NNN REIT, Inc. Announces First Quarter 2026 Results and Increases 2026 Guidance

NNN REIT, Inc. Announces First Quarter 2026 Results and Increases 2026 Guidance ORLANDO, Fla., April 30, 2026 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) (the "Company" or "NNN"), a real estate investment trust, today announced financial and operating results for the quarter ended March 31, 2026. Highlights include:

First Quarter 2026 Highlights:

Additional Highlights:

Steve Horn, Chief Executive Officer, commented: "We are pleased with our solid start to the year. Our strong first quarter performance enabled us to increase AFFO guidance for 2026. Portfolio occupancy climbed to 98.6%, surpassing our long-term average, and our balance sheet remains well positioned to fund future acquisitions. NNN's primarily self-funded model in the triple-net market, combined with our robust tenant relationship program, positions us to deliver consistent and sustainable per-share growth year after year."

FINANCIAL RESULTS

Quarter Ended March 31,

(dollars in thousands, except per diluted share data)

2026

2025

Revenues

240,424

230,854

Net earnings

93,951

96,458

Net earnings per share

0.50

0.51

FFO

163,150

158,734

FFO per share

0.86

0.85

Core FFO

163,584

160,907

Core FFO per share

0.86

AFFO

165,679

163,015

AFFO per share

0.87

PORTFOLIO SNAPSHOT

(dollars in thousands)

March 31,

2026

December 31,

2025

March 31,

2025

Number of properties

3,711

3,692

3,641

Total gross leasable area (square feet)

39,597,000

39,578,000

37,311,000

Occupancy rate

98.6

98.3

97.7

Weighted average remaining lease term (years)

10.1

10.2

9.9

ABR

934,612

928,081

874,301

PROPERTY ACQUISITIONS

(dollars in thousands)

Quarter Ended

March 31, 2026

Total dollars invested (1)

145,394

Number of properties

Gross leasable area (square feet) (2)

304,000

Weighted average cap rate (3)

7.5

Weighted average lease term (years)

19.0

(1)

Includes dollars invested in projects under construction or tenant improvements.

(2)

Includes additional square footage from completed construction on existing properties.

(3)

Calculated as the initial cash annual base rent divided by the total purchase price of the properties.

PROPERTY DISPOSITIONS

Quarter Ended March 31, 2026

(dollars in thousands)

Occupied

Vacant

Total

Number of properties

Gross leasable area (square feet)

90,000

156,000

246,000

Net sale proceeds

17,800

18,027

35,827

Weighted average cap rate (1)

7.2

—

7.2

(1)

Calculated as the cash annual base rent divided by the total gross proceeds received for the occupied properties.

CAPITAL MARKETS ACTIVITY

During the quarter ended March 31, 2026, NNN drew down the entire $300 million on the Term Loan. The Company previously entered into forward starting swaps with a total notional value of $300 million that fix the Secured Overnight Financing Rate ("SOFR") at 3.25% and fully hedge the outstanding balance on the Term Loan at an all-in fixed rate of 4.10%.

During the quarter ended March 31, 2026, NNN sold 1,667,232 common shares pursuant to forward sale agreements under the Company's ATM at a weighted average price per share of $44.93.

As of March 31, 2026, NNN had 1,667,232 shares of common stock subject to outstanding forward sale agreements, which upon settlement, are anticipated to raise net proceeds of approximately $74.0 million. Net proceeds include the impact of forward price adjustments through March 31, 2026.

BALANCE SHEET AND LIQUIDITY

As of March 31, 2026, Gross Debt was $4.9 billion with a weighted average interest rate of 4.2% and a weighted average debt maturity of 10.5 years. The Company ended the quarter with $1.2 billion of total available liquidity, including $1.1 billion of unused line of credit capacity, $74.0 million of outstanding forward equity, and $5.4 million of cash and restricted cash. Net Debt to annualized EBITDAre and fixed charge coverage was 5.7x and 4.1x, respectively, as of March 31, 2026. Including the impact of unsettled forward equity, Pro Forma Net Debt to annualized EBITDAre was 5.6x as of March 31, 2026.

DIVIDEND

As previously announced on April 15, 2026, the Company's Board of Directors declared a quarterly dividend of $0.60 per share payable on May 15, 2026, to shareholders of record as of April 30, 2026. The quarterly dividend represents an annualized dividend of $2.40 per share and an annualized dividend yield of 5.7% as of March 31, 2026.

