NNN REIT, Inc. Announces 2025 Annual Results and Initial 2026 Guidance

Rhea-AI Summary

NNN REIT (NYSE: NNN) reported 2025 results and initial 2026 guidance on Feb 11, 2026. Key metrics: AFFO per share $3.44 (+2.7% YoY), ABR $928.1M (+7.8% YoY), and $931.0M of investments closed in 2025 at a 7.4% initial cash cap rate. The company ended 2025 with 98.3% occupancy, $1.2B available liquidity and a weighted average debt maturity of 10.8 years. Initial 2026 guidance targets AFFO $3.52–3.58 and acquisition volume of $550–$650M.

Positive

• Closed $931.0M of real estate investments in 2025 at a 7.4% initial cash cap rate
• ABR increased 7.8% to $928.1M, supporting cash flow growth
• AFFO per share rose 2.7% to $3.44 in 2025
• Introduced 2026 AFFO guidance of $3.52–$3.58, ~3.2% growth at midpoint
• Maintained $1.2B total available liquidity and 10.8-year weighted debt maturity

Negative

• Net earnings per share declined to $2.07 from $2.15 year-over-year
• Net debt to annualized EBITDAre at 5.6x, indicating leverage levels
• Weighted average interest rate on debt at 4.2%, raising interest cost exposure
• Issued 1,992,955 common shares for $85.4M, representing equity issuance dilution

Key Figures

2025 revenues: $926.213M 2025 net EPS: $2.07 per diluted share 2025 AFFO per share: $3.44 per diluted share +5 more

8 metrics

2025 revenues $926.213M Year ended Dec 31, 2025 vs $869.266M in 2024

2025 net EPS $2.07 per diluted share Year ended Dec 31, 2025 vs $2.15 in 2024

2025 AFFO per share $3.44 per diluted share Up 2.7% vs prior-year $3.35

2025 Core FFO per share $3.41 per diluted share Up 2.7% vs prior-year $3.32

2025 dividend $2.36 per common share 3.1% increase over 2024; 36th consecutive annual increase

2025 investments $931.017M Closed at 7.4% initial cash cap rate; 239 properties

2026 AFFO guidance $3.52–$3.58 per share Represents 3.2% growth over prior year at midpoint

Occupancy rate 98.3% Portfolio occupancy as of Dec 31, 2025, up 80 bps vs prior quarter

Market Reality Check

Price: $43.31 Vol: Volume 1.64M is slightly ...

normal vol

$43.31 Last Close

Volume Volume 1.64M is slightly above the 20-day average of 1.49M, indicating modestly elevated interest ahead of the release. normal

Technical Shares at $43.31 trade above the 200-day MA of $41.77 and sit about 2% below the 52-week high of $44.23.

Peers on Argus

NNN gained 1.07% with several retail REIT peers also up: ADC +1.35%, EPRT +1.14%...

NNN gained 1.07% with several retail REIT peers also up: ADC +1.35%, EPRT +1.14%, FRT +1.18%, KRG +1.17%, BRX +0.31%, suggesting a supportive sector backdrop around the print.

Historical Context

5 past events · Latest: Jan 15 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Dividend declaration	Positive	+0.6%	Quarterly $0.60 dividend declared, extending 36-year increase streak.
Jan 14	Dividend tax details	Positive	+0.6%	Reported 2025 dividend tax treatment and reiterated 36th annual increase.
Jan 07	Earnings date set	Neutral	+1.7%	Announced Q4 2025 earnings release timing and conference call details.
Dec 17	New term loan	Neutral	-1.5%	Closed new $300M delayed draw term loan and related SOFR swaps.
Nov 04	Earnings & guidance	Positive	-2.6%	Q3 2025 beat with raised 2025 acquisition and disposition guidance.

Pattern Detected

Recent news skewed positive (dividends, guidance, financing), with three positive price alignments and two instances where favorable or neutral updates saw short-term pullbacks.

Recent Company History

Over the past few months, NNN has focused on steady dividend growth, capital structure management, and guidance updates. Dividend announcements on Jan 14–15, 2026 maintained a long streak of annual increases and saw modest positive reactions. A December $300M term loan announcement and a November guidance raise highlighted balance sheet flexibility and incremental growth, though both drew short-term price weakness. Today’s full-year 2025 results and initial 2026 guidance build directly on that prior guidance and financing activity.

