NNN REIT (NYSE:NNN) Releases Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Quarterly results: NNN REIT reported EPS of $0.50, missing consensus by $0.01, while revenue of $240.0M beat estimates and rose about 4.1% year‑over‑year.
• Raised guidance and dividend hike: Management raised 2026 AFFO guidance to $3.53–$3.59 and increased the quarterly dividend to $0.60 (annualized $2.40), implying roughly a mid‑single‑digit AFFO growth and a ~5.5% yield.
• Capital deployment and balance sheet strength: Closed 41 properties for $145M at a 7.5% initial cash yield, has about $1.2B of liquidity with minimal revolver usage, drew a $300M term loan swapped to a fixed 4.1% rate, and is targeting $550M–$650M of acquisitions.

NNN REIT (NYSE:NNN - Get Free Report) posted its quarterly earnings results on Thursday. The real estate investment trust reported $0.50 earnings per share for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01), Zacks reports. The company had revenue of $240.01 million during the quarter, compared to the consensus estimate of $237.76 million. NNN REIT had a net margin of 42.08% and a return on equity of 8.89%. The firm's revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.87 earnings per share. NNN REIT updated its FY 2026 guidance to 3.480-3.540 EPS.

Here are the key takeaways from NNN REIT's conference call:

• Raised 2026 AFFO guidance to $3.53–$3.59 and increased the quarterly dividend to $0.60 (3.4% YoY), with the midpoint implying ~3.5% AFFO growth and a 5.7% annualized yield.
• Closed 41 properties for $145 million at a 7.5% initial cash yield and a weighted average lease term of 19 years, emphasizing accretive sale‑leaseback deals that add long‑duration, predictable cash flow.
• Strong balance sheet with $1.2 billion of liquidity, only $80 million drawn on the revolver, a Baa1 rating, ~10.5–11 years weighted average debt maturity, and minimal floating‑rate exposure, supporting self‑funded growth.
• Portfolio operating metrics improved—occupancy rose to 98.6%, 36 of 43 lease expirations were renewed (rents ~2% higher) and seven releases to new tenants averaged ~10% higher rent, while management lowered full‑year bad‑debt guidance to 60 bps after a strong Q1.
• Capital actions and dispositions included drawing the $300 million delayed‑draw term loan (swapped to a fixed 4.1% rate), ~$36 million of disposition proceeds, $74 million of expected ATM proceeds, and a $350 million note maturing in December but multiple options to address financing needs.

NNN REIT Stock Performance

Shares of NNN stock opened at $43.85 on Friday. The company has a market capitalization of $8.34 billion, a price-to-earnings ratio of 21.19, a PEG ratio of 5.83 and a beta of 0.85. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.09 and a current ratio of 1.09. NNN REIT has a 52 week low of $38.90 and a 52 week high of $46.03. The company has a 50-day simple moving average of $44.01 and a 200 day simple moving average of $42.25.

NNN REIT Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 30th will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date is Thursday, April 30th. NNN REIT's dividend payout ratio (DPR) is currently 115.94%.

Insider Activity at NNN REIT

In other news, EVP Jonathan Adamo sold 6,000 shares of the business's stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $44.99, for a total transaction of $269,940.00. Following the completion of the sale, the executive vice president owned 126,358 shares in the company, valued at $5,684,846.42. The trade was a 4.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Stephen A. Horn, Jr. sold 33,192 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $44.98, for a total value of $1,492,976.16. Following the transaction, the chief executive officer owned 822,711 shares in the company, valued at approximately $37,005,540.78. This trade represents a 3.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.90% of the company's stock.