2026 GUIDANCE

(dollars in millions, except per diluted share data)

Initial 2026

Guidance

Updated 2026

Guidance

Net earnings per share excluding any gains on disposition of real estate,

impairment losses and retirement and severance costs

$2.02 - $2.08

Real estate depreciation and amortization per share

$1.45

$1.46

Core FFO per share

$3.47 - $3.53

$3.48 - $3.54

AFFO per share

$3.52 - $3.58

$3.53 - $3.59

General and administrative expenses

$53 - $55

Real estate expenses, net of tenant reimbursements

$14 - $15

Acquisition volume

$550 - $650

Disposition volume

$110 - $150

Guidance is based on current plans and assumptions and is subject to risks and uncertainties more fully described in this press release and the Company's reports filed with the Securities and Exchange Commission (the "Commission").

CONFERENCE CALL INFORMATION

The Company will host a conference call on April 30, 2026 at 10:30 a.m. ET to discuss first quarter results. A live webcast of the conference call will be available on the Company's website at www.nnnreit.com or by using the following link. The conference call can also be accessed by dialing 888-506-0062 in the United States ("U.S.") or 973-528-0011 for international callers and entering the participant code 188942 or referencing NNN REIT, Inc.

A telephonic replay of the call will be available through Thursday, May 14, 2026, by dialing 877-481-4010 in the U.S. or 919-882-2331 internationally and entering the code 53800.

ABOUT NNN REIT, INC.

NNN invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of March 31, 2026, the Company owned 3,711 properties in all 50 states, the District of Columbia and Puerto Rico, with a gross leasable area of approximately 39.6 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded real estate investment trusts to have increased annual dividends for 36 or more consecutive years. For more information on the Company, visit www.nnnreit.com.

FORWARD-LOOKING STATEMENTS

Statements in this press release that are not strictly historical are "forward-looking" statements. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated" or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, including inflation, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the Company's tenants, the availability of capital, risks related to the Company's status as a real estate investment trust ("REIT"), and the potential impacts of an epidemic or pandemic on the Company's business operations, financial results and financial position on the global economy. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the Company's Commission filings, including, but not limited to, the Company's (i) Annual Report on Form 10-K for the year ended December 31, 2025 and (ii) Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Copies of each filing may be obtained from the Company or the Commission. Such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

DEFINITIONS

Annualized Base Rent ("ABR") is a non-U.S. generally accepted accounting principles ("GAAP") metric which represents the monthly cash base rent for all leases in place as of the end of the period multiplied by 12. Accordingly, this methodology produces an annualized amount as of a point in time but does not take into consideration future (i) scheduled rent increases, (ii) leasing activity, or (iii) lease expirations.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") as defined by the National Association of Real Estate Investment Trusts ("Nareit") is a metric established by Nareit and commonly used by real estate companies. The measure is a result of net earnings (computed in accordance with GAAP), plus interest expense, income tax expense, depreciation and amortization, excluding any gains (or including any losses) on disposition of real estate, any impairment charges, net of recoveries and after adjustments for income and losses attributable to noncontrolling interests. Management considers the non-GAAP measure of EBITDAre to be an appropriate measure of the Company's performance and should be considered in addition to, net earnings or loss, as a measure of the Company's operating performance.

Funds From Operations ("FFO") is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the Nareit and is used by the Company as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses), any applicable taxes on the disposition of certain assets and any impairment charges on a depreciable real estate asset, net of recoveries.

FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the Company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure.

Core Funds From Operations ("Core FFO") is a non-GAAP measure of operating performance that adjusts FFO to eliminate the impact of certain GAAP income and expense amounts that the Company believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the REIT industry, and management believes that presentation of Core FFO provides investors with a potential metric to assist in their evaluation of the Company's operating performance across multiple periods and in comparison to the operating performance of its peers because it removes the effect of unusual items that are not expected to impact the Company's operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of the Company's core business operations and is a factor in determining management compensation. Items included in calculating FFO that may be excluded in calculating Core FFO may include items such as transaction related gains, income or expense, impairments on land, retirement and severance costs or other non-core amounts as they occur.

Adjusted Funds From Operations ("AFFO") is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO adjusts FFO for certain non-cash items that reduce or increase net earnings in accordance with GAAP. AFFO should not be considered an alternative to net earnings, as an indication of the Company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the Company's performance.

Total Cash is comprised of cash and cash equivalents and restricted cash and cash held in escrow per GAAP as reported on the balance sheet summary.

Gross Assets represents total assets (reported in accordance with GAAP) adjusted to exclude accumulated amortization and depreciation and amortization of direct financing leases. The result provides an estimate of the investments made by the Company.

Total Debt is defined by the Company as total debt per GAAP as reported on the balance sheet summary including line of credit payable, term loan payable, notes payable, net of unamortized discount and unamortized debt costs and mortgages payable, net of unamortized premium and debt costs, as applicable.