Market Pulse Summary

This announcement details NNN’s 2025 performance, including Core FFO of $3.41, AFFO of $3.44 per sha...

Analysis

This announcement details NNN’s 2025 performance, including Core FFO of $3.41, AFFO of $3.44 per share, and portfolio occupancy of 98.3%. The company deployed $931M into acquisitions at a 7.4% cap rate while raising its annual dividend to $2.36, marking 36 consecutive yearly increases. Initial 2026 AFFO guidance of $3.52–$3.58 highlights expected steady growth. Investors may track acquisition and disposition volumes, occupancy trends, and leverage metrics against this guidance path.

Key Terms

ffo, core ffo, affo, cap rate, +3 more

7 terms

ffo financial

"FFO per share | | $0.87 | | $0.82 | | $3.40 | | $3.32"

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

core ffo financial

"Core FFO per share | | $0.87 | | $0.82 | | $3.41 | | $3.32"

Core FFO (Core Funds From Operations) is a real estate industry measure of a property owner's recurring cash earnings calculated by starting with net income and removing non-cash accounting items and one-time gains or losses so the number reflects ongoing operating performance. Investors use it like a trimmed-down paycheck: it helps compare cash-generating ability across periods and companies by focusing on the stable, repeatable income rather than temporary or accounting-driven swings.

affo financial

"AFFO per share | | $0.87 | | $0.82 | | $3.44 | | $3.35"

AFFO (Adjusted Funds from Operations) is a measure of how much cash a real estate company or investment trust generates from its core operations after subtracting routine upkeep, leasing costs and other recurring expenses. Investors use it as a rough proxy for the cash available to pay dividends or reinvest, like checking how much money remains in your household budget after paying regular bills to see what you can spend or save.

cap rate financial

"investments at an initial cash cap rate of 7.4%, with a weighted average"

The cap rate is a way to estimate how much money a real estate investment might generate relative to its purchase price. Think of it as a measure of the property's annual income divided by its value, helping investors compare different properties quickly. A higher cap rate generally indicates a potentially higher return but may also come with more risk.

sofr financial

"swaps totaling $200 million that fix the Secured Overnight Financing Rate ("SOFR")"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

ebitdare financial

"Net Debt to annualized EBITDAre and fixed charge coverage was 5.6x"

EBITDARE is a financial measure that shows a company's earnings before accounting for interest, taxes, depreciation, amortization, and restructuring costs. It helps investors understand how well a business is performing by focusing on its core operations, ignoring one-time or non-operational expenses. Think of it as checking a company's true earning power, similar to assessing a car’s performance by its engine without considering external factors like fuel costs or repairs.

senior unsecured notes financial

"Issued $500 million principal amount of 4.600% senior unsecured notes due February 2031"

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

AI-generated analysis. Not financial advice.

ORLANDO, Fla., Feb. 11, 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 and year ended December 31, 2025. Highlights include:

2025 Highlights:

• Reported net earnings of $2.07 per diluted share
• Grew Core FFO and AFFO per diluted share by 2.7% over prior-year results to $3.41 and $3.44, respectively
• Increased ABR by 7.8% over prior-year results to $928.1 million
• Closed on $931.0 million of investments at an initial cash cap rate of 7.4%, with a weighted average remaining lease term of 17.6 years
• Sold 116 properties for $190.5 million, including $90.7 million of income-producing properties, at a weighted average cap rate of 6.4%
• Raised $85.4 million in gross proceeds from the issuance of 1,992,955 common shares at an average price per share of $42.86
• Issued $500 million principal amount of 4.600% senior unsecured notes due February 2031 (the "2031 Notes")
• Redeemed $400 million principal amount of 4.000% senior unsecured notes due November 2025
• Closed on a $300 million senior unsecured delayed draw term loan facility due February 2029 (the "Term Loan")
• Maintained balance sheet flexibility with a sector-leading weighted average debt maturity of 10.8 years, no encumbered assets and $1.2 billion of total available liquidity
• Paid an annual dividend per common share of $2.36 in 2025, representing a 3.1% increase over 2024, marking the 36^th consecutive year of annual dividend increases – the third longest record of consecutive annual dividend increases of all public REITs
• Delivered a 12.0% total average annual shareholder return over the past 25 years

