2023 ANNUAL RESULTS AND 2024 GUIDANCE ANNOUNCED BY NNN REIT, INC.

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Feb 08, 2024, 08:30 ET

ORLANDO, Fla., Feb. 8, 2024 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2023. Highlights include:

Operating Results:

Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:

	Quarter Ended					Year Ended
	December 31,					December 31,
	2023			2022		2023			2022
	(in thousands, except per share data)
Revenues	$	216,231		$	198,520	$	828,111		$	773,053

Net earnings available to common stockholders	$	96,682		$	90,662	$	392,340		$	334,626
Net earnings per common share	$	0.53	⁽¹⁾	$	0.50	$	2.16	⁽¹⁾	$	1.89

FFO available to common stockholders	$	151,712		$	142,178	$	589,074		$	548,884
FFO per common share	$	0.83	⁽¹⁾	$	0.79	$	3.24	⁽¹⁾	$	3.10

Core FFO available to common stockholders	$	154,281		$	142,893	$	592,528		$	556,404
Core FFO per common share	$	0.85	⁽¹⁾	$	0.80	$	3.26	⁽¹⁾	$	3.14

AFFO available to common stockholders	$	148,997		$	145,142	$	591,523		$	568,952
AFFO per common share	$	0.82		$	0.81	$	3.26		$	3.21

⁽¹⁾

During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, net earnings per common share would have been $0.50 and $2.13, FFO per common share would have been $0.80 and $3.21 and Core FFO would have been $0.82 and $3.23 for the quarter and year ended December 31, 2023, respectively.

2023 Highlights:

Net earnings per common share increased 14.3% over prior year results
FFO per common share increased 4.5% over prior year results
Core FFO per common share increased 3.8% over prior year results
AFFO per common share increased 1.6% over prior year results
Dividend yield of 5.2% at December 31, 2023
Annual dividend per common share increased to $2.23 marking the 34^th consecutive year of annual dividend increases - the third longest record of consecutive annual dividend increases of all public REITs
Maintained high occupancy levels at 99.5%, with a weighted average remaining lease term of 10.1 years, at December 31, 2023 as compared to 99.2% at September 30, 2023, and 99.4% at December 31, 2022
$819.7 million in property investments, including the acquisition of 165 properties with aggregate gross leasable area of approximately 1,281,000 square feet at an initial cash cap rate of 7.3%, with a weighted average remaining lease term of 18.8 years
Sold 45 properties for $115.7 million, producing $47.5 million of gains on sales, at a cap rate of 5.9%
Raised $31.4 million in net proceeds from issuance of 726,364 common shares
Issued $500 million principal amount of 5.600% senior unsecured notes due 2033
Maintained sector leading 12.0 year weighted average debt maturity
Total average annual shareholder returns (11.0% for the past 30 years) exceed industry equity averages for the past 2-, 3-, 10-, 15-, 20-, 25- and 30-years

Fourth Quarter 2023 Highlights:

$269.7 million in property investments, including the acquisition of 40 properties with an aggregate gross leasable area of approximately 278,000 square feet at an initial cash cap rate of 7.6%, with a weighted average remaining lease term of 19.6 years
Sold 19 properties for $26.6 million, producing $7.3 million of gains on sales, at a cap rate of 6.5%

The company announced 2024 Core FFO guidance of $3.25 to $3.31 per share. The 2024 AFFO is estimated to be $3.29 to $3.35 per share. The Core FFO guidance equates to net earnings of $1.94 to $2.00 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. The guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Securities and Exchange Commission.

Steve Horn, Chief Executive Officer, commented: "NNN continues to execute with excellence. In 2023, we grew Core FFO 3.8 percent, deployed over $800 million of capital in new real estate investments and successfully executed the NNN REIT name change and branding campaign. We ended the year with $132.0 million drawn on our $1.1 billion credit facility, accentuating our ability to raise capital and generate strong free cash flow and proceeds from selective asset dispositions, even in a challenging capital market environment. NNN maintains a multi-year view and is well-positioned to execute the 2024 strategy."

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and 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. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on February 8, 2024, at 10:30 a.m. ET to review these results. The call can be accessed on the NNN REIT website live at http://www.nnnreit.com. For those unable to listen to the live broadcast, a replay will be available on the company's website. In addition, a summary of any earnings guidance given on the call will be posted to the company's web site.

