Financial Performance - For the quarter ended March 31, 2025, net earnings increased to $96,458,000 from $94,371,000 in the same quarter of 2024, representing a growth of 2.2%[54]. - Rental income from operating leases rose to $224,056,000 in Q1 2025, compared to $209,084,000 in Q1 2024, marking an increase of 7.2%[65]. - NNN's real estate portfolio value as of March 31, 2025, was $10,898,036,000, up from $10,746,168,000 at the end of 2024, reflecting a growth of 1.4%[64]. - The company recognized a total of $1,512,000 in real estate impairments for the quarter ended March 31, 2025, compared to $1,204,000 in Q1 2024, indicating a 25.5% increase in impairments[70]. - NNN declared dividends of $108,335,000 for the quarter ended March 31, 2025, with a per share dividend of $0.5800, compared to $102,684,000 and $0.5650 per share for the same period in 2024[80]. Real Estate and Leasing - NNN's total annualized base rent (ABR) was $874,301,000 as of March 31, 2025, an increase from $831,010,000 as of March 31, 2024[41]. - The number of tenants classified as cash basis for accounting purposes was 10 as of March 31, 2025, representing 1.5% of total properties and 3.4% of annualized base rent[41]. - NNN's properties are predominantly leased under triple-net leases, with tenants responsible for all operating expenses[37]. - NNN's real estate portfolio is primarily held for investment, with leases typically having initial terms of 10 to 20 years[45]. - The weighted average remaining lease term for NNN's real estate portfolio was 10 years as of March 31, 2025, with 3,575 leases classified as operating leases[61]. Debt and Financing - Debt costs associated with NNN's unsecured notes amounted to $43,820,000 as of March 31, 2025, net of accumulated amortization[51]. - NNN increased its unsecured revolving credit facility borrowing capacity from $1,100,000,000 to $1,200,000,000, with a weighted average interest rate of 5.21% for the quarter ended March 31, 2025[71]. - As of March 31, 2025, NNN had $116,300,000 outstanding under the credit facility and $1,083,700,000 available for future borrowings, remaining compliant with financial covenants[71]. - NNN's unsecured debt obligations have a weighted average interest rate of 4.1% and a weighted average maturity of 11.6 years[144]. - NNN's variable rate credit facility had a weighted average outstanding balance of $70,342,000 for the quarter ended March 31, 2025, down from $116,067,000 with a 6.26% interest rate in the same period of 2024[142]. Cash and Investments - NNN held $427,000 in restricted cash and cash held in escrow as of March 31, 2025, compared to $331,000 as of December 31, 2024[49]. - NNN's cash and cash equivalents consist of cash and money market accounts, with no losses experienced in accounts exceeding federally insured levels[48]. - NNN's accumulated other comprehensive income (loss) improved to $(7,791,000) as of March 31, 2025, from $(7,959,000) at the end of 2024[56]. - NNN's above-market in-place leases net value increased to $3,556,000 as of March 31, 2025, from $2,594,000 at the end of 2024, showing a growth of 37.1%[67]. Accounting and Compliance - The company is currently evaluating the potential impact of new accounting standards (ASU 2023-09 and ASU 2024-03) on its future disclosures[57][58]. - NNN's accumulated other comprehensive income related to previously terminated interest rate hedges was $7,499,000, with an estimated additional $1,274,000 to be reclassified as interest expense over the next 12 months[74]. - During the quarter ended March 31, 2025, NNN entered into a forward starting swap with a notional amount of $150,000,000, designated as a cash flow hedge, with a fair value of $292,000[75]. Real Estate Transactions - The company reported a gain on the disposition of real estate of $3,813,000 from 10 properties sold in Q1 2025, compared to a gain of $4,821,000 from 6 properties sold in Q1 2024[68]. - NNN has committed to fund construction on 19 properties with a total commitment of $143,758,000, of which $87,819,000 has been funded, leaving a remaining commitment of $55,939,000[69].