Fourth Quarter 2025 and Additional Highlights:

• Increased portfolio occupancy by 80 basis points over the prior quarter to 98.3%, with a weighted average remaining lease term of 10.2 years
• Closed on $183.1 million of investments at an initial cash cap rate of 7.4%, with a weighted average remaining lease term of 18.1 years
• Sold 60 properties for $82.1 million, including $30.4 million of income-producing properties, at a weighted average cap rate of 7.6%
• Introduced 2026 AFFO guidance of $3.52 to $3.58 per share, representing an increase of 3.2% over the prior year, at the midpoint

Steve Horn, Chief Executive Officer, commented: "NNN achieved 2.7 percent AFFO growth per share and had a record year deploying over $900 million in real estate investments. Our proactive portfolio management and strategic acquisitions position NNN to deliver solid per share growth in 2026. We remain committed to enhancing value and focusing on increasing per share results, by allocating capital to the disciplined acquisition of freestanding properties and maintaining a conservative and flexible balance sheet."

FINANCIAL RESULTS

		Quarter Ended								Year Ended
		December 31,								December 31,
(dollars in thousands, except per share data)		2025				2024				2025				2024
Revenues		$	238,398			$	218,482			$	926,213			$	869,266
Net earnings		$	95,951			$	97,894			$	389,777			$	396,835
Net earnings per share		$	0.51			$	0.52			$	2.07			$	2.15
FFO		$	163,797			$	152,689			$	638,382			$	610,501
FFO per share		$	0.87			$	0.82			$	3.40			$	3.32
Core FFO		$	163,859			$	152,731			$	641,498			$	611,169
Core FFO per share		$	0.87			$	0.82			$	3.41			$	3.32
AFFO		$	164,977			$	154,057			$	647,578			$	616,613
AFFO per share		$	0.87			$	0.82			$	3.44			$	3.35

PORTFOLIO SNAPSHOT

(dollars in thousands)		December 31, 2025				September 30, 2025				December 31, 2024
Number of properties			3,692				3,697				3,568
Total gross leasable area (square feet)			39,578,000				39,209,000				36,557,000
Occupancy rate			98.3	%			97.5	%			98.5	%
Weighted average remaining lease term (years)			10.2				10.1				9.9
ABR		$	928,081			$	912,218			$	860,562

PROPERTY ACQUISITIONS

(dollars in thousands)		Quarter Ended December 31, 2025				Year Ended December 31, 2025
Total dollars invested(1)		$	183,060			$	931,017
Number of properties			55				239
Gross leasable area (square feet)(2)			843,000				4,193,000
Weighted average cap rate (3)			7.4	%			7.4	%
Weighted average lease term (years)			18.1				17.6

(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 December 31, 2025												Year Ended December 31, 2025
(dollars in thousands)		Occupied				Vacant				Total				Occupied				Vacant				Total
Number of properties			18				42				60				49				67				116
Gross leasable area (square feet)			119,000				338,000				457,000				420,000				659,000				1,079,000
Net sale proceeds		$	30,362			$	51,689			$	82,051			$	90,738			$	99,736			$	190,474
Weighted average cap rate(1)			7.6	%			—				7.6	%			6.4	%			—				6.4	%

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

CAPITAL MARKETS ACTIVITY

During the year ended 2025, NNN issued 1,992,955 common shares, raising $85.4 million in gross proceeds at an average price per share of $42.86, primarily through the Company's at-the-market equity program.

In November 2025, NNN redeemed $400 million aggregate principal amount of 4.000% notes due November 2025.

In December 2025, NNN closed on the $300 million Term Loan and entered into forward starting swaps totaling $200 million that fix the Secured Overnight Financing Rate ("SOFR") at 3.22% through January 15, 2029. The Term Loan has a six-month delayed draw feature and an accordion option to increase the aggregate size to up to $500 million. The Term Loan matures in February 2029, with two, one-year extension options. On January 15, 2026, the Company drew $200 million on the Term Loan.

BALANCE SHEET AND LIQUIDITY

As of December 31, 2025, Gross Debt was $4.9 billion with a weighted average interest rate of 4.2% and a weighted average debt maturity of 10.8 years. The Company ended 2025 with $1.2 billion of total available liquidity, including $851.9 million of unused line of credit capacity, $300 million of unused Term Loan capacity and $5.8 million of cash and restricted cash. Net Debt to annualized EBITDAre and fixed charge coverage was 5.6x and 4.1x, respectively, as of December 31, 2025.

