NNN REIT (NYSE:NNN) Posts Quarterly Earnings Results, Beats Estimates By $0.35 EPS

Key Points

• Beat estimates: NNN REIT reported Q1 EPS of $0.87, $0.35 above consensus with revenue up 4.1% YoY, and updated FY2026 guidance (EPS 3.48–3.54) while raising AFFO guidance to $3.53–$3.59.
• Dividend increase: The quarterly dividend was raised to $0.60 (annualized $2.40), implying roughly a 5.5% yield, though the payout ratio is elevated at about 116%.
• Portfolio and balance-sheet strength: Closed 41 properties for $145M at a 7.5% initial yield, reported 98.6% occupancy, strong liquidity of ~$1.2B, a Baa1 rating and long debt maturities, supporting accretive sale‑leaseback growth and self-funded financing options.

NNN REIT (NYSE:NNN - Get Free Report) posted its quarterly earnings results on Thursday. The real estate investment trust reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.35, Briefing.com reports. NNN REIT had a return on equity of 8.89% and a net margin of 42.08%.NNN REIT's quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $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 Price Performance

NYSE NNN traded up $0.33 during trading hours on Thursday, hitting $43.85. The company had a trading volume of 3,866,703 shares, compared to its average volume of 1,387,847. NNN REIT has a 52 week low of $38.90 and a 52 week high of $46.03. The firm has a 50 day simple moving average of $44.01 and a 200 day simple moving average of $42.25. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.09 and a current ratio of 1.09. The firm 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.

NNN REIT Dividend Announcement

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

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on NNN shares. Deutsche Bank Aktiengesellschaft upgraded NNN REIT from a "hold" rating to a "buy" rating and set a $47.00 price target for the company in a research note on Tuesday, January 20th. BNP Paribas Exane increased their price target on NNN REIT from $43.00 to $44.00 and gave the stock a "strong sell" rating in a research note on Thursday, February 12th. Morgan Stanley raised their target price on NNN REIT from $48.00 to $50.00 and gave the stock an "overweight" rating in a research note on Tuesday. Barclays raised their target price on NNN REIT from $43.00 to $45.00 and gave the stock an "underweight" rating in a research note on Tuesday, April 21st. Finally, UBS Group raised their target price on NNN REIT from $43.00 to $45.00 and gave the stock a "neutral" rating in a research note on Monday, March 9th. Two analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, NNN REIT presently has an average rating of "Hold" and a consensus price target of $45.55.

Insider Activity

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

Institutional Trading of NNN REIT

Several institutional investors and hedge funds have recently modified their holdings of NNN. Captrust Financial Advisors raised its holdings in shares of NNN REIT by 3.5% in the 2nd quarter. Captrust Financial Advisors now owns 115,265 shares of the real estate investment trust's stock valued at $4,977,000 after acquiring an additional 3,897 shares in the last quarter. Parallel Advisors LLC raised its holdings in shares of NNN REIT by 11.0% in the 3rd quarter. Parallel Advisors LLC now owns 5,713 shares of the real estate investment trust's stock valued at $243,000 after acquiring an additional 567 shares in the last quarter. Horizon Investments LLC raised its holdings in shares of NNN REIT by 65.0% in the 3rd quarter. Horizon Investments LLC now owns 77,022 shares of the real estate investment trust's stock valued at $3,230,000 after acquiring an additional 30,333 shares in the last quarter. Finally, Tudor Investment Corp ET AL purchased a new stake in shares of NNN REIT in the 4th quarter valued at about $1,300,000. Hedge funds and other institutional investors own 89.96% of the company's stock.

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.

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