Financial Performance - Revenues for Q1 2025 increased to $230.854 million, up 7.0% from $215.407 million in Q1 2024[2] - Net earnings per diluted share were $0.51, a slight decrease from $0.52 in the prior year[3] - Core FFO per diluted share grew by 3.6% to $0.86, while AFFO per diluted share increased to $0.87, up from $0.84[3] - Rental income for Q1 2025 was $230,574, an increase of 7.9% from $214,825 in Q1 2024[25] - Net earnings for Q1 2025 were $96,458, compared to $94,371 in Q1 2024, reflecting a growth of 2.2%[25] - Funds from Operations (FFO) for Q1 2025 reached $158,734, up from $151,261 in Q1 2024, indicating a 4.9% increase[32] - Core FFO per share for Q1 2025 was $0.86, compared to $0.83 in Q1 2024, representing a growth of 3.6%[32] Investment and Capital Structure - The company closed on $232.4 million of investments, achieving an initial cash cap rate of 7.4%[3] - Gross Debt was reported at $4.6 billion with a weighted average interest rate of 4.1%[7] - The company maintained $1.1 billion in total available liquidity, with only 2.5% of floating rate debt[3] - Total liabilities increased to $4,665,231 as of March 31, 2025, compared to $4,510,453 at the end of 2024[30] - The gross debt to gross assets ratio was 41.0% as of March 31, 2025, compared to 40.7% at the end of 2024[39] - The company maintained a fixed charge coverage ratio of 4.27, well above the required minimum of 1.50[41] Dividends - The board declared a quarterly dividend of $0.58 per share, representing a 5.4% annualized yield[8] - The company reported a dividend per share of $0.5800 for Q1 2025, up from $0.5650 in Q1 2024[32] Asset and Equity Overview - Total assets as of March 31, 2025, were $9,021,718, an increase from $8,872,728 as of December 31, 2024[30] - The total equity as of March 31, 2025, was $4,356,487, slightly down from $4,362,275 at the end of 2024[30] Annual Base Rent (ABR) and Lease Information - Annualized Base Rent (ABR) rose by 5.2% compared to the previous year[3] - As of March 31, 2025, the total ABR (Annual Base Rent) is $874,301,000, an increase from $831,010,000 as of March 31, 2024, representing a growth of approximately 5.7%[45] - Lease expirations in 2025 account for 2.5% of ABR, with 107 properties covering 608,000 square feet[48] - The 2030 lease expirations represent 4.6% of ABR, with 169 properties covering 2,202,000 square feet[48] - The weighted average remaining lease term is 9.9 years as of March 31, 2025[48] Tenant and Segment Performance - The top line of trade is Automotive service, accounting for 17.9% of ABR in 2025, up from 16.3% in 2024[43] - The state of Texas contributes the highest ABR at 19.0%, followed by Florida at 8.7%[44] - The top tenant, 7-Eleven, represents 4.5% of total properties with 146 locations[47] - The family entertainment centers segment increased to 7.1% of ABR in 2025 from 6.7% in 2024[43] - The convenience stores segment shows a slight increase to 16.8% of ABR in 2025 from 16.2% in 2024[43] - The company has 2,267 properties classified as "Other," which make up 52.1% of total properties[47]

ORLANDO, Fla., May 1, 2025 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) (the "Company" or "NNN"), a real estate investment trust, today announced financial and operating results for the quarter ended March 31, 2025. Highlights include:First Quarter 2025 Highlights: Net earnings of $0.51 per diluted share Grew Core FFO and AFFO per diluted share by 3.6% over prior year results, to $0.86 and $0.87, respectively Increased ABR by 5.2% over the prior year result Closed on $232.4 million of investments, at an initi ...