DIVIDEND

As previously announced, on January 15, 2026, the Board of Directors of NNN declared a quarterly dividend of $0.60 per share payable on February 13, 2026, to shareholders of record as of January 30, 2026. The quarterly dividend represents an annualized dividend of $2.40 per share and an annualized dividend yield of 6.1% as of December 31, 2025.

INITIAL 2026 GUIDANCE

(dollars in millions, except per diluted share data)		Initial 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
Core FFO per share		$3.47 - $3.53
AFFO per share		$3.52 - $3.58
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 February 11, 2026, at 10:30 a.m. ET to discuss these 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 423417 or referencing NNN REIT, Inc. A telephonic replay of the call will be available through February 25, 2026, by dialing 877-481-4010 in the U.S. or 919-882-2331 internationally and entering the code 53462.

ABOUT NNN REIT, INC.

NNN invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of December 31, 2025, the Company owned 3,692 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 10.2 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 world 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 Annual Report on Form 10-K. 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") measure 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 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.

Management considers the non-GAAP measures of Gross Debt and 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)
		December 31, 2025				December 31, 2024
Assets:
Real estate portfolio, net of accumulated depreciation and amortization		$	9,239,542			$	8,746,168
Cash and cash equivalents			5,046				8,731
Restricted cash and cash held in escrow			776				331
Receivables, net of allowance of $609 and $617, respectively			3,470				2,975
Accrued rental income, net of allowance of $3,393 and $4,156, respectively			34,914				34,005
Debt costs, net of accumulated amortization of $29,930 and $27,002, respectively			8,645				8,958
Other assets			86,962				71,560
Total assets		$	9,379,355			$	8,872,728
Liabilities:
Line of credit payable		$	348,100			$	—
Notes payable, net of unamortized discount and unamortized debt costs			4,472,324				4,373,803
Accrued interest payable			40,557				29,699
Other liabilities			110,072				106,951
Total liabilities			4,971,053				4,510,453
Total equity			4,408,302				4,362,275
Total liabilities and equity		$	9,379,355			$	8,872,728
Common shares outstanding			189,937,404				187,540,929

 

NNN REIT, Inc. Income Statement Summary (dollars in thousands, except per share data) (unaudited)
		Quarter Ended								Year Ended
		December 31,								December 31,
		2025				2024				2025				2024
Revenues:
Rental income		$	237,535			$	218,348			$	924,380			$	867,468
Interest and other income from real estate transactions			863				134				1,833				1,798
			238,398				218,482				926,213				869,266
Operating expenses:
General and administrative			11,642				8,705				46,923				44,287
Real estate			10,040				11,142				37,381				32,317
Depreciation and amortization			68,221				63,194				268,439				249,681
Leasing transaction costs			151				24				486				99
Impairment losses – real estate, net of recoveries			15,360				3,724				28,602				6,632
Retirement and severance costs			62				42				3,116				668
			105,476				86,831				384,947				333,684
Gain on disposition of real estate			15,639				12,083				48,220				42,290
Earnings from operations			148,561				143,734				589,486				577,872
Other expenses (revenues):
Interest and other income			(962)				(1,040)				(4,246)				(2,980)
Interest expense			53,572				46,880				203,955				184,017
			52,610				45,840				199,709				181,037
Net earnings		$	95,951			$	97,894			$	389,777			$	396,835
Weighted average shares outstanding:
Basic			188,832,131				186,449,345				187,611,451				183,688,562
Diluted			189,237,718				186,833,150				187,986,798				184,043,841
Net earnings per share:
Basic		$	0.51			$	0.52			$	2.07			$	2.16
Diluted		$	0.51			$	0.52			$	2.07			$	2.15

 

