NNN REIT, Inc. Announces First Quarter 2026 Results and Increases 2026 Guidance
First Quarter 2026 Highlights:
- Reported net earnings of
$0.50 per diluted share and AFFO of$0.87 per diluted share - Increased ABR by 6.9% over prior-year results to
$934.6 million - Increased portfolio occupancy to 98.6%, an increase of 30 and 90 basis points over the prior quarter and prior year periods, respectively, with a portfolio weighted average remaining lease term of 10.1 years
- Closed on
$145.4 million of investments at an initial cash cap rate of 7.5%, with a weighted average lease term of 19 years - Sold 25 properties for
$35.8 million , including$17.8 million of income producing properties at a weighted average cap rate of 7.2% - Sold 1,667,232 common shares pursuant to forward sale agreements under the Company's at-the-market equity program ("ATM") at a weighted average price per share of
$44.93 - Fully drew down the
$300 million senior unsecured delayed draw term loan facility due inFebruary 2029 (the "Term Loan") with the entire outstanding balance fully hedged at an all-in fixed rate of 4.10% - Maintained balance sheet flexibility with a sector-leading weighted average debt maturity of 10.5 years, no encumbered assets, only 1.6% of floating rate exposure and
$1.2 billion of total available liquidity - Paid a
$0.60 quarterly dividend, representing a 5.7% annualized dividend yield and a 69% AFFO payout ratio as ofMarch 31, 2026
Additional Highlights:
- Increased AFFO per share guidance to a new range of
$3.53 to$3.59 - Increased Core FFO per share guidance to a new range of
$3.48 to$3.54
FINANCIAL RESULTS
|
|
|
Quarter Ended |
|
|||||
|
(dollars in thousands, except per diluted share data) |
|
2026 |
|
|
2025 |
|
||
|
Revenues |
|
$ |
240,424 |
|
|
$ |
230,854 |
|
|
|
|
|
|
|
|
|
||
|
Net earnings |
|
$ |
93,951 |
|
|
$ |
96,458 |
|
|
Net earnings per share |
|
$ |
0.50 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
||
|
FFO |
|
$ |
163,150 |
|
|
$ |
158,734 |
|
|
FFO per share |
|
$ |
0.86 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
||
|
Core FFO |
|
$ |
163,584 |
|
|
$ |
160,907 |
|
|
Core FFO per share |
|
$ |
0.86 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
||
|
AFFO |
|
$ |
165,679 |
|
|
$ |
163,015 |
|
|
AFFO per share |
|
$ |
0.87 |
|
|
$ |
0.87 |
|
PORTFOLIO SNAPSHOT
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|||
|
Number of properties |
|
|
3,711 |
|
|
|
3,692 |
|
|
|
3,641 |
|
|
Total gross leasable area (square feet) |
|
|
39,597,000 |
|
|
|
39,578,000 |
|
|
|
37,311,000 |
|
|
Occupancy rate |
|
|
98.6 |
% |
|
|
98.3 |
% |
|
|
97.7 |
% |
|
Weighted average remaining lease term (years) |
|
|
10.1 |
|
|
|
10.2 |
|
|
|
9.9 |
|
|
ABR |
|
$ |
934,612 |
|
|
$ |
928,081 |
|
|
$ |
874,301 |
|
PROPERTY ACQUISITIONS
|
(dollars in thousands) |
|
Quarter Ended |
|
|
|
Total dollars invested(1) |
|
$ |
145,394 |
|
|
Number of properties |
|
|
41 |
|
|
Gross leasable area (square feet)(2) |
|
|
304,000 |
|
|
Weighted average cap rate(3) |
|
|
7.5 |
% |
|
Weighted average lease term (years) |
|
|
19.0 |
|
|
(1) |
Includes dollars invested in projects under construction or tenant improvements. |
|
(2) |
Includes additional square footage from completed construction on existing properties. |
|
(3) |
Calculated as the initial cash annual base rent divided by the total purchase price of the properties. |
PROPERTY DISPOSITIONS
|
|
|
Quarter Ended |
|
|||||||||
|
(dollars in thousands) |
|
Occupied |
|
|
Vacant |
|
|
Total |
|
|||
|
Number of properties |
|
|
9 |
|
|
|
16 |
|
|
|
25 |
|
|
Gross leasable area (square feet) |
|
|
90,000 |
|
|
|
156,000 |
|
|
|
246,000 |
|
|
Net sale proceeds |
|
$ |
17,800 |
|
|
$ |
18,027 |
|
|
$ |
35,827 |
|
|
Weighted average cap rate(1) |
