EX-99 2 nnn-ex99_1.htm EX-99.1 EX-99

 

Exhibit 99.1

img41624055_0.jpg 

NEWS RELEASE

For information contact:

Kevin B. Habicht

Chief Financial Officer

(407) 265-7348

 FOR IMMEDIATE RELEASE

May 2, 2023

 

FIRST QUARTER 2023 OPERATING RESULTS

ANNOUNCED BY NNN REIT, INC.

 

Orlando, Florida, May 2, 2023 – NNN REIT, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter ended March 31, 2023. Highlights include:

 

Operating Results:

•
Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:

 

 

 

Quarter Ended
March 31,

 

 

 

 

2023

 

 

2022

 

 

 

 

(dollars in thousands,
except per share data)

 

 

Revenues

 

$

204,108

 

 

$

190,279

 

 

 

 

 

 

 

 

 

Net earnings available to common stockholders

 

$

90,167

 

 

$

81,372

 

 

Net earnings per common share

 

$

0.50

 

 

$

0.46

 

 

 

 

 

 

 

 

 

FFO available to common stockholders

 

$

145,549

 

 

$

131,593

 

 

FFO per common share

 

$

0.80

 

 

$

0.75

 

 

 

 

 

 

 

 

 

Core FFO available to common stockholders

 

$

145,972

 

 

$

135,187

 

 

Core FFO per common share

 

$

0.80

 

 

$

0.77

 

 

 

 

 

 

 

 

 

AFFO available to common stockholders

 

$

148,166

 

(1)

$

138,721

 

(1)

AFFO per common share

 

$

0.82

 

(1)

$

0.79

 

(1)

 

(1)

 

Amounts include $9 and $1,780 of net straight-line accrued rent from net rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarters ended March 31, 2023 and 2022, respectively. Excluding such would have no affect on AFFO per common share for the quarter ended March 31, 2023, and would have resulted in AFFO per common share of $0.78 for the quarter ended March 31, 2022.

 

First Quarter 2023 Highlights:

•
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
•
$156.2 million in property investments, including the acquisition of 43 properties with an aggregate gross leasable area of approximately 275,000 square feet at an initial cash cap rate of 7.0%
•
Sold six properties for $11.9 million, producing $6.3 million of gains on sales at a cap rate of 6.6%
•
Raised $16.9 million net proceeds from the issuance of 367,569 common shares
•
Maintained sector leading 12.9 year weighted average debt maturity for unsecured debt

 

1

 

Steve Horn, Chief Executive Officer, commented: "NNN had a solid start to 2023 with just over $155 million in property acquisitions with an initial cap rate of seven percent and a 19 year weighted average lease term. Additionally, NNN continued to maintain high occupancy levels in the portfolio. The 3.9 percent Core FFO growth over the prior year results coupled with wider investment cap rates on acquisitions and steady balance sheet management, allows NNN to strive to provide long-term shareholder value as we progress in 2023."

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of March 31, 2023, the company owned 3,449 properties in 49 states with a gross leasable area of approximately 35.3 million square feet and with a weighted average remaining lease term of 10.3 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 33 or more consecutive years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on May 2, 2023, at 10:30 a.m. ET to review its results of operations. The call can be accessed on the NNN REIT website live at http://www.nnnreit.com. For those unable to listen to the live broadcast, a replay will be available on the company’s website. In addition, a summary of any earnings guidance given on the call will be posted to the company’s website.

 

Statements in this press release that are not strictly historical are “forward-looking” statements. These statements generally are characterized by the use of terms such as "believe," "expect," "in position," "intend," "may," "estimated," or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results. These risks include, among others, 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, risks related to the company's status as a REIT, and the potential impacts of COVID-19, or any epidemic or pandemic on the company's business operations, financial results, and financial position on the world economy. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the company’s Securities and Exchange Commission (the "Commission”) filings, including, but not limited to, the company’s (i) Annual Report on Form 10-K for the year ended December 31, 2022 and (ii) Quarterly Report on Form 10-Q for the quarter ended March 31, 2023. Copies of each filing may be obtained from the company or the Commission. Such forward-looking statements should be regarded solely as reflections of the company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. NNN REIT, Inc. undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

 

Funds From Operations, commonly referred to as "FFO", is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and is used by the company as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses), any applicable taxes and noncontrolling interests on the disposition of certain assets, the company’s share of these items from the company’s noncontrolling interests and any impairment charges on a depreciable real estate asset.