Institutional Investors Weigh In On NNN REIT

Hedge funds and other institutional investors have recently modified their holdings of the company. Tudor Investment Corp ET AL acquired a new position in shares of NNN REIT in the fourth quarter valued at about $1,300,000. Captrust Financial Advisors boosted its holdings in NNN REIT by 17.3% in the 3rd quarter. Captrust Financial Advisors now owns 135,241 shares of the real estate investment trust's stock valued at $5,757,000 after purchasing an additional 19,976 shares during the period. Horizon Investments LLC grew its position in shares of NNN REIT by 65.0% during the 3rd quarter. Horizon Investments LLC now owns 77,022 shares of the real estate investment trust's stock worth $3,230,000 after purchasing an additional 30,333 shares in the last quarter. Finally, Parallel Advisors LLC increased its holdings in shares of NNN REIT by 17.5% during the fourth quarter. Parallel Advisors LLC now owns 6,710 shares of the real estate investment trust's stock worth $266,000 after purchasing an additional 997 shares during the period. Institutional investors and hedge funds own 89.96% of the company's stock.

NNN REIT News Roundup

Here are the key news stories impacting NNN REIT this week:

• Positive Sentiment: Q1 beat and solid operating metrics: NNN reported Q1 EPS of $0.87 vs. consensus $0.51 and revenue of $240.0M (up ~4.1% YoY). Management highlighted a 42% net margin and healthy ROE, signaling resilient cash flow. NNN REIT, Inc. Announces First Quarter 2026 Results and Increases 2026 Guidance
• Positive Sentiment: Raised forward guidance and AFFO outlook: Management increased full‑year guidance (EPS/AFFO guidance actions highlighted) and specifically raised 2026 AFFO-per-share to $3.53–$3.59, indicating confidence in cash available for distribution. NNN REIT raises 2026 AFFO per share guidance to $3.53-$3.59 while targeting $550M-$650M of acquisitions
• Positive Sentiment: Acquisition plan: Company is targeting $550M–$650M of acquisitions, signaling an active use of capital to grow cash flow and AFFO (could be accretive if executed at attractive yields). NNN REIT boosts earnings guidance after posting in-line Q1 EPS
• Neutral Sentiment: Earnings call & transcripts available: Management commentary and the slide deck (capital allocation, same-store metrics, leasing outlook) are posted — worth reviewing for detail on pipeline, leverage plans and timing of acquisitions. NNN REIT (NNN) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst write-ups: Coverage (Zacks, Seeking Alpha) breaks down key metrics and compares results to estimates — useful for modeling AFFO vs. payout and valuation sensitivity. NNN REIT (NNN) Reports Q1 Earnings: What Key Metrics Have to Say
• Negative Sentiment: Limited EPS growth year-over-year: Q1 EPS of $0.87 matched the prior-year quarter, so while the quarter beat consensus, underlying EPS growth was muted — investors should watch whether acquisitions and leasing gains translate into meaningful EPS/AFFO growth. Press Release / Slide Deck

Analyst Upgrades and Downgrades

NNN has been the topic of several analyst reports. Morgan Stanley upped their price target on shares of NNN REIT from $48.00 to $50.00 and gave the stock an "overweight" rating in a research report on Tuesday. UBS Group boosted their price objective on shares of NNN REIT from $43.00 to $45.00 and gave the stock a "neutral" rating in a research note on Monday, March 9th. Deutsche Bank Aktiengesellschaft upgraded shares of NNN REIT from a "hold" rating to a "buy" rating and set a $47.00 target price for the company in a research note on Tuesday, January 20th. BNP Paribas Exane boosted their price target on NNN REIT from $43.00 to $44.00 and gave the stock a "strong sell" rating in a research report on Thursday, February 12th. Finally, Robert W. Baird set a $46.00 price objective on NNN REIT in a research note on Thursday, February 12th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $45.55.

NNN REIT Company Profile

NNN REIT NYSE: NNN, formally known as National Retail Properties, is a publicly traded real estate investment trust focused on acquiring, owning and managing a diversified portfolio of retail properties across the United States. As a net-lease REIT, the company enters into long-term, triple-net leases with national and regional tenants, shifting most property-related expenses, including maintenance, taxes and insurance, to its lessees. This structure provides NNN REIT with predictable cash flows and a stable income stream rooted in essential retail uses such as convenience stores, dollar stores, drug stores and quick-service restaurants.

Founded in 1984 and headquartered in Orlando, Florida, NNN REIT has steadily grown its footprint through disciplined acquisitions and selective lease underwriting.