NNN REIT (NNN) Q4 2025 earnings summary

Executive summary

• Achieved 2.7% AFFO and Core FFO per share growth in 2025, with net earnings of $2.07 per diluted share and over $900 million in acquisitions, the highest annual volume in company history.

• Increased annual dividend for the 36th consecutive year, reaching $2.36 per share, and delivered a 12.0% average annual shareholder return over 25 years.

• Maintained a diversified portfolio of 3,692 single-tenant properties across all 50 states, D.C., and Puerto Rico, with occupancy at 98.3% and a weighted average lease term of 10.2 years.

• Entered 2026 with strong momentum, driven by elevated acquisition activity, proactive portfolio management, and a flexible balance sheet with $1.2 billion in liquidity.

• Maintained a low-risk, net lease strategy and outperformed REIT peers in total returns.

Financial highlights

• Core FFO and AFFO per share were $3.41 and $3.44 for 2025, both up 2.7% year-over-year.

• Annualized base rent reached $928.1 million at year-end, up 7.8% year-over-year.

• Total revenues for 2025 were $926.2 million, with net earnings of $389.8 million.

• Closed $931.0 million in investments at a 7.4% initial cash cap rate and sold 116 properties for $190.5 million.

• AFFO payout ratio for 2025 was 68.4%.

Outlook and guidance

• 2026 AFFO per share guidance is $3.52–$3.58, with the midpoint representing 3.2% year-over-year growth.

• Core FFO per share guidance is $3.47–$3.53; net earnings per share guidance is $2.02–$2.08.

• Expected 2026 acquisition volume is $550–$650 million, with $110–$150 million in dispositions.

• Guidance assumes funding from dispositions, free cash flow, and leverage-neutral incremental debt.

• Embedded 75 basis points of bad debt in 2026 outlook, considered prudently conservative.