 

FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the company’s performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. The company’s computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to FFO, as defined by NAREIT, is included in the financial information accompanying this release.

 

Core Funds From Operations (“Core FFO”) is a non-GAAP measure of operating performance that adjusts FFO to eliminate the impact of certain GAAP income and expense amounts that the company believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the REIT industry, and management believes that presentation of Core FFO provides investors with a potential metric to assist in their evaluation of the company’s operating performance across multiple periods and in comparison to the operating performance of its peers because it removes the effect of unusual items that are not expected to impact the company’s operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of the company’s core business operations and is a factor in determining management compensation. Items included in calculating FFO that may be excluded in calculating Core FFO may include items such as transaction related gains, income or expense, impairments on land or commercial mortgage residual interests, preferred stock redemption costs, executive retirement costs, loss on early extinguishment of debt or other non-core amounts as they occur. The company’s computation of Core FFO may differ from the methodology for calculating Core FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to Core FFO is included in the financial information accompanying this release.

 

 

2

 

Adjusted Funds From Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. AFFO should not be considered an alternative to net earnings, as an indication of the company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the company’s performance. The company’s computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to AFFO is included in the financial information accompanying this release.

 

3

 

NNN REIT, Inc.

(dollars in thousands, except per share data)

(unaudited)

 

 

 

Quarter Ended
March 31,

 

 

 

2023

 

 

2022

 

Income Statement Summary

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

Rental income

 

$

203,630

 

 

$

189,763

 

Interest and other income from real estate transactions

 

 

478

 

 

 

516

 

 

 

204,108

 

 

 

190,279

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

General and administrative

 

 

12,251

 

 

 

11,042

 

Real estate

 

 

6,846

 

 

 

7,198

 

Depreciation and amortization

 

 

59,148

 

 

 

52,680

 

Leasing transaction costs

 

 

75

 

 

 

88

 

Impairment losses – real estate, net of recoveries

 

 

2,640

 

 

 

1,632

 

Executive retirement costs

 

 

423

 

 

 

3,594

 

 

 

81,383

 

 

 

76,234

 

Gain on disposition of real estate

 

 

6,300

 

 

 

3,992

 

Earnings from operations

 

 

129,025

 

 

 

118,037

 

 

 

 

 

 

 

Other expenses (revenues):

 

 

 

 

Interest and other income

 

 

(33

)

 

 

(35

)

Interest expense

 

 

38,891

 

 

 

36,699

 

 

 

38,858

 

 

 

36,664

 

 

 

 

 

 

 

Net earnings

 

 

90,167

 

 

 

81,373

 

Earnings attributable to noncontrolling interests

 

 

—

 

 

 

(1

)

Net earnings available to common stockholders

 

$

90,167

 

 

$

81,372

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

 

180,845,503

 

 

 

174,772,243

 

Diluted

 

 

181,434,345

 

 

 

174,911,213

 

 

 

 

 

 

 

Net earnings per share available to common stockholders:

 

 

 

 

 

 

Basic

 

$

0.50

 

 

$

0.46

 

Diluted

 

$

0.50

 

 

$

0.46

 

 

 

4

 

NNN REIT, Inc.

(dollars in thousands, except per share data)

(unaudited)

 

 

 

Quarter Ended
March 31,

 

 

 

 

2023

 

 

2022

 

 

Funds From Operations (FFO) Reconciliation:

 

 

 

 

 

 

 

Net earnings available to common stockholders

 

$

90,167

 

 

$

81,372

 

 

Real estate depreciation and amortization

 

 

59,042

 

 

 

52,581

 

 

Gain on disposition of real estate

 

 

(6,300

)

 

 

(3,992

)

 

Impairment losses – depreciable real estate, net of recoveries

 

 

2,640

 

 

 

1,632

 

 

Total FFO adjustments

 

 

55,382

 

 

 

50,221

 

 

FFO available to common stockholders

 

$

145,549

 

 

$

131,593

 

 

 

 

 

 

 

 

 

FFO per common share:

 

 

 

 

 

Basic

 

$

0.80

 

 

$

0.75

 

 

Diluted

 

$

0.80

 

 

$

0.75

 

 

 

 

 

 

 

 

 

Core Funds From Operations (Core FFO) Reconciliation:

 

 

 

 

 

 

 

Net earnings available to common stockholders

 

$

90,167

 

 

$

81,372

 

 

Total FFO adjustments

 

 

55,382

 

 

 

50,221

 

 

FFO available to common stockholders

 

 

145,549

 

 

 

131,593

 

 

 

 

 

 

 

 

 

Executive retirement costs

 

 

423

 

 

 

3,594

 

 

Total Core FFO adjustments

 

 

423

 

 

 

3,594

 

 

Core FFO available to common stockholders

 

$

145,972

 

 

$

135,187

 

 

 

 

 

 

 

 

 

Core FFO per common share:

 

 

 

 

 

 

 

Basic

 

$

0.81

 

 

$

0.77

 

 

Diluted

 

$

0.80

 

 

$

0.77

 

 

 

5

 

NNN REIT, Inc.

