NNN REIT (NNN) Investor Presentation summary

Strategy and business model

• Focuses on single-tenant, net-leased properties with a disciplined, relationship-driven acquisition approach, prioritizing quality over quantity and targeting higher risk-adjusted returns.

• Maintains a diversified portfolio of 3,641 properties across all 50 states, with over 400 tenants and 37+ lines of trade.

• Emphasizes long-term leases (average 9.9 years remaining), high occupancy (20-year average 98.2%), and low earnings volatility.

• Utilizes asset sales to manage risk, enhance value, and partially finance new acquisitions, supporting portfolio quality.

• Conservative balance sheet management with a focus on investment-grade ratings, low leverage, and access to multiple capital sources.

Financial performance and growth

• Achieved 3.6% year-over-year growth in Core FFO and AFFO per diluted share in Q1 2025, reaching $0.86 and $0.87, respectively.

• Increased annual base rent by 5.2% over the prior year and completed $232.4 million in investments at a 7.4% initial cap rate.

• Paid a $0.58 quarterly dividend, equating to a 5.4% annualized yield and a 66% AFFO payout ratio.

• Maintained high occupancy at 97.7%, near the 20-year average, and completed over 40% of the 2025 acquisition plan by Q1.

• Outperformed major REIT and equity indices in total return over 3, 5, 15, 20, 25, and 30-year periods.

Portfolio quality and risk management

• Portfolio is highly diversified by geography, tenant, and trade line, with top 20 tenants accounting for 47.7% of rent.

• Only 6.6% of leases expire through 2026; 84% of expiring leases historically renewed at 97% of prior rent.

• 100% of assets are unencumbered, with a weighted average debt maturity of 11.6 years and only 2.5% floating rate debt.

• Maintains strong credit metrics: BBB+/Baa1 ratings, 4.2x interest and fixed charge coverage, and 41% gross debt to assets.

• Adheres to strict acquisition underwriting, focusing on tenant strength, alternative use, and location-specific lease terms.