Core Insights - NNN REIT is one of the oldest triple net lease REITs in the US, established in 1984, and has maintained 35 years of uninterrupted dividend growth [1] - The company began with a modest portfolio in Florida and has since expanded significantly, becoming a major player in the industry [1] Company Characteristics - NNN REIT focuses on companies that exhibit growth in revenue, earnings, and free cash flow [1] - The company seeks investments with excellent growth prospects and favorable valuations [1] - NNN REIT prefers steadily growing companies with high free cash flow margins, dividend stocks, and those with generous share repurchase programs [1]

Core Insights - NNN REIT is presented as a compelling investment opportunity for long-term investors due to its unique qualities that are not shared by its peers [1] - The valuation of NNN REIT remains attractive, similar to previous assessments [1] Company Overview - NNN REIT focuses on dividend investing, which is highlighted as a pathway to financial freedom [1] - The author emphasizes the importance of financial modeling, commercial and financial due diligence, and negotiation in assessing company health [1] Investment Strategy - The article promotes dividend investing as a straightforward and accessible method for building long-term wealth [1] - The author's motivation for sharing insights is to facilitate collective learning and growth in the realm of dividend investing [1]

Core Viewpoint - NNN REIT, Inc. is set to release its first quarter 2025 financial results on May 1, 2025, before market opening, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The company will announce its first quarter 2025 results on May 1, 2025, before the market opens [1]. - A conference call will be held on the same day at 10:30 a.m. ET to discuss financial and operating results [1]. Group 2: Conference Call Details - A live webcast of the conference call will be available on the company's website [2]. - The conference call can be accessed by dialing 888-506-0062 in the U.S. or 973-528-0011 internationally, with a participant code of 696567 [2]. - A telephonic replay of the call will be available until May 8, 2025, using the numbers 877-481-4010 in the U.S. or 919-882-2331 internationally, with the code 52285 [2]. Group 3: Company Overview - NNN REIT invests in high-quality properties generally subject to long-term, net leases with minimal ongoing capital expenditures [3]. - As of December 31, 2024, the company owned 3,568 properties across 49 states, with a gross leasable area of approximately 36.6 million square feet and a weighted average remaining lease term of 9.9 years [3].

Core Insights - Rising uncertainty due to tariffs, recession fears, and Federal Reserve interest rate decisions is prompting investors to reconsider their investment strategies [1] Group 1 - The current economic climate is characterized by increased tariffs and recession fears, leading to investor uncertainty [1] - The Federal Reserve's actions regarding interest rates are a significant concern for investors [1] - The article emphasizes the importance of quality investments, particularly in blue-chip stocks, BDCs, and REITs, for long-term financial independence [1]

Group 1 - The article discusses the trend of retail investors withdrawing from stocks during a market selloff, indicating a cautious approach to investing in the short term [2] - It highlights the importance of staying invested in defensive stocks with a medium- to long-term horizon as a strategy for sustainable portfolio income [2] Group 2 - iREIT+HOYA Capital is presented as a premier income-focused investing service, emphasizing income-producing asset classes for diversification and inflation hedging [1]

Core Viewpoint - The article reiterates a hold recommendation for NNN REIT, Inc. (NYSE: NNN) and emphasizes three key aspects of the company [1]. Group 1: Company Overview - NNN REIT, Inc. was last covered in October, where a hold recommendation was issued [1]. - The analysis is based on a fundamental, bottom-up approach, focusing on true economic earnings rather than complex models [1]. Group 2: Analyst Background - The analyst is a CFA charterholder and CIPM certificant, with experience in investment performance standards and small business operations [1]. - The analyst has a conservative, long-term investment strategy, favoring companies with sustainable profitability [1].

Company Overview - NNN REIT (NYSE: NNN) is a prominent player in the retail/service-oriented real estate property sector with approximately $10.8 billion in assets based on book gross value [1] - The company manages 3,568 properties across 49 states and has over 385 tenants, showcasing a well-diversified tenant structure [1] Investment Philosophy - The article emphasizes the importance of dividend investing as a pathway to financial freedom, highlighting its accessibility for investors [1] - The author shares insights from a professional background in M&A and business valuation, indicating a strong foundation in financial analysis and investment strategies [1] Sector Focus - The company’s focus spans various sectors including technology, real estate, software, finance, and consumer staples, which are also reflected in the author's personal investment portfolio [1]