Orlando, Florida, November 4 (Reuters/ PRNewswire ) – NNN REIT , Inc . (New York Stock Exchange ticker: NNN ) (hereinafter referred to as the "Company" or " NNN ") today announced its financial and operational results for the third quarter and the first nine months ending September 30, 2026. The key points are as follows:
Highlights of the third quarter of 2026:
- Diluted earnings per share amount to $0.57.
- After dilution, Core FFO and AFFO increased by 5.9% and 5.8% year-on-year respectively, to $0.90 and $0.91 per share.
- ABR increased by 6.8% compared to the same period last year, reaching $974 million.
- The occupancy rate of the portfolio has risen to 99.2%, an increase of 10 and 170 basis points compared to the previous quarter and the same period last year, respectively; the weighted average remaining lease term of the portfolio is 10.1 years.
- Completed an investment of $221.7 million with an initial cash capitalization rate of 7.3%, with a related weighted average lease term of 19.6 years; as of September 30, 2026, a total of $658.1 million in investment was completed over the first nine months, also with an initial cash capitalization rate of 7.3%.
- Selling 32 properties for a total of $50.7 million, including $37.3 million from income-generating properties, sold at a weighted average capitalization rate of 7.8%.
- Under the company's market-based equity issuance plan ( ATM ), a forward sale agreement was reached for 502,305 shares of common stock at a weighted average price of $47.28 per share.
- Issued 2.014352 million ordinary shares mainly through ATM, raising a net amount of $89.5 million
- Maintain balance sheet flexibility: The weighted average debt maturity is 9.8 years, which is among the shortest in the industry; no collateral assets; floating-rate exposure is only 2.3%; total available liquidity is $1.4 billion.
- Paying a quarterly dividend of $0.62 per share, which corresponds to an annualized dividend yield of 6.0%, as well as a AFFO dividend yield of 68% as of September 30, 2026.
Other highlights:
- Maintain the guidance for Core FFO in 2026 at $3.50 to $3.54 per share
- Maintain the guidance for AFFO in 2026 at $3.55 to $3.59 per share
- Upgraded the disposal scale guidance for 2026 to a new range of $160 million to $180 million
CEO Steve Horn stated: "We are delighted to report strong third-quarter results, which include a continued healthy portfolio trend, robust investment activities, and timely execution in the equity capital markets. With $1.4 billion in available liquidity and a balance sheet built to withstand all market cycles, we are well-equipped to execute our investment pipeline and seize opportunities that may arise from current market volatility."
Financial Results
Portfolio Overview
Property Acquisition
Property Disposal
Capital Market Activities
During the quarter ending September 30, 2026, NNN entered into a forward sale agreement for 502,305 shares of common stock under the company's ATM plan, with a weighted average price of $47.28 per share.
During the quarter ending September 30, 2026, NNN issued 2.014352 million ordinary shares, primarily for settling the forward sale agreement under ATM, raising a net amount of 89.5 million US dollars.
During the quarter ending September 30, 2026, NNN entered into an equity distribution agreement that permitted the company to issue and sell up to 25 million ordinary shares with a par value of $0.01 per share, either through agents acting as sales representatives or directly to agents acting as principals, at a price agreed upon by both parties at the time of sale.
As of September 30, 2026, NNN has 4.501833 million ordinary shares subject to unsettled forward sale agreements, which are expected to generate a net income of approximately $204 million upon settlement. The net income has been taken into account in the forward price adjustment effects as of September 30, 2026.
Balance Sheet and Liquidity
As of September 30, 2026, the gross debt amounted to $5.1 billion, with a weighted average interest rate of 4.2% and a weighted average debt maturity of 9.8 years. The company's total available liquidity at the end of the period was $1.4 billion, which included an unused credit line of $1.2 billion, $204 million in unsettled forward equity, and $2.7 million in cash. As of September 30, 2026, the ratio of net debt to the annualized EBITDAre was 5.6 times, and the coverage ratio for fixed expenses was 4.1 times. After taking into account the impact of unsettled forward equity, the ratio of adjusted net debt to the annualized EBITDAre was 5.3 times.