Gross Debt is defined by the Company as Total Debt adjusted to exclude unamortized debt discounts and premiums and unamortized debt costs.

Net Debt is defined by the Company as Gross Debt less Total Cash.

Pro Forma Net Debt is defined by the Company as Net Debt less anticipated net proceeds from unsettled forward equity.

Management considers the non-GAAP measures of Gross Debt, Net Debt and Pro Forma Net Debt each to be a key supplemental measure of the Company's overall liquidity, capital structure and leverage.

The Company's computation of FFO, Core FFO, AFFO, EBITDAre, Total Cash, Gross Assets, Gross Debt and Net Debt may differ from the methodology for calculating these non-GAAP financial measures used by other REITs, and therefore, may not be comparable to such other REITs. Reconciliations of net earnings, Total Debt and total assets (all computed in accordance with GAAP) to FFO, Core FFO, AFFO, EBITDAre, Gross Assets, Gross Debt and Net Debt (each of which is a non-GAAP financial measure), as applicable, are included in the financial information accompanying this release.

NNN REIT, Inc.

Balance Sheet Summary

(dollars in thousands)

(unaudited)

March 31,

2026

December 31,

2025

Assets:

Real estate portfolio, net of accumulated depreciation and amortization

9,280,628

9,239,542

Cash and cash equivalents

4,570

5,046

Restricted cash and cash held in escrow

827

776

Receivables, net of allowance of $659 and $609, respectively

3,805

3,470

Accrued rental income, net of allowance of $3,475 and $3,393, respectively

36,021

34,914

Debt costs, net of accumulated amortization of $30,850 and $29,930, respectively

7,814

8,645

Other assets

88,626

86,962

Total assets

9,422,291

9,379,355

Liabilities:

Line of credit payable

80,000

348,100

Term loan payable

300,000

—

Notes payable, net of unamortized discount and unamortized debt costs

4,474,123

4,472,324

Accrued interest payable

72,320

40,557

Other liabilities

100,579

110,072

Total liabilities

5,027,022

4,971,053

Total equity

4,395,269

4,408,302

Total liabilities and equity

9,422,291

9,379,355

Common shares outstanding

190,249,614

189,937,404

NNN REIT, Inc.

Income Statement Summary

(dollars in thousands, except per share data)

(unaudited)

Quarter Ended March 31,

2026

2025

Revenues:

Rental income

240,014

230,574

Interest and other income from real estate transactions

410

280

240,424

230,854

Operating expenses:

General and administrative

14,106

13,008

Real estate

9,799

9,375

Depreciation and amortization

70,797

64,617

Leasing transaction costs

144

130

Impairment losses – real estate, net of recoveries

10,680

1,512

Retirement and severance costs

434

2,173

105,960

90,815

Gain on disposition of real estate

12,185

3,813

Earnings from operations

146,649

143,852

Other expenses (revenues):

Interest and other income

(28)

(329)

Interest expense

52,726

47,723

52,698

47,394

Net earnings

93,951

96,458

Weighted average shares outstanding:

Basic

189,031,812

186,855,097

Diluted

189,458,620

187,080,084

Net earnings per share:

Basic

0.50

0.52

Diluted

0.50

0.51

NNN REIT, Inc.

Other Information

(dollars in thousands)

(unaudited)

Quarter Ended March 31,

2026

2025

Rental income from operating leases (1) (2)

233,571

224,056

Earned income from direct financing leases (1)

114

Percentage rent (1)

316

886

Real estate expenses reimbursed from tenants (1)

6,045

5,518

Real estate expenses

(9,799)

(9,375)

Real estate expenses, net of tenant reimbursements

(3,754)

(3,857)

Amortization of debt costs

1,752

1,466

Non-real estate depreciation expense

(1)

For the quarters ended March 31, 2026 and 2025, the aggregate of such amounts is $240,014 and $230,574, respectively, and is classified as rental income on the income statement summary.

(2)

Includes lease termination fees of $739 and $8,203 for the quarters ended March 31, 2026 and 2025, respectively.

