
|
|
|
||||
|
|
|
|
|
||||
Assets: |
|
|
|
|
||||
Real estate: |
|
|
|
|
||||
Accounted for using the operating method, net of accumulated depreciation and amortization |
|
$ |
7,208,661 |
|
|
$ |
7,287,082 |
|
Accounted for using the direct financing method |
|
3,994 |
|
|
4,204 |
|
||
Real estate held for sale |
|
5,671 |
|
|
9,953 |
|
||
Cash and cash equivalents |
|
267,236 |
|
|
1,112 |
|
||
Receivables, net of allowance of |
|
4,338 |
|
|
2,874 |
|
||
Accrued rental income, net of allowance of |
|
53,958 |
|
|
28,897 |
|
||
Debt costs, net of accumulated amortization of |
|
1,917 |
|
|
2,783 |
|
||
Other assets |
|
92,069 |
|
|
97,962 |
|
||
Total assets |
|
$ |
7,637,844 |
|
|
$ |
7,434,867 |
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
||||
Line of credit payable |
|
$ |
— |
|
|
$ |
133,600 |
|
Mortgages payable, including unamortized premium and net of unamortized debt costs |
|
11,395 |
|
|
12,059 |
|
||
Notes payable, net of unamortized discount and unamortized debt costs |
|
3,209,527 |
|
|
2,842,698 |
|
||
Accrued interest payable |
|
19,401 |
|
|
18,250 |
|
||
Other liabilities |
|
78,217 |
|
|
96,578 |
|
||
Total liabilities |
|
3,318,540 |
|
|
3,103,185 |
|
||
|
|
|
|
|
||||
Stockholders' equity of NNN |
|
4,319,300 |
|
|
4,331,675 |
|
||
Noncontrolling interests |
|
4 |
|
|
7 |
|
||
Total equity |
|
4,319,304 |
|
|
4,331,682 |
|
||
|
|
|
|
|
||||
Total liabilities and equity |
|
$ |
7,637,844 |
|
|
$ |
7,434,867 |
|
|
|
|
|
|
||||
Common shares outstanding |
|
175,233 |
|
|
171,694 |
|
||
|
|
|
|
|
||||
Gross leasable area, Property Portfolio (square feet) |
|
32,461 |
|
|
32,460 |
|
||
|
|
|
|
|
Debt Summary
As of (in thousands) (unaudited) |
||||||||||||||
|
||||||||||||||
Unsecured Debt |
|
Principal |
|
Principal, |
|
Stated Rate |
|
Effective Rate |
|
Maturity Date |
||||
Line of credit payable |
|
$ |
— |
|
|
$ |
— |
|
|
L + 87.5 bps |
|
2.560% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unsecured notes payable: |
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
2023 |
|
350,000 |
|
|
349,327 |
|
|
3.300% |
|
3.388% |
|
|
||
2024 |
|
350,000 |
|
|
349,726 |
|
|
3.900% |
|
3.924% |
|
|
||
2025 |
|
400,000 |
|
|
399,485 |
|
|
4.000% |
|
4.029% |
|
|
||
2026 |
|
350,000 |
|
|
347,532 |
|
|
3.600% |
|
3.733% |
|
|
||
2027 |
|
400,000 |
|
|
398,842 |
|
|
3.500% |
|
3.548% |
|
|
||
2028 |
|
400,000 |
|
|
397,689 |
|
|
4.300% |
|
4.388% |
|
|
||
2030 |
|
400,000 |
|
|
398,805 |
|
|
2.500% |
|
2.536% |
|
|
||
2048 |
|
300,000 |
|
|
295,910 |
|
|
4.800% |
|
4.890% |
|
|
||
2050 |
|
300,000 |
|
|
294,034 |
|
|
3.100% |
|
3.205% |
|
|
||
Total |
|
3,250,000 |
|
|
3,231,350 |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Total unsecured debt |
|
$ |
3,250,000 |
|
|
$ |
