NNN REIT (NNN) Q1 2025 Earnings
How Did NNN Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.74%.
Did NNN Beat Earnings? Q1 2025 Results
Yes. NNN REIT reported Q1 2025 earnings of $0.51 a share on May 1, 2025, beating the $0.48 consensus estimate by 7.1%. Revenue was $230.9M against a $219.8M estimate.
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.
- 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
“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.”
NNN REIT CEO, on the earnings call
What Was NNN REIT's Outlook in Q1 2025?
NNN maintains its previously provided 2025 guidance: Core FFO per share of $3.33–$3.38, AFFO per share of $3.39–$3.44, net earnings per share (excluding gains, impairments, and executive retirement costs) of $1.97–$2.02, real estate depreciation and amortization per share of $1.36, G&A expenses of $47–$48 million, real estate expenses net of tenant reimbursements of $15–$16 million, acquisition volume of $500–$600 million, and disposition volume of $80–$120 million.
NNN YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $230.9M | $215.4M | +7.2% |
| Operating Income | $143.9M | $138.3M | +4.0% |
| Net Income | $96.5M | $94.4M | +2.2% |
Figures from SEC filings and company reports. Not investment advice.