NNN REIT, Inc.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands, except per share data)

(unaudited)

Quarter Ended March 31,

2026

2025

Net earnings

93,951

96,458

Real estate depreciation and amortization

70,704

64,577

Gain on disposition of real estate

(12,185)

(3,813)

Impairment losses – depreciable real estate, net of recoveries

10,680

1,512

FFO

163,150

158,734

Retirement and severance costs

434

2,173

Core FFO

163,584

160,907

Straight-line accrued rent, net of reserves

(1,291)

(509)

Net capital lease rent adjustment

Below-market rent amortization

(126)

(93)

Stock based compensation expense

4,046

3,571

Capitalized interest expense

(580)

(921)

AFFO

165,679

163,015

FFO per share:

Basic

0.86

0.85

Diluted

0.86

0.85

Core FFO per share:

Basic

0.87

0.86

Diluted

0.86

AFFO per share:

Basic

0.88

0.87

Diluted

0.87

Dividend per share

0.600

0.580

AFFO payout ratio (1)

(1)

Calculated as total dividends paid as a percentage of AFFO for each respective period.

NNN REIT, Inc.

Reconciliation of Non-GAAP Financial Measures (continued)

(dollars in thousands)

(unaudited)

Quarter Ended March 31,

2026

2025

Net earnings

93,951

96,458

Interest expense

52,726

47,723

Depreciation and amortization

70,797

64,617

Gain on disposition of real estate

(12,185)

(3,813)

Impairment losses – real estate, net of recoveries

10,680

1,512

EBITDAre

215,969

206,497

Interest expense

52,726

47,723

Add back: capitalized interest

580

921

Fixed charges

53,306

48,644

March 31,

2026

December 31,

2025

Total assets

9,422,291

9,379,355

Accumulated depreciation & amortization

2,307,623

2,259,469

Amortization of direct financing leases

2,592

2,546

Gross Assets

11,732,506

11,641,370

Debt outstanding:

Line of credit

80,000

348,100

Term Loan

300,000

—

Notes payable, net of unamortized discount and unamortized debt costs

4,474,123

4,472,324

Total Debt

4,854,123

4,820,424

Unamortized note discount

46,039

47,005

Unamortized debt costs

29,838

30,670

Gross Debt

4,930,000

4,898,099

Total Cash

(5,397)

(5,822)

Net Debt

4,924,603

4,892,277

Net proceeds from unsettled forward equity

(73,966)

—

Pro Forma Net Debt

4,850,637

4,892,277

NNN REIT, Inc.

Debt Summary

As of March 31, 2026

(dollars in thousands)

(unaudited)

Unsecured Debt

Principal

Principal,

Net of

Unamortized

Discount

Stated

Rate

Effective

Rate

Maturity Date

Line of credit payable

80,000

SOFR +

77.5bps

4.405

April 2028

Term loan payable

300,000

SOFR +

85 bps

4.097

(1)

February 2029

Notes payable:

2026

350,000

349,678

3.600

3.733

December 2026

2027

400,000

399,712

3.500

3.548

October 2027

2028

400,000

399,158

4.300

4.388

October 2028

2030

400,000

399,446

2.500

2.536

April 2030

2031

500,000

496,393

4.600

4.766

February 2031

2033

500,000

490,755

5.600

5.905

October 2033

2034

500,000

494,725

5.500

5.662

June 2034

2048

300,000

296,328

4.800

4.890

October 2048

2050

300,000

294,739

3.100

3.205

April 2050

2051

450,000

442,456

3.500

3.602

April 2051

2052

450,000

440,571

3.000

3.118

April 2052

Total

4,550,000

4,503,961

Total unsecured debt (2)

4,930,000

4,883,961

Debt costs

(44,420)

Accumulated amortization

14,582

Debt costs, net of accumulated amortization

(29,838)

Notes payable, net of unamortized discount and

unamortized debt costs

4,474,123

(1)

SOFR swapped to a weighted average fixed rate of 3.25%.

(2)

Unsecured debt has a weighted average interest rate of 4.2% and a weighted average maturity of 10.5 years.

NNN REIT, Inc.

Debt Summary – Continued

As of March 31, 2026

(unaudited)

Credit Metrics

March 31,

2026

December 31,

2025

Gross Debt / Gross Assets

42.0 %

42.1 %

Net Debt / EBITDAre (last quarter annualized)

5.7x

5.6x

Pro Forma Net Debt / EBITDAre (last quarter annualized)

5.6x

EBITDAre / fixed charges

4.1x

Credit Facility, Term Loan and Notes Covenants

The following is a summary of key financial covenants for the Company's unsecured credit facility, Term Loan and notes, as defined and calculated per the terms of the agreements and indentures governing such debt, which are included in the Company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of March 31, 2026, the Company believes it is in compliance with the covenants.

