NNN REIT Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did NNN Beat Earnings? Q1 2026 Results
NNN REIT delivered a mixed first quarter for 2026, posting revenue of $240.42 million, which edged past the $238.39 million consensus by 0.85% and grew 4.2% year-over-year, while GAAP earnings per diluted share of $0.50 came in just short of the $0.51 consensus estimate, a 2.32% miss that snapped a four-consecutive-quarter streak of beating EPS expectations. The shortfall traced largely to elevated impairment losses on real estate of $10.68 million, compared to just $1.51 million a year ago, combined with higher interest expense of $52.73 million versus $47.72 million in the prior-year period. On the non-GAAP side, the picture was notably stronger, with FFO rising to $163.15 million, or $0.86 per diluted share, and portfolio occupancy climbing 90 basis points year-over-year to 98.6%. With analysts already scrutinizing whether NNN's growth trajectory can sustain its 36-year dividend streak, management's decision to nudge full-year AFFO per share guidance higher to $3.53-$3.59 offered a measured reassurance heading into the rest of the year.
- Portfolio occupancy increased to 98.6%, up 90 basis points year-over-year
- ABR increased 6.9% year-over-year to $934.6 million
- Rental income from operating leases grew to $233.6 million from $224.1 million year-over-year
- Gain on disposition of real estate of $12.2 million vs $3.8 million in prior year
- Closed $145.4 million of investments at 7.5% initial cash cap rate with 19-year weighted average lease term
“We are pleased with our solid start to the year. Our strong first quarter performance enabled us to increase AFFO guidance for 2026. Portfolio occupancy climbed to 98.6%, surpassing our long-term average, and our balance sheet remains well positioned to fund future acquisitions. NNN's primarily self-funded model in the triple-net market, combined with our robust tenant relationship program, positions us to deliver consistent and sustainable per-share growth year after year.”
NNN REIT CEO, on the earnings call
Forward Guidance & Outlook
NNN raised its full-year 2026 guidance. AFFO per share guidance was increased to $3.53–$3.59 (from $3.52–$3.58). Core FFO per share guidance was increased to $3.48–$3.54 (from $3.47–$3.53). Net earnings per share (excluding gains on disposition, impairment losses, and retirement/severance costs) guidance was maintained at $2.02–$2.08. Real estate depreciation and amortization per share was updated to $1.46 (from $1.45). Acquisition volume guidance was maintained at $550–$650 million. Disposition volume guidance was maintained at $110–$150 million. General and administrative expenses guidance was maintained at $53–$55 million.
NNN YoY Financials
Figures from SEC filings and company reports. Not investment advice.