(dollars in thousands, except per share data)

(unaudited)

 

 

 

Quarter Ended
March 31,

 

 

 

 

2023

 

 

2022

 

 

Adjusted Funds From Operations (AFFO) Reconciliation:

 

 

 

 

 

 

 

Net earnings available to common stockholders

 

$

90,167

 

 

$

81,372

 

 

Total FFO adjustments

 

 

55,382

 

 

 

50,221

 

 

Total Core FFO adjustments

 

 

423

 

 

 

3,594

 

 

Core FFO available to common stockholders

 

 

145,972

 

 

 

135,187

 

 

 

 

 

 

 

 

 

Straight-line accrued rent, net of reserves

 

 

(469

)

 

 

1,096

 

 

Net capital lease rent adjustment

 

 

79

 

 

 

75

 

 

Below-market rent amortization

 

 

(112

)

 

 

(140

)

 

Stock based compensation expense

 

 

3,101

 

 

 

2,601

 

 

Capitalized interest expense

 

 

(405

)

 

 

(98

)

 

Total AFFO adjustments

 

 

2,194

 

 

 

3,534

 

 

AFFO available to common stockholders

 

$

148,166

 

(1)

$

138,721

 

(1)

 

 

 

 

 

 

 

AFFO per common share:

 

 

 

 

 

 

 

Basic

 

$

0.82

 

(1)

$

0.79

 

(1)

Diluted

 

$

0.82

 

(1)

$

0.79

 

(1)

 

 

 

 

 

 

 

Other Information:

 

 

 

 

 

 

 

Rental income from operating leases(2)

 

$

198,183

 

 

$

184,311

 

 

Earned income from direct financing leases(2)

 

$

144

 

 

$

151

 

 

Percentage rent(2)

 

$

763

 

 

$

701

 

 

 

 

 

 

 

 

 

Real estate expense reimbursement from tenants(2)

 

$

4,540

 

 

$

4,600

 

 

Real estate expenses

 

 

(6,846

)

 

 

(7,198

)

 

Real estate expenses, net of tenant reimbursements

 

$

(2,306

)

 

$

(2,598

)

 

 

 

 

 

 

 

 

Amortization of debt costs

 

$

1,199

 

 

$

1,171

 

 

Scheduled debt principal amortization (excluding maturities)

 

$

173

 

(3)

$

165

 

 

Non-real estate depreciation expense

 

$

109

 

 

$

102

 

 

 

(1)

Amounts include $9 and $1,780 of net straight-line accrued rent from net rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarters ended March 31, 2023 and 2022, respectively. Excluding such had no affect on AFFO per common share for the quarter ended March 31, 2023, and would have resulted in AFFO per common share of $0.78 for the quarter ended March 31, 2022.

 

 

(2)

For the quarters ended March 31, 2023 and 2022, the aggregate of such amounts is $203,630 and $189,763, respectively, and is classified as rental income on the income statement summary.

 

 

(3)

In April 2023, NNN repaid the remaining mortgages payable principal balance of $9,774 which was due in July 2023. No penalty was incurred as a result of this repayment.

 

 

6

 

NNN REIT, Inc.

 

2023 Earnings Guidance

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.

 

 

 

2023 Guidance

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

General and administrative expenses

 

$43 - $45 Million

Real estate expenses, net of tenant reimbursements

 

$8 - $10 Million

Acquisition volume

 

$500 - $600 Million

Disposition volume

 

$100 - $120 Million

 

 

7

 

NNN REIT, Inc.