Statements in this press release that are not strictly historical are "forward-looking" statements. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated," or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, including inflation, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the company's tenants, the availability of capital, risks related to the company's status as a REIT and the potential impacts of an epidemic or pandemic on the company's business operations, financial results and financial position on the world economy. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the company's Securities and Exchange Commission (the "Commission") filings, including, but not limited to, the company's Annual Report on Form 10-K. Copies of each filing may be obtained from the company or the Commission. Such forward-looking statements should be regarded solely as reflections of the company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. NNN REIT, Inc. undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

Funds From Operations, commonly referred to as "FFO", is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") and is used by the company as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses), any applicable taxes and noncontrolling interests on the disposition of certain assets, the company's share of these items from the company's noncontrolling interests and any impairment charges on a depreciable real estate asset.

FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. The company's computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to FFO, as defined by NAREIT, is included in the financial information accompanying this release.

Core Funds From Operations ("Core FFO") is a non-GAAP measure of operating performance that adjusts FFO to eliminate the impact of certain GAAP income and expense amounts that the company believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the REIT industry, and management believes that presentation of Core FFO provides investors with a potential metric to assist in their evaluation of the company's operating performance across multiple periods and in comparison to the operating performance of its peers because it removes the effect of unusual items that are not expected to impact the company's operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of the company's core business operations and is a factor in determining management compensation. Items included in calculating FFO that may be excluded in calculating Core FFO may include items such as transaction related gains, income or expense, impairments on land or commercial mortgage residual interests, executive retirement costs, or other non-core amounts as they occur. The company's computation of Core FFO may differ from the methodology for calculating Core FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to Core FFO is included in the financial information accompanying this release.

Adjusted Funds From Operations ("AFFO") is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. AFFO should not be considered an alternative to net earnings, as an indication of the company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the company's performance. The company's computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to AFFO is included in the financial information accompanying this release.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate as defined by NAREIT ("EBITDA") is a metric established by NAREIT and commonly used by real estate companies. The measure is a result of net earnings (computed in accordance with GAAP), plus interest expense, income tax expense, depreciation and amortization, excluding any gains (or including any losses) on disposition of real estate, any impairment charges and after adjustments for income and losses attributable to noncontrolling interests. Management considers the non-GAAP measure of EBITDA to be an appropriate measure of the company's performance and should be considered in addition to, net earnings or loss, as a measure of the company's operating performance. The company's computation of EBITDA may differ from the methodology for calculating EBITDA used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to EBITDA, as defined by NAREIT, is included in the company's Annual Supplemental Data accompanying this release.

NNN REIT, Inc. Income Statement Summary (dollars in thousands, except per share data) (unaudited)

	Quarter Ended					Year Ended
	December 31,					December 31,
	2023			2022		2023			2022
Revenues:
Rental income	$	215,178		$	198,217	$	826,090		$	771,618
Interest and other income from real estate transactions		1,053			303		2,021			1,435
		216,231			198,520		828,111			773,053
Operating expenses:
General and administrative		10,530			10,788		43,746			41,695
Real estate		8,237			7,035		28,378			26,281
Depreciation and amortization		60,079			57,322		238,625			223,834
Leasing transaction costs		76			61		299			320
Impairment losses – real estate, net of recoveries		2,315			1,088		5,990			8,309
Executive retirement costs		2,569			715		3,454			7,520
		83,806			77,009		320,492			307,959
Gain on disposition of real estate		7,263			6,787		47,485			17,443
Earnings from operations		139,688			128,298		555,104			482,537

Other expenses (revenues):
Interest and other income		(383)			(29)		(1,134)			(149)
Interest expense		43,389			37,665		163,898			148,065
		43,006			37,636		162,764			147,916

Net earnings		96,682			90,662		392,340			334,621
Loss attributable to noncontrolling interests		—			—		—			5
Net earnings available to common stockholders	$	96,682		$	90,662	$	392,340		$	334,626

Weighted average common shares outstanding:
Basic		181,425,202			178,779,100		181,200,040			176,403,656
Diluted		181,932,133			179,472,118		181,689,723			177,067,865

Net earnings per share available to common stockholders:
Basic	$	0.53		$	0.51	$	2.16		$	1.89
Diluted	$	0.53	⁽¹⁾	$	0.50	$	2.16	⁽¹⁾	$	1.89

⁽¹⁾

During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, net earnings per common share would have been $0.50 and $2.13 for the quarter and year ended December 31, 2023, respectively.

