NNN REIT (NNN) Q3 2026 Earnings Report

The call was predominantly positive, supported by 5.8% AFFO growth, 99.2% occupancy, strong renewal and releasing metrics, a 37th consecutive annual dividend increase, substantial liquidity, improved bad-debt expectations, and a well-capitalized balance sheet. The main challenges were higher acquisition cap rates, elevated dead deal costs, uncertain near-term acquisition volume, refinancing at potentially higher rates, and pressure affecting certain tenants and consumer-facing sectors. Management emphasized continued discipline and flexibility rather than signaling a deterioration in current portfolio performance.

For 2026, NNN is maintaining AFFO per share guidance of $3.55 to $3.59, representing 3.8% year over year growth at the midpoint; disposition guidance is $160 to $180 million, G&A guidance increased by $1 million at the midpoint, and full year bad debt is projected to be about 25 basis points of ABR, down from 40 basis points as of last quarter. Fourth quarter acquisition volume is expected at the $750 million midpoint, with initial cap rates reflecting the higher pricing environment and a 30- to 40-basis point range of movement for the fourth quarter; the company expects further upward movement in initial acquisition yields during the first part of 2027 and is not giving any guidance for 2027 acquisition volume. NNN assumed permanent financing to repay the $350 million bond maturing in mid December while maintaining a low year end balance on its line of credit, expects lease termination fees to be at a similar level in 2027 as 2026, and estimates roughly $600 million of annual acquisition volume without new equity with buying power in the call it $900 million to $1 billion ish range.