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Mar 31, 2024

NNN Q1 2024 Earnings Report

NNN REIT, Inc. announced operating results for the first quarter of 2024.

Key Takeaways

NNN REIT reported increased revenues and net earnings for Q1 2024, with FFO and Core FFO per share increasing by 3.8% and AFFO per share increasing by 2.4%. The company maintained high occupancy levels at 99.4% and invested $124.5 million in property acquisitions.

FFO and Core FFO per share increased 3.8% over prior year results.

AFFO per share increased 2.4% over prior year results.

Maintained high occupancy levels at 99.4%, with a weighted average remaining lease term of 10.0 years, at March 31, 2024 as compared to 99.5% at December 31, 2023 and 99.4% at March 31, 2023.

Invested $124.5 million in property investments, including the acquisition of 20 properties with an aggregate gross leasable area of approximately 284,000 square feet at an initial cash cap rate of 8.0%.

Total Revenue
$215M
Previous year: $204M
+5.5%
EPS
$0.83
Previous year: $0.8
+3.7%
Occupancy Rate
36,137,000%
Previous year: 99.4%
+36355030.8%
Properties Owned
3.55K
Previous year: 3.45K
+2.8%
Gross Profit
$134M
Previous year: $197M
-32.3%
Cash and Equivalents
$1.13M
Previous year: $3.24M
-65.2%
Free Cash Flow
$191M
Total Assets
$8.71B
Previous year: $8.24B
+5.7%

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NNN Revenue by Segment

Forward Guidance

NNN REIT provided 2024 earnings guidance, anticipating Core FFO per share of $3.25 - $3.31 and AFFO per share of $3.29 - $3.35.

Positive Outlook

  • Net earnings per 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
  • Acquisition volume $400 - $500 Million

Challenges Ahead

  • General and administrative expenses $46 - $48 Million
  • Real estate expenses, net of tenant reimbursements $9 - $11 Million
  • Disposition volume $80 - $120 Million

Revenue & Expenses

Visualization of income flow from segment revenue to net income