|
|
7.2 |
% |
|
|
— |
|
|
|
7.2 |
% |
|
(1) |
Calculated as the cash annual base rent divided by the total gross proceeds received for the occupied properties. |
CAPITAL MARKETS ACTIVITY
During the quarter ended
During the quarter ended
As of
BALANCE SHEET AND LIQUIDITY
As of
DIVIDEND
As previously announced on
2026 GUIDANCE
|
(dollars in millions, except per diluted share data) |
|
Initial 2026 |
|
Updated 2026 |
|
Net earnings per share excluding any gains on disposition of real estate, |
|
|
|
|
|
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 |
|
|
|
|
Guidance is based on current plans and assumptions and is subject to risks and uncertainties more fully described in this press release and the Company's reports filed with the Securities and Exchange Commission (the "Commission").
CONFERENCE CALL INFORMATION
The Company will host a conference call on
A telephonic replay of the call will be available through
ABOUT NNN REIT, INC.
NNN invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of
FORWARD-LOOKING STATEMENTS
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 global 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 Commission filings, including, but not limited to, the Company's (i) Annual Report on Form 10-K for the year ended December 31, 2025 and (ii) Quarterly Report on Form 10-Q for the quarter ended
DEFINITIONS
Annualized Base Rent ("ABR")
is a non-
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") as defined by the
Funds From Operations ("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 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 on the disposition of certain assets 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.
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, retirement and severance costs or other non-core amounts as they occur.
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 earnings 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.
Total Cash is comprised of cash and cash equivalents and restricted cash and cash held in escrow per GAAP as reported on the balance sheet summary.
Gross Assets represents total assets (reported in accordance with GAAP) adjusted to exclude accumulated amortization and depreciation and amortization of direct financing leases. The result provides an estimate of the investments made by the Company.
Total Debt is defined by the Company as total debt per GAAP as reported on the balance sheet summary including line of credit payable, term loan payable, notes payable, net of unamortized discount and unamortized debt costs and mortgages payable, net of unamortized premium and debt costs, as applicable.
Gross Debt is defined by the Company as Total Debt adjusted to exclude unamortized debt discounts and premiums and unamortized debt costs.
Net Debt is defined by the Company as Gross Debt less Total Cash.
Pro Forma Net Debt is defined by the Company as Net Debt less anticipated net proceeds from unsettled forward equity.
Management considers the non-GAAP measures of Gross Debt, Net Debt and Pro Forma Net Debt each to be a key supplemental measure of the Company's overall liquidity, capital structure and leverage.
The Company's computation of FFO, Core FFO, AFFO, EBITDAre, Total Cash, Gross Assets, Gross Debt and Net Debt may differ from the methodology for calculating these non-GAAP financial measures used by other REITs, and therefore, may not be comparable to such other REITs. Reconciliations of net earnings, Total Debt and total assets (all computed in accordance with GAAP) to FFO, Core FFO, AFFO, EBITDAre, Gross Assets, Gross Debt and Net Debt (each of which is a non-GAAP financial measure), as applicable, are included in the financial information accompanying this release.