3,231,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt costs |
|
$ |
(31,140) |
|
|
|
|
|
|
|
||||
Accumulated amortization |
|
9,317 |
|
|
|
|
|
|
|
|||||
Debt costs, net of accumulated amortization |
|
(21,823) |
|
|
|
|
|
|
|
|||||
Notes payable, net of unamortized discount and |
|
$ |
3,209,527 |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Unsecured notes payable have a weighted average interest rate of 3.7% and a weighted average maturity of 10.2 years |
Mortgages Payable |
|
Principal |
|
Interest Rate |
|
Maturity Date |
||
Mortgage(1) |
|
$ |
11,434 |
|
|
5.230% |
|
|
|
||||||||
Debt costs |
|
(147) |
|
|
|
|
|
|
Accumulated amortization |
|
108 |
|
|
|
|
|
|
Debt costs, net of accumulated amortization |
|
(39) |
|
|
|
|
|
|
Mortgages payable, including unamortized premium and net of unamortized debt costs |
|
$ |
11,395 |
|
|
|
|
|
|
|
|
|
|
|
|
||
(1) Includes unamortized premium |
|
|
|
|
|
|
Debt Summary
As of |
|||||
|
|||||
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 |
|
|
|
Maximum leverage ratio |
|
< 0.60 |
|
0.38 |
|
Minimum fixed charge coverage ratio |
|
> 1.50 |
|
3.89 |
|
Maximum secured indebtedness ratio |
|
< 0.40 |
|
0.001 |
|
Unencumbered asset value ratio |
|
> 1.67 |
|
2.67 |
|
Unencumbered interest ratio |
|
> 1.75 |
|
5.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured Notes Key Covenants |
|
Required |
|
Notes Due (1) |
Notes Due (2) |
Limitation on incurrence of total debt |
|
≤ 60% |
|
36.0% |
36.0% |
Limitation on incurrence of secured debt |
|
≤ 40% |
|
0.1% |
0.1% |
Debt service coverage ratio |
|
≥ 1.50 |
|
4.40 |
4.40 |
Maintenance of total unencumbered assets |
|
≥ 150% |
|
278.4% |
278.2% |
|
|
|
|
|
|
(1) Calculations pursuant to covenants for notes payable due 2023-2028 and 2048 |
|||||
(2) Calculations pursuant to covenants for notes payable due 2030 and 2050 |
Property Portfolio |
|||||||||||
|
|||||||||||
Top 20 Lines of Trade |
|||||||||||
|
|
|
|
|
|
|
|
% of Rent |
|||
|
|
|
|
As of |
|
||||||
|
|
Line of Trade |
|
2020(1) |
|
2019(2) |
|
||||
1. |
|
Convenience stores |
|
18.2 |
% |
|
18.2 |
% |
|
99.9 |
% |
2. |
|
Restaurants – full service |
|
10.5 |
% |
|
11.1 |
% |
|
86.1 |
% |
3. |
|
Automotive service |
|
10.3 |
% |
|
9.6 |
% |
|
99.5 |
% |
4. |
|
Restaurants – limited service |
|
9.7 |
% |
|
8.8 |
% |
|
99.9 |
% |
5. |
|
Family entertainment centers |
|
5.9 |
% |
|
6.7 |
% |
|
99.3 |
% |
6. |
|
Health and fitness |
|
5.3 |
% |
|
5.2 |
% |
|
98.4 |
% |
7. |
|
Theaters |
|
4.4 |
% |
|
4.7 |
% |
|
42.4 |
% |
8. |
|
Recreational vehicle dealers, parts and accessories |
|
3.5 |
% |
|
3.4 |
% |
|
100.0 |
% |
9. |
|
Automotive parts |
|
3.1 |
% |
|
3.1 |
% |
|
99.5 |
% |
10. |
|
Equipment rental |
|
2.6 |
% |
|
2.6 |
% |
|
99.8 |
% |
11. |
|
Home improvement |
|
2.6 |
