Track market-moving stories before they get noisy

NNN REIT and Agree Realty sent dividend checks on the same date with nearly identical payout ratios, but one number buried in the balance sheet separates a merely solid income stock from a genuinely fortress-grade one.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Two of the largest net lease REITs cut checks to shareholders on the same day. NNN REIT (NYSE:NNN | NNN Price Prediction) sent out $0.62 per share on August 14, 2026, its first payment at a raised quarterly rate. Agree Realty (NYSE:ADC) delivered $0.267 per share on August 14, 2026 as part of its monthly payout schedule. Same date, same sector, and remarkably similar payout ratios. The grades diverge on what backs each dollar.

NNN REIT: A 37-Year Streak Built on Self-Funded Growth The August payment marked NNN’s 37th consecutive annual dividend increase, one of the longest streaks in the REIT universe. The 3.3% increase in the quarterly rate lifted the annualized dividend to $2.48 per share.

CFO Vin Chao called the streak “an achievement that we are extremely proud of and one that reflects the sustainability of our growth model.” The numbers support that framing. Second-quarter AFFO was $0.90 per share, up 5.9% year over year, and management flagged a “healthy 69% AFFO payout ratio” at the new rate. Full-year 2026 AFFO guidance sits at $3.55 to $3.59, implying roughly 3.8% growth at the midpoint.

Free cash flow after the dividend ran approximately $56 million in the second quarter, with management expecting $215 million for the full year. Occupancy hit 99.1%, uncollected rent stayed under five basis points, and the balance sheet carries $1.4 billion of available liquidity with only 2.5% of debt tied to floating rates.

The catch here is that NNN’s tenant roster leans heavily toward non-investment-grade credits, and shares have slipped 4.8% over the past month even as the stock holds a 18.92% year-to-date gain.

Agree Realty: Monthly Checks, Investment-Grade Backing Agree’s model looks similar on the surface and different underneath. The $0.267 monthly rate annualizes to $3.204 per share, up 4.3% year over year (Agree is one of a small group that pays every 30 days rather than quarterly, a list we rounded up in a free report on monthly dividend payers). President Peter Coughenour told analysts the payout is “very well covered with a payout ratio of 70% of AFFO per share for the second quarter.”

Second-quarter AFFO landed at $1.14 per share, a 7.4% year-over-year increase, and full-year guidance was raised to $4.57 to $4.59, implying nearly 6% AFFO growth. Free cash flow after the dividend is expected to exceed $140 million this year.

The differentiator is tenant quality. Agree’s 2,825 properties span all 50 states, with nearly two-thirds of the portfolio in investment-grade credits. Occupancy sits at a company-record 99.8%, credit and occupancy loss guidance was cut to 25 basis points, and fixed-charge coverage runs 4.1 times. Pro forma net debt to recurring EBITDA of 3.7 times is materially lower than NNN’s 5.7 times.

Scorecard: Where the Grades Land Metric NNN REIT Agree Realty AFFO payout ratio 69% 70% Dividend growth (YoY) 3.3% 4.3% AFFO/share growth (Q2) 5.9% 7.4% Occupancy 99.1% 99.8% Net debt/EBITDA 5.7x 3.7x (pro forma) Payout frequency Quarterly Monthly Consecutive years of hikes 37 N/A On payout coverage alone, both REITs earn high marks. NNN’s 69% AFFO payout ratio wins by a hair, and the 37-year streak is a track record few peers can match. Agree grades higher on portfolio quality: lower leverage, higher occupancy, faster AFFO growth, and an investment-grade tenant mix that reduces the tail risk in the coverage math.

What to Watch Next NNN’s $750 million acquisition target and the pace of cap-rate compression will drive whether the 3.3% dividend hike becomes a floor or a ceiling for future increases. For Agree, watch the $1.6 to $1.8 billion investment guidance and whether the 7% weighted cap rate on acquisitions holds as spreads tighten. Same payout date, same sector, and two coverage stories worth grading separately.

Contact [email protected] for any questions or corrections.

3 'Boring' Dividend Stocks With Tasty Technical SetupsNNN REIT NYSE: NNN raised its 2026 outlook after reporting second-quarter growth in adjusted funds from operations, higher occupancy and increased acquisition activity, while management said its portfolio remains in strong condition with limited near-term tenant credit concerns.

