Q4 2024 NNN REIT Inc Earnings Call Transcript
Key Points
- NNN REIT Inc (NNN) achieved a 1.8% core FFO growth for 2024, with over $550 million in acquisition volume.
- The company maintained a strong occupancy rate of 98.5%, above its long-term average.
- NNN REIT Inc (NNN) has a sector-leading 12.1-year weighted average debt maturity, indicating strong financial stability.
- The company has increased its annual dividend for 35 consecutive years, showcasing a commitment to returning value to shareholders.
- NNN REIT Inc (NNN) successfully executed strategic and defensive asset sales at favorable cap rates, enhancing portfolio strength.
- Occupancy decreased to 98.5% due to challenges with two specific tenants, Badcock Furniture and Frisch's.
- The company faced elevated disposition activity, selling nearly $150 million at a 7.3% cap rate, which compressed the spread between disposition and acquisition cap rates.
- NNN REIT Inc (NNN) experienced a dip in quarterly core FFO results, remaining flat compared to the previous year.
- The company is dealing with the liquidation of Badcock Furniture, which rejected leases on 32 properties, impacting annual base rent.
- Frisch's, another troubled tenant, paid no rent in the fourth quarter, affecting 1.5% of the company's annual base rent.
Greetings. Welcome to the NNN REIT, Inc., fourth-quarter 2024 earnings call. (Operator Instructions) Please note, this conference is being recorded.
I will now turn the conference over to your host, Steve Horn, CEO. You may begin.
Thanks, Holly. Good morning, and welcome to NNN REIT's fourth-quarter 2024 earnings call. Joining me today is the current Chief Financial Officer, Kevin Habicht; and our incoming CFO, Vincent Chao. As outlined in this morning's press release, NNN delivered 1.8% core FFO growth for 2024, alongside over $550 million in acquisition volume. The year concluded with a strong 98.5% occupancy rate, while dispositions of income-producing assets were executed at a cap rate 40 basis points lower than our acquisition yield, including several strategic and defensive asset sales.
These achievements reflect the dedication and the expertise of our best-in-class team at NNN, position us well for the near term. Key highlights I'm particularly proud of for the
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