2023 ANNUAL RESULTS AND 2024 GUIDANCE ANNOUNCED BY NNN REIT, INC.
Press Releases

2023 ANNUAL RESULTS AND 2024 GUIDANCE ANNOUNCED BY NNN REIT, INC.

ORLANDO, Fla., Feb. 8, 2024 /PRNewswire/ — NNN REIT, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2023.  Highlights include:

Operating Results:

  • Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:


Quarter Ended



Year Ended




December 31,



December 31,




2023



2022



2023



2022




(in thousands, except per share data)


Revenues


$

216,231



$

198,520



$

828,111



$

773,053















Net earnings available to common stockholders


$

96,682



$

90,662



$

392,340



$

334,626


Net earnings per common share


$

0.53


(1)

$

0.50



$

2.16


(1)

$

1.89















FFO available to common stockholders


$

151,712



$

142,178



$

589,074



$

548,884


FFO per common share


$

0.83


(1)

$

0.79



$

3.24


(1)

$

3.10















Core FFO available to common stockholders


$

154,281



$

142,893



$

592,528



$

556,404


Core FFO per common share


$

0.85


(1)

$

0.80



$

3.26


(1)

$

3.14















AFFO available to common stockholders


$

148,997



$

145,142



$

591,523



$

568,952


AFFO per common share


$

0.82



$

0.81



$

3.26



$

3.21


(1)

During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, net earnings per common share would have been $0.50 and $2.13, FFO per common share would have been $0.80 and $3.21 and Core FFO would have been $0.82 and $3.23 for the quarter and year ended December 31, 2023, respectively.

2023 Highlights:

  • Net earnings per common share increased 14.3% over prior year results
  • FFO per common share increased 4.5% over prior year results
  • Core FFO per common share increased 3.8% over prior year results
  • AFFO per common share increased 1.6% over prior year results
  • Dividend yield of 5.2% at December 31, 2023
  • Annual dividend per common share increased to $2.23 marking the 34th consecutive year of annual dividend increases – the third longest record of consecutive annual dividend increases of all public REITs
  • Maintained high occupancy levels at 99.5%, with a weighted average remaining lease term of 10.1 years, at December 31, 2023 as compared to 99.2% at September 30, 2023, and 99.4% at December 31, 2022
  • $819.7 million in property investments, including the acquisition of 165 properties with aggregate gross leasable area of approximately 1,281,000 square feet at an initial cash cap rate of 7.3%, with a weighted average remaining lease term of 18.8 years
  • Sold 45 properties for $115.7 million, producing $47.5 million of gains on sales, at a cap rate of 5.9%
  • Raised $31.4 million in net proceeds from issuance of 726,364 common shares
  • Issued $500 million principal amount of 5.600% senior unsecured notes due 2033
  • Maintained sector leading 12.0 year weighted average debt maturity
  • Total average annual shareholder returns (11.0% for the past 30 years) exceed industry equity averages for the past 2-, 3-, 10-, 15-, 20-, 25- and 30-years

Fourth Quarter 2023 Highlights:

  • $269.7 million in property investments, including the acquisition of 40 properties with an aggregate gross leasable area of approximately 278,000 square feet at an initial cash cap rate of 7.6%, with a weighted average remaining lease term of 19.6 years
  • Sold 19 properties for $26.6 million, producing $7.3 million of gains on sales, at a cap rate of 6.5%

The company announced 2024 Core FFO guidance of $3.25 to $3.31 per share. The 2024 AFFO is estimated to be $3.29 to $3.35 per share. The Core FFO guidance equates to net earnings of $1.94 to $2.00 per share, plus $1.31 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, charges for impairments and executive retirement costs. The 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 Securities and Exchange Commission.

Steve Horn, Chief Executive Officer, commented: “NNN continues to execute with excellence.  In 2023, we grew Core FFO 3.8 percent, deployed over $800 million of capital in new real estate investments and successfully executed the NNN REIT name change and branding campaign. We ended the year with $132.0 million drawn on our $1.1 billion credit facility, accentuating our ability to raise capital and generate strong free cash flow and proceeds from selective asset dispositions, even in a challenging capital market environment.  NNN maintains a multi-year view and is well-positioned to execute the 2024 strategy.”

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases.  As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on February 8, 2024, at 10:30 a.m. ET to review these results.  The call can be accessed on the NNN REIT website live at http://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 web site.

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 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 Annual Report on Form 10-K.  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.