The company reported second-quarter adjusted funds from operations, or AFFO, of $0.90 per share, up 5.9% from a year earlier. Core FFO was $0.89 per share, up 6.0% year over year. Chief Financial Officer Vin Chao said results exceeded the company’s internal projections, primarily because bad debt was lower than expected at roughly two basis points of quarterly annualized base rent.

Get NNN REIT alerts:

Annualized base rent rose more than 7% from the prior year to $959 million, supported by acquisition volume. NNN’s net operating income margin was 96.6%, up 70 basis points from the first quarter as occupancy increased and net real estate expenses declined. Free cash flow after dividends was about $56 million during the quarter.

Guidance Raised for Second Time This Year NNN increased its 2026 AFFO-per-share guidance to a range of $3.55 to $3.59, representing its second guidance increase of the year. At the midpoint, the updated outlook implies approximately 3.8% year-over-year growth, compared with 2.7% growth in 2025, according to Chao.

The company also raised the midpoint of its annual acquisition guidance to $750 million from $600 million. Chao said the stronger earnings outlook reflects better-than-expected second-quarter performance, an additional $150 million of expected acquisition volume and a $500,000 reduction in expected net real estate expenses due to faster-than-planned vacancy reductions.

NNN lowered its full-year bad-debt expectation to about 40 basis points from 60 basis points previously, while keeping its second-half credit-loss assumptions unchanged. The company also increased the midpoint of its annual disposition guidance by $10 million to $140 million.

Chao said the updated guidance range was narrowed as the year progresses rather than expanded fully at the high end. He identified bad debt, the timing and volume of acquisitions, and the timing of capital-markets activity as key factors that could influence full-year results.

Acquisitions, Occupancy and Portfolio Management During the second quarter, NNN invested just over $290 million in 89 properties at an initial cash capitalization rate of 7.3%. The acquisitions had an average lease duration of nearly 18 years and were concentrated in auto service, discount retail and early childhood education. The median purchase price was $2.1 million, while the average was $3.2 million.

For the first half of 2026, the company invested $430 million in 130 properties at an initial cash cap rate of 7.4% and an average lease duration of more than 18 years. Chief Executive Officer Steve Horn said cap rates have remained relatively stable over the past six quarters, although the company expects modest compression in the second half due to the makeup of its active pipeline and portfolios currently on the market.

Horn said most expected acquisitions are anticipated to come through direct, originated sale-leaseback transactions with relationship tenants. He described the company’s pipeline as robust, though he said NNN does not intend to assume potential transactions will close before they are completed.

The portfolio contained 3,774 freestanding, single-tenant properties at quarter-end. Occupancy increased 50 basis points from the first quarter to 99.1%, up 110 basis points from a year earlier. Rent collections were also strong, with less than five basis points of uncollected rent, Horn said.

Management said it sees particular acquisition opportunities in auto service, convenience stores and early childhood education, while limited-service restaurants and movie theaters have provided fewer growth opportunities. NNN completed a small early childhood education portfolio acquisition during the quarter involving a new relationship tenant that Chao described as having a strong management team, low leverage, attractive real estate and high initial rent coverage.

Horn said tenant mergers and acquisitions could affect future deal activity with individual tenants. He cited Mavis Tire’s announced agreement to acquire Pep Boys and Big Brand Tire’s agreement to acquire Belle Tire, which would create a network of more than 530 stores with over $1.5 billion in annual revenue. While acquired companies may no longer require NNN’s capital after a transaction, the company continues to seek new tenant relationships to support future growth, he said.

Dispositions Shift Toward Re-Leasing Vacant Assets NNN sold 26 properties during the second quarter for approximately $37 million in proceeds, including 19 vacant assets. Income-producing properties sold during the quarter were primarily non-core assets and were disposed of at cap rates roughly 170 basis points below the company’s acquisition cap rate, according to Horn.

Management said the income-producing dispositions included lower-performing Ruby Tuesday and Bob Evans locations. Horn said sales can involve defensive portfolio management where tenants indicate they may not renew, as well as sales to buyers that place greater value on specific properties, including 1031 exchange buyers.

