NNN REIT Inc (NNN) Announces Q3 2023 Operating Results and Increased 2023 Guidance
Revenues for Q3 2023 reached $205.1 million, up from $193.4 million in Q3 2022
Net earnings available to common stockholders for Q3 2023 were $106.7 million, a significant increase from $88.4 million in Q3 2022
FFO per common share increased by 2.5% over prior period results
Core FFO per common share also saw a 2.5% increase over prior period results
On November 1, 2023, NNN REIT Inc (NYSE:NNN) released its operating results for the quarter and nine months ended September 30, 2023. The company reported significant growth in revenues and net earnings compared to the same period in the previous year.
Financial Highlights
For the quarter ended September 30, 2023, NNN REIT Inc (NYSE:NNN) reported revenues of $205.1 million, up from $193.4 million in the same quarter of 2022. Net earnings available to common stockholders for the quarter were $106.7 million, a significant increase from $88.4 million in Q3 2022. The company also reported FFO per common share of $0.81, up from $0.79 in Q3 2022, and Core FFO per common share of $0.81, also up from $0.79 in the same period of the previous year.
Property Investments and Sales
In Q3 2023, NNN REIT Inc (NYSE:NNN) made property investments totaling $212.5 million, including the acquisition of 46 properties with an aggregate gross leasable area of approximately 449,000 square feet at an initial cash cap rate of 7.4%. The company also sold 13 properties for $49.0 million, producing $20.0 million of gains on sales at a cap rate of 6.0%.
Increased 2023 Guidance
Core FFO guidance for 2023 was increased from a range of $3.17 to $3.22 per share to a range of $3.19 to $3.23 per share. The 2023 AFFO is estimated to be $3.22 to $3.26 per share. The Core FFO guidance equates to net earnings of $1.88 to $1.92 per share, plus $1.31 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, charges for impairments and executive retirement costs.
CEO Commentary
Steve Horn, Chief Executive Officer, commented:
The recent $500 million 10-year unsecured note offering puts NNN in a great position to continue to execute our multi-year strategy. As macroeconomic headwinds continue to create challenging capital market conditions, our free cash flow generation and $1.1 billion line of credit position NNN to finish 2023 and begin 2024 strong."
About NNN REIT Inc (NYSE:NNN)
NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2023, the company owned 3,511 properties in 49 states with a gross leasable area of approximately 35.8 million square feet and with a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.
Explore the complete 8-K earnings release (here) from NNN REIT Inc for further details.
This article first appeared on GuruFocus.