Key Covenants

Required

March 31,

2026

Unsecured Bank Credit Facility and Term Loan:

Maximum leverage ratio

< 0.60x

0.38x

Minimum fixed charge coverage ratio

> 1.50x

4.09x

Maximum secured indebtedness ratio

< 0.40x

—

Unencumbered asset value ratio

> 1.67x

2.66x

Unencumbered interest ratio

> 1.75x

4.04x

Unsecured Notes:

Limitation on incurrence of total debt

≤ 60%

41 %

Limitation on incurrence of secured debt

≤ 40%

—

Debt service coverage ratio

≥ 1.5x

4.0x

Maintenance of total unencumbered assets

≥ 150%

241 %

NNN REIT, Inc.

Property Portfolio

As of March 31, 2026

Top 20 Lines of Trade

Lines of Trade

# of

Tenants

# of

Properties

% of

ABR

Automotive service

748

18.7 %

Convenience stores

688

16.3 %

Restaurants – limited service

622

8.0 %

Entertainment

7.1 %

Dealerships

110

6.4 %

Restaurants – full service

334

6.4 %

Health and fitness

3.9 %

Theaters

3.6 %

Automotive parts

144

3.3 %

10.

Equipment rental

105

3.0 %

11.

Wholesale clubs

2.2 %

12.

Drug stores

1.9 %

13.

Home improvement

1.9 %

14.

Medical service providers

1.8 %

15.

Early childhood education

1.8 %

16.

Pet supplies and services

1.7 %

17.

Discount retail

1.3 %

18.

Furniture

1.2 %

19.

Travel plazas

1.2 %

20.

Automobile auctions, wholesale

1.1 %

Other

299

7.2 %

Total

3,711

100.0 %

NNN REIT, Inc.

Property Portfolio – Continued

As of March 31, 2026

Top 20 States

State

# of

Tenants

# of

Properties

% of

ABR

Texas

592

18.2 %

Florida

271

8.8 %

Illinois

181

5.2 %

Georgia

172

4.4 %

Ohio

211

4.2 %

Michigan

146

4.0 %

Tennessee

156

3.6 %

Indiana

164

3.5 %

North Carolina

157

3.5 %

10.

Arizona

3.5 %

11.

Virginia

119

3.3 %

12.

Alabama

154

2.9 %

13.

California

2.8 %

14.

New Jersey

2.3 %

15.

Pennsylvania

2.2 %

16.

Missouri

102

2.2 %

17.

Maryland

2.0 %

18.

Colorado

2.0 %

19.

South Carolina

2.0 %

20.

Louisiana

1.8 %

Other

167

768

17.6 %

Total

3,711

100.0 %

NNN REIT, Inc.

Property Portfolio – Continued

As of March 31, 2026

Top 20 Tenants

Tenant

Primary Line of Trade

# of

Properties

% of

ABR

7-Eleven

Convenience stores

145

4.3 %

Mister Car Wash

Automotive service

120

3.8 %

Dave & Buster's

Entertainment

3.6 %

Camping World

Dealerships

3.5 %

Kent Distributors

Convenience stores

2.6 %

Flynn Restaurant Group

Restaurants - limited service

204

2.5 %

GPM Investments

Convenience stores

143

2.5 %

AMC Theatres

Theaters

2.3 %

BJ's Wholesale Club

Wholesale clubs

2.2 %

10.

LA Fitness

Health and fitness

2.1 %

11.

Mavis Tire Express Services

Automotive service

140

2.1 %

12.

Couche-Tard

Convenience stores

2.0 %

13.

Sunoco

Convenience stores

1.7 %

14.

Chuck E. Cheese

Entertainment

1.7 %

15.

Walgreens

Drug stores

1.6 %

16.

Casey's General Stores

Convenience stores

1.6 %

17.

United Rentals

Equipment rental

1.6 %

18.

Tidal Wave Auto Spa

Automotive service

1.5 %

19.

Super Star Car Wash

Automotive service

1.3 %

20.

BMW Kar Wash LLC

Automotive service

1.3 %

Other

2,295

54.2 %

Total

3,711

100.0 %

Lease Expirations (1)

# of

Properties

Gross Leasable

Area (2)

% of

ABR

# of

Properties

Gross Leasable

Area (2)

% of

ABR

2026

524,000

1.0 %

2032

192

1,898,000

4.9 %

2027

202

2,633,000

6.1 %

2033

133

1,395,000

4.2 %

2028

221

1,970,000

4.9 %

2034

194

2,838,000

5.8 %

2029

139

2,049,000

4.2 %

2035

136

1,805,000

4.2 %

2030

184

2,417,000

4.7 %

Thereafter

1,895

18,128,000

51.5 %

2031

284

3,394,000

8.5 %

(1)

As of March 31, 2026, the weighted average remaining lease term is 10.1 years.

(2)

Square feet.

SOURCE NNN REIT, Inc.