Q1 2025 NNN REIT Inc Earnings Call Transcript
Key Points
- NNN REIT Inc (NNN) successfully acquired 82 new properties for approximately $232 million, with an attractive initial cap rate of 7.4% and a long-term lease duration of over 18 years.
- The company has a strong balance sheet with nearly $1.1 billion available on its $1.2 billion line of credit, providing flexibility for future acquisitions.
- NNN REIT Inc (NNN) reported core FFO of $0.86 per share and AFFO of $0.87 per share for Q1 2025, each up 3.6% over the prior year period.
- Occupancy remained high at 97.7%, reflecting the stability of the portfolio and its cash flows.
- The company has a history of 35 years of consecutive dividend growth, showcasing its long-term financial stability and commitment to shareholder returns.
- The company experienced a slight dip in occupancy from its long-term average due to the finalization of the eviction process.
- NNN REIT Inc (NNN) anticipates some cap rate pressure in 2025 compared to the previous year, which could impact future acquisition pricing.
- The company is dealing with vacancies from two tenant defaults, which are expected to have a minimal impact on annual FFO per share.
- There is ongoing uncertainty in the macroeconomic environment, which could affect tenant growth plans and acquisition opportunities.
- NNN REIT Inc (NNN) has a watch list of tenants, including 'At Home,' which could pose potential risks if economic conditions worsen.
Greetings. Welcome to the NNN REIT Inc first quarter 2025 earnings call. (Operator Instructions)
Please note this conference is being recorded. I will now turn the conference over to your host, Steve Horn, CEO.
Hey, thanks, John. Hey, good morning and thank you for joining NNN REIT first quarter 2025 earnings call. With me today is Vin Chow, our Chief Financial Officer. I'd like to start with a high-level update on our vacant furniture and restaurant assets before we delve into the first quarter results.
We're making excellent progress resolving these vacancies, and I'm confident that we will be in a solid position to have the vast majority resolved by year end. And a post-quarter update in terms of our 35 furniture stores, 15 are resolved through leasing or sale, and 15 have significant interest and we anticipate nearly all be handled by the end of the third quarter.
For the restaurant assets, we gained full [poss] finalession this quarter
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