NNN REIT, Inc. (dollars in thousands, except per share data) (unaudited)

	Quarter Ended					Year Ended
	December 31,					December 31,
	2023			2022		2023			2022
Funds From Operations ("FFO") Reconciliation:
Net earnings available to common stockholders	$	96,682		$	90,662	$	392,340		$	334,626
Real estate depreciation and amortization		59,978			57,215		238,229			223,392
Gain on disposition of real estate		(7,263)			(6,787)		(47,485)			(17,443)
Impairment losses – depreciable real estate, net of recoveries		2,315			1,088		5,990			8,309
Total FFO adjustments		55,030			51,516		196,734			214,258
FFO available to common stockholders	$	151,712		$	142,178	$	589,074		$	548,884

FFO per common share:
Basic	$	0.84		$	0.80	$	3.25		$	3.11
Diluted	$	0.83	⁽¹⁾	$	0.79	$	3.24	⁽¹⁾	$	3.10

Core Funds From Operations ("Core FFO") Reconciliation:
Net earnings available to common stockholders	$	96,682		$	90,662	$	392,340		$	334,626
Total FFO adjustments		55,030			51,516		196,734			214,258
FFO available to common stockholders		151,712			142,178		589,074			548,884

Executive retirement costs		2,569			715		3,454			7,520
Total Core FFO adjustments		2,569			715		3,454			7,520
Core FFO available to common stockholders	$	154,281		$	142,893	$	592,528		$	556,404

Core FFO per common share:
Basic	$	0.85		$	0.80	$	3.27		$	3.15
Diluted	$	0.85	⁽¹⁾	$	0.80	$	3.26	⁽¹⁾	$	3.14

⁽¹⁾

During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Excluding such, FFO per common share would have been $0.80 and $3.21 and Core FFO would have been $0.82 and $3.23 for the quarter and year ended December 31, 2023, respectively.

NNN REIT, Inc. (dollars in thousands, except per share data) (unaudited)

	Quarter Ended					Year Ended
	December 31,					December 31,
	2023			2022		2023			2022
Adjusted Funds From Operations ("AFFO") Reconciliation:
Net earnings available to common stockholders	$	96,682		$	90,662	$	392,340		$	334,626
Total FFO adjustments		55,030			51,516		196,734			214,258
Total Core FFO adjustments		2,569			715		3,454			7,520
Core FFO available to common stockholders		154,281			142,893		592,528			556,404

Straight-line accrued rent, net of reserves		(5,957)			261		(7,453)			3,559
Net capital lease rent adjustment		75			78		319			302
Below-market rent amortization		(82)			(100)		(431)			(510)
Stock based compensation expense		2,592			2,344		10,846			10,078
Capitalized interest expense		(1,912)			(334)		(4,286)			(881)
Total AFFO adjustments		(5,284)			2,249		(1,005)			12,548
AFFO available to common stockholders	$	148,997		$	145,142	$	591,523		$	568,952

AFFO per common share:
Basic	$	0.82		$	0.81	$	3.26		$	3.23
Diluted	$	0.82		$	0.81	$	3.26		$	3.21

Other Information:
Rental income from operating leases⁽¹⁾	$	209,037		$	192,738	$	805,136		$	751,680
Earned income from direct financing leases⁽¹⁾	$	133		$	146	$	560		$	595
Percentage rent⁽¹⁾	$	241		$	310	$	1,631		$	1,541

Real estate expense reimbursement from tenants⁽¹⁾	$	5,767		$	5,023	$	18,763		$	17,802
Real estate expenses		(8,237)			(7,035)		(28,378)			(26,281)
Real estate expenses, net of tenant reimbursements	$	(2,470)		$	(2,012)	$	(9,615)		$	(8,479)

Amortization of debt costs	$	1,295		$	1,200	$	4,943		$	4,734
Scheduled debt principal amortization (excluding maturities)	$	—	⁽²⁾	$	170	$	173	⁽²⁾	$	664
Non-real estate depreciation expense	$	105		$	109	$	409		$	454

⁽¹⁾	For the quarters ended December 31, 2023 and 2022, the aggregate of such amounts is $215,178 and $198,217, respectively, and $826,090 and $771,618, for the year ended December 31, 2023 and 2022, respectively, and is classified as rental income on the income statement summary.
⁽²⁾	In April 2023, NNN repaid the remaining mortgages payable principal balance of $9,774.