(dollars in thousands)

(unaudited)

 

 

 

March 31,
2023

 

 

December 31,
2022

 

Balance Sheet Summary

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

Real estate portfolio, net of accumulated depreciation and amortization

 

$

8,111,622

 

 

$

8,020,814

 

Cash and cash equivalents

 

 

3,240

 

 

 

2,505

 

Restricted cash and cash held in escrow

 

 

2,086

 

 

 

4,273

 

Receivables, net of allowance of $701 and $708, respectively

 

 

2,568

 

 

 

3,612

 

Accrued rental income, net of allowance of $3,851 and $3,836, respectively

 

 

28,145

 

 

 

27,795

 

Debt costs, net of accumulated amortization of $22,235 and $21,663, respectively

 

 

4,830

 

 

 

5,352

 

Other assets

 

 

85,623

 

 

 

81,694

 

Total assets

 

$

8,238,114

 

 

$

8,146,045

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Line of credit payable

 

$

209,000

 

 

$

166,200

 

Mortgages payable, including unamortized premium and net of unamortized debt cost

 

 

9,774

 

 

 

9,964

 

Notes payable, net of unamortized discount and unamortized debt costs

 

 

3,740,945

 

 

 

3,739,890

 

Accrued interest payable

 

 

58,218

 

 

 

23,826

 

Other liabilities

 

 

85,305

 

 

 

82,663

 

Total liabilities

 

 

4,103,242

 

 

 

4,022,543

 

 

 

 

 

 

 

 

Stockholders' equity of NNN

 

 

4,134,872

 

 

 

4,123,502

 

 

 

 

 

 

 

Total liabilities and equity

 

$

8,238,114

 

 

$

8,146,045

 

 

 

 

 

 

 

Common shares outstanding

 

 

182,087,429

 

 

 

181,424,670

 

 

 

 

 

 

 

Gross leasable area, Property Portfolio (square feet)

 

 

35,251,000

 

 

 

35,010,000

 

 

 

8

 

NNN REIT, Inc.

Debt Summary

As of March 31, 2023

(dollars in thousands)

(unaudited)

 

Unsecured Debt

 

Principal

 

 

Principal,
Net of
Unamortized
Discount

 

 

Stated
Rate

 

 

Effective
Rate

 

 

Maturity Date

Line of credit payable

 

$

209,000

 

 

$

209,000

 

 

SOFR +
87.5 bps

 

 

 

5.675

%

 

June 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured notes payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

350,000

 

 

 

349,900

 

 

 

3.900

%

 

 

3.924

%

 

June 2024

2025

 

 

400,000

 

 

 

399,710

 

 

 

4.000

%

 

 

4.029

%

 

November 2025

2026

 

 

350,000

 

 

 

348,401

 

 

 

3.600

%

 

 

3.733

%

 

December 2026

2027

 

 

400,000

 

 

 

399,195

 

 

 

3.500

%

 

 

3.548

%

 

October 2027

2028

 

 

400,000

 

 

 

398,278

 

 

 

4.300

%

 

 

4.388

%

 

October 2028

2030

 

 

400,000

 

 

 

399,069

 

 

 

2.500

%

 

 

2.536

%

 

April 2030

2048

 

 

300,000

 

 

 

296,077

 

 

 

4.800

%

 

 

4.890

%

 

October 2048

2050

 

 

300,000

 

 

 

294,322

 

 

 

3.100

%

 

 

3.205

%

 

April 2050

2051

 

 

450,000

 

 

 

441,926

 

 

 

3.500

%

 

 

3.602

%

 

April 2051

2052

 

 

450,000

 

 

 

439,896

 

 

 

3.000

%

 

 

3.118

%

 

April 2052

Total

 

 

3,800,000

 

 

 

3,766,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total unsecured debt(1)

 

$

4,009,000

 

 

$

3,975,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt costs

 

 

 

 

$

(38,145

)

 

 

 

 

 

 

 

 

Accumulated amortization

 

 

 

12,316

 

 

 

 

 

 

 

 

 

Debt costs, net of accumulated amortization

 

 

 

(25,829

)

 

 

 

 

 

 

 

 

Notes payable, net of unamortized discount and
    unamortized debt costs

 

 

$

3,740,945

 

 

 

 

 

 

 

 

 

 

(1)

 

Unsecured debt has a weighted average interest rate of 3.8% and a weighted average maturity of 12.9 years.

 

 

Mortgages Payable

 

Principal
Balance

 

 

Interest
Rate

 

 

Maturity Date

Mortgage(1) (2)

 

$

9,774

 

 

 

5.230

%

 

July 2023

 

 

 

 

 

 

 

 

Debt costs

 

 

(147

)

 

 

 

 

 

Accumulated amortization

 

 

147

 

 

 

 

 

 

Debt costs, net of accumulated amortization

 

 

—

 

 

 

 

 

 

Mortgages payable, including unamortized
    premium and net of unamortized debt costs

 

$

9,774

 

 

 

 

 

 

 

(1)

 

Includes unamortized premium

 

 

 

(2)

 

In April 2023, NNN repaid the remaining mortgages payable principal balance of $9,774 which was due in July 2023. No penalty was incurred as a result of this repayment.

