Core Viewpoint - NNN REIT, Inc. is a retail-focused REIT with a strong history of dividend growth and a stable income-generating portfolio, primarily through triple-net leases with national and regional tenants [1][2]. Group 1: Dividend Growth - In 2025, NNN delivered its 36th consecutive year of dividend growth, placing it among a select group of REITs and publicly traded companies that have achieved such a milestone [2]. - The company's payout ratio is below 70% of FFO, indicating a sustainable capacity for continued dividend increases [3]. Group 2: Financial Stability - NNN maintains a conservative balance sheet with leverage around 5.6x, providing ample room for growth while rewarding shareholders [3]. - The company is actively pursuing new property acquisitions, targeting $850 million to $950 million, partially funded by selling $170 million to $200 million of assets [4]. Group 3: Investment Strategy - A significant portion of NNN's investments, approximately 72% since 2010, has been through long-standing tenant relationships, often via sale-leaseback deals, ensuring a steady pipeline of income-producing properties [4].

Property Portfolio - As of December 31, 2025, NNN owned 3,692 properties with a total gross leasable area of approximately 39,578,000 square feet and a weighted average remaining lease term of 10.2 years[32]. - 98.3% of NNN's properties were leased as of December 31, 2025[32]. - The average annual base rental payment for NNN's leases was $256,000, with payments ranging from $11,000 to $4,085,000[34]. - 63.0% of the Property Portfolio annual base rent is generated from tenants in six lines of trade: automotive service (18.6%), convenience stores (16.3%), restaurants (14.3%), entertainment (7.2%), and dealerships (6.6%)[58]. - 40.9% of the Property Portfolio annual base rent is generated from properties located in five states: Texas (18.4%), Florida (8.7%), Illinois (5.1%), Georgia (4.5%), and Ohio (4.2%)[58]. - The total annualized base rent (ABR) for the properties as of December 31, 2025, was $928,081,000, an increase from $860,562,000 in 2024[148]. - The property portfolio is geographically concentrated in regions with above-average population growth, particularly in the southeastern (25.3%) and southern (24.6%) United States[133]. - The occupancy rate of the property portfolio remained at least 98% leased as of December 31, 2025, ensuring consistent operating results[134]. - NNN owned 64 vacant, un-leased properties, accounting for less than 2% of total properties and aggregate gross leasable area[173]. Financial Performance - NNN's total debt to total gross assets ratio was approximately 42% as of December 31, 2025[165]. - Rental revenues for 2025 increased to $904,342,000 from $848,657,000 in 2024, representing a growth of 6.6%[152]. - Total revenues for 2025 reached $926,213,000, up from $869,266,000 in 2024, marking an increase of 6.5%[152]. - Total operating expenses rose to $384,947,000 in 2025, compared to $333,684,000 in 2024, reflecting a 15.4% increase[155]. - Depreciation and amortization expenses increased to $268,439,000 in 2025 from $249,681,000 in 2024, a rise of 7.5%[155]. - Impairment losses on real estate increased significantly to $28,602,000 in 2025 from $6,632,000 in 2024[157]. - Interest expense for 2025 was $203,955,000, up from $184,017,000 in 2024, indicating an increase of 10.9%[159]. - Cash provided by operating activities was $667,131,000 in 2025, compared to $635,504,000 in 2024, an increase of 4.9%[166]. Debt and Financing - NNN had outstanding debt totaling $4,820,424,000, with no secured debt[73]. - NNN's total unsecured notes payable amounted to $4,472,324,000, and $348,100,000 was outstanding on the Credit Facility[69]. - NNN's line of credit was amended in April 2024 to increase borrowing capacity from $1,100,000,000 to $1,200,000,000, with a weighted average interest rate of 5.04% for 2025[177]. - In December 2025, NNN entered into a senior unsecured term loan with a capacity of $300,000,000, maturing in February 2029[178]. - NNN incurred debt issuance costs totaling $44,420,000 related to outstanding note offerings, which are being amortized over the term of the respective notes[186]. - NNN's variable rate Credit Facility had an outstanding balance of $348,100,000 with a weighted average interest rate of 5.04%[193]. - The weighted average interest rate for NNN's unsecured debt obligations is 4.20% with a weighted average maturity of 10.8 years[196]. - NNN's total fixed rate debt obligations amount to $4,550,000,000 with varying interest rates, the lowest being 2.54% for 2030[196]. Dividends and Shareholder Information - NNN has increased its annual dividend per common share for 36 consecutive years, marking it as one of the public REITs with the longest record of consecutive annual dividend increases[21]. - NNN declared dividends of $113,502,000, or $0.600 per share, payable to stockholders in January 2026[120]. - NNN declared dividends of $443,202,000 in 2025, an increase from $420,239,000 in 2024, with a per share dividend of $2.360 in 2025 compared to $2.290 in 2024[175]. - As of January 30, 2026, NNN had 1,364 registered holders of record of its common stock[121]. - NNN's Dividend Reinvestment and Stock Purchase Plan allowed for the issuance of 65,062 shares in 2025, yielding net proceeds of $2,628,000, compared to 64,654 shares and $2,634,000 in 2024[191]. Risk Factors - NNN's business is significantly dependent on single-tenant properties, which increases the risk of revenue loss if a tenant defaults[55]. - The occurrence of tenant bankruptcies could materially adversely affect NNN's cash flow and results of operations[52]. - Changes in financial and economic conditions, including inflation and tariffs, may adversely impact NNN and its tenants[46]. - A significant portion of Properties are leased to unrated tenants, which may increase investment-related credit risk[62]. - NNN's investments are generally illiquid, which could significantly impede its ability to respond to market conditions or adverse changes in tenant performance[59]. - NNN may not be able to successfully execute its acquisition strategies, affecting its ability to expand its Property Portfolio[57]. - Environmental liabilities associated with properties owned by NNN could significantly impact its financial results and operational capabilities[87]. - Compliance with new governmental laws and regulations may require significant expenditures and could adversely affect NNN's results of operations[89]. - NNN's cybersecurity risks include potential breaches that could lead to significant liabilities and reputational harm[92][94]. - The company faces risks associated with the adoption of AI, including potential inaccuracies and data privacy concerns[98]. - Changes in accounting standards could materially impact NNN's reported financial performance and that of its tenants[102]. Management and Operations - As of January 30, 2026, NNN employed 85 associates, with nearly 40% having been with the company for over 10 years[28]. - NNN's executive team and senior managers average over 19 years of experience with the company[99]. - NNN's ability to maintain effective internal control over financial reporting is crucial for preventing financial fraud and ensuring reliable financial reports[100]. - NNN's management evaluates tenant creditworthiness through financial statements, payment history, and industry news, which is crucial for maintaining rental income[132]. - NNN's management is committed to protecting its information systems through various cybersecurity measures and risk management strategies[109]. - NNN's ability to pay dividends is contingent upon its earnings, financial condition, and compliance with REIT status[75]. - The company is obligated to comply with financial covenants that could restrict its operating activities and lead to defaults if not met[74]. - NNN's organizational documents do not limit the level of debt it may incur, potentially increasing financial risk[69]. - NNN's ability to obtain favorable capital for business objectives may be adversely affected by its existing debt obligations[68].

