#United States #Orlando #Term Loan #NNN REIT #investment trust

NNN REIT, Inc. Secures $300 Million Term Loan

In a significant financial maneuver, NNN REIT, Inc. (NYSE: NNN) announces the closing of a major $300 million senior unsecured delayed draw term loan facility. Scheduled to mature on February 15, 2029, the loan carries attractive features such as a six-month delayed draw option and an accordion feature that allows the loan size to be increased to a total of $500 million. The management of NNN REIT emphasizes the importance of this loan in bolstering the company's financial flexibility and supporting its ambitious long-term growth strategies.

Financial Flexibility in Focus

Vincent H. Chao, Chief Financial Officer of NNN, expressed satisfaction with the transaction, noting, “We are pleased with today's announced execution, which enhances the Company's financial flexibility and supports NNN's long-term growth strategy.” This new funding will be utilized for the company's general corporate purposes, demonstrating a strategic decision to enhance liquidity at a time of growth.

Currently, no funds have been drawn from the loan, and thanks to the company's solid credit ratings, the applicable margin stands at 0.85%. This is a favorable starting point for NNN, as it positions itself for further expansion while maintaining a robust financial foundation.

Strategic Financial Management

In anticipation of the term loan's execution, NNN REIT proactively established forward starting swaps amounting to $200 million, effectively fixing the SOFR (Secured Overnight Financing Rate) at 3.22% until January 15, 2029. This strategic move not only mitigates interest rate risks but also aids in predictable cash flow management during the loan's lifetime.

Additionally, the company took steps to amend its existing $1.2 billion senior unsecured revolving credit facility, successfully removing a 10-basis point SOFR credit spread adjustment. Such measures reflect a comprehensive approach to financial management that enhances efficiency and supports ongoing corporate strategies.

Collaboration with Financial Partners

NNN REIT collaborated with several notable financial institutions to execute this loan arrangement. Wells Fargo Securities, LLC, and BofA Securities, Inc. acted as Joint Lead Arrangers and Joint Bookrunners for the transaction, with Wells Fargo Bank, National Association serving as the Administrative Agent and Bank of America, N.A. as the Syndication Agent. The support from these banking partners has been crucial in positioning NNN REIT for sustained success, with assistance also coming from Truist Securities, Inc., PNC Capital Markets LLC, and several other major banks who participated actively in the process.

NNN REIT's Operational Landscape

With a diverse portfolio, as of September 30, 2025, NNN REIT owned 3,697 properties across 50 states, comprising a gross leasable area of roughly 39.2 million square feet. The weighted average remaining lease term sits at approximately 10.1 years, showcasing the trust's commitment to investing in high-quality properties, typically secured with long-term net leases requiring minimal ongoing capital expenditures.

As NNN REIT moves forward, it remains focused on leveraging its financial capacity to promote growth while maintaining a consistent record of annual dividend increases for the past 36 years. This commitment not only enhances shareholder value but is also indicative of a sustainable investment approach that prioritizes long-term stability in a challenging market environment. For those looking to delve deeper into the company's operations and investment strategies, further information is available at www.nnnreit.com.

In summary, the recent $300 million term loan acquisition signifies not just a financial transaction but a pivotal step in NNN REIT's ongoing evolution and resilience within the competitive real estate investment landscape.