On August 1, 2024, NNN REIT Inc (NNN, Financial) released its 8-K filing detailing the company's financial performance for the second quarter of 2024. NNN REIT Inc, a real estate investment trust, focuses on investing in and developing properties across the United States, generating revenue primarily from leasing properties to tenants in various sectors such as convenience stores, automotive services, fitness centers, theatres, restaurants, and banks.
Performance Overview
NNN REIT Inc reported revenues of $216.81 million for the quarter ended June 30, 2024, surpassing the analyst estimate of $214.56 million. Net earnings for the quarter were $106.67 million, translating to $0.58 per share, which also exceeded the estimated earnings per share of $0.49. This performance highlights the company's ability to generate consistent revenue and profit growth.
Key Financial Achievements
During the second quarter, NNN REIT Inc achieved several notable financial milestones:
- Funds From Operations (FFO) per share increased by 3.8% year-over-year to $0.83.
- Core FFO per share also rose by 3.8% to $0.83.
- Adjusted Funds From Operations (AFFO) per share saw a 5.0% increase to $0.84.
- Maintained high occupancy levels at 99.3% with a weighted average remaining lease term of 10.0 years.
- Invested $110.5 million in property acquisitions and sold 14 properties for $67.3 million, generating $17.6 million in gains.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenues | $216.81 million | $202.64 million |
| Net Earnings | $106.67 million | $98.70 million |
| Net Earnings per Share | $0.58 | $0.54 |
| FFO per Share | $0.83 | $0.80 |
| Core FFO per Share | $0.83 | $0.80 |
| AFFO per Share | $0.84 | $0.80 |
Balance Sheet and Cash Flow
NNN REIT Inc's balance sheet remains strong with a sector-leading weighted average debt maturity of 12.6 years. The company issued $500 million in senior unsecured notes due 2034 and redeemed $350 million of notes due 2024. Additionally, the company expanded its line of credit borrowing capacity from $1.1 billion to $1.2 billion, extending the maturity to April 2028.
Management Commentary
"NNN REIT continues to operate with a high degree of discipline. During the second quarter, we deployed $110.5 million of capital in accretive, high-quality real estate deals while maintaining a balance sheet with a sector-leading 12.6-year weighted average debt maturity. Our thoughtful approach to raising and deploying capital, combined with our high occupancy and active management of our robust property portfolio, enables us to increase our Core FFO per share guidance for 2024." - Steve Horn, Chief Executive Officer
Guidance and Outlook
NNN REIT Inc has 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 AFFO for 2024 is estimated to be between $3.31 and $3.37 per share. This upward revision reflects the company's confidence in its ongoing operational performance and strategic investments.
For more detailed information on NNN REIT Inc's financial performance, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from NNN REIT Inc for further details.
