NNN REIT (NNN) Q1 2025 earnings summary

Executive summary

• Net earnings for Q1 2025 were $96.5 million, with EPS of $0.52 per share, and Core FFO and AFFO per share grew 3.6% year-over-year to $0.86 and $0.87, respectively.

• Portfolio expanded to 3,641 properties across 50 states, with 97.7%-98% occupancy and a weighted average lease term of 9.9-10 years.

• Acquired 82 properties for $232.4 million at a 7.4% cap rate, completing over 40% of the 2025 acquisition plan midpoint; disposed of 10 properties for $15.8-$16 million.

• Rental income increased 7.3% year-over-year to $230.6 million, driven by acquisitions and high occupancy.

• Declared a quarterly dividend of $0.58 per share (5.4% yield, 66% AFFO payout), up from $0.5650 in the prior year.

Financial highlights

• Total revenues rose 7.2% year-over-year to $230.9 million for Q1 2025.

• Net earnings increased 5.6% to $96.5 million; comprehensive income reached $96.6 million.

• NOI margin was 95.9%; G&A was 5.6% of revenues and 5.9% of NOI.

• Free cash flow after dividend was $55 million for the quarter.

• Gross Debt stood at $4.6 billion with a 4.1% weighted average interest rate and 11.6-year average maturity.

Outlook and guidance

• 2025 guidance maintained: Net earnings per share $1.97–$2.02 (excluding gains, impairments, exec retirement costs); Core FFO per share $3.33–$3.38; AFFO per share $3.39–$3.44.

• Acquisition volume targeted at $500–$600 million, with over 40% completed in Q1; disposition volume $80–$120 million.

• Embedded 60 bps credit loss reserve for 2025; no notable credit loss YTD.

• Management expects to meet obligations through operating cash flow, credit facility, and potential debt/equity issuances.