Through the first half, the company sold 35 vacant properties. Horn said NNN has largely completed the sale of vacant properties it wanted to dispose of and expects the majority of remaining vacant assets to be re-leased. Some re-leasing activity may begin contributing in the fourth quarter, while other properties could take until the third quarter of 2027 because of permitting and lease negotiations, he said.

NNN also said it remains focused on reducing movie theater exposure where properties have not fully recovered to pre-pandemic performance. Chao noted that the movie theater business has performed well this year, with stronger box-office activity and a recent S&P credit upgrade for AMC.

Balance Sheet and Dividend NNN ended the quarter with $1.4 billion of available liquidity, no encumbered assets and 2.5% of debt tied to floating rates. Net debt to EBITDA was 5.7 times, unchanged from the prior quarter, while pro forma net debt to EBITDA including unsettled forward equity was 5.4 times.

During the quarter, the company increased its term loan by $200 million to $500 million. It swapped $400 million of that loan to a 4.1% all-in fixed rate and lowered spreads on its term loan and revolving credit facility by five basis points. NNN also sold roughly 6 million common shares on a forward basis at just under $46 per share and had approximately $272 million of unsettled forward equity as of June 30.

The company declared a quarterly dividend of $0.62 per share, a 3.3% increase that marked its 37th consecutive annual dividend increase. Chao said the dividend equates to a 5.3% annualized yield and a 69% AFFO payout ratio.

About NNN REIT (NYSE:NNN)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in NNN REIT Right Now?Before you consider NNN REIT, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NNN REIT wasn't on the list.

While NNN REIT currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.

Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.

Get This Free Report

, /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) (the "Company" or "NNN"), a real estate investment trust, today announced financial and operating results for the quarter and six months ended June 30, 2026. Highlights include:

Second Quarter 2026 Highlights:

Reported net earnings of $0.52 per diluted share Grew Core FFO and AFFO per diluted share by 6.0% and 5.9%, respectively, over prior-year results to $0.89 and $0.90, respectively Increased ABR by 7.3% over prior-year results to $959.1 million Increased portfolio occupancy to 99.1%, an increase of 50 and 110 basis points over the prior quarter and prior year periods, respectively, with a portfolio weighted average remaining lease term of 10.1 years Closed on $291.0 million of investments at an initial cash cap rate of 7.3%, with a weighted average lease term of 17.9 years and $436.4 million of investments at an initial cash cap rate of 7.4% in the six months ended June 30, 2026 Sold 26 properties for $36.7 million, including $9.0 million of income producing properties at a weighted average cap rate of 5.6% Entered into forward sale agreements for 5,999,528 common shares under the Company's at-the-market equity program ("ATM") at a weighted average price per share of $45.91 Issued 1,681,785 common shares, primarily under the ATM, raising net proceeds of $74.0 million Exercised the $200 million incremental term loan option under NNN's senior unsecured term loan facility, increasing the aggregate facility size to $500 million (the "Term Loan") Maintained balance sheet flexibility with a sector-leading weighted average debt maturity of 10.1 years, no encumbered assets, only 2.5% of floating rate exposure and $1.4 billion of total available liquidity Paid a $0.60 quarterly dividend, representing a 5.2% annualized dividend yield and a 67% AFFO payout ratio as of June 30, 2026 Additional Highlights:

Announced a 3.3% increase in the quarterly dividend for the third quarter 2026 to $0.62 per share, marking the Company's 37th consecutive annual dividend increase Increased 2026 Core FFO per share guidance to a new range of $3.50 - $3.54 Increased 2026 AFFO per share guidance to a new range of $3.55 - $3.59 Raised 2026 acquisition volume guidance to a new range of $700 - $800 million Published the Company's fourth annual Corporate Sustainability Report Steve Horn, Chief Executive Officer, commented: "NNN delivered a strong first half of the year, driven by resilient portfolio performance, disciplined execution across the organization, and a robust real estate investment pipeline built on longstanding, proven relationships. Given this momentum, we are raising our acquisition volume outlook and 2026 AFFO guidance."

