NNN REIT Reports Financial Results for Q3 2024, with Increased Assets and Rental Income

NNN REIT, Inc. reported significant financial developments for the quarter and nine months ended September 30, 2024. The company’s real estate portfolio, net of accumulated depreciation and amortization, increased to $8,625,489 thousand from $8,535,851 thousand as of December 31, 2023. Total assets rose to $8,923,643 thousand, up from $8,661,968 thousand in the previous period. Cash and cash equivalents saw a substantial increase to $173,526 thousand, compared to just $1,189 thousand at the end of 2023.

For the quarter, rental income reached $218,155 thousand, marking a 6.5% increase from $204,856 thousand in the same quarter of 2023. For the nine months, rental income totaled $649,120 thousand, up 6.3% from $610,912 thousand year-over-year. However, net earnings for the quarter decreased to $97,904 thousand from $106,787 thousand in the prior year, while net earnings for the nine months increased slightly to $298,941 thousand from $295,658 thousand.

Total revenues for the quarter were $218,564 thousand, a 6.5% increase from $205,132 thousand in the previous year. Operating expenses also rose, with total operating expenses for the quarter at $82,779 thousand, up 6.9% from $77,457 thousand. Interest expense increased by 12.0% to $46,491 thousand for the quarter, reflecting rising borrowing costs.

NNN engaged in strategic property transactions, selling nine properties in the quarter for a net gain of $7,765 thousand, compared to 13 properties sold for a net gain of $19,992 thousand in the same quarter of 2023. For the nine months, the company sold 29 properties, generating a net gain of $30,207 thousand, down from $40,222 thousand from 26 properties sold in the prior year.

The company also made significant capital investments, with $113,576 thousand spent on property acquisitions in the quarter and $348,610 thousand for the nine months. This is a decrease from $212,493 thousand and $550,034 thousand, respectively, in the same periods of 2023.

In terms of financing, NNN amended its credit agreement in April 2024, increasing its unsecured revolving credit facility from $1,100,000 thousand to $1,200,000 thousand. The company issued $500,000 thousand in notes due June 2034, while redeeming $350,000 thousand of 3.900% notes in June 2024.

As of September 30, 2024, NNN's total equity increased to $4,368,926 thousand from $4,157,457 thousand at the end of 2023, driven by capital raised through common stock issuances under its ATM program, which generated $211,727 thousand in net proceeds for the nine months.