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Mar 31, 2023

NNN Q1 2023 Earnings Report

NNN REIT, Inc. announced operating results for the quarter ended March 31, 2023.

Key Takeaways

NNN REIT had a solid start to 2023 with property acquisitions of $155 million at a 7% initial cap rate. The company maintained high occupancy levels and achieved 3.9% Core FFO growth.

FFO per share increased 6.7% over prior year results

Core FFO per share increased 3.9% over prior year results

AFFO per share increased 3.8% over prior year results

Maintained high occupancy levels at 99.4%, with a weighted average remaining lease term of 10.3 years, at March 31, 2023 as compared to 99.4% at December 31, 2022 and 99.2% at March 31, 2022

Total Revenue
$204M
Previous year: $190M
+7.3%
EPS
$0.8
Previous year: $0.77
+3.9%
Occupancy Rate
99.4%
Properties Owned
3.45K
Gross Profit
$197M
Previous year: $183M
+7.7%
Cash and Equivalents
$3.24M
Previous year: $53.7M
-94.0%
Total Assets
$8.24B
Previous year: $7.77B
+6.0%

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NNN Revenue by Segment

NNN Revenue by Geographic Location

Forward Guidance

NNN REIT provided 2023 earnings guidance, expecting Core FFO per share to be between $3.14 and $3.20 and AFFO per share between $3.19 and $3.25.

Positive Outlook

  • Net earnings per common share excluding any gains on disposition of real estate, impairment charges, and executive retirement costs $1.87 - $1.93 per share
  • Real estate depreciation and amortization per share $1.27 per share
  • Core FFO per share $3.14 - $3.20 per share
  • AFFO per share $3.19 - $3.25 per share
  • Acquisition volume $500 - $600 Million

Challenges Ahead

  • General and administrative expenses $43 - $45 Million
  • Real estate expenses, net of tenant reimbursements $8 - $10 Million
  • Disposition volume $100 - $120 Million
  • 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.
  • Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income