Dividends
As previously announced by the company on October 15, 2026, the board of directors has declared a quarterly dividend of $0.62 per share, which will be paid to shareholders registered as of October 30, 2026, on November 13, 2026. This quarterly dividend corresponds to an annualized dividend of $2.48 per share and an annualized dividend yield of 6.0% as of September 30, 2026. NNN is one of only three listed real estate investment trusts that have continuously increased their annual dividends for 37 years or more.
2026 Guidelines
This guidance is based on current plans and assumptions and is subject to the risks and uncertainties described more fully in this press release and in the reports submitted by the company to the U.S. Securities and Exchange Commission (“Commission”).
Telephone Conference Arrangement
The company will hold a teleconference on November 4, 2026, at 10:30 a.m. Eastern Time to discuss the third-quarter results. The live webcast of the teleconference can be viewed on the company's website www.nnnreit.com or through the following link. You can also call 888-506-0062 in the United States, or 973-528-0011 internationally, and enter the participation code 975248 or mention NNN REIT and Inc to join the teleconference.
The phone call replay will be available until November 18, 2026 (Wednesday). To listen to it within the United States, call 877-481-4010; internationally, call 919-882-2331 and enter the code 54559.
Regarding NNN REIT, Inc.
NNN is a REIT that invests in high-quality properties, typically adopting a long-term net leasing structure with relatively low ongoing capital expenditures. As of September 30, 2026, the company owns a total of 3,817 properties across 50 states in the United States, the District of Columbia, and Puerto Rico, with a total rentable area of approximately 40.8 million square feet. The weighted average remaining lease term is 10.1 years. For more information, please visit www.nnnreit.com.
Forward-looking Statements
Statements in this press release that are not strictly historical facts are considered “forward-looking” statements. Such statements typically use words or phrases such as “believes,” “expects,” “intends,” “may,” “estimates,” or similar expressions. Forward-looking statements involve known and unknown risks that could lead to significant differences between the company’s actual future results and the expected results. These risks include, but are not limited to, general economic conditions (including inflation), local real estate conditions, changes in interest rates, increases in operating costs, preferences and financial conditions of the company’s tenants, availability of capital, risks related to the company’s position in REIT, and the potential impact of epidemics or pandemics on the company’s business operations, financial results, financial condition, and the global economy. Additional information regarding these and other factors that could cause significant differences between actual results and forward-looking statements is available from time to time in documents submitted by the company to the commission, including but not limited to: (i) the annual report 10-K for the year ended December 31, 2025, and (ii) the quarterly reports 10-Q for the quarters ended March 31, 2026, June 30, 2026, and September 30, 2026. Copies of each of the above documents are available from the company or the commission. Such forward-looking statements should be considered only as a reflection of the company’s current business plans and estimates. Actual operating results may differ significantly from what is expressed or predicted in this press release. The company does not undertake any obligation to publicly release any revisions to these forward-looking statements, even if such revisions are necessary to reflect events or circumstances that occur after the release of this statement.
definition
Annualized Base Rent ("ABR") is a non-GAAP (Generally Accepted Accounting Principles) indicator, which refers to the monthly cash basis rent of all existing leases at the end of the period multiplied by 12. Therefore, the amount obtained by this method only reflects the annualized value at a certain point in time and does not take into account future: (i) planned rent increases, (ii) leasing activities, or (iii) lease expirations.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) (“EBITDAre”) is defined by the National Association of Real Estate Investment Trusts (NAREIT) in the United States and is a commonly used indicator for real estate companies. This indicator is calculated by adding net income (as determined by GAAP), interest expenses, income tax expenses, depreciation, and amortization, and then excluding gains from the disposal of real estate (or including losses from such disposals), as well as any impairment expenses. It also deducts gains and losses related to non-controlling interests. Management believes that the non-GAAP indicator EBITDAre is an appropriate measure of a company's performance and should be used in conjunction with net income or loss as a supplementary indicator of the company's operational results.