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.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate as defined by NAREIT (“EBITDA”) is a metric established by NAREIT and commonly used by real estate companies. The measure is a result of net earnings (computed in accordance with GAAP), plus interest expense, income tax expense, depreciation and amortization, excluding any gains (or including any losses) on disposition of real estate, any impairment charges and after adjustments for income and losses attributable to noncontrolling interests. Management considers the non-GAAP measure of EBITDA to be an appropriate measure of the company’s performance and should be considered in addition to, net earnings or loss, as a measure of the company’s operating performance. The company’s computation of EBITDA may differ from the methodology for calculating EBITDA 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 EBITDA, as defined by NAREIT, is included in the company’s Annual Supplemental Data accompanying this release.

 

NNN REIT, Inc.

Income Statement Summary

(dollars in thousands, except per share data)

(unaudited)




Quarter Ended



Year Ended




December 31,



December 31,




2023



2022



2023



2022


Revenues:













Rental income


$

215,178



$

198,217



$

826,090



$

771,618


Interest and other income from real estate transactions



1,053




303




2,021




1,435





216,231




198,520




828,111




773,053


Operating expenses:













General and administrative



10,530




10,788




43,746




41,695


Real estate



8,237




7,035




28,378




26,281


Depreciation and amortization



60,079




57,322




238,625




223,834


Leasing transaction costs



76




61




299




320


Impairment losses – real estate, net of recoveries



2,315




1,088




5,990




8,309


Executive retirement costs



2,569




715




3,454




7,520





83,806




77,009




320,492




307,959


Gain on disposition of real estate



7,263




6,787




47,485




17,443


Earnings from operations



139,688




128,298




555,104




482,537















Other expenses (revenues):













Interest and other income



(383)




(29)




(1,134)




(149)


Interest expense



43,389




37,665




163,898




148,065





43,006




37,636




162,764




147,916















Net earnings



96,682




90,662




392,340




334,621


Loss attributable to noncontrolling interests












5


Net earnings available to common stockholders


$

96,682



$

90,662



$

392,340



$

334,626















Weighted average common shares outstanding:













Basic



181,425,202




178,779,100




181,200,040




176,403,656


Diluted



181,932,133




179,472,118




181,689,723




177,067,865















Net earnings per share available to common stockholders:













Basic


$

0.53



$

0.51



$

2.16



$

1.89


Diluted


$

0.53


(1)

$

0.50



$

2.16


 (1)

$

1.89


(1)

During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, net earnings per common share would have been $0.50 and $2.13 for the quarter and year ended December 31, 2023, respectively.

 

NNN REIT, Inc.

(dollars in thousands, except per share data)

(unaudited)




Quarter Ended



Year Ended




December 31,



December 31,




2023



2022



2023



2022


Funds From Operations (“FFO”) Reconciliation:













Net earnings available to common stockholders


$

96,682



$

90,662



$

392,340



$

334,626


Real estate depreciation and amortization



59,978




57,215




238,229




223,392


Gain on disposition of real estate



(7,263)




(6,787)




(47,485)




(17,443)


Impairment losses – depreciable real estate, net of

recoveries



2,315




1,088




5,990




8,309


Total FFO adjustments



55,030




51,516




196,734




214,258


FFO available to common stockholders


$

151,712



$

142,178



$

589,074



$

548,884















FFO per common share:













Basic


$

0.84



$

0.80



$

3.25



$

3.11


Diluted


$

0.83


(1)

$

0.79



$

3.24


(1)

$

3.10















Core Funds From Operations (“Core FFO”) Reconciliation:













Net earnings available to common stockholders


$

96,682



$

90,662



$

392,340



$

334,626


Total FFO adjustments



55,030




51,516




196,734




214,258


FFO available to common stockholders



151,712




142,178




589,074




548,884















Executive retirement costs



2,569




715




3,454




7,520


Total Core FFO adjustments



2,569




715




3,454




7,520


Core FFO available to common stockholders


$

154,281



$

142,893



$

592,528



$

556,404















Core FFO per common share:













Basic


$

0.85



$

0.80



$

3.27



$

3.15


Diluted


$

0.85


(1)

$

0.80



$

3.26


(1)

$

3.14


(1)

During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, FFO per common share would have been $0.80 and $3.21 and Core FFO would have been $0.82 and $3.23 for the quarter and year ended December 31, 2023, respectively.

 

NNN REIT, Inc.

