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Jun 30, 2023

NNN Q2 2023 Earnings Report

NNN REIT, Inc. announced operating results for the second quarter of 2023 and increased its 2023 guidance.

Key Takeaways

NNN REIT reported a solid quarter with increased FFO per share by 3.9% and Core FFO per share by 1.3%. The company invested $181.3 million in real estate, including 36 properties, and increased Core FFO guidance for 2023.

FFO per share increased 3.9% over prior year results.

Core FFO per share increased 1.3% over prior year results.

Maintained high occupancy levels at 99.4% as of June 30, 2023.

$181.3 million in property investments, including the acquisition of 36 properties at an initial cash cap rate of 7.2%.

Total Revenue
$203M
Previous year: $191M
+6.2%
EPS
$0.8
Previous year: $0.79
+1.3%
Occupancy Rate
35,492,000%
Previous year: 33,526,000%
+5.9%
Properties Owned
3.48K
Previous year: 3.31K
+5.3%
Gross Profit
$182M
Previous year: $185M
-1.5%
Cash and Equivalents
$2.28M
Previous year: $3.29M
-30.6%
Total Assets
$8.35B
Previous year: $7.8B
+6.9%

NNN

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NNN Revenue by Segment

NNN Revenue by Geographic Location

Forward Guidance

NNN REIT increased its Core FFO guidance for 2023 from a range of $3.14 to $3.20 per share to a range of $3.17 to $3.22 per share. The 2023 AFFO is estimated to be $3.20 to $3.25 per share.

Positive Outlook

  • Net earnings per common share excluding any gains on disposition of real estate, impairment charges, and executive retirement costs $1.88 - $1.93 per share
  • Real estate depreciation and amortization per share $1.29 per share
  • Core FFO per share $3.17 - $3.22 per share
  • AFFO per share $3.20 - $3.25 per share
  • Disposition volume $100 - $120 Million

Challenges Ahead

  • General and administrative expenses $43 - $45 Million
  • Real estate expenses, net of tenant reimbursements $8 - $10 Million
  • Acquisition volume $600 - $700 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.
  • 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

Revenue & Expenses

Visualization of income flow from segment revenue to net income