NNN REIT, Inc.

2024 Earnings Guidance:

Guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Commission.

		2024 Guidance
Net earnings per common share excluding any gains on disposition of real estate, impairment charges, and executive retirement costs		$1.94 - $2.00 per share
Real estate depreciation and amortization per share		$1.31 per share
Core FFO per share		$3.25 - $3.31 per share
AFFO per share		$3.29 - $3.35 per share
General and administrative expenses		$46 - $48 Million
Real estate expenses, net of tenant reimbursements		$9 - $11 Million
Acquisition volume		$400 - $500 Million
Disposition volume		$80 - $120 Million

NNN REIT, Inc. Balance Sheet Summary (dollars in thousands) (unaudited)

	December 31, 2023		December 31, 2022
Assets:
Real estate portfolio, net of accumulated depreciation and amortization	$	8,535,851	$	8,020,814
Cash and cash equivalents		1,189		2,505
Restricted cash and cash held in escrow		3,966		4,273
Receivables, net of allowance of $669 and $708, respectively		3,649		3,612
Accrued rental income, net of allowance of $4,168 and $3,836, respectively		34,611		27,795
Debt costs, net of accumulated amortization of $23,952 and $21,663, respectively		3,243		5,352
Other assets		79,459		81,694
Total assets	$	8,661,968	$	8,146,045

Liabilities:
Line of credit payable	$	132,000	$	166,200
Mortgages payable, including unamortized premium and net of unamortized debt costs		—		9,964
Notes payable, net of unamortized discount and unamortized debt costs		4,228,544		3,739,890
Accrued interest payable		34,374		23,826
Other liabilities		109,593		82,663
Total liabilities		4,504,511		4,022,543

Stockholders' equity of NNN		4,157,457		4,123,502

Total liabilities and equity	$	8,661,968	$	8,146,045

Common shares outstanding		182,474,770		181,424,670

Gross leasable area, Property Portfolio (square feet)		35,966,000		35,010,000

NNN REIT, Inc. Debt Summary As of December 31, 2023 (dollars in thousands) (unaudited)

Unsecured Debt		Principal		Principal, Net of Unamortized Discount		Stated Rate			Effective Rate			Maturity Date
Line of credit payable		$	132,000	$	132,000	SOFR + 87.5bps				6.185	%	June 2025

Unsecured notes payable:
	2024		350,000		349,961		3.900	%		3.924	%	June 2024
	2025		400,000		399,790		4.000	%		4.029	%	November 2025
	2026		350,000		348,707		3.600	%		3.733	%	December 2026
	2027		400,000		399,320		3.500	%		3.548	%	October 2027
	2028		400,000		398,487		4.300	%		4.388	%	October 2028
	2030		400,000		399,161		2.500	%		2.536	%	April 2030
	2033		500,000		488,699		5.600	%		5.905	%	October 2033
	2048		300,000		296,136		4.800	%		4.890	%	October 2048
	2050		300,000		294,423		3.100	%		3.205	%	April 2050
	2051		450,000		442,053		3.500	%		3.602	%	April 2051
	2052		450,000		440,059		3.000	%		3.118	%	April 2052
	Total		4,300,000		4,256,796

Total unsecured debt⁽¹⁾		$	4,432,000	$	4,388,796

Debt costs				$	(42,595)
Accumulated amortization					14,343
Debt costs, net of accumulated amortization					(28,252)
Notes payable, net of unamortized discount and unamortized debt costs				$	4,228,544

⁽¹⁾	Unsecured debt has a weighted average interest rate of 4.0% and a weighted average maturity of 12.0 years.

As of December 31, 2023, Net Debt / EBITDA based on current quarter EBITDA annualized is 5.5x.