(dollars in thousands, except per share data)

(unaudited)




Quarter Ended



Year Ended




December 31,



December 31,




2023



2022



2023



2022


Adjusted Funds From Operations (“AFFO”)

Reconciliation:













Net earnings available to common stockholders


$

96,682



$

90,662



$

392,340



$

334,626


Total FFO adjustments



55,030




51,516




196,734




214,258


Total Core FFO adjustments



2,569




715




3,454




7,520


Core FFO available to common stockholders



154,281




142,893




592,528




556,404















Straight-line accrued rent, net of reserves



(5,957)




261




(7,453)




3,559


Net capital lease rent adjustment



75




78




319




302


Below-market rent amortization



(82)




(100)




(431)




(510)


Stock based compensation expense



2,592




2,344




10,846




10,078


Capitalized interest expense



(1,912)




(334)




(4,286)




(881)


Total AFFO adjustments



(5,284)




2,249




(1,005)




12,548


AFFO available to common stockholders


$

148,997



$

145,142



$

591,523



$

568,952















AFFO per common share:













Basic


$

0.82



$

0.81



$

3.26



$

3.23


Diluted


$

0.82



$

0.81



$

3.26



$

3.21















Other Information:













Rental income from operating leases(1)


$

209,037



$

192,738



$

805,136



$

751,680


Earned income from direct financing leases(1)


$

133



$

146



$

560



$

595


Percentage rent(1)


$

241



$

310



$

1,631



$

1,541















Real estate expense reimbursement from tenants(1)


$

5,767



$

5,023



$

18,763



$

17,802


Real estate expenses



(8,237)




(7,035)




(28,378)




(26,281)


Real estate expenses, net of tenant reimbursements


$

(2,470)



$

(2,012)



$

(9,615)



$

(8,479)















Amortization of debt costs


$

1,295



$

1,200



$

4,943



$

4,734


Scheduled debt principal amortization (excluding

      maturities)


$


(2)

$

170



$

173


(2)

$

664


Non-real estate depreciation expense


$

105



$

109



$

409



$

454


(1)

For the quarters ended December 31, 2023 and 2022, the aggregate of such amounts is $215,178 and $198,217, respectively, and $826,090 and $771,618, for the year ended December 31, 2023 and 2022, respectively, and is classified as rental income on the income statement summary.

(2)

In April 2023, NNN repaid the remaining mortgages payable principal balance of $9,774.

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 common share excluding any gains on disposition

      of real estate, impairment charges, and executive retirement costs


$1.94 – $2.00 per share

Real estate depreciation and amortization per share


$1.31 per share

Core FFO per share


$3.25 – $3.31 per share

AFFO per share


$3.29 – $3.35 per share

General and administrative expenses


$46 – $48 Million

Real estate expenses, net of tenant reimbursements


$9 – $11 Million

Acquisition volume


$400 – $500 Million

Disposition volume


$80 – $120 Million

 

NNN REIT, Inc.

Balance Sheet Summary

(dollars in thousands)

(unaudited)






December 31,

2023



December 31,

2022


Assets:







Real estate portfolio, net of accumulated depreciation and amortization


$

8,535,851



$

8,020,814


Cash and cash equivalents



1,189




2,505


Restricted cash and cash held in escrow



3,966




4,273


Receivables, net of allowance of $669 and $708, respectively



3,649




3,612


Accrued rental income, net of allowance of $4,168 and $3,836, respectively



34,611




27,795


Debt costs, net of accumulated amortization of $23,952 and $21,663, respectively



3,243




5,352


Other assets



79,459




81,694


Total assets


$

8,661,968



$

8,146,045









Liabilities:







Line of credit payable


$

132,000



$

166,200


Mortgages payable, including unamortized premium and net of unamortized debt costs






9,964


Notes payable, net of unamortized discount and unamortized debt costs



4,228,544




3,739,890


Accrued interest payable



34,374




23,826


Other liabilities



109,593




82,663


Total liabilities



4,504,511




4,022,543









Stockholders’ equity of NNN



4,157,457




4,123,502









Total liabilities and equity


$

8,661,968



$

8,146,045









Common shares outstanding



182,474,770




181,424,670









Gross leasable area, Property Portfolio (square feet)



35,966,000




35,010,000


 

NNN REIT, Inc.

Debt Summary

As of December 31, 2023

(dollars in thousands)

(unaudited) 



 


Unsecured Debt


Principal



Principal,

Net of

Unamortized

Discount



Stated

Rate



Effective

Rate



Maturity

Date

Line of credit payable


$

132,000



$

132,000



SOFR + 87.5bps




6.185

%


June 2025

















Unsecured notes payable:
















