2024 Annual Results and 2025 Guidance Announced by NNN REIT, Inc.

NNN REIT, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2024. Highlights include:

Operating Results:

— Revenues and net earnings, FFO, Core FFO and AFFO and diluted per share amounts:

Quarter Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (in thousands, except per share data)Revenues $ 218,482 $ 216,231 $ 869,266 $ 828,111Net earnings $ 97,894 $ 96,682 $ 396,835 $ 392,340Net earnings per share $ 0.52 $ 0.53 (1) $ 2.15 $ 2.16 (1)FFO $ 152,689 $ 151,712 $ 610,501 $ 589,074FFO per share $ 0.82 $ 0.83 (1) $ 3.32 $ 3.24 (1)Core FFO $ 152,731 $ 154,281 $ 611,169 $ 592,528Core FFO per share $ 0.82 $ 0.85 (1) $ 3.32 $ 3.26 (1)AFFO $ 154,057 $ 148,997 $ 616,613 $ 591,523AFFO per share $ 0.82 $ 0.82 $ 3.35 $ 3.26(1) During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, net earnings per share would have been $0.50 and $2.13, FFO per share would have been $0.80 and $3.21 and Core FFO would have been $0.82 and $3.23 for the quarter and year ended December 31, 2023, respectively.

2024 Highlights:

— FFO per share increased 2.5% over prior year results

— Core FFO per share increased 1.8% over prior year results

— AFFO per share increased 2.8% over prior year results

— Dividend yield of 5.6% at December 31, 2024

— Annual dividend per common share increased to $2.29 marking the 35th consecutive year of annual dividend increases – the third longest record of consecutive annual dividend increases of all public REITs

— Maintained high occupancy levels at 98.5%, with a weighted average remaining lease term of 9.9 years, at December 31, 2024 as compared to 99.3% at September 30, 2024, and 99.5% at December 31, 2023

— $565.4 million in property investments, including the acquisition of 75 properties with aggregate gross leasable area of approximately 1,486,000 square feet at an initial cash cap rate of 7.7%, with a weighted average remaining lease term of 18.5 years

— Sold 41 properties for $148.7 million, producing $42.3 million of gains on sales, at a cap rate of 7.3%

— Raised $214.3 million in net proceeds from issuance of 4,716,754 common shares

— Issued $500 million principal amount of 5.500% senior unsecured notes due 2034

— Redeemed $350 million principal amount of 3.900% senior unsecured notes due 2024

— Expanded line of credit borrowing capacity from $1.1 billion to $1.2 billion and extended maturity to April 2028

— Maintained sector leading 12.1 year weighted average debt maturity

— Total average annual shareholder returns (11.1% for the past 30 years) exceed industry equity averages for the past 3-, 15-, 20-, 25- and 30-years

Fourth Quarter 2024 Highlights:

— $216.8 million in property investments, including the acquisition of 31 properties with an aggregate gross leasable area of approximately 305,000 square feet at an initial cash cap rate of 7.6%, with a weighted average remaining lease term of 19.8 years

— Sold 12 properties for $42.8 million, producing $12.1 million of gains on sales

NNN has initiated eviction proceedings for 64 properties leased to a mid-western restaurant operator. As of December 31, 2024, NNN had taken back possession of 33 of those properties of which 28 properties have been re-leased to another restaurant operator with rent commencing May 1, 2025. NNN is working to take possession of the remainder of the properties in the first quarter of 2025. Additionally, during the fourth quarter of 2024, NNN took possession of 32 properties previously leased to a southeast U.S. furniture retailer that had filed for bankruptcy. As of December 31, 2024, NNN had sold six of these properties generating net proceeds of $21.8 million and re-leased five of these properties.

The company announced 2025 Core FFO guidance of $3.33 to $3.38 per share. The 2025 AFFO is estimated to be $3.39 to $3.44 per share. The Core FFO guidance equates to net earnings of $1.97 to $2.02 per share, plus $1.36 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, charges for impairments and executive retirement costs. The 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 Securities and Exchange Commission.

Steve Horn, Chief Executive Officer, commented: “In 2024, we executed more than $560 million in acquisitions with minimal reliance on capital markets and ended the year with a zero balance on our revolving credit facility. With the full $1.2 billion available on our line of credit and approximately $200 million in free cash flow, we are in a strong position to drive property acquisitions and capitalize on relationship opportunities in 2025.”

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December31, 2024, the company owned 3,568 properties in 49 states with a gross leasable area of approximately 36.6 million square feet and a weighted average remaining lease term of 9.9 years. NNN is one of only three publicly traded real estate investment trusts to have increased annual dividends for 35 or more consecutive years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on February 11, 2025, at 10:30 a.m. ET to review these results. 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,” “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 real estate investment trust (“REIT”) and the potential impacts of an 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 Annual Report on Form 10-K. 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, net of recoveries.

