Q3 2024 NNN REIT Inc Earnings Call Transcript
Key Points
- NNN REIT Inc (NNN) has maintained a high occupancy rate of 99.3%, which is above their long-term average.
- The company raised its acquisition guidance midpoint by 22% to $550 million, indicating a strong pipeline and execution capability.
- NNN REIT Inc (NNN) has a solid balance sheet with no outstanding balance on its $1.2 billion line of credit and $175 million in cash.
- The company reported a 3.7% increase in core FFO per share compared to the previous year, reaching $0.84 per share.
- NNN REIT Inc (NNN) has a long weighted average debt maturity of 12.3 years, with no debt due until the fourth quarter of 2025.
- The company is facing challenges with tenants like Frisch's and Conn's, which could lead to increased rent loss in the fourth quarter.
- NNN REIT Inc (NNN) has a significant portion of its rent (5.6%) on a cash basis due to tenant credit issues.
- The company reported higher than usual lease termination fee income, which may not be sustainable in the long term.
- There is uncertainty regarding the timing and outcome of re-leasing or selling properties from troubled tenants, which could impact future income.
- NNN REIT Inc (NNN) may need to assume more than the typical 100 basis points of rent loss for 2025 due to ongoing tenant issues.
Greetings. Welcome to the NNN REIT third quarter 2024, earnings call. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, Steve Horn, Chief Executive Officer. You may begin.
Hey, thanks, Holly. Good morning, everyone. Welcome to NNN's third quarter 2024 earnings call.
I'm joined today by our Chief Financial Officer, Kevin Habicht. This year, NNN has delivered consistent performance, driven by active portfolio management and strategic acquisitions with our relationships, what we call our NNN mode, that sets us apart and delivers our external growth.
Given our year-to-date results, we are tightening our 2024, core FFO per share guidance to a range of $3.28 to $3.32. Additionally, we are now in position to exceed our original acquisition buying guidance, so we are raising the midpoint by 22% to $550 million. This increase showcases the strength of our pipeline and our execution ability.
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