2024



350,000




349,961




3.900

%



3.924

%


June 2024


2025



400,000




399,790




4.000

%



4.029

%


November 2025


2026



350,000




348,707




3.600

%



3.733

%


December 2026


2027



400,000




399,320




3.500

%



3.548

%


October 2027


2028



400,000




398,487




4.300

%



4.388

%


October 2028


2030



400,000




399,161




2.500

%



2.536

%


April 2030


2033



500,000




488,699




5.600

%



5.905

%


October 2033


2048



300,000




296,136




4.800

%



4.890

%


October 2048


2050



300,000




294,423




3.100

%



3.205

%


April 2050


2051



450,000




442,053




3.500

%



3.602

%


April 2051


2052



450,000




440,059




3.000

%



3.118

%


April 2052


Total



4,300,000




4,256,796


























Total unsecured debt(1)


$

4,432,000



$

4,388,796


























Debt costs





$

(42,595)










Accumulated amortization




14,343










Debt costs, net of accumulated amortization




(28,252)










Notes payable, net of unamortized discount and

    unamortized debt costs



$

4,228,544










(1)

Unsecured debt has a weighted average interest rate of 4.0% and a weighted average maturity of 12.0 years.

As of December 31, 2023, Net Debt / EBITDA based on current quarter EBITDA annualized is 5.5x.

NNN REIT, Inc.

Debt Summary – Continued

As of December 31, 2023

(unaudited)

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 U.S. GAAP measurements, are presented to investors to show that as of December 31, 2023, the company believes it is in compliance with the covenants.

Key Covenants


Required


December 31, 2023

Unsecured Bank Credit Facility:





Maximum leverage ratio


< 0.60


0.38

Minimum fixed charge coverage ratio


> 1.50


4.52

Maximum secured indebtedness ratio


< 0.40


Unencumbered asset value ratio


> 1.67


2.62

Unencumbered interest ratio


> 1.75


4.51

Unsecured Notes:





Limitation on incurrence of total debt


≤ 60%


41.5 %

Limitation on incurrence of secured debt


≤ 40%


Debt service coverage ratio


≥ 1.50


4.5

Maintenance of total unencumbered assets


≥ 150%


241 %

 

NNN REIT, Inc.

Property Portfolio

Top 20 Lines of Trade





As of December 31,



Lines of Trade


2023(1)


2022(2)

1.


Convenience stores


16.4 %


16.5 %

2.


Automotive service


15.6 %


13.7 %

3.


Restaurants – full service


8.7 %


9.1 %

4.


Restaurants – limited service


8.5 %


8.9 %

5.


Family entertainment centers


6.4 %


5.9 %

6.


Recreational vehicle dealers, parts and accessories


4.6 %


4.1 %

7.


Health and fitness


4.5 %


4.9 %

8.


Theaters


4.1 %


4.3 %

9.


Equipment rental


3.0 %


3.1 %

10.


Wholesale clubs


2.5 %


2.6 %

11.


Automotive parts


2.5 %


2.6 %

12.


Drug stores


2.4 %


2.6 %

13.


Home improvement


2.2 %


2.3 %

14.


Furniture


2.0 %


2.3 %

15.


Medical service providers


1.7 %


1.9 %

16.


General merchandise


1.4 %


1.6 %

17.


Consumer electronics


1.4 %


1.4 %

18.


Home furnishings


1.3 %


1.4 %

19.


Travel plazas


1.3 %


1.4 %

20.


Automobile auctions, wholesale


1.1 %


1.3 %



Other


8.4 %


8.1 %



Total


100.0 %


100.0 %

 

Top 10 States



State


% of Total(1)




State


% of Total(1)

1.


Texas


16.8 %


6.


North Carolina


3.9 %

2.


Florida


9.4 %


7.


Tennessee


3.8 %

3.


Illinois


5.2 %


8.


Indiana


3.7 %

4.


Ohio


4.9 %


9.


California


3.3 %

5.


Georgia


4.7 %


10.


Virginia


3.3 %


As a percentage of annual base rent, which is the annualized base rent for all leases in place.


(1)

$818,749,000 as of December 31, 2023.


(2)

$771,984,000 as of December 31, 2022.



 

NNN REIT, Inc.

Property Portfolio – Continued

Top 20 Tenants



Tenant


# of

Properties


% of

Total(1)

1.


7-Eleven


138


4.4 %

2.


Mister Car Wash


121


4.2 %

3.


Camping World


47


3.8 %

4.


Dave & Buster’s


32


3.5 %

5.


LA Fitness


29


3.1 %

6.


GPM Investments (convenience stores)


150


3.0 %

7.


Flynn Restaurant Group (Taco Bell/Arby’s)


204


2.8 %

8.


AMC Theatres


20


2.7 %

9.


BJ’s Wholesale Club


13


2.5 %

10.


Mavis Tire Express Services


140


2.3 %

11.


Couche Tard (Pantry)


92


2.2 %

12.