Exhibit 99.2 ANNUAL SUPPLEMENTAL DATA As of December 31, 2025 TABLE OF CONTENTS | | PAGE | | --- | --- | | Financial Summary | | | Balance Sheet Summary | 4 | | Income Statement Summary | 5 | | Funds From Operations (FFO) | 6 | | Core Funds From Operations (Core FFO) | 6 | | Adjusted Funds From Operations (AFFO) | 7 | | Other Information | 8 | | EBITDAre | 8 | | Debt Summary | 9 | | Credit Metrics | 10 | | Credit Facility and Note Covenants | 10 | | Long-Term Dividend History | 11 | | Transaction Summary | ...

Core Insights - NNN REIT, Inc. reported a 2.7% growth in AFFO per share and a record investment of over $900 million in real estate for 2025, positioning the company for solid growth in 2026 [3][5][16] Financial Results - For the fourth quarter of 2025, revenues increased to $238.4 million from $218.5 million in 2024, while net earnings slightly decreased to $95.9 million from $97.9 million [4][5] - Full-year revenues reached $926.2 million, up from $869.3 million in 2024, with net earnings of $389.8 million compared to $396.8 million in the previous year [4][5] - FFO for the fourth quarter was $163.8 million, up from $152.7 million in 2024, and for the full year, FFO was $638.4 million compared to $610.5 million [4][6] Portfolio Snapshot - As of December 31, 2025, NNN owned 3,692 properties with a total gross leasable area of approximately 39.6 million square feet and an occupancy rate of 98.3% [7][18] - The weighted average remaining lease term was 10.2 years, and the annualized base rent (ABR) increased by 7.8% to $928.1 million [5][7] Property Acquisitions and Dispositions - In 2025, NNN closed on $931 million of investments at a cash cap rate of 7.4%, with a weighted average remaining lease term of 17.6 years [5][8] - The company sold 116 properties for $190.5 million, including $90.7 million of income-producing properties, at a weighted average cap rate of 6.4% [5][10] Capital Markets Activity - NNN raised $85.4 million through the issuance of 1,992,955 common shares at an average price of $42.86 [11] - The company issued $500 million in senior unsecured notes due February 2031 and redeemed $400 million in notes due November 2025 [12][13] Balance Sheet and Liquidity - As of December 31, 2025, NNN's gross debt was $4.9 billion with a weighted average interest rate of 4.2% and a maturity of 10.8 years [14][41] - The company maintained $1.2 billion in total available liquidity, including $851.9 million in unused line of credit capacity [14] Dividend Information - NNN declared a quarterly dividend of $0.60 per share, representing an annualized dividend of $2.40 and a yield of 6.1% as of December 31, 2025 [15] 2026 Guidance - The company provided initial guidance for 2026, projecting AFFO per share between $3.52 and $3.58, indicating a 3.2% increase from the previous year [16]

