NYSE$NNN

National Retail Properties Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

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

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%.

Headline financials

Total Revenue

$215M

Previous: $204M+5.5%
EPS

$0.52

Previous: $0.80-35.0%
AFFO

$153M

No prior period
Core FFO

$152M

No prior period
EBITDAre

$195M

No prior period
Fixed Charges

$45.9M

No prior period
AFFO Payout Ratio

67.0%

No prior period
Gross Debt / Gross Assets

40.7%

No prior period
Net Debt / EBITDAre

5.6

No prior period
EBITDAre / Fixed Charges

4.2

No prior period
Annualized Base Rent

$831M

No prior period
Occupancy Rate

99.4%

No prior period
WALT

10

No prior period
Properties Owned

3.5K

Previous: 3.4K+2.8%
Total GLA

36.1M

Previous: 99.4+36355030.8%
Capital Expenditures

$0.00

No prior period
Free Cash Flow

$94.4M

Previous: $90.2M+4.7%
Net Income

$94.4M

Previous: $90.2M+4.7%
Operating Income

$138M

Previous: $129M+7.2%
Gross Profit

$215M

Previous: $204M+5.5%
Cash & Equivalents

$1.13M

Previous: $3.24M-65.2%
Total Assets

$8.71B

Previous: $8.24B+5.7%

Revenue & EPS history

NNN · Revenue · Quarterly

$215M

Q1 2024+5.5%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

NNN · $205M total across 5 segments · Q3 2023

  • Rental income - operating leases
    $200M+6.1%
  • Tenant reimbursements
    $4.09M+5.5%
  • Percentage rent
    $336K+43.0%
  • Interest & other income
    $276K-25.2%
  • Direct financing lease income
    $140K-5.4%

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.

Tailwinds

  • 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

Headwinds

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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.6%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+6.9%

Q3 2023

Best reaction

-5.6%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%+2.0%+2.3%
Q4 2025-0.5%+2.4%+3.9%
Q3 2025-2.6%-0.5%-0.6%
Q1 2025+0.3%+2.2%+1.6%
Q4 2024+5.7%+6.3%+9.9%
Q3 2024-5.6%-6.9%-4.3%
Q2 2024+3.7%+4.1%+4.7%
Q1 2024+2.6%+3.9%+3.1%
Q4 2023-0.7%-0.7%+6.4%
Q3 2023+6.9%+6.6%+13.8%
Q2 2023-5.4%-4.6%-7.6%
Q1 2023+0.4%+2.7%-1.7%
Q4 2022-0.3%-0.6%-8.7%
Q3 2022+0.9%+1.9%+9.3%
Q2 2022-0.7%-0.4%-4.7%
Q1 2022+5.3%+1.2%+2.8%
Q4 2021-1.4%-1.3%+0.7%
Q3 2021+1.6%+2.4%-2.7%
Q2 2021-1.9%-0.6%-2.2%
Q1 2021+0.0%+3.3%+1.8%
Q4 2020+0.5%-0.8%+5.1%
Q3 2020+5.1%+3.9%+19.0%
Q2 2020+1.4%+2.6%+2.3%
Q1 2020-3.4%+4.5%+16.5%
Q4 2019-2.4%-0.3%-23.5%
Q3 2019-1.1%-4.5%-4.4%
Q2 2019+1.8%+2.5%+7.5%
Q1 2019+0.7%+2.2%+1.7%
Q4 2018-3.3%-2.1%-0.5%
Q3 2018+0.3%+3.0%+7.1%
Q2 2018+0.9%+2.4%+3.3%
Q1 2018+1.2%+4.8%+8.9%
Q4 2017-1.1%+2.2%+2.0%
Q3 2017+1.4%+3.4%+3.8%
Q2 2017+1.5%+1.3%+4.6%
Q1 2017-1.0%-4.5%-8.1%
Q4 2016-0.5%+0.4%-2.2%
Q3 2016+0.1%+2.0%-3.3%
Q2 2016-2.1%-4.1%-6.6%
Q1 2016+3.5%
Q4 2015+1.2%
Q3 2015-0.5%
Q2 2015+0.8%
Q1 2015-5.0%
Q4 2014+1.1%
Q3 2014-0.1%
Q2 2014+0.3%
Q1 2014+1.6%
Q4 2013+1.6%
Q3 2013-2.4%
Q2 2013-1.2%
Q1 2013+2.5%
Q4 2012+1.4%
Q3 2012-1.3%
Q2 2012+0.3%
Q1 2012+0.8%
Q2 2009-0.2%
Q4 2011-0.2%
Q3 2011-2.6%
Q2 2011-2.4%
Q1 2010-1.1%
Q1 2011+0.7%
Q4 2008+2.0%
Q4 2010+2.0%
Q3 2009-0.9%
Q3 2010-0.9%
Q4 2009-0.8%
Q2 2010-0.8%

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