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, executive retirement costs, 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.

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.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate as defined by Nareit (“EBITDA”) is a metric established by Nareit and commonly used by real estate companies. The measure is a result of net earnings (computed in accordance with GAAP), plus interest expense, income tax expense, depreciation and amortization, excluding any gains (or including any losses) on disposition of real estate, any impairment charges and after adjustments for income and losses attributable to noncontrolling interests. Management considers the non-GAAP measure of EBITDA to be an appropriate measure of the company's performance and should be considered in addition to, net earnings or loss, as a measure of the company's operating performance. The company's computation of EBITDA may differ from the methodology for calculating EBITDA 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 EBITDA, as defined by Nareit, is included in the company's Annual Supplemental Data accompanying this release.

NNN REIT, Inc.Income Statement Summary(dollars in thousands, except per share data)(unaudited) Quarter Ended Year Ended December 31, December 31, 2024 2023 2024 2023Revenues:Rental income $ 218,348 $ 215,178 $ 867,468 $ 826,090Interest and other income from real estate transactions 134 1,053 1,798 2,021 218,482 216,231 869,266 828,111Operating expenses:General and administrative 8,705 10,530 44,287 43,746Real estate 11,142 8,237 32,317 28,378Depreciation and amortization 63,194 60,079 249,681 238,625Leasing transaction costs 24 76 99 299Impairment losses – real estate, net of recoveries 3,724 2,315 6,632 5,990Executive retirement costs 42 2,569 668 3,454 86,831 83,806 333,684 320,492Gain on disposition of real estate 12,083 7,263 42,290 47,485Earnings from operations 143,734 139,688 577,872 555,104Other expenses (revenues):Interest and other income (1,040) (383) (2,980) (1,134)Interest expense 46,880 43,389 184,017 163,898 45,840 43,006 181,037 162,764Net earnings $ 97,894 $ 96,682 $ 396,835 $ 392,340Weighted average shares outstanding:Basic 186,449,345 181,425,202 183,688,562 181,200,040Diluted 186,833,150 181,932,133 184,043,841 181,689,723Net earnings per share:Basic $ 0.52 $ 0.53 $ 2.16 $ 2.16Diluted $ 0.52 $ 0.53 (1) $ 2.15 $ 2.16 (1)(1) During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, net earnings per common share would have been $0.50 and $2.13 for the quarter and year ended December 31, 2023, respectively.NNN REIT, Inc.(dollars in thousands, except per share data)(unaudited) Quarter Ended Year Ended December 31, December 31, 2024 2023 2024 2023Funds From Operations (“FFO”) Reconciliation:Net earnings $ 97,894 $ 96,682 $ 396,835 $ 392,340Real estate depreciation and amortization 63,154 59,978 249,324 238,229Gain on disposition of real estate (12,083) (7,263) (42,290) (47,485)Impairment losses – depreciable real estate, net of recoveries 3,724 2,315 6,632 5,990Total FFO adjustments 54,795 55,030 213,666 196,734FFO $ 152,689 $ 151,712 $ 610,501 $ 589,074FFO per share:Basic $ 0.82 $ 0.84 $ 3.32 $ 3.25Diluted $ 0.82 $ 0.83 (1) $ 3.32 $ 3.24 (1)Core Funds From Operations (“Core FFO”) Reconciliation:Net earnings $ 97,894 $ 96,682 $ 396,835 $ 392,340Total FFO adjustments 54,795 55,030 213,666 196,734FFO 152,689 151,712 610,501 589,074Executive retirement costs 42 2,569 668 3,454Total Core FFO adjustments 42 2,569 668 3,454Core FFO $ 152,731 $ 154,281 $ 611,169 $ 592,528Core FFO per share:Basic $ 0.82 $ 0.85 $ 3.33 $ 3.27Diluted $ 0.82 $ 0.85 (1) $ 3.32 $ 3.26 (1)(1) During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, FFO per common share would have been $0.80 and $3.21 and Core FFO would have been $0.82 and $3.23 for the quarter and year ended December 31, 2023, respectively.NNN REIT, Inc.(dollars in thousands, except per share data)(unaudited) Quarter Ended Year Ended December 31, December 31, 2024 2023 2024 2023Adjusted Funds From Operations (“AFFO”) Reconciliation:Net earnings $ 97,894 $ 96,682 $ 396,835 $ 392,340Total FFO adjustments 54,795 55,030 213,666 196,734Total Core FFO adjustments 42 2,569 668 3,454Core FFO 152,731 154,281 611,169 592,528Straight-line accrued rent, net of reserves (302) (5,957) (294) (7,453)Net capital lease rent adjustment 58 75 222 319Below-market rent amortization (144) (82) (495) (431)Stock based compensation expense 2,775 2,592 11,816 10,846Capitalized interest expense (1,061) (1,912) (5,805) (4,286)Total AFFO adjustments 1,326 (5,284) 5,444 (1,005)AFFO $ 154,057 $ 148,997 $ 616,613 $ 591,523AFFO per share:Basic $ 0.83 $ 0.82 $ 3.36 $ 3.26Diluted $ 0.82 $ 0.82 $ 3.35 $ 3.26Other Information:Rental income from operating leases(1) $ 212,565 $ 209,037 $ 846,653 $ 805,136Earned income from direct financing leases(1) $ 115 $ 133 $ 468 $ 560Percentage rent(1) $ 189 $ 241 $ 1,536 $ 1,631Real estate expenses reimbursed from tenants(1) $ 5,479 $ 5,767 $ 18,811 $ 18,763Real estate expenses (11,142) (8,237) (32,317) (28,378)Real estate expenses, net of tenant reimbursements $ (5,663) $ (2,470) $ (13,506) $ (9,615)Amortization of debt costs $ 1,455 $ 1,295 $ 5,993 $ 4,943Scheduled debt principal amortization (excluding $ – $ – $ – $ 173 (2)maturities)Non-real estate depreciation expense $ 43 $ 105 $ 370 $ 409(1) For the quarters ended December31, 2024 and 2023, the aggregate of such amounts is $218,348 and $215,178, respectively, and $867,468 and $826,090, for the year ended December31, 2024 and 2023, respectively, and is classified as rental income on the income statement summary.(2) In April 2023, NNN repaid the remaining mortgages payable principal balance of $9,774.