Sunoco


61


2.1 %

13.


Walgreens


49


1.9 %

14.


Chuck E. Cheese


53


1.9 %

15.


United Rentals


50


1.7 %

16.


Frisch’s Restaurants


68


1.6 %

17.


Fikes (Convenience Stores)


58


1.5 %

18.


Life Time Fitness


3


1.3 %

19.


Bob Evans


106


1.3 %

20.


Best Buy


16


1.3 %

 

Lease Expirations(2)



% of

Total(1)


# of

Properties


Gross

Leasable

Area (3)




% of

Total(1)


# of

Properties


Gross

Leasable

Area (3)

2024


1.7 %


54


803,000


2030


3.3 %


109


1,221,000

2025


5.1 %


185


1,941,000


2031


7.3 %


185


2,697,000

2026


4.8 %


212


2,127,000


2032


5.9 %


215


2,328,000

2027


8.2 %


235


3,591,000


2033


4.9 %


138


1,467,000

2028


5.7 %


229


2,172,000


Thereafter


49.1 %


1,831


15,592,000

2029


4.0 %


119


1,744,000









(1)

Based on the annual base rent of  $818,749,000, which is the annualized base rent for all leases in place as of December 31, 2023.

(2)

As of December 31, 2023, the weighted average remaining lease term is 10.1 years.

(3)

Square feet.

NNN REIT, Inc.

Rent Deferral Lease Amendments

The following table outlines the rent deferred and corresponding scheduled repayment of the COVID-19 rent deferral lease amendments executed as of December 31, 2023 (dollars in thousands):




Deferred




Scheduled Repayment





Accrual

Basis



Cash

Basis



Total



% of

Total




Accrual

Basis



Cash

Basis



Total



% of

Total



Cumulative

Total


2020



$

33,594



$

18,129



$

51,723




91.6

%



$

3,239



$

20



$

3,259




5.8

%



5.8

%































2021




990




3,732




4,722




8.4

%




25,935




5,841




31,776




56.3

%



62.1

%































2022

Q1
















1,780




2,277




4,057




7.2

%



69.3

%


Q2
















1,729




2,276




4,005




7.1

%



76.4

%


Q3
















1,201




2,257




3,458




6.1

%



82.5

%


Q4
















681




2,277




2,958




5.3

%



87.8

%


















5,391




9,087




14,478




25.7

%



87.8

%































2023

Q1
















9




1,677




1,686




3.0

%



90.8

%


Q2
















10




476




486




0.9

%



91.7

%


Q3



















476




476




0.8

%



92.5

%


Q4



















476




476




0.8

%



93.3

%


















19




3,105




3,124




5.5

%



93.3

%































2024

Q1



















476




476




0.8

%



94.1

%


Q2



















476




476




0.8

%



94.9

%


Q3



















476




476




0.8

%



95.7

%


Q4



















476




476




0.9

%



96.6

%





















1,904




1,904




3.3

%



96.6

%































2025




















1,904




1,904




3.4

%



100.0

%


































$

34,584



$

21,861



$

56,445




100.0

%



$

34,584



$

21,861



$

56,445




100.0

%




 

Adjusted Results

The following table outlines the adjusted effects of excluding the scheduled repayments of the COVID-19 rent deferral lease amendments executed as of December 31, 2023:



Quarter Ended December 31,



Year Ended December 31,




2023



2022



% Change



2023



2022



% Change


Core FFO per common share:



















As reported


$

0.85



$

0.80




6.3

%


$

3.26



$

3.14




3.8

%

Adjusted(1)


$

0.85



$

0.78




9.0

%


$

3.24



$

3.09




4.9

%

Adjusted(2)


$

0.81



$

0.78




3.8

%


$

3.21



$

3.09




3.9

%




















AFFO per common share:



















As reported


$

0.82



$

0.81




1.2

%


$

3.26



$

3.21




1.6

%

Adjusted(3)


$

0.82



$

0.79




3.8

%


$

3.24



$

3.13




3.5

%

(1)

Excludes the cash basis rent repayments from the Rent Deferral Lease Amendments table above.

(2)

During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Adjusted figures exclude both the effects of the cash basis rent repayments from the Rent Deferral Lease Amendments table above and the accrued rent of $5,573.

(3)

Excludes the cash and accrual basis rent repayments from the Rent Deferral Lease Amendments table above.

 

NNN REIT, Inc. (PRNewsfoto/National Retail Properties, Inc.)

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/2023-annual-results-and-2024-guidance-announced-by-nnn-reit-inc-302056828.html

SOURCE NNN REIT, Inc.

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