NNN REIT has recently released its 10-K report, revealing that as of September 30, 2024, the company owned 3,549 properties in 49 states with a gross leasable area of approximately 36.6 million square feet and a weighted average remaining lease term of 10.0 years. NNN is one of only three publicly traded real estate investment trusts to have increased annual dividends for 35 or more consecutive years. The report also delves into management's discussion and analysis of financial condition and results of operations, where it discusses 2024 and 2023 and year-to-year comparisons. The report highlights that NNN's largest line of trade concentrations are in the convenience store, automotive service, restaurant, and family entertainment center sectors, representing a significant part of the freestanding retail property marketplace.
The 10-K report emphasizes NNN's focus on certain key indicators to evaluate its financial condition and operating performance. These indicators include the composition of the Property Portfolio, occupancy rate, financial performance metrics, and profitability measures. The report also details NNN's evaluation of the creditworthiness of its significant current and prospective tenants, which includes reviewing financial statements, store-level financial performance, and public credit ratings.
Furthermore, the report outlines NNN's critical accounting estimates, including real estate portfolio, purchase accounting for acquisition of real estate, lease accounting, collectability, real estate held for sale, impairment, and revenue recognition. It also addresses new accounting pronouncements and their anticipated impact on NNN's financial position and results of operations.
The 10-K report provides a comprehensive analysis of NNN's results of operations, including property analysis, lease expirations, diversification based on the top 20 lines of trade, and diversification by state as of December 31, 2024. It shows that NNN's Property Portfolio remained at least 98 percent leased with a weighted average remaining lease term of approximately 10 years, and it includes detailed tables summarizing the diversification of the Property Portfolio based on lines of trade and by state. Today the company's shares have moved 4.5% to a price of $39.79. If you want to know more, read the company's complete 10-K report here.
