NNN REIT (NNN) Q2 2025 earnings summary

Executive summary

• Achieved 36 consecutive annual dividend increases, with a 3.4% rise in Q3 2025 dividend to $0.60 per share.

• Core FFO and AFFO per share grew 1.2% year-over-year to $0.84 and $0.85, respectively.

• Portfolio included 3,663 properties across 50 states, with 98% occupancy and a weighted average remaining lease term of 10 years.

• $464.9 million invested in H1 2025, reaching 85% of annual acquisition plan; 127 properties acquired and 33 sold.

• Welcomed Josh Lewis as Chief Investment Officer, reinforcing focus on risk-adjusted capital deployment.

Financial highlights

• Q2 2025 revenues rose 4.6% year-over-year to $226.8 million; six-month revenues at $457.7 million, up 5.9%.

• Net earnings for Q2 2025 were $100.5 million ($0.54 per diluted share), compared to $106.7 million ($0.58) in Q2 2024.

• Annualized base rent increased 6.7% year-over-year to $893.8 million.

• NOI margin was 98% for the quarter; G&A was 5% of total revenues.

• Free cash flow after dividend was about $50 million in Q2.

Outlook and guidance

• Raised 2025 Core FFO per share guidance to $3.34–$3.39 and AFFO per share to $3.40–$3.45.

• Increased full-year acquisition volume midpoint to $650 million, with expected range of $600–$700 million.

• Disposition outlook raised to $120–$150 million.

• Strategy targets mid-single-digit annual per share growth and consistent dividend increases.

• Embedded 60 basis points of bad debt in full-year outlook, with 15 basis points booked through Q2.