% |
|
2.6 |
% |
|
99.4 |
% |
12. |
|
Wholesale clubs |
|
2.6 |
% |
|
2.5 |
% |
|
99.7 |
% |
13. |
|
Medical service providers |
|
2.2 |
% |
|
2.1 |
% |
|
99.9 |
% |
14. |
|
General merchandise |
|
1.7 |
% |
|
1.8 |
% |
|
99.2 |
% |
15. |
|
Furniture |
|
1.7 |
% |
|
1.6 |
% |
|
99.4 |
% |
16. |
|
Home furnishings |
|
1.6 |
% |
|
1.7 |
% |
|
99.9 |
% |
17. |
|
Consumer electronics |
|
1.5 |
% |
|
1.5 |
% |
|
100.0 |
% |
18. |
|
Travel plazas |
|
1.5 |
% |
|
1.6 |
% |
|
100.0 |
% |
19. |
|
Drug stores |
|
1.5 |
% |
|
1.6 |
% |
|
99.9 |
% |
20. |
|
Bank |
|
1.3 |
% |
|
1.3 |
% |
|
100.0 |
% |
|
|
Other |
|
8.3 |
% |
|
8.3 |
% |
|
99.4 |
% |
|
|
Total |
|
100.0 |
% |
|
100.0 |
% |
|
95.7 |
% |
Top 10 States |
|||||||||||||
|
|||||||||||||
|
State |
|
|
% of Total(1) |
|
|
State |
|
|
% of Total(1) |
|
||
1. |
|
|
|
17.5 |
% |
|
6. |
|
|
|
4.4 |
% |
|
2. |
|
|
|
8.5 |
% |
|
7. |
|
|
|
4.2 |
% |
|
3. |
|
|
|
5.8 |
% |
|
8. |
|
|
|
3.7 |
% |
|
4. |
|
|
|
5.1 |
% |
|
9. |
|
|
|
3.5 |
% |
|
5. |
|
|
|
4.5 |
% |
|
10. |
|
|
|
3.3 |
% |
|
|
|
||||||||||||
|
(1) Based on the annual base rent of
|
||||||||||||
|
(2) Based on the annual base rent of
|
||||||||||||
|
(3) Rent collections received as of |
Property Portfolio |
|||||
|
|||||
Top 20 Tenants |
|||||
|
|||||
|
Tenant |
|
Properties |
|
% of Total (1) |
1. |
|
|
140 |
|
5.1% |
2. |
|
|
115 |
|
4.6% |
3. |
Camping World |
|
47 |
|
4.4% |
4. |
|
|
30 |
|
3.8% |
5. |
|
|
202 |
|
3.5% |
6. |
|
|
151 |
|
3.3% |
7. |
|
|
19 |
|
2.9% |
8. |
|
|
82 |
|
2.7% |
9. |
BJ's Wholesale Club |
|
11 |
|
2.6% |
10. |
Sunoco |
|
59 |
|
2.2% |
11. |
Mavis Tire Express Services |
|
120 |
|
2.2% |
12. |
Main Event |
|
18 |
|
1.8% |
13. |
|
|
74 |
|
1.8% |
14. |
|
|
115 |
|
1.7% |
15. |
Fikes (Convenience Stores) |
|
56 |
|
1.6% |
16. |
|
|
53 |
|
1.6% |
17. |
Best Buy |
|
15 |
|
1.5% |
18. |
|
|
3 |
|
1.5% |
19. |
Dave & Buster's |
|
11 |
|
1.5% |
20. |
Pull-A-Part |
|
20 |
|
1.3% |
Lease Expirations (2) |
||||||||||||||||
|
||||||||||||||||
|
|
% of |
|
# of |
|
Gross |
|
|
|
% of |
|
# of |
|
Gross |
||
2021 |
|
3.0% |
|
108 |
|
1,120,000 |
|
|
2027 |
|
6.3% |
|
172 |
|
2,443,000 |
|
2022 |
|
5.4% |
|
123 |
|
1,577,000 |
|
|
2028 |
|
4.8% |
|
158 |
|
1,185,000 |
|
2023 |
|
2.8% |
|
114 |
|
1,426,000 |
|
|
2029 |
|
3.0% |
|
75 |
|
1,052,000 |
|
2024 |
|
3.6% |
|
96 |
|
1,481,000 |
|
|
2030 |
|
3.6% |
|
105 |
|
1,122,000 |
|
2025 |
|
6.2% |
|
198 |
|
2,093,000 |
|
|
2031 |
|
8.7% |
|
188 |
|
2,861,000 |
|
2026 |
|
4.7% |
|
186 |
|
1,768,000 |
|
|
Thereafter |
|
47.9% |
|
1,570 |
|
13,503,000 |
|
|
|
(1) |
Based on the annual base rent of |
(2) |
As of |
(3) |
Square feet. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/annual-results-announced-by-national-retail-properties-inc-301226535.html
SOURCE