NNN REIT, Inc.

2025 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.

2025 GuidanceNet earnings per share excluding any gains on disposition of real $1.97 – $2.02 per shareestate, impairment charges, and executive retirement costsReal estate depreciation and amortization per share $1.36 per shareCore FFO per share $3.33 – $3.38 per shareAFFO per share $3.39 – $3.44 per shareGeneral and administrative expenses $47 – $48 MillionReal estate expenses, net of tenant reimbursements $15 – $16 MillionAcquisition volume $500 – $600 MillionDisposition volume $80 – $120 MillionNNN REIT, Inc.Balance Sheet Summary(dollars in thousands)(unaudited) December31, December31, 2024 2023Assets:Real estate portfolio, net of accumulated depreciation and amortization $ 8,746,168 $ 8,535,851Cash and cash equivalents 8,731 1,189Restricted cash and cash held in escrow 331 3,966Receivables, net of allowance of $617 and $669, respectively 2,975 3,649Accrued rental income, net of allowance of $4,156 and $4,168, respectively 34,005 34,611Debt costs, net of accumulated amortization of $27,002 and $23,952, respectively 8,958 3,243Other assets 71,560 79,459Total assets $ 8,872,728 $ 8,661,968Liabilities:Line of credit payable $ – $ 132,000Notes payable, net of unamortized discount and unamortized debt costs 4,373,803 4,228,544Accrued interest payable 29,699 34,374Other liabilities 106,951 109,593Total liabilities 4,510,453 4,504,511Total equity 4,362,275 4,157,457Total liabilities and equity $ 8,872,728 $ 8,661,968Common shares outstanding 187,540,929 182,474,770Gross leasable area, Property Portfolio (square feet) 36,557,000 35,966,000NNN REIT, Inc.Debt SummaryAs of December31, 2024(dollars in thousands)(unaudited)Unsecured Debt Principal Principal, Stated Effective Maturity Net of Rate Rate Date Unamortized DiscountLine of credit payable $ – $ – SOFR + – April 2028 87.5bpsUnsecured notes payable: 2025 400,000 399,900 4.000 % 4.029 % November 2025 2026 350,000 349,128 3.600 % 3.733 % December 2026 2027 400,000 399,490 3.500 % 3.548 % October 2027 2028 400,000 398,778 4.300 % 4.388 % October 2028 2030 400,000 399,286 2.500 % 2.536 % April 2030 2033 500,000 489,579 5.600 % 5.905 % October 2033 2034 500,000 494,112 5.500 % 5.662 % June 2034 2048 300,000 296,219 4.800 % 4.890 % October 2048 2050 300,000 294,561 3.100 % 3.205 % April 2050 2051 450,000 442,228 3.500 % 3.602 % April 2051 2052 450,000 440,282 3.000 % 3.118 % April 2052Total 4,450,000 4,403,563Total unsecured debt(1) $ 4,450,000 $ 4,403,563Debt costs $ (43,820)Accumulated amortization 14,060Debt costs, net of accumulated amortization (29,760)Notes payable, net of unamortized discount and $ 4,373,803unamortized debt costs(1) Unsecured debt has a weighted average interest rate of 4.1% and a weighted average maturity of 12.1 years.

NNN REIT, Inc. Debt Summary – Continued As of December 31, 2024 (unaudited)

Credit Facility and Notes 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 December31, 2024, the company believes it is in compliance with the covenants.