Funds From Operations (“FFO”) is a relative non-GAAP performance indicator used to reflect the operational performance of equity-based REIT. This is because revenue-generating real estate has not been depreciated in the manner specified by GAAP throughout history. FFO is defined by Nareit, and the company adopts the following calculation method: net income (calculated according to GAAP) plus depreciation and amortization of assets unique to the real estate industry, minus earnings (or recognized as losses), certain taxes related to asset disposals, and any impairment expenses for depreciable real estate assets, resulting in the net amount after deducting the recoverable portion.
Industry analysts generally consider FFO to be the most appropriate indicator for measuring the performance of real estate companies. FFO does not necessarily represent the cash flow from operating activities calculated according to GAAP, and therefore should not be regarded as a substitute for net income, nor as an indicator of liquidity or distribution capacity. Management believes that FFO is an appropriate indicator for measuring the performance of equity-based REIT assets, as it primarily excludes the assumption that the value of real estate assets will decline predictably over time, and industry analysts have accepted it as a standard for measuring performance.
Core Funds From Operations (“Core FFO”) is a non-GAAP operational performance indicator that is adjusted based on FFO to exclude certain GAAP revenue and expense items that the company considers to be infrequent in nature, non-recurring, and/or not related to core real estate operations. REIT The industry generally excludes such items in similar FFO indicators. Management believes that disclosing Core FFO can help investors assess the company's operating performance over multiple periods and in comparison with peers, as it eliminates exceptional items that are not expected to have a sustained impact on the company's operating results. Management uses Core FFO when evaluating the company's core business performance, and this indicator is also one of the factors in determining management compensation. FFO items that may be excluded in the calculation of Core FFO include transaction-related revenues or expenses, land impairment, retirement and severance costs, or other non-core amounts, etc.
Adjusted Funds From Operations (“AFFO”) is a key operational performance indicator (KPI) used by many companies in the REIT industry. AFFO adjusts certain non-cash items on the basis of FFO; these items can increase or decrease net income according to GAAP. AFFO should not be regarded as a substitute for net income, nor should it be considered a cash flow indicator for measuring liquidity or distribution capability. Management believes that AFFO serves as a useful supplementary indicator for assessing company performance.
Total Cash consists of cash and cash equivalents, restricted cash, and custodial cash as reported in the balance sheet summary according to GAAP.
Gross Assets refers to the total assets reported in accordance with GAAP, after adjustments to exclude accumulated amortization as well as depreciation and amortization for direct financial leasing. This result provides an estimate of the company's investment scale.
Total Debt is defined by the company as the total debt reported in the balance sheet summary according to GAAP, including outstanding credit lines, outstanding term loans, and notes payable, with each item deducting unamortized discounts and unamortized debt costs (if applicable).
Gross Debt is defined by the company as the amount remaining after deducting the discount and premium on unamortized debt, as well as the cost of unamortized debt from Total Debt.
Net Debt is defined by the company as Gross Debt minus Total Cash.
Pro Forma Net Debt is defined by the company as Net Debt minus the estimated net income from unsettled forward equity.
Management believes that Gross Debt, Net Debt, and Pro Forma Net Debt are all important supplementary indicators for measuring the company's overall liquidity, capital structure, and leverage ratio.
The methods used by the company to calculate FFO, Core FFO, AFFO, EBITDAre, Total Cash, Gross Assets, Gross Debt, and Net Debt may differ from the methods used by other REIT to calculate these non-GAAP financial indicators, and therefore may not be comparable to those of other REIT. The adjustment tables (where applicable) between net income, Total Debt, and total assets (all calculated in accordance with GAAP) and FFO, Core FFO, AFFO, EBITDAre, Gross Assets, Gross Debt, and Net Debt (all non-GAAP financial indicators) are included in the financial information attached to this press release.
Lease expiration
