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NNN REIT, Inc. Reports Third Quarter 2025 Financial Results

NNN REIT, Inc., a prominent player in the real estate investment trust sector, recently revealed its financial and operational performance for the third quarter of 2025. The results reflect a combination of strong property acquisitions and an overall solid performance that has positioned the company for continued growth.

Financial Highlights

During the third quarter, NNN REIT reported net earnings of $0.51 per diluted share. This figure indicates a slight decrease compared to the previous year's results of $0.53, driven by various operational factors. However, the company saw a positive increase in both Core Funds From Operations (Core FFO) and Adjusted Funds From Operations (AFFO), with respective growth rates of 1.2% and 2.4% compared to the prior year. Core FFO reached $0.85 per share while AFFO was announced at $0.86 per share.

The company also increased its Annual Base Rent (ABR) by 7.2% compared to the previous year, showcasing the effectiveness of its long-term net lease strategy. NNN’s total revenues rose to $230.2 million, compared to $218.6 million in the same period last year.

Investment and Dispositions

During the quarter, NNN successfully completed investments totaling $283.0 million, achieving an initial cash capitalization rate of 7.3% and a weighted average lease term extending to 17.8 years. Furthermore, over the first nine months of 2025, NNN finalized investments amounting to $748.0 million, surpassing initial expectations laid out at the start of the year. The company also took the strategic step of selling 23 properties for a combined total of $41.3 million, including $22.3 million from income-producing properties.

Shareholder Returns

Reflecting its commitment to returning value to shareholders, NNN declared a quarterly dividend of $0.60 per share, an increase of 3.4% over the previous quarter. This dividend highlights a favorable 5.6% annualized yield with a payout ratio of 70% based on AFFO.

Future Guidance

With robust performance indicators in place, NNN revised its guidance for the remainder of 2025. The forecast for Core FFO is now adjusted to a new range of $3.36 to $3.40, while the AFFO per share guidance was updated to $3.41 to $3.45. The company also ramped up its acquisition volume forecast to between $850 and $950 million, alongside increasing its disposition volume guidance to a range of $170 to $200 million.

Operational Efficiency

CEO Steve Horn emphasized that NNN's third quarter marks a pivotal moment, reaching the highest quarterly acquisition volume since 2018 while adhering to stringent underwriting policies. Coupled with superior liquidity of $1.4 billion and a leading balance sheet, NNN is prepared for an exceptional year ahead.

Balance Sheet Overview

As of September 30, 2025, NNN reported a total debt of $4.95 billion with an attractive weighted average interest rate of 4.2% and a significant weighted average debt maturity of 10.7 years. Notably, NNN continues to maintain considerable liquidity with access to over $1.4 billion in cash and available credit.

Conclusion

NNN REIT, Inc.'s third quarter results reaffirm the strength and stability of its business model in the competitive landscape of real estate. With strategic investments and a clear focus on shareholder returns, NNN is on track for a record-breaking year in 2025. Investors and stakeholders can find more detailed information on the company’s ongoing performance by visiting their website or joining the upcoming conference call scheduled for November 4, 2025.