|
Balance Sheet Summary (dollars in thousands) (unaudited) |
|
|||||||
|
|
|
|||||||
|
|
|
|
|
|
|
|
||
|
Assets: |
|
|
|
|
|
|
||
|
Real estate portfolio, net of accumulated depreciation and amortization |
|
$ |
9,280,628 |
|
|
$ |
9,239,542 |
|
|
Cash and cash equivalents |
|
|
4,570 |
|
|
|
5,046 |
|
|
Restricted cash and cash held in escrow |
|
|
827 |
|
|
|
776 |
|
|
Receivables, net of allowance of |
|
|
3,805 |
|
|
|
3,470 |
|
|
Accrued rental income, net of allowance of |
|
|
36,021 |
|
|
|
34,914 |
|
|
Debt costs, net of accumulated amortization of |
|
|
7,814 |
|
|
|
8,645 |
|
|
Other assets |
|
|
88,626 |
|
|
|
86,962 |
|
|
Total assets |
|
$ |
9,422,291 |
|
|
$ |
9,379,355 |
|
|
|
|
|
|
|
|
|
||
|
Liabilities: |
|
|
|
|
|
|
||
|
Line of credit payable |
|
$ |
80,000 |
|
|
$ |
348,100 |
|
|
Term loan payable |
|
|
300,000 |
|
|
|
— |
|
|
Notes payable, net of unamortized discount and unamortized debt costs |
|
|
4,474,123 |
|
|
|
4,472,324 |
|
|
Accrued interest payable |
|
|
72,320 |
|
|
|
40,557 |
|
|
Other liabilities |
|
|
100,579 |
|
|
|
110,072 |
|
|
Total liabilities |
|
|
5,027,022 |
|
|
|
4,971,053 |
|
|
|
|
|
|
|
|
|
||
|
Total equity |
|
|
4,395,269 |
|
|
|
4,408,302 |
|
|
|
|
|
|
|
|
|
||
|
Total liabilities and equity |
|
$ |
9,422,291 |
|
|
$ |
9,379,355 |
|
|
|
|
|
|
|
|
|
||
|
Common shares outstanding |
|
|
190,249,614 |
|
|
|
189,937,404 |
|
|
Income Statement Summary (dollars in thousands, except per share data) (unaudited) |
||||||||
|
|
||||||||
|
|
|
Quarter Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Revenues: |
|
|
|
|
|
|
||
|
Rental income |
|
$ |
240,014 |
|
|
$ |
230,574 |
|
|
Interest and other income from real estate transactions |
|
|
410 |
|
|
|
280 |
|
|
|
|
|
240,424 |
|
|
|
230,854 |
|
|
|
|
|
|
|
|
|
||
|
Operating expenses: |
|
|
|
|
|
|
||
|
General and administrative |
|
|
14,106 |
|
|
|
13,008 |
|
|
Real estate |
|
|
9,799 |
|
|
|
9,375 |
|
|
Depreciation and amortization |
|
|
70,797 |
|
|
|
64,617 |
|
|
Leasing transaction costs |
|
|
144 |
|
|
|
130 |
|
|
Impairment losses – real estate, net of recoveries |
|
|
10,680 |
|
|
|
1,512 |
|
|
Retirement and severance costs |
|
|
434 |
|
|
|
2,173 |
|
|
|
|
|
105,960 |
|
|
|
90,815 |
|
|
Gain on disposition of real estate |
|
|
12,185 |
|
|
|
3,813 |
|
|
Earnings from operations |
|
|
146,649 |
|
|
|
143,852 |
|
|
|
|
|
|
|
|
|
||
|
Other expenses (revenues): |
|
|
|
|
|
|
||
|
Interest and other income |
|
|
(28) |
|
|
|
(329) |
|
|
Interest expense |
|
|