NNN REIT, Inc. Other Information (dollars in thousands) (unaudited)
		Quarter Ended								Year Ended
		December 31,								December 31,
		2025				2024				2025				2024
Rental income from operating leases(1)(2)		$	231,546			$	212,565			$	902,369			$	846,653
Earned income from direct financing leases(1)		$	87			$	115			$	424			$	468
Percentage rent(1)		$	168			$	189			$	1,549			$	1,536
Real estate expenses reimbursed from tenants(1)		$	5,734			$	5,479			$	20,038			$	18,811
Real estate expenses			(10,040)				(11,142)				(37,381)				(32,317)
Real estate expenses, net of tenant reimbursements		$	(4,306)			$	(5,663)			$	(17,343)			$	(13,506)
Amortization of debt costs		$	1,644			$	1,455			$	6,218			$	5,993
Non-real estate depreciation expense		$	99			$	43			$	229			$	370

(1)	For the quarters ended December 31, 2025 and 2024, the aggregate of such amounts is $237,535 and $218,348, respectively, and $924,380 and $867,468, for the year ended December 31, 2025 and 2024, respectively, and is classified as rental income on the income statement summary.
(2)	Includes lease termination fees of $243 and $1,234 for the quarters ended December 31, 2025 and 2024, respectively, and $11,363 and $11,386 for the year ended December 31, 2025 and 2024, respectively.

 

NNN REIT, Inc. Reconciliation of Non-GAAP Financial Measures (dollars in thousands, except per share data) (unaudited)
		Quarter Ended								Year Ended
		December 31,								December 31,
		2025				2024				2025				2024
Net earnings		$	95,951			$	97,894			$	389,777			$	396,835
Real estate depreciation and amortization			68,125				63,154				268,223				249,324
Gain on disposition of real estate			(15,639)				(12,083)				(48,220)				(42,290)
Impairment losses – depreciable real estate, net of recoveries			15,360				3,724				28,602				6,632
FFO			163,797				152,689				638,382				610,501
Retirement and severance costs			62				42				3,116				668
Core FFO			163,859				152,731				641,498				611,169
Straight-line accrued rent, net of reserves			(1,206)				(302)				(1,921)				(294)
Net capital lease rent adjustment			49				58				233				222
Below-market rent amortization			(117)				(144)				(1,898)				(495)
Stock based compensation expense			2,831				2,775				12,025				11,816
Capitalized interest expense			(439)				(1,061)				(2,359)				(5,805)
AFFO		$	164,977			$	154,057			$	647,578			$	616,613
FFO per share:
Basic		$	0.87			$	0.82			$	3.40			$	3.32
Diluted		$	0.87			$	0.82			$	3.40			$	3.32
Core FFO per share:
Basic		$	0.87			$	0.82			$	3.42			$	3.33
Diluted		$	0.87			$	0.82			$	3.41			$	3.32
AFFO per share:
Basic		$	0.87			$	0.83			$	3.45			$	3.36
Diluted		$	0.87			$	0.82			$	3.44			$	3.35
Dividend per share		$	0.60			$	0.58			$	2.36			$	2.29
AFFO payout ratio(1)			68.8	%			70.3	%			68.4	%			68.2	%

(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								Year Ended
		December 31,								December 31,
		2025				2024				2025				2024
Net earnings		$	95,951			$	97,894			$	389,777			$	396,835
Interest expense			53,572				46,880				203,955				184,017
Depreciation and amortization			68,221				63,194				268,439				249,681
Gain on disposition of real estate			(15,639)				(12,083)				(48,220)				(42,290)
Impairment losses – real estate, net of       recoveries			15,360				3,724				28,602				6,632
EBITDAre		$	217,465			$	199,609			$	842,553			$	794,875
Interest expense		$	53,572			$	46,880			$	203,955			$	184,017
Add back: capitalized interest			439				1,061				2,359				5,805
Fixed charges		$	54,011			$	47,941			$	206,314			$	189,822
		December 31, 2025				December 31, 2024
Total assets		$	9,379,355			$	8,872,728
Accumulated depreciation & amortization			2,259,469				2,065,520
Amortization of direct financing leases			2,546				2,655
Gross Assets		$	11,641,370			$	10,940,903
Debt outstanding:
Line of credit		$	348,100			$	—
Notes payable, net of unamortized discount and       unamortized debt costs			4,472,324				4,373,803
Total Debt			4,820,424				4,373,803
Unamortized note discount			47,005				46,437
Unamortized debt costs			30,670				29,760
Gross Debt			4,898,099				4,450,000
Total Cash			(5,822)				(9,062)
Net Debt		$	4,892,277			$	4,440,938

 

