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NNN REIT Announces Dividend Tax Status for 2024

On January 14, 2025, NNN REIT, Inc. (NYSE: NNN), a prominent real estate investment trust, made a significant announcement regarding the tax status of its 2024 dividends. The company revealed that an impressive 99.8471% of the dividends distributed to common stock shareholders for the year will be classified as taxable distributions under federal income tax regulations. This announcement underscores NNN REIT’s commitment to its shareholders amidst a challenging economic landscape.

The details surrounding the dividends paid were clarified by the company’s Chief Financial Officer, Kevin Habicht, who noted that the common stock dividend amounted to $2.29 per share. This marks the thirty-fifth consecutive annual increase in dividends, reflecting the company's resilience and consistent performance over the years. According to Habicht, "The consistency of our dividend, both in good and challenging times, remains an important part of the company's total return to shareholders."

Breakdown of Dividend Payments

The total dividend payments for 2024 comprise various categories, primarily focusing on ordinary dividends and section 199A dividends. Below is a detailed breakdown:

• - Total Dividend: $2.290000
• - Ordinary Dividends (Box 1a): $2.286498
• - Non-taxable Distributions (Box 3): $0.003502
• - Section 199A Dividends: $2.286498

The Section 199A provision allows for a 20% qualified business income deduction, facilitating tax efficiency for investors receiving these dividends.

NNN REIT's Investment Focus

NNN REIT specializes in investing primarily in high-quality retail properties, generally under long-term net leases. As of September 30, 2024, the firm owned a remarkable 3,549 properties across 49 states, encompassing approximately 36.6 million square feet of gross leasable area, coupled with a weighted average remaining lease term of 10 years. This diversified portfolio solidifies NNN REIT's position in the market and provides stability and attractiveness to potential and existing investors.

Looking Forward

As the company moves forward into 2025, its strong dividend track record, alongside a robust property portfolio, positions NNN REIT as a formidable player in the real estate sector. Investors can look forward to the company continuing its commitment to delivering significant returns, proving its resilience in varying market conditions.

For more insights on NNN REIT and its operations, visit www.nnnreit.com. This recent announcement certainly sets a precedent for expectations in the upcoming fiscal periods as investors consider the potential for continued growth and stability from their investments in NNN REIT.