52,726 |
|
|
|
47,723 |
|
|
|
|
|
52,698 |
|
|
|
47,394 |
|
|
|
|
|
|
|
|
|
||
|
Net earnings |
|
$ |
93,951 |
|
|
$ |
96,458 |
|
|
|
|
|
|
|
|
|
||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
||
|
Basic |
|
|
189,031,812 |
|
|
|
186,855,097 |
|
|
Diluted |
|
|
189,458,620 |
|
|
|
187,080,084 |
|
|
|
|
|
|
|
|
|
||
|
Net earnings per share: |
|
|
|
|
|
|
||
|
Basic |
|
$ |
0.50 |
|
|
$ |
0.52 |
|
|
Diluted |
|
$ |
0.50 |
|
|
$ |
0.51 |
|
|
Other Information (dollars in thousands) (unaudited) |
||||||||
|
|
||||||||
|
|
|
Quarter Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Rental income from operating leases(1) (2) |
|
$ |
233,571 |
|
|
$ |
224,056 |
|
|
Earned income from direct financing leases(1) |
|
$ |
82 |
|
|
$ |
114 |
|
|
Percentage rent(1) |
|
$ |
316 |
|
|
$ |
886 |
|
|
|
|
|
|
|
|
|
||
|
Real estate expenses reimbursed from tenants(1) |
|
$ |
6,045 |
|
|
$ |
5,518 |
|
|
Real estate expenses |
|
|
(9,799) |
|
|
|
(9,375) |
|
|
Real estate expenses, net of tenant reimbursements |
|
$ |
(3,754) |
|
|
$ |
(3,857) |
|
|
|
|
|
|
|
|
|
||
|
Amortization of debt costs |
|
$ |
1,752 |
|
|
$ |
1,466 |
|
|
Non-real estate depreciation expense |
|
$ |
95 |
|
|
$ |
43 |
|
|
(1) |
For the quarters ended |
|
(2) |
Includes lease termination fees of |
|
Reconciliation of Non-GAAP Financial Measures (dollars in thousands, except per share data) (unaudited) |
||||||||
|
|
||||||||
|
|
|
Quarter Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Net earnings |
|
$ |
93,951 |
|
|
$ |
96,458 |
|
|
Real estate depreciation and amortization |
|
|
70,704 |
|
|
|
64,577 |
|
|
Gain on disposition of real estate |
|
|
(12,185) |
|
|
|
(3,813) |
|
|
Impairment losses – depreciable real estate, net of recoveries |
|
|
10,680 |
|
|
|
1,512 |
|
|
FFO |
|
|
163,150 |
|
|
|
158,734 |
|
|
Retirement and severance costs |
|
|
434 |
|
|
|
2,173 |
|
|
Core FFO |
|
|
163,584 |
|
|
|
160,907 |
|
|
Straight-line accrued rent, net of reserves |
|
|
(1,291) |
|
|
|
(509) |
|
|
Net capital lease rent adjustment |
|
|
46 |
|
|
|
60 |
|
|
Below-market rent amortization |
|
|
(126) |
|
|
|
(93) |
|
|
Stock based compensation expense |
|
|
4,046 |
|
|
|
3,571 |
|
|
Capitalized interest expense |
|
|
(580) |
|
|
|
(921) |
|
|
AFFO |
|
$ |
165,679 |
|
|
$ |
163,015 |
|
|
|
|
|
|
|
|
|
||
|
FFO per share: |
|
|
|
|
|
|
||
|
Basic |
|
$ |
0.86 |
|
|
$ |
0.85 |
|
|
Diluted |
|
$ |
0.86 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
||
|
Core FFO per share: |
|
|
|
|
|
|
||
|
Basic |