Key Covenants Required December31, 2024Unsecured Bank Credit Facility:Maximum leverage ratio !!!! 0.60 0.37Minimum fixed charge coverage ratio > 1.50 4.28Maximum secured indebtedness ratio !!!! 0.40 -Unencumbered asset value ratio > 1.67 2.70Unencumbered interest ratio > 1.75 4.23Unsecured Notes:Limitation on incurrence of total debt ≤ 60% 40.0%Limitation on incurrence of secured debt ≤ 40% -Debt service coverage ratio ≥ 1.50 4.2Maintenance of total unencumbered assets ≥ 150% 250%NNN REIT, Inc.Property PortfolioAs of December 31, 2024Top 20 Lines of Trade As of December31, Lines of Trade 2024(1) 2023(2)1. Convenience stores 17.0% 16.4%2. Automotive service 16.9% 15.6%3. Restaurants – limited service 8.4% 8.5%4. Restaurants – full service 7.8% 8.7%5. Family entertainment centers 7.2% 6.4%6. Recreational vehicle dealers, parts and accessories 5.1% 4.6%7. Theaters 4.0% 4.1%8. Health and fitness 3.9% 4.5%9. Equipment rental 3.2% 3.0%10. Wholesale clubs 2.4% 2.5%11. Automotive parts 2.4% 2.5%12. Drug stores 2.2% 2.4%13. Home improvement 2.1% 2.2%14. Medical service providers 1.7% 1.7%15. General merchandise 1.4% 1.4%16. Furniture 1.3% 2.0%17. Pet supplies and services 1.3% 1.1%18. Consumer electronics 1.3% 1.4%19. Travel plazas 1.2% 1.3%20. Home furnishings 1.1% 1.3% Other 8.1% 8.4% Total 100.0% 100.0%Top 10 States State % of Total(1) State % of Total(1)1. Texas 18.8% 6. Tennessee 3.8%2. Florida 8.7% 7. North Carolina 3.7%3. Illinois 5.1% 8. Indiana 3.6%4. Georgia 4.5% 9. Arizona 3.2%5. Ohio 4.2% 10. Virginia 3.2%As a percentage of annual base rent, which is the annualized base rent for all leases in place. (1) $860,562,000 as of December31, 2024. (2) $818,749,000 as of December31, 2023.NNN REIT, Inc.Property Portfolio – ContinuedAs of December 31, 2024Top 20 Tenants Tenant # of % of Properties Total(1)1. 7-Eleven 146 4.5%2. Mister Car Wash 121 4.1%3. Dave & Buster's 34 3.8%4. Camping World 48 3.8%5. GPM Investments (convenience stores) 148 2.8%6. Flynn Restaurant Group (Taco Bell/Arby's) 204 2.7%7. AMC Theatres 20 2.6%8. LA Fitness 26 2.5%9. BJ's Wholesale Club 13 2.4%10. Mavis Tire Express Services 140 2.2%11. Couche Tard (Pantry) 91 2.2%12. Kent Distributors (convenience stores) 38 2.1%13. Chuck E. Cheese 53 1.8%14. Walgreens 49 1.8%15. Sunoco 53 1.8%16. Casey's General Stores (convenience stores) 62 1.7%17. United Rentals 49 1.6%18. Tidal Wave Auto Spa 35 1.3%19. Super Star Car Wash 33 1.3%20. Lifetime Fitness 3 1.3%Lease Expirations(2) % of # of Gross Leasable % of # of Gross Leasable Total(1) Properties Area (3) Total(1) Properties Area (3)2025 3.2% 132 874,000 2031 7.0% 184 2,655,0002026 4.2% 204 1,981,000 2032 5.1% 183 1,804,0002027 7.6% 231 3,401,000 2033 4.6% 134 1,398,0002028 5.8% 255 2,306,000 2034 5.8% 182 2,398,0002029 4.6% 143 2,083,000 Thereafter 47.7% 1,711 14,840,0002030 4.4% 154 2,086,000(1) Based on the annual base rent of $860,562,000, which is the annualized base rent for all leases in place as of December31, 2024.(2) As of December31, 2024, the weighted average remaining lease term is 9.9 years.(3) Square feet.

https://mma.prnewswire.com/media/1160464/National_Retail_Properties_Logo_v1.jpg

https://c212.net/c/img/favicon.png?sn=FL14561&sd=2025-02-11

View original content to download multimedia:https://www.prnewswire.com/news-releases/2024-annual-results-and-2025-guidance-announced-by-nnn-reit-inc-302372793.html

SOURCE NNN REIT, Inc.

https://rt.newswire.ca/rt.gif?NewsItemId=FL14561&Transmission_Id=202502110830PR_NEWS_USPR_____FL14561&DateId=20250211