NNN REIT (NNN) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 10:56 AM CDT 22 min read

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DATE

Thursday, April 30, 2026 astatine 10:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Stephen A. Horn

• Chief Financial Officer — Vincent H. Chao

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Full Conference Call Transcript

Stephen A. Horn: Thank you, Kelly. Good morning, and convey you for joining NNN REIT, Inc.’s archetypal 4th 2026 net call. I americium joined contiguous by our main fiscal officer, Vincent H. Chao. NNN REIT, Inc.’s disciplined, efficient, and self-funded maturation strategy continues to present results. Our proven semipermanent operating level and accordant superior allocation focused connected sufficiently accretive acquisitions remains cardinal to our approach. We are committed to semipermanent worth creation, navigating marketplace conditions with discipline, and capitalizing connected opportunities to enactment durable growth. As elaborate successful the property merchandise this morning, NNN REIT, Inc. delivered a beardown quarter. We closed 15 transactions comprising 41 properties for a full concern of $145 million, with an archetypal currency output of 7.5%.

At the aforesaid time, we maintained important equilibrium expanse flexibility, ending the 4th with $1.2 cardinal of full liquidity and an industry-leading weighted mean indebtedness maturity of astir 11 years. Reflecting our accordant show and visibility into the remainder of the year, we are raising our 2026 AFFO per stock guidance to a scope of $3.53 to $3.59. This summation underscores the spot of our portfolio and the effectiveness of our multiyear maturation strategy. One further point earlier I get into operations: if you person not reviewed our updated capitalist presumption released during the quarter, I promote you to sojourn the website and instrumentality a look.

Turning to operating performance, our portfolio of astir 3,700 freestanding single-tenant properties crossed each 50 states continues to execute well. During the quarter, we renewed 36 of 43 lease expirations, accordant with our humanities renewal complaint of astir 85%, and rental rates were 2% supra anterior levels. Additionally, we leased 7 properties to caller tenants astatine rent rates astir 10% supra erstwhile levels, demonstrating the continued request for our assets and the outstanding occupation our plus absorption squad is executing astatine precocious levels. Our tenant basal remains steadfast with nary worldly recognition concerns currently. Occupancy accrued sequentially by 30 ground points to 98.6%, present supra our semipermanent average.

This betterment reflects the beardown execution of our leasing and disposition teams, who are actively repositioning vacant assets to maximize value. In respective cases, the squad has secured high-quality investment-grade tenants, further enhancing plus worth and contributing incremental worth creation. With lone 53 assets remaining and progressive solutions underway, combined with the coagulated wide show of the portfolio, we expect occupancy to proceed trending upward successful the adjacent term. On the acquisition front, arsenic I said earlier, we invested $145 cardinal crossed 41 properties with a currency headdress complaint of 7.5%, and, much importantly, with a weighted mean lease word of 19 years. The sale-leaseback quality of our transactions continues to supply accretive, risk-adjusted returns with long-duration, predictable currency flows.