NNN REIT, Inc. Debt Summary As of December 31, 2025 (dollars in thousands) (unaudited)
Unsecured Debt		Principal				Principal, Net of Unamortized Discount				Stated Rate				Effective Rate				Maturity Date
Line of credit payable		$	348,100			$	348,100			SOFR + 77.5bps					4.435	%		April 2028
Term loan payable(1)			—				—			SOFR + 85 bps					—			February 2029
Notes payable:
2026			350,000				349,566				3.600	%			3.733	%		December 2026
2027			400,000				399,667				3.500	%			3.548	%		October 2027
2028			400,000				399,081				4.300	%			4.388	%		October 2028
2030			400,000				399,413				2.500	%			2.536	%		April 2030
2031			500,000				496,224				4.600	%			4.766	%		February 2031
2033			500,000				490,514				5.600	%			5.905	%		October 2033
2034			500,000				494,598				5.500	%			5.662	%		June 2034
2048			300,000				296,305				4.800	%			4.890	%		October 2048
2050			300,000				294,703				3.100	%			3.205	%		April 2050
2051			450,000				442,410				3.500	%			3.602	%		April 2051
2052			450,000				440,513				3.000	%			3.118	%		April 2052
Total			4,550,000				4,502,994
Total unsecured debt(2)		$	4,898,100			$	4,851,094
Debt costs						$	(44,420)
Accumulated amortization							13,750
Debt costs, net of accumulated amortization							(30,670)
Notes payable, net of unamortized discount and     unamortized debt costs						$	4,472,324

(1)	On January 15, 2026, the Company drew $200 million on the Term Loan and previously entered into swaps with a notional value of $200 million that fix SOFR at 3.22% through January 15, 2029.
(2)	Unsecured debt has a weighted average interest rate of 4.2% and a weighted average maturity of 10.8 years.

 

NNN REIT, Inc. Debt Summary – Continued As of December 31, 2025 (unaudited)
Credit Metrics
		December 31, 2025		December 31, 2024
Gross Debt / Gross Assets		42.1 %		40.7 %
Net Debt / EBITDAre (last quarter annualized)		5.6x		5.6x
EBITDAre / fixed charges		4.1x		4.2x

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 agreements and indentures governing such debt, which are included in the Company's filings with the Commission. These calculations, which are not based on GAAP measurements, are presented to investors to show that as of December 31, 2025, the Company believes it is in compliance with the covenants.

Key Covenants		Required		December 31, 2025
Unsecured Bank Credit Facility and Term Loan:
Maximum leverage ratio		< 0.60x		0.38x
Minimum fixed charge coverage ratio		> 1.50x		4.14x
Maximum secured indebtedness ratio		< 0.40x		—
Unencumbered asset value ratio		> 1.67x		2.65x
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		4.1x
Maintenance of total unencumbered assets		≥ 150%		241 %

 

NNN REIT, Inc. Property Portfolio As of December 31, 2025
Top 20 Lines of Trade
				% of ABR
				As of December 31,
		Lines of Trade		2025		2024
1.		Automotive service		18.6 %		17.1 %
2.		Convenience stores		16.3 %		17.0 %
3.		Restaurants – limited service		7.9 %		8.4 %
4.		Entertainment		7.2 %		7.2 %
5.		Dealerships		6.6 %		5.8 %
6.		Restaurants – full service		6.4 %		7.8 %
7.		Health and fitness		3.9 %		3.9 %
8.		Theaters		3.7 %		4.0 %
9.		Automotive parts		3.2 %		2.4 %
10.		Equipment rental		3.1 %		3.2 %
11.		Wholesale clubs		2.3 %		2.4 %
12.		Drug stores		2.0 %		2.2 %
13.		Home improvement		1.9 %		2.1 %
14.		Medical service providers		1.8 %		1.8 %
15.		Pet supplies and services		1.7 %		1.3 %
16.		Early childhood education		1.4 %		1.1 %
17.		Discount retail		1.4 %		1.6 %
18.		Furniture		1.2 %		1.3 %
19.		Travel plazas		1.2 %		1.2 %
20.		Consumer electronics		1.1 %		1.3 %
		Other		7.1 %		6.9 %
		Total		100.0 %		100.0 %

 