 

As of March 31, 2023, Debt / EBITDA based on current quarter EBITDA annualized is 5.3x.

 

9

 

NNN REIT, Inc.

Debt Summary – Continued

As of March 31, 2023

(unaudited)

 

Credit Facility and Note Covenants

 

The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of March 31, 2023, the company believes it is in compliance with the covenants.

 

Unsecured Credit Facility Key Covenants

 

Required

 

March 31, 2023

Maximum leverage ratio

 

< 0.60

 

0.36

Minimum fixed charge coverage ratio

 

> 1.50

 

4.78

Maximum secured indebtedness ratio

 

< 0.40

 

0.001

Unencumbered asset value ratio

 

> 1.67

 

2.79

Unencumbered interest ratio

 

> 1.75

 

4.82

 

 

 

 

 

Unsecured Notes Key Covenants

 

Required

 

March 31, 2023

Limitation on incurrence of total debt

 

≤ 60%

 

39.8%

Limitation on incurrence of secured debt

 

≤ 40%

 

0.1%

Debt service coverage ratio

 

≥ 1.50

 

4.7

Maintenance of total unencumbered assets

 

≥ 150%

 

251%

 

10

 

NNN REIT, Inc.

Property Portfolio

 

Top 20 Lines of Trade

 

 

 

 

As of March 31,

 

 

Lines of Trade

 

2023(1)

 

2022(2)

1.

 

Convenience stores

 

16.3%

 

17.5%

2.

 

Automotive service

 

14.4%

 

12.6%

3.

 

Restaurants – full service

 

9.0%

 

9.7%

4.

 

Restaurants – limited service

 

8.9%

 

9.2%

5.

 

Family entertainment centers

 

5.8%

 

6.2%

6.

 

Health and fitness

 

4.8%

 

5.0%

7.

 

Theaters

 

4.3%

 

4.4%

8.

 

Recreational vehicle dealers, parts and accessories

 

4.1%

 

4.1%

9.

 

Equipment rental

 

3.1%

 

3.1%

10.

 

Automotive parts

 

2.6%

 

3.0%

11.

 

Wholesale clubs

 

2.6%

 

2.4%

12.

 

Drug stores

 

2.6%

 

1.2%

13.

 

Home improvement

 

2.3%

 

2.4%

14.

 

Furniture

 

2.1%

 

2.4%

15.

 

Medical service providers

 

1.9%

 

2.0%

16.

 

General merchandise

 

1.5%

 

1.6%

17.

 

Home furnishings

 

1.4%

 

1.5%

18.

 

Consumer electronics

 

1.4%

 

1.5%

19.

 

Travel plazas

 

1.3%

 

1.5%

20.

 

Automobile auctions, wholesale

 

1.2%

 

1.3%

 

Other

 

8.4%

 

7.4%

 

Total

 

100.0%

 

100.0%

 

Top 10 States

 

 

State

 

% of
Total(1)

 

 

 

State

 

% of
Total(1)

1.

 

Texas

 

17.0%

 

6.

 

North Carolina

 

4.0%

2.

 

Florida

 

8.8%

 

7.

 

Indiana

 

3.8%

3.

 

Illinois

 

5.3%

 

8.

 

Tennessee

 

3.8%

4.

 

Ohio

 

5.1%

 

9.

 

Virginia

 

3.5%

5.

 

Georgia

 

4.6%

 

10.

 

California

 

3.5%

 

As a percentage of annual base rent, which is the annualized base rent for all leases in place.

 

(1)

$781,909,000 as of March 31, 2023.

 

(2)

$732,042,000 as of March 31, 2022.

 

 

 

 

 

 

 

 

 

 

11

 

 

NNN REIT, Inc.

Property Portfolio – Continued

 

Top 20 Tenants

 

 

Tenant

 

# of
Properties

 

% of
Total(1)

1.

 

7-Eleven

 

138

 

4.6%

2.

 

Mister Car Wash

 

121

 

4.3%

3.

 

Camping World

 

47

 

3.9%

4.

 

LA Fitness

 

30

 

3.4%

5.

 

GPM Investments (Convenience Stores)

 

152

 

3.1%

6.

 

Flynn Restaurant Group (Taco Bell/Arby's)

 

204

 

2.9%

7.