FINANCIAL RESULTS

Quarter Ended
June 30,

Six Months Ended
June 30,

(dollars in thousands, except per diluted share data)

2026

2025

2026

2025

Revenues

$

244,266

$

226,802

$

484,690

$

457,656

Net earnings

$

97,924

$

100,529

$

191,875

$

196,987

Net earnings per share

$

0.52

$

0.54

$

1.01

$

1.05

FFO

$

167,819

$

157,175

$

330,969

$

315,909

FFO per share

$

0.89

$

0.84

$

1.75

$

1.69

Core FFO

$

168,187

$

157,366

$

331,771

$

318,273

Core FFO per share

$

0.89

$

0.84

$

1.75

$

1.70

AFFO

$

170,020

$

158,523

$

335,699

$

321,538

AFFO per share

$

0.90

$

0.85

$

1.77

$

1.72

PORTFOLIO SNAPSHOT

(dollars in thousands)

June 30,
 2026

March 31,
2026

June 30,
 2025

Number of properties

3,774

3,711

3,663

Total gross leasable area (square feet)

40,440,000

39,597,000

38,322,000

Occupancy rate

99.1

%

98.6

%

98.0

%

Weighted average remaining lease term (years)

10.1

10.1

9.8

ABR

$

959,145

$

934,612

$

893,782

PROPERTY ACQUISITIONS

(dollars in thousands)

Quarter Ended
June 30, 2026

Six Months Ended
June 30, 2026

Total dollars invested(1)

$

291,009

$

436,403

Number of properties

89

130

Gross leasable area (square feet)(2)

1,061,000

1,365,000

Weighted average cap rate(3)

7.3

%

7.4

%

Weighted average lease term (years)

17.9

18.2

(1)

Includes dollars invested in projects under construction or tenant improvements.

(2)

Includes additional square footage from completed construction on existing properties.

(3)

Calculated as the initial cash annual base rent divided by the total purchase price of the properties.

PROPERTY DISPOSITIONS

Quarter Ended June 30, 2026

Six Months Ended June 30, 2026

(dollars in thousands)

Occupied

Vacant

Total

Occupied

Vacant

Total

Number of properties

7

19

26

16

35

51

Gross leasable area (square feet)

25,000

170,000

195,000

115,000

326,000

441,000

Net sale proceeds

$

9,046

$

27,688

$

36,734

$

26,846

$

45,715

$

72,561

Weighted average cap rate(1)

5.6

%

—

5.6

%

6.6

%

—

6.6

%

(1)

Calculated as the cash annual base rent divided by the total gross proceeds received for the occupied properties.

CAPITAL MARKETS ACTIVITY

During the quarter ended June 30, 2026, NNN exercised the incremental term loan option and drew down the remaining $200 million on the Term Loan for a total outstanding balance of $500 million. Additionally, the Company amended the pricing grids on the Term Loan and its existing senior unsecured revolving credit facility, (the "Revolving Credit Facility"). Based on NNN's current credit ratings, the applicable SOFR-based margin was lowered to 0.800% from 0.850% for all outstanding Term Loan borrowings and 0.725% from 0.775% for all Revolving Credit Facility borrowings. The Company previously entered into forward starting swaps with a total notional value of $400 million that fix the Secured Overnight Financing Rate ("SOFR") at 3.30%.

During the quarter ended June 30, 2026, NNN entered into forward sale agreements for 5,999,528 common shares under the Company's ATM at a weighted average price per share of $45.91.

During the quarter ended June 30, 2026, NNN issued 1,681,785 common shares, primarily in settlement of forward sale agreements under the Company's ATM, raising $74.0 million in net proceeds.

As of June 30, 2026, NNN had 5,999,528 shares of common stock subject to outstanding forward sale agreements, which upon settlement, are anticipated to raise net proceeds of approximately $272.1 million. Net proceeds include the impact of forward price adjustments through June 30, 2026.

BALANCE SHEET AND LIQUIDITY

As of June 30, 2026, Gross Debt was $5.1 billion with a weighted average interest rate of 4.2% and a weighted average debt maturity of 10.1 years. The Company ended the quarter with $1.4 billion of total available liquidity, including $1.2 billion of unused line of credit capacity, $272.1 million of outstanding forward equity, and $4.2 million of cash. Net Debt to annualized EBITDAre and fixed charge coverage was 5.7x and 4.1x, respectively, as of June 30, 2026. Including the impact of unsettled forward equity, Pro Forma Net Debt to annualized EBITDAre was 5.4x as of June 30, 2026.