|
$ |
0.87 |
|
|
$ |
0.86 |
|
|
Diluted |
|
$ |
0.86 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
||
|
AFFO per share: |
|
|
|
|
|
|
||
|
Basic |
|
$ |
0.88 |
|
|
$ |
0.87 |
|
|
Diluted |
|
$ |
0.87 |
|
|
$ |
0.87 |
|
|
|
|
|
|
|
|
|
||
|
Dividend per share |
|
$ |
0.600 |
|
|
$ |
0.580 |
|
|
AFFO payout ratio (1) |
|
|
69 |
% |
|
|
66 |
% |
|
(1) |
Calculated as total dividends paid as a percentage of AFFO for each respective period. |
|
Reconciliation of Non-GAAP Financial Measures (continued) (dollars in thousands) (unaudited) |
||||||||
|
|
||||||||
|
|
|
Quarter Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Net earnings |
|
$ |
93,951 |
|
|
$ |
96,458 |
|
|
Interest expense |
|
|
52,726 |
|
|
|
47,723 |
|
|
Depreciation and amortization |
|
|
70,797 |
|
|
|
64,617 |
|
|
Gain on disposition of real estate |
|
|
(12,185) |
|
|
|
(3,813) |
|
|
Impairment losses – real estate, net of recoveries |
|
|
10,680 |
|
|
|
1,512 |
|
|
EBITDAre |
|
$ |
215,969 |
|
|
$ |
206,497 |
|
|
|
|
|
|
|
|
|
||
|
Interest expense |
|
$ |
52,726 |
|
|
$ |
47,723 |
|
|
Add back: capitalized interest |
|
|
580 |
|
|
|
921 |
|
|
Fixed charges |
|
$ |
53,306 |
|
|
$ |
48,644 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
9,422,291 |
|
|
$ |
9,379,355 |
|
|
Accumulated depreciation & amortization |
|
|
2,307,623 |
|
|
|
2,259,469 |
|
|
Amortization of direct financing leases |
|
|
2,592 |
|
|
|
2,546 |
|
|
Gross Assets |
|
$ |
11,732,506 |
|
|
$ |
11,641,370 |
|
|
|
|
|
|
|
|
|
||
|
Debt outstanding: |
|
|
|
|
|
|
||
|
Line of credit |
|
$ |
80,000 |
|
|
$ |
348,100 |
|
|
Term Loan |
|
|
300,000 |
|
|
|
— |
|
|
Notes payable, net of unamortized discount and unamortized debt costs |
|
|
4,474,123 |
|
|
|
4,472,324 |
|
|
Total Debt |
|
|
4,854,123 |
|
|
|
4,820,424 |
|
|
Unamortized note discount |
|
|
46,039 |
|
|
|
47,005 |
|
|
Unamortized debt costs |
|
|
29,838 |
|
|
|
30,670 |
|
|
Gross Debt |
|
|
4,930,000 |
|
|
|
4,898,099 |
|
|
Total Cash |
|
|
(5,397) |
|
|
|
(5,822) |
|
|
Net Debt |
|
|
4,924,603 |
|
|
|
4,892,277 |
|
|
Net proceeds from unsettled forward equity |
|
|
(73,966) |
|
|
|
— |
|
|
Pro Forma Net Debt |
|
$ |
4,850,637 |
|
|
$ |
4,892,277 |
|
|
Debt Summary
As of (dollars in thousands) (unaudited) |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
Unsecured Debt |
|
Principal |
|
|
Principal, |
|
|
Stated |
|
|
Effective |
|
|
Maturity Date |
|||||
|
Line of credit payable |
|
$ |
80,000 |
|
|
$ |
80,000 |
|
|
SOFR + |
|
|
|
