Q2 2024 NNN REIT Inc Earnings Call Transcript
Key Points
- NNN REIT Inc (NNN) maintained high occupancy levels of 99.3%, above their long-term average of roughly 98%.
- The company increased the midpoint of core FFO per share guidance by $0.02 to $3.30.
- NNN REIT Inc (NNN) achieved a 158% recapture rate from prior rent during the quarter, bringing the year-to-date recapture to 102%, above historical levels of approximately 70%.
- The company sold 14 properties, raising $67 million of proceeds to be reinvested into new acquisitions.
- NNN REIT Inc (NNN) has a strong balance sheet with a leading 12.6-year average debt maturity and no debt maturing until the fourth quarter of 2025.
- NNN REIT Inc (NNN) reported $2.1 million of lease termination fee income, which is relatively high and may not be sustainable.
- The company has two tenants in bankruptcy, Badcock Furniture (0.7% of rent) and Rite Aid, which could pose risks.
- Real estate expenses net of tenant reimbursements have been running higher than expected, leading to an increase in guidance for these expenses.
- The company faces competition in the acquisition market, which could impact future acquisition opportunities.
- NNN REIT Inc (NNN) has exposure to sectors like furniture and home furnishings, which are currently struggling.
Greetings, and welcome to NNN REIT Incorporated second-quarter 2024 earnings call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Mr. Steve Horn, Chief Executive Officer of NNN REIT. Sir, you may begin.
Thanks, Ali. Good morning, and welcome to NNN REIT's second-quarter 2024 earnings call. As usual, joining me on the call is Chief Financial Officer, Kevin Habicht.
As the press release reflects, the company's consistent performance carried through the second quarter and produced strong results, including high occupancy and in-line acquisitions volume driven by our proprietary tenant relationships. We are in a position to continue enhancing shareholder value as we move deeper into 2024 and start setting up for 2025.
Highlights of the second quarter financial results emphasize our continuous effort actively managing the portfolio with data analytics and experience. The portfolio of 3,548
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