DIVIDEND

As previously announced on July 15, 2026, the Company's Board of Directors declared a quarterly dividend of $0.62 per share payable on August 14, 2026, to shareholders of record as of July 31, 2026. The new quarterly dividend represents an annualized dividend of $2.48 per share and an annualized dividend yield of 5.3% as of June 30, 2026. The 3.3% increase in the quarterly dividend marks the 37th consecutive annual dividend increase. NNN is one of only three publicly traded real estate investment trusts to have increased its annual dividend for 37 or more consecutive years.

2026 GUIDANCE

(dollars in millions, except per diluted share data)

Previous 2026
Guidance

Updated 2026
Guidance

Net earnings per share excluding any gains on disposition of real estate,
      impairment losses and retirement and severance costs

$2.02 - $2.08

$2.01 - $2.05

Real estate depreciation and amortization per share

$1.46

$1.49

Core FFO per share

$3.48 - $3.54

$3.50 - $3.54

AFFO per share

$3.53 - $3.59

$3.55 - $3.59

General and administrative expenses

$53 - $55

$53 - $55

Real estate expenses, net of tenant reimbursements

$14 - $15

$13.5 - $14.5

Acquisition volume

$550 - $650

$700 - $800

Disposition volume

$110 - $150

$120 - $160

Guidance is based on current plans and assumptions and is subject to risks and uncertainties more fully described in this press release and the Company's reports filed with the Securities and Exchange Commission (the "Commission").

CONFERENCE CALL INFORMATION

The Company will host a conference call on August 5, 2026 at 10:30 a.m. ET to discuss second quarter results. A live webcast of the conference call will be available on the Company's website at www.nnnreit.com or by using the following link. The conference call can also be accessed by dialing 888-506-0062 in the United States ("U.S.") or 973-528-0011 for international callers and entering the participant code 623622 or referencing NNN REIT, Inc.

A telephonic replay of the call will be available through Wednesday, August 19, 2026, by dialing 877-481-4010 in the U.S. or 919-882-2331 internationally and entering the code 54164.

ABOUT NNN REIT, INC.

NNN is a REIT that invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of June 30, 2026, the Company owned 3,774 properties across 50 states, the District of Columbia and Puerto Rico, encompassing approximately 40.4 million square feet of gross leasable area, with a weighted average remaining lease term of 10.1 years. For more information on the Company, visit www.nnnreit.com.

FORWARD-LOOKING STATEMENTS

Statements in this press release that are not strictly historical are "forward-looking" statements. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated" or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, including inflation, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the Company's tenants, the availability of capital, risks related to the Company's status as a real estate investment trust ("REIT"), and the potential impacts of an epidemic or pandemic on the Company's business operations, financial results and financial position on the global economy. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the Company's Commission filings, including, but not limited to, the Company's (i) Annual Report on Form 10-K for the year ended December 31, 2025 and (ii) Quarterly Report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026. Copies of each filing may be obtained from the Company or the Commission. Such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

DEFINITIONS

Annualized Base Rent ("ABR") is a non-U.S. generally accepted accounting principles ("GAAP") metric which represents the monthly cash base rent for all leases in place as of the end of the period multiplied by 12. Accordingly, this methodology produces an annualized amount as of a point in time but does not take into consideration future (i) scheduled rent increases, (ii) leasing activity, or (iii) lease expirations.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") as defined by the National Association of Real Estate Investment Trusts ("Nareit") is a metric established by Nareit and commonly used by real estate companies. The measure is a result of net earnings (computed in accordance with GAAP), plus interest expense, income tax expense, depreciation and amortization, excluding any gains (or including any losses) on disposition of real estate, any impairment charges, net of recoveries and after adjustments for income and losses attributable to noncontrolling interests. Management considers the non-GAAP measure of EBITDAre to be an appropriate measure of the Company's performance and should be considered in addition to, net earnings or loss, as a measure of the Company's operating performance.