4.405 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Term loan payable |
|
|
300,000 |
|
|
|
300,000 |
|
|
SOFR + |
|
|
|
4.097 |
% |
(1) |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Notes payable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2026 |
|
|
350,000 |
|
|
|
349,678 |
|
|
|
3.600 |
% |
|
|
3.733 |
% |
|
|
|
|
2027 |
|
|
400,000 |
|
|
|
399,712 |
|
|
|
3.500 |
% |
|
|
3.548 |
% |
|
|
|
|
2028 |
|
|
400,000 |
|
|
|
399,158 |
|
|
|
4.300 |
% |
|
|
4.388 |
% |
|
|
|
|
2030 |
|
|
400,000 |
|
|
|
399,446 |
|
|
|
2.500 |
% |
|
|
2.536 |
% |
|
|
|
|
2031 |
|
|
500,000 |
|
|
|
496,393 |
|
|
|
4.600 |
% |
|
|
4.766 |
% |
|
|
|
|
2033 |
|
|
500,000 |
|
|
|
490,755 |
|
|
|
5.600 |
% |
|
|
5.905 |
% |
|
|
|
|
2034 |
|
|
500,000 |
|
|
|
494,725 |
|
|
|
5.500 |
% |
|
|
5.662 |
% |
|
|
|
|
2048 |
|
|
300,000 |
|
|
|
296,328 |
|
|
|
4.800 |
% |
|
|
4.890 |
% |
|
|
|
|
2050 |
|
|
300,000 |
|
|
|
294,739 |
|
|
|
3.100 |
% |
|
|
3.205 |
% |
|
|
|
|
2051 |
|
|
450,000 |
|
|
|
442,456 |
|
|
|
3.500 |
% |
|
|
3.602 |
% |
|
|
|
|
2052 |
|
|
450,000 |
|
|
|
440,571 |
|
|
|
3.000 |
% |
|
|
3.118 |
% |
|
|
|
Total |
|
|
4,550,000 |
|
|
|
4,503,961 |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total unsecured debt(2) |
|
$ |
4,930,000 |
|
|
$ |
4,883,961 |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Debt costs |
|
|
|
|
$ |
(44,420) |
|
|
|
|
|
|
|
|
|
||||
|
Accumulated amortization |
|
|
|
14,582 |
|
|
|
|
|
|
|
|
|
||||||
|
Debt costs, net of accumulated amortization |
|
|
|
(29,838) |
|
|
|
|
|
|
|
|
|
||||||
|
Notes payable, net of unamortized discount and |
|
|
$ |
4,474,123 |
|
|
|
|
|
|
|
|
|
||||||
|
(1) |
|
SOFR swapped to a weighted average fixed rate of 3.25%. |
|
(2) |
|
Unsecured debt has a weighted average interest rate of 4.2% and a weighted average maturity of 10.5 years. |
|
Debt Summary – Continued
As of (unaudited) |
||||
|
|
||||
|
Credit Metrics |
||||
|
|
||||
|
|
|
|
|
|
|
Gross Debt / Gross Assets |
|
42.0 % |
|
42.1 % |
|
Net Debt / EBITDAre (last quarter annualized) |
|
5.7x |
|
5.6x |
|
Pro Forma Net Debt / EBITDAre (last quarter annualized) |
|
5.6x |
|
5.6x |
|
EBITDAre / fixed charges |
|
4.1x |
|
4.1x |
Credit Facility, Term Loan and Notes Covenants
The following is a summary of key financial covenants for the Company's unsecured credit facility, Term Loan and notes, as defined and calculated per the terms of the agreements and indentures governing such debt, which are included in the Company's filings with the Commission. These calculations, which are not based on
