NYSE$NNN

National Retail Properties Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Second quarter operating results announced with increased 2024 guidance.

NNN REIT reported an increase in FFO and Core FFO per share by 3.8% and AFFO per share by 5.0% compared to the prior year. The company maintained high occupancy levels at 99.3% and invested $110.5 million in property acquisitions.

  • FFO and Core FFO per share increased 3.8% over prior year results.
  • AFFO per share increased 5.0% over prior year results.
  • Maintained high occupancy levels at 99.3% with a weighted average remaining lease term of 10.0 years.
  • Invested $110.5 million in property investments, acquiring 16 properties with an aggregate gross leasable area of approximately 272,000 square feet at an initial cash cap rate of 7.9%.

Headline financials

Total Revenue

$217M

Previous: $203M+7.0%
EPS

$0.58

Previous: $0.80-27.5%
Annualized Base Rent

$838M

No prior period
Occupancy Rate

99.3%

No prior period
Capital Expenditures

$0.00

No prior period
Free Cash Flow

$107M

Previous: $98.7M+8.1%
Net Income

$107M

Previous: $98.7M+8.1%
Operating Income

$152M

Previous: $139M+9.8%
Gross Profit

$217M

Previous: $203M+7.0%
Cash & Equivalents

$2.13M

Previous: $2.28M-6.6%
Total Assets

$8.73B

Previous: $8.35B+4.6%

Revenue & EPS history

NNN · Revenue · Quarterly

$217M

Q2 2024+7%vs Q2 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 increased its Core FFO guidance for 2024 from a range of $3.25 to $3.31 per share to a range of $3.27 to $3.33 per share. The 2024 AFFO is estimated to be $3.31 to $3.37 per share.

Tailwinds

  • Net earnings per share excluding any gains on disposition of real estate, impairment charges, and executive retirement costs: $1.93 - $1.99 per share
  • Real estate depreciation and amortization per share: $1.34 per share
  • Core FFO per share: $3.27 - $3.33 per share
  • AFFO per share: $3.31 - $3.37 per share
  • Acquisition volume: $400 - $500 Million

Headwinds

  • General and administrative expenses: $46 - $48 Million
  • Real estate expenses, net of tenant reimbursements: $10 - $11 Million
  • Disposition volume: $100 - $120 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.
  • Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results.

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 2024

Historical avgQ2 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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