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NNN REIT

NNN Q1 2025 Earnings

Reported May 1, 2025 at 8:30 AM ET · SEC Source

Q1 25 EPS

$0.51

BEAT +7.14%

Est. $0.48

Q1 25 Revenue

$230.9M

BEAT +5.01%

Est. $219.8M

vs S&P Since Q1 25

-7.2%

TRAILING MARKET

NNN +21.4% vs S&P +28.6%

Market Reaction

Did NNN Beat Earnings? Q1 2025 Results

NNN REIT kicked off 2025 with a clean beat across the board, posting first-quarter earnings per diluted share of $0.51 against a consensus estimate of $0.48, a 7.14% positive surprise, while revenue of $230.85 million cleared Wall Street's $219.84 mi… Read more NNN REIT kicked off 2025 with a clean beat across the board, posting first-quarter earnings per diluted share of $0.51 against a consensus estimate of $0.48, a 7.14% positive surprise, while revenue of $230.85 million cleared Wall Street's $219.84 million estimate by 5.01% and grew 7.2% year-over-year. The primary engine behind the revenue gain was a 5.2% expansion in Annualized Base Rent to $874.30 million, fueled by $232.39 million in new acquisitions closed during the quarter at a 7.4% initial cash cap rate, already accounting for more than 40% of the company's full-year acquisition midpoint target. Occupancy slipped to 97.7% from 99.4% a year ago, largely tied to eviction proceedings involving 64 properties leased to a midwestern restaurant operator, though all have since been repossessed and 31 re-leased, tempering near-term concern. With $1.10 billion in available liquidity and net debt to EBITDAre improving to 5.5x, management reaffirmed 2025 guidance for Core FFO per share of $3.33 to $3.38, underscoring confidence in the triple-net lease model's durability for income-focused investors.

Key Takeaways

  • • Core FFO and AFFO per diluted share grew 3.6% year-over-year
  • • ABR increased 5.2% over prior year to $874.3 million
  • • Acquired $232.4 million of investments at 7.4% initial cash cap rate with 18.4-year weighted average lease term
  • • Rental income from operating leases grew to $224.1 million from $209.1 million year-over-year
  • • Strong balance sheet with $1.1 billion total available liquidity
  • • AFFO payout ratio improved to 66% from 67% year-over-year
24/7 Wall St

NNN YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“NNN's strong first quarter results and leadership in the triple-net market, combined with our deep tenant relationships and flexible balance sheet, position us to effectively execute our 2025 business plan and deliver continued per-share growth during the current macroeconomic conditions.”

— Steve Horn, Q1 2025 Earnings Press Release

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