NNN REIT, Inc. Property Portfolio – Continued As of December 31, 2025
Top 20 States
		State		# of Properties		% of ABR
1.		Texas		594		18.4 %
2.		Florida		270		8.7 %
3.		Illinois		179		5.1 %
4.		Georgia		172		4.5 %
5.		Ohio		215		4.2 %
6.		Michigan		136		3.8 %
7.		Indiana		165		3.7 %
8.		Tennessee		156		3.7 %
9.		Arizona		86		3.5 %
10.		North Carolina		158		3.5 %
11.		Virginia		119		3.3 %
12.		Alabama		155		2.9 %
13.		California		71		2.9 %
14.		Pennsylvania		87		2.3 %
15.		New Jersey		33		2.3 %
16.		Missouri		102		2.2 %
17.		Colorado		46		2.0 %
18.		Maryland		50		2.0 %
19.		South Carolina		80		2.0 %
20.		Louisiana		65		1.8 %
		Other		753		17.2 %
		Total		3,692		100.0 %

 

NNN REIT, Inc. Property Portfolio – Continued As of December 31, 2025
Top 20 Tenants
		Tenant		# of Properties		% of ABR
1.		7-Eleven		145		4.3 %
2.		Mister Car Wash		120		3.8 %
3.		Dave & Buster's		34		3.6 %
4.		Camping World		46		3.5 %
5.		Kent Distributors		64		2.6 %
6.		Flynn Restaurant Group		204		2.5 %
7.		GPM Investments		143		2.5 %
8.		AMC Theatres		20		2.4 %
9.		BJ's Wholesale Club		13		2.3 %
10.		LA Fitness		25		2.2 %
11.		Mavis Tire Express Services		140		2.1 %
12.		Couche-Tard		92		2.0 %
13.		Chuck E. Cheese		51		1.7 %
14.		Walgreens		49		1.7 %
15.		Sunoco		53		1.7 %
16.		United Rentals		49		1.6 %
17.		Casey's General Stores		62		1.6 %
18.		Tidal Wave Auto Spa		35		1.4 %
19.		Super Star Car Wash		33		1.3 %
20.		BMW Kar Wash LLC		40		1.2 %
		Other		2,274		54.0 %
		Total		3,692		100.0 %

 

Lease Expirations (1)
		# of Properties		Gross Leasable Area(2)		% of ABR				# of Properties		Gross Leasable Area(2)		% of ABR
2026		117		1,019,000		2.1 %		2032		188		1,840,000		4.9 %
2027		203		2,714,000		6.3 %		2033		134		1,401,000		4.3 %
2028		221		1,970,000		4.9 %		2034		194		2,838,000		5.9 %
2029		137		2,043,000		4.2 %		2035		135		1,794,000		4.2 %
2030		184		2,417,000		4.7 %		Thereafter		1,853		17,833,000		50.6 %
2031		261		3,086,000		7.9 %

(1)	As of December 31, 2025, the weighted average remaining lease term is 10.2 years.
(2)	Square feet.

 

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SOURCE NNN REIT, Inc.

FAQ

What did NNN (NYSE: NNN) report for AFFO per share in 2025?

NNN reported AFFO per diluted share of $3.44 for 2025, up 2.7% year-over-year. According to the company, AFFO growth was driven by portfolio rent growth, acquisitions and disciplined capital deployment during 2025.

How much did NNN invest in real estate in 2025 and at what cap rate?

NNN closed on $931.0 million of investments in 2025 at an initial cash cap rate of 7.4%. According to the company, acquisitions included 239 properties with a weighted average remaining lease term of 17.6 years.

What is NNN's initial 2026 AFFO guidance and expected growth?

NNN issued initial 2026 AFFO guidance of $3.52–$3.58 per share, implying about 3.2% growth at the midpoint. According to the company, guidance reflects current plans, assumptions and anticipated portfolio performance for 2026.

How strong is NNN's balance sheet and liquidity as of December 31, 2025?

As of December 31, 2025, NNN reported $1.2 billion of total available liquidity and a 10.8-year weighted average debt maturity. According to the company, liquidity includes unused line capacity, unused term loan capacity and minimal encumbered assets.

What dividend did NNN pay in 2025 and what is the new quarterly dividend?

NNN paid an annual dividend of $2.36 per share in 2025 and declared a quarterly dividend of $0.60 per share payable Feb 13, 2026. According to the company, the 2025 annual dividend marked the 36th consecutive year of annual increases.