|
Key Covenants |
|
Required |
|
|
|
Unsecured Bank Credit Facility and Term Loan: |
|
|
|
|
|
Maximum leverage ratio |
|
< 0.60x |
|
0.38x |
|
Minimum fixed charge coverage ratio |
|
> 1.50x |
|
4.09x |
|
Maximum secured indebtedness ratio |
|
< 0.40x |
|
— |
|
Unencumbered asset value ratio |
|
> 1.67x |
|
2.66x |
|
Unencumbered interest ratio |
|
> 1.75x |
|
4.04x |
|
Unsecured Notes: |
|
|
|
|
|
Limitation on incurrence of total debt |
|
≤ 60% |
|
41 % |
|
Limitation on incurrence of secured debt |
|
≤ 40% |
|
— |
|
Debt service coverage ratio |
|
≥ 1.5x |
|
4.0x |
|
Maintenance of total unencumbered assets |
|
≥ 150% |
|
241 % |
|
Property Portfolio
As of |
||||||||
|
|
||||||||
|
Top 20 Lines of Trade |
||||||||
|
|
||||||||
|
|
|
Lines of Trade |
|
# of |
|
# of |
|
% of |
|
1. |
|
Automotive service |
|
47 |
|
748 |
|
18.7 % |
|
2. |
|
Convenience stores |
|
31 |
|
688 |
|
16.3 % |
|
3. |
|
Restaurants – limited service |
|
63 |
|
622 |
|
8.0 % |
|
4. |
|
Entertainment |
|
7 |
|
96 |
|
7.1 % |
|
5. |
|
Dealerships |
|
18 |
|
110 |
|
6.4 % |
|
6. |
|
Restaurants – full service |
|
71 |
|
334 |
|
6.4 % |
|
7. |
|
Health and fitness |
|
9 |
|
37 |
|
3.9 % |
|
8. |
|
Theaters |
|
5 |
|
32 |
|
3.6 % |
|
9. |
|
Automotive parts |
|
7 |
|
144 |
|
3.3 % |
|
10. |
|
Equipment rental |
|
4 |
|
105 |
|
3.0 % |
|
11. |
|
Wholesale clubs |
|
1 |
|
13 |
|
2.2 % |
|
12. |
|
Drug stores |
|
3 |
|
59 |
|
1.9 % |
|
13. |
|
Home improvement |
|
10 |
|
49 |
|
1.9 % |
|
14. |
|
Medical service providers |
|
29 |
|
85 |
|
1.8 % |
|
15. |
|
Early childhood education |
|
8 |
|
80 |
|
1.8 % |
|
16. |
|
Pet supplies and services |
|
12 |
|
59 |
|
1.7 % |
|
17. |
|
Discount retail |
|
7 |
|
66 |
|
1.3 % |
|
18. |
|
Furniture |
|
14 |
|
43 |
|
1.2 % |
|
19. |
|
Travel plazas |
|
4 |
|
24 |
|
1.2 % |
|
20. |
|
Automobile auctions, wholesale |
|
2 |
|
18 |
|
1.1 % |
|
|
|
Other |
|
84 |
|
299 |
|
7.2 % |
|
|
|
Total |
|
|
|
3,711 |
|
100.0 % |
|
Property Portfolio – Continued
As of |
||||||||
|
|
||||||||
|
Top 20 States |
||||||||
|
|
||||||||
|
|
|
State |
|
# of |
|
# of |
|
% of |
|
1. |
|
|
|
97 |
|
592 |
|
18.2 % |
|
2. |
|
|
|
95 |
|
271 |
|
8.8 % |
|
3. |
|
|
|
52 |
|
181 |
|
5.2 % |
|
4. |
|
|
|
65 |
|
172 |
|
4.4 % |
|
5. |
|
|
|
74 |
|
211 |
|
4.2 % |
|
6. |
|
|
|
33 |
|
146 |
|
4.0 % |
|
7. |
|
|
|
47 |
|
156 |
|
3.6 % |
|
8. |
|
|
|
44 |
|
164 |
|
3.5 % |
|
9. |
|
|
|
46 |
|
157 |
|
3.5 % |
|
10. |
|
|
|
36 |
|
86 |
|
3.5 % |
|
11. |
|
|
