NYSE$NNN

National Retail Properties Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

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

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%.

Headline financials

Total Revenue

$203M

Previous: $191M+6.2%
EPS (adj)

$0.80

Previous: $0.79+1.3%
Properties Owned

3.5K

Previous: 3.3K+5.3%
Total GLA

35.5M

Previous: 33.5M+5.9%
Free Cash Flow

$98.7M

Previous: $74.2M+33.1%
Net Income

$98.7M

Previous: $74.2M+33.1%
Operating Income

$139M

Previous: $111M+25.1%
Gross Profit

$203M

Previous: $191M+6.2%
Cash & Equivalents

$2.28M

Previous: $3.29M-30.6%
Total Assets

$8.35B

Previous: $7.8B+6.9%

Revenue & EPS history

NNN · Revenue · Quarterly

$203M

Q2 2023+6.2%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

NNN · $202M total across 4 segments · Q2 2023

  • Rental income - operating leases
    $198M+6.4%
  • Tenant reimbursements
    $4.36M+1.5%
  • Percentage rent
    $291K-1.4%
  • Direct financing lease income
    $143K-4.7%

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.

Tailwinds

  • 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

Headwinds

  • 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

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 Q2 2023

Historical avgQ2 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro