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Sep 30, 2023

NNN Q3 2023 Earnings Report

NNN REIT, Inc. announced its Q3 2023 operating results and increased 2023 guidance.

Key Takeaways

NNN REIT reported revenues of $205.13 million and net earnings available to common stockholders of $106.79 million for the third quarter of 2023. The company maintained high occupancy levels at 99.2% and invested $212.5 million in property acquisitions. Core FFO guidance for 2023 was increased to a range of $3.19 to $3.23 per share.

FFO and Core FFO per common share increased 2.5% over the prior period.

AFFO per common share increased 1.2% over the prior period.

Maintained high occupancy levels at 99.2%, with a weighted average remaining lease term of 10.1 years.

Invested $212.5 million in property investments, acquiring 46 properties with an aggregate gross leasable area of approximately 449,000 square feet.

Total Revenue
$205M
Previous year: $193M
+6.0%
EPS
$0.81
Previous year: $0.79
+2.5%
Occupancy Rate
35,797,000%
Previous year: 35,010,000%
+2.2%
Properties Owned
3.51K
Gross Profit
$199M
Previous year: $188M
+5.9%
Cash and Equivalents
$77.1M
Previous year: $3.28M
+2253.9%
Free Cash Flow
$192M
Total Assets
$8.56B
Previous year: $7.95B
+7.7%

NNN

NNN

NNN Revenue by Segment

NNN Revenue by Geographic Location

Forward Guidance

Core FFO guidance for 2023 was increased from a range of $3.17 to $3.22 per share to a range of $3.19 to $3.23 per share. The 2023 AFFO is estimated to be $3.22 to $3.26 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 - $1.92 per share
  • Real estate depreciation and amortization per share $1.31 per share
  • Core FFO per share $3.19 - $3.23 per share
  • AFFO per share $3.22 - $3.26 per share
  • General and administrative expenses $43 - $45 Million

Challenges Ahead

  • Real estate expenses, net of tenant reimbursements $8 - $10 Million
  • Acquisition volume $700 - $800 Million
  • Disposition volume $100 - $120 Million

Revenue & Expenses

Visualization of income flow from segment revenue to net income