NNN REIT – 34 Consecutive Years of Dividend Growth

By Bobby Samwell • Wednesday, May 01 15:20 • Permanent Link

NNN REIT has recently released its 10-Q report, providing a detailed insight into the company's financial performance and operations. NNN REIT primarily invests in high-quality retail properties subject 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.

In the Management's Discussion and Analysis of Financial Condition and Results of Operations, NNN REIT outlined various risks and uncertainties that could impact its actual results, including changes in financial and economic conditions, loss of rent from tenants, concentration of annual base rent in specific industry classifications, and potential cybersecurity risks, among others. The report also highlighted the company's focus on evaluating the creditworthiness of its significant tenants and maintaining diversification by tenant, geography, and tenant's line of trade.

The report further delved into the results of operations, providing a property analysis that showed NNN REIT owned 3,546 properties in 49 states as of March 31, 2024, with approximately 99% of the properties leased. The company's total annualized base rent as of March 31, 2024, amounted to $831,010,000, reflecting an increase from previous periods.

NNN REIT also detailed its property acquisitions and dispositions. In the first quarter of 2024, the company acquired 20 properties with a gross leasable area of 284,000 square feet, while disposing of 6 properties with a gross leasable area of 113,000 square feet. The net gain on the disposition of real estate for the quarter ended March 31, 2024, was $4,821, reflecting a cap rate of 6.4%.

Furthermore, the report provided an analysis of NNN's revenues and expenses. Rental revenues for the first quarter of 2024 increased by 5.5% compared to the same period in 2023, primarily driven by Rental Revenues from recent property acquisitions. Additionally, total revenues for the same period amounted to $215,407, representing a 5.5% increase from the first quarter of 2023.

Today the company's shares have moved 1.5% to a price of $41.13. For more information, read the company's full 10-Q submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.