NNN REIT, Inc.
Debt Summary - Continued
As of December 31, 2023
(unaudited)

Credit Facility and Note Covenants

The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2023, the company believes it is in compliance with the covenants.

Key Covenants	Required	December 31, 2023
Unsecured Bank Credit Facility:
Maximum leverage ratio	< 0.60	0.38
Minimum fixed charge coverage ratio	> 1.50	4.52
Maximum secured indebtedness ratio	< 0.40	—
Unencumbered asset value ratio	> 1.67	2.62
Unencumbered interest ratio	> 1.75	4.51
Unsecured Notes:
Limitation on incurrence of total debt	≤ 60%	41.5 %
Limitation on incurrence of secured debt	≤ 40%	—
Debt service coverage ratio	≥ 1.50	4.5
Maintenance of total unencumbered assets	≥ 150%	241 %

NNN REIT, Inc. Property Portfolio
Top 20 Lines of Trade
		As of December 31,
	Lines of Trade	2023⁽¹⁾	2022⁽²⁾
1.	Convenience stores	16.4 %	16.5 %
2.	Automotive service	15.6 %	13.7 %
3.	Restaurants – full service	8.7 %	9.1 %
4.	Restaurants – limited service	8.5 %	8.9 %
5.	Family entertainment centers	6.4 %	5.9 %
6.	Recreational vehicle dealers, parts and accessories	4.6 %	4.1 %
7.	Health and fitness	4.5 %	4.9 %
8.	Theaters	4.1 %	4.3 %
9.	Equipment rental	3.0 %	3.1 %
10.	Wholesale clubs	2.5 %	2.6 %
11.	Automotive parts	2.5 %	2.6 %
12.	Drug stores	2.4 %	2.6 %
13.	Home improvement	2.2 %	2.3 %
14.	Furniture	2.0 %	2.3 %
15.	Medical service providers	1.7 %	1.9 %
16.	General merchandise	1.4 %	1.6 %
17.	Consumer electronics	1.4 %	1.4 %
18.	Home furnishings	1.3 %	1.4 %
19.	Travel plazas	1.3 %	1.4 %
20.	Automobile auctions, wholesale	1.1 %	1.3 %
	Other	8.4 %	8.1 %
	Total	100.0 %	100.0 %

Top 10 States
	State	% of Total⁽¹⁾		State	% of Total⁽¹⁾
1.	Texas	16.8 %	6.	North Carolina	3.9 %
2.	Florida	9.4 %	7.	Tennessee	3.8 %
3.	Illinois	5.2 %	8.	Indiana	3.7 %
4.	Ohio	4.9 %	9.	California	3.3 %
5.	Georgia	4.7 %	10.	Virginia	3.3 %


As a percentage of annual base rent, which is the annualized base rent for all leases in place.
	⁽¹⁾	$818,749,000 as of December 31, 2023.
	⁽²⁾	$771,984,000 as of December 31, 2022.

NNN REIT, Inc. Property Portfolio - Continued
Top 20 Tenants
	Tenant	# of Properties	% of Total⁽¹⁾
1.	7-Eleven	138	4.4 %
2.	Mister Car Wash	121	4.2 %
3.	Camping World	47	3.8 %
4.	Dave & Buster's	32	3.5 %
5.	LA Fitness	29	3.1 %
6.	GPM Investments (convenience stores)	150	3.0 %
7.	Flynn Restaurant Group (Taco Bell/Arby's)	204	2.8 %
8.	AMC Theatres	20	2.7 %
9.	BJ's Wholesale Club	13	2.5 %
10.	Mavis Tire Express Services	140	2.3 %
11.	Couche Tard (Pantry)	92	2.2 %
12.	Sunoco	61	2.1 %
13.	Walgreens	49	1.9 %
14.	Chuck E. Cheese	53	1.9 %
15.	United Rentals	50	1.7 %
16.	Frisch's Restaurants	68	1.6 %
17.	Fikes (Convenience Stores)	58	1.5 %
18.	Life Time Fitness	3	1.3 %
19.	Bob Evans	106	1.3 %
20.	Best Buy	16	1.3 %