Dividend Forensics Bureau is an independent market researcher specializing in quantitative credit risk assessment and regulatory framework analysis. My approach prioritizes objective data over traditional institutional narratives, focusing on how structural shifts—like the 2025 NAIC regulatory changes—impact market liquidity and forced selling mechanics. I specialize in identifying "mechanical triggers" in the fixed-income market, particularly the transition of$BBB- rated securities. By utilizing advanced d ...

NNN REIT, Inc. (NYSE:NNN) is included among the 14 High Yield Dividend Stocks with Sustainable Payouts. Deutsche Bank Sees Relative Opportunity at NNN REIT Despite Weak REIT Backdrop Photo by Dan Dennis on Unsplash On January 20, Deutsche Bank upgraded NNN REIT, Inc. (NYSE:NNN) to Buy from Hold and set a $47 price objective as part of its 2026 outlook. The move came against a tough backdrop for the broader REIT sector. The group has lagged the S&P 500 in each of the past four years and in nine of the la ...

Investment Strategy - The primary financial goal is to generate sufficient passive income to cover basic living expenses, with a focus on investments that alleviate concerns about the impact of AI on income [1] - Investing in high-quality dividend stocks is the foundation of the investment strategy, with NNN REIT recently added to the portfolio to help achieve financial freedom through passive income [2] Company Overview - NNN REIT is a straightforward investment focused on single-tenant properties secured by long-term triple-net leases, primarily in retail and service sectors [4] - The properties owned by NNN REIT produce a reliable income stream with low volatility, as tenants cover operating expenses, taxes, and routine capital expenditures [5] Portfolio Diversification - NNN REIT maintains a well-diversified portfolio, owning nearly 3,700 properties across 50 states, leased to over 400 national and regional tenants in more than 35 lines of trade [6] - Major tenants include 7-Eleven (4.3% of rent), Mister Car Wash (3.9%), and Dave & Buster's (3.7%), with properties located in main street areas to ensure a strong market for replacement tenants [6] Dividend Performance - NNN REIT currently offers a dividend yield of over 5.5%, surpassing the REIT sector average of around 4.4% and the S&P 500's yield of approximately 1.1% [7] - The dividend payout ratio is around 70% of adjusted funds from operations (FFO), which is lower than many other net lease REITs, indicating a solid foundation for the high-yielding payout [8]

Group 1: Company Overview - NNN REIT, Inc. is recognized as one of the 15 Best High Yield Stocks to Buy [1] - The company invests in single-tenant, net-leased retail properties, including automotive service centers, convenience stores, and restaurants, typically backed by long-term leases of 10 to 20 years structured as triple net leases [4] - NNN REIT maintains a conservative financial approach, distributing a reasonable portion of its cash flow through dividends while keeping a strong balance sheet, allowing for portfolio expansion without excessive risk [5] Group 2: Financial Performance and Dividends - On January 15, NNN REIT's Board of Directors announced a quarterly dividend of $0.60 per share, to be paid on February 13, 2026, to shareholders on record as of January 30, 2026 [3] - NNN REIT is one of only three publicly traded REITs that have increased their annual dividend for at least 36 consecutive years, indicating a strong and steady dividend track record [3] Group 3: Market Outlook - UBS has lowered its price target for NNN REIT to $43 from $44 while maintaining a Neutral rating, suggesting that 2026 could be a significant turning point for REITs with expected total returns in the 9%–11% range [2] - The outlook from UBS is based on improving macro conditions, more attractive valuations, easing supply pressures, and a calmer political backdrop, with expectations of a defensive investment phase in the first half of 2026 followed by stronger catalysts in the second half [2]

Core Insights - The real estate sector has been underperforming compared to the broader market for several consecutive years, despite the presence of high-quality Real Estate Investment Trusts (REITs) within the sector [1]. Group 1: Market Performance - The real estate sector continues to lag behind the rest of the market, indicating a persistent trend of underperformance [1]. Group 2: Investment Strategy - A hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1].

Core Viewpoint - NNN REIT is currently trading at attractive levels, offering a strong dividend yield of approximately 5.7%, which has been increased for 36 consecutive years [1] Group 1: Company Overview - NNN REIT is highlighted as a good investment opportunity despite recent price increases [1] - The company has a consistent history of increasing dividends, indicating strong financial health and commitment to returning value to shareholders [1] Group 2: Analyst Background - The analyst has over a decade of experience in researching various industries, including commodities and technology, which supports the credibility of the analysis [1] - The analyst has transitioned from writing a blog to a value investing-focused YouTube channel, indicating a shift towards more interactive content delivery [1]