 

Dave & Busters

 

28

 

2.9%

8.

 

AMC Theatre

 

20

 

2.8%

9.

 

BJ's Wholesale Club

 

13

 

2.6%

10.

 

Couche Tard (Pantry)

 

91

 

2.3%

11.

 

Mavis Tire Express Services

 

134

 

2.2%

12.

 

Sunoco

 

61

 

2.1%

13.

 

Walgreens

 

49

 

2.0%

14.

 

Chuck-E-Cheese

 

53

 

1.9%

15.

 

United Rentals

 

52

 

1.8%

16.

 

Frisch's Restaurants

 

68

 

1.7%

17.

 

Fikes (Convenience Stores)

 

59

 

1.6%

18.

 

Life Time Fitness

 

3

 

1.4%

19.

 

Best Buy

 

16

 

1.4%

20.

 

Bob Evans

 

106

 

1.4%

 

 

Lease Expirations(2)

 

 

% of
Total(1)

 

# of
Properties

 

Gross Leasable
Area(3)

 

 

 

% of
Total(1)

 

# of
Properties

 

Gross Leasable
Area(3)

2023

 

0.9%

 

55

 

500,000

 

2029

 

3.0%

 

85

 

1,093,000

2024

 

2.8%

 

88

 

1,408,000

 

2030

 

3.5%

 

107

 

1,207,000

2025

 

5.4%

 

188

 

2,011,000

 

2031

 

7.7%

 

187

 

2,711,000

2026

 

5.1%

 

217

 

2,152,000

 

2032

 

6.3%

 

220

 

2,352,000

2027

 

8.6%

 

240

 

3,637,000

 

2033

 

5.1%

 

141

 

1,440,000

2028

 

5.5%

 

201

 

1,996,000

 

Thereafter

 

46.1%

 

1,698

 

14,512,000

 

(1)

 

Based on the annual base rent of $781,909,000, which is the annualized base rent for all leases in place as of March 31, 2023.

(2)

 

As of March 31, 2023, the weighted average remaining lease term is 10.3 years.

(3)

 

Square feet.

 

12

 

NNN REIT, Inc.

Rent Deferral Lease Amendments

 

The following table outlines the rent deferred and corresponding scheduled repayment of the COVID-19 rent deferral lease amendments executed as of March 31, 2023 (dollars in thousands):

 

 

 

 

Deferred

 

 

 

Scheduled Repayment

 

 

 

 

Accrual
Basis

 

 

Cash
Basis

 

 

Total

 

 

% of
Total

 

 

 

Accrual
Basis

 

 

Cash
Basis

 

 

Total

 

 

% of
Total

 

 

Cumulative
Total

 

2020

 

 

$

33,594

 

 

$

18,351

 

 

$

51,945

 

 

 

91.7

%

 

 

$

3,239

 

 

$

20

 

 

$

3,259

 

 

 

5.8

%

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

990

 

 

 

3,732

 

 

 

4,722

 

 

 

8.3

%

 

 

 

25,935

 

 

 

5,841

 

 

 

31,776

 

 

 

56.1

%

 

 

61.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

5,391

 

 

 

9,108

 

 

 

14,499

 

 

 

25.6

%

 

 

87.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

Q1

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

9

 

 

 

1,697

 

 

 

1,706

 

 

 

3.1

%

 

 

90.6

%

Q2

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

10

 

 

 

537

 

 

 

547

 

 

 

1.0

%

 

 

91.6

%

Q3

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

536

 

 

 

536

 

 

 

0.9

%

 

 

92.5

%

Q4

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

536

 

 

 

536

 

 

 

0.9

%

 

 

93.4

%

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

19

 

 

 

3,306

 

 

 

3,325

 

 

 

5.9

%

 

 

93.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

Q1

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

476

 

 

 

476

 

 

 

0.8

%

 

 

94.2

%

Q2

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

476

 

 

 

476

 

 

 

0.8

%

 

 

95.0

%

Q3

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

476

 

 

 

476

 

 

 

0.8

%

 

 

95.8

%

Q4

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

476

 

 

 

476

 

 

 

0.9

%

 

 

96.7

%

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

1,904

 

 

 

1,904

 

 

 

3.3

%

 

 

96.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

1,904

 

 

 

1,904

 

 

 

3.3

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

34,584

 

 

$

22,083

 

 

$

56,667

 

 

 

 

 

 

$

34,584

 

 

$

22,083

 

 

$

56,667

 

 

 

 

 

 

 

 

13