Lease Expirations⁽²⁾
	% of Total⁽¹⁾	# of Properties	Gross Leasable Area ⁽³⁾		% of Total⁽¹⁾	# of Properties	Gross Leasable Area⁽³⁾
2024	1.7 %	54	803,000	2030	3.3 %	109	1,221,000
2025	5.1 %	185	1,941,000	2031	7.3 %	185	2,697,000
2026	4.8 %	212	2,127,000	2032	5.9 %	215	2,328,000
2027	8.2 %	235	3,591,000	2033	4.9 %	138	1,467,000
2028	5.7 %	229	2,172,000	Thereafter	49.1 %	1,831	15,592,000
2029	4.0 %	119	1,744,000

⁽¹⁾	Based on the annual base rent of $818,749,000, which is the annualized base rent for all leases in place as of December 31, 2023.
⁽²⁾	As of December 31, 2023, the weighted average remaining lease term is 10.1 years.
⁽³⁾	Square feet.

NNN REIT, Inc.
Rent Deferral Lease Amendments

The following table outlines the rent deferred and corresponding scheduled repayment of the COVID-19 rent deferral lease amendments executed as of December 31, 2023 (dollars in thousands):

		Deferred									Scheduled Repayment
		Accrual Basis		Cash Basis		Total		% of Total			Accrual Basis		Cash Basis		Total		% of Total			Cumulative Total
2020		$	33,594	$	18,129	$	51,723		91.6	%	$	3,239	$	20	$	3,259		5.8	%		5.8	%

2021			990		3,732		4,722		8.4	%		25,935		5,841		31,776		56.3	%		62.1	%

2022	Q1		—		—		—		—			1,780		2,277		4,057		7.2	%		69.3	%
	Q2		—		—		—		—			1,729		2,276		4,005		7.1	%		76.4	%
	Q3		—		—		—		—			1,201		2,257		3,458		6.1	%		82.5	%
	Q4		—		—		—		—			681		2,277		2,958		5.3	%		87.8	%
			—		—		—		—			5,391		9,087		14,478		25.7	%		87.8	%

2023	Q1		—		—		—		—			9		1,677		1,686		3.0	%		90.8	%
	Q2		—		—		—		—			10		476		486		0.9	%		91.7	%
	Q3		—		—		—		—			—		476		476		0.8	%		92.5	%
	Q4		—		—		—		—			—		476		476		0.8	%		93.3	%
			—		—		—		—			19		3,105		3,124		5.5	%		93.3	%

2024	Q1		—		—		—		—			—		476		476		0.8	%		94.1	%
	Q2		—		—		—		—			—		476		476		0.8	%		94.9	%
	Q3		—		—		—		—			—		476		476		0.8	%		95.7	%
	Q4		—		—		—		—			—		476		476		0.9	%		96.6	%
			—		—		—		—			—		1,904		1,904		3.3	%		96.6	%

2025			—		—		—		—			—		1,904		1,904		3.4	%		100.0	%

		$	34,584	$	21,861	$	56,445		100.0	%	$	34,584	$	21,861	$	56,445		100.0	%

Adjusted Results

The following table outlines the adjusted effects of excluding the scheduled repayments of the COVID-19 rent deferral lease amendments executed as of December 31, 2023:

	Quarter Ended December 31,							Year Ended December 31,
	2023		2022		% Change			2023		2022		% Change
Core FFO per common share:
As reported	$	0.85	$	0.80		6.3	%	$	3.26	$	3.14		3.8	%
Adjusted⁽¹⁾	$	0.85	$	0.78		9.0	%	$	3.24	$	3.09		4.9	%
Adjusted⁽²⁾	$	0.81	$	0.78		3.8	%	$	3.21	$	3.09		3.9	%

AFFO per common share:
As reported	$	0.82	$	0.81		1.2	%	$	3.26	$	3.21		1.6	%
Adjusted⁽³⁾	$	0.82	$	0.79		3.8	%	$	3.24	$	3.13		3.5	%

⁽¹⁾	Excludes the cash basis rent repayments from the Rent Deferral Lease Amendments table above.
⁽²⁾	During the quarter ended December 31, 2023, one tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rent in the amount of $5,573. Adjusted figures exclude both the effects of the cash basis rent repayments from the Rent Deferral Lease Amendments table above and the accrued rent of $5,573.
⁽³⁾	Excludes the cash and accrual basis rent repayments from the Rent Deferral Lease Amendments table above.