|
44 |
|
119 |
|
3.3 % |
|
12. |
|
|
|
39 |
|
154 |
|
2.9 % |
|
13. |
|
|
|
26 |
|
71 |
|
2.8 % |
|
14. |
|
|
|
20 |
|
33 |
|
2.3 % |
|
15. |
|
|
|
39 |
|
84 |
|
2.2 % |
|
16. |
|
|
|
33 |
|
102 |
|
2.2 % |
|
17. |
|
|
|
20 |
|
52 |
|
2.0 % |
|
18. |
|
|
|
28 |
|
47 |
|
2.0 % |
|
19. |
|
|
|
29 |
|
80 |
|
2.0 % |
|
20. |
|
|
|
30 |
|
65 |
|
1.8 % |
|
|
|
Other |
|
167 |
|
768 |
|
17.6 % |
|
|
|
Total |
|
|
|
3,711 |
|
100.0 % |
|
Property Portfolio – Continued
As of |
||||||||
|
|
||||||||
|
Top 20 Tenants |
||||||||
|
|
||||||||
|
|
|
Tenant |
|
Primary Line of Trade |
|
# of |
|
% of |
|
1. |
|
7-Eleven |
|
Convenience stores |
|
145 |
|
4.3 % |
|
2. |
|
Mister Car Wash |
|
Automotive service |
|
120 |
|
3.8 % |
|
3. |
|
Dave & Buster's |
|
Entertainment |
|
34 |
|
3.6 % |
|
4. |
|
Camping World |
|
Dealerships |
|
46 |
|
3.5 % |
|
5. |
|
|
|
Convenience stores |
|
64 |
|
2.6 % |
|
6. |
|
|
|
Restaurants - limited service |
|
204 |
|
2.5 % |
|
7. |
|
|
|
Convenience stores |
|
143 |
|
2.5 % |
|
8. |
|
|
|
Theaters |
|
19 |
|
2.3 % |
|
9. |
|
BJ's Wholesale Club |
|
Wholesale clubs |
|
13 |
|
2.2 % |
|
10. |
|
|
|
Health and fitness |
|
24 |
|
2.1 % |
|
11. |
|
|
|
Automotive service |
|
140 |
|
2.1 % |
|
12. |
|
|
|
Convenience stores |
|
92 |
|
2.0 % |
|
13. |
|
Sunoco |
|
Convenience stores |
|
53 |
|
1.7 % |
|
14. |
|
|
|
Entertainment |
|
51 |
|
1.7 % |
|
15. |
|
Walgreens |
|
Drug stores |
|
48 |
|
1.6 % |
|
16. |
|
|
|
Convenience stores |
|
62 |
|
1.6 % |
|
17. |
|
United Rentals |
|
Equipment rental |
|
49 |
|
1.6 % |
|
18. |
|
|
|
Automotive service |
|
35 |
|
1.5 % |
|
19. |
|
Super |
|
Automotive service |
|
33 |
|
1.3 % |
|
20. |
|
|
|
Automotive service |
|
41 |
|
1.3 % |
|
|
|
Other |
|
|
|
2,295 |
|
54.2 % |
|
|
|
Total |
|
|
|
3,711 |
|
100.0 % |
|
Lease Expirations (1) |
||||||||||||||
|
|
||||||||||||||
|
|
|
# of |
|
Gross Leasable |
|
% of |
|
|
|
# of |
|
Gross Leasable |
|
% of |
|
2026 |
|
76 |
|
524,000 |
|
1.0 % |
|
2032 |
|
192 |
|
1,898,000 |
|
4.9 % |
|
2027 |
|
202 |
|
2,633,000 |
|
6.1 % |
|
2033 |
|
133 |
|
1,395,000 |
|
4.2 % |
|
2028 |
|
221 |
|
1,970,000 |
|
4.9 % |
|
2034 |
|
194 |
|
2,838,000 |
|
5.8 % |
|
2029 |
|
139 |
|
2,049,000 |
|
4.2 % |
|
2035 |
|
136 |
|
1,805,000 |
|
4.2 % |
|
2030 |
|
184 |
|
2,417,000 |
|
4.7 % |
|
Thereafter |
|
1,895 |
|
18,128,000 |
|
51.5 % |
|
2031 |
|
284 |
|
3,394,000 |
|
8.5 % |
|
|
|
|
|
|
|
|
|
(1) |
|
As of |
|
(2) |
|
Square feet. |
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