Funds From Operations ("FFO") is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the Nareit and is used by the Company as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses), any applicable taxes on the disposition of certain assets and any impairment charges on a depreciable real estate asset, net of recoveries.

FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the Company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure.

Core Funds From Operations ("Core FFO") is a non-GAAP measure of operating performance that adjusts FFO to eliminate the impact of certain GAAP income and expense amounts that the Company believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the REIT industry, and management believes that presentation of Core FFO provides investors with a potential metric to assist in their evaluation of the Company's operating performance across multiple periods and in comparison to the operating performance of its peers because it removes the effect of unusual items that are not expected to impact the Company's operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of the Company's core business operations and is a factor in determining management compensation. Items included in calculating FFO that may be excluded in calculating Core FFO may include items such as transaction related gains, income or expense, impairments on land, retirement and severance costs or other non-core amounts as they occur.

Adjusted Funds From Operations ("AFFO") is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO adjusts FFO for certain non-cash items that reduce or increase net earnings in accordance with GAAP. AFFO should not be considered an alternative to net earnings, as an indication of the Company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the Company's performance.

Total Cash is comprised of cash and cash equivalents and restricted cash and cash held in escrow per GAAP as reported on the balance sheet summary.

Gross Assets represents total assets (reported in accordance with GAAP) adjusted to exclude accumulated amortization and depreciation and amortization of direct financing leases. The result provides an estimate of the investments made by the Company.

Total Debt is defined by the Company as total debt per GAAP as reported on the balance sheet summary including the line of credit payable, and term loan payable and notes payable, each net of unamortized discount and unamortized debt costs, as applicable.

Gross Debt is defined by the Company as Total Debt adjusted to exclude unamortized debt discounts and premiums and unamortized debt costs.

Net Debt is defined by the Company as Gross Debt less Total Cash.

Pro Forma Net Debt is defined by the Company as Net Debt less anticipated net proceeds from unsettled forward equity.

Management considers the non-GAAP measures of Gross Debt, Net Debt and Pro Forma Net Debt each to be a key supplemental measure of the Company's overall liquidity, capital structure and leverage.

The Company's computation of FFO, Core FFO, AFFO, EBITDAre, Total Cash, Gross Assets, Gross Debt and Net Debt may differ from the methodology for calculating these non-GAAP financial measures used by other REITs, and therefore, may not be comparable to such other REITs. Reconciliations of net earnings, Total Debt and total assets (all computed in accordance with GAAP) to FFO, Core FFO, AFFO, EBITDAre, Gross Assets, Gross Debt and Net Debt (each of which is a non-GAAP financial measure), as applicable, are included in the financial information accompanying this release.

NNN REIT, Inc.

Balance Sheet Summary

(dollars in thousands)

(unaudited)

June 30,
2026

December 31,
2025

Assets:

Real estate portfolio, net of accumulated depreciation and amortization

$

9,463,681

$

9,239,542

Cash and cash equivalents

4,223

5,046

Restricted cash and cash held in escrow

—

776

Receivables, net of allowance of $567 and $609, respectively

2,874

3,470

Accrued rental income, net of allowance of $3,528 and $3,393, respectively

36,672

34,914

Debt costs, net of accumulated amortization of $31,348 and $29,930, respectively

4,987

8,645

Other assets

94,086

86,962

Total assets

$

9,606,523

$

9,379,355

Liabilities:

Line of credit payable

$

28,500

$

348,100

Term loan payable, net of unamortized debt costs

496,835

—

Notes payable, net of unamortized discount and unamortized debt costs

4,475,938

4,472,324

Accrued interest payable

37,989

40,557

Other liabilities

106,525

110,072

Total liabilities

5,145,787

4,971,053

Total equity

4,460,736

4,408,302

Total liabilities and equity

$

9,606,523

$

9,379,355

Common shares outstanding

191,931,110

189,937,404

NNN REIT, Inc.

Income Statement Summary

(dollars in thousands, except per share data)

(unaudited)

Quarter Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Revenues:

Rental income

$

242,682

$

226,498

$

482,696

$

457,072

Interest and other income from real estate transactions

1,584

304

1,994

584

244,266

226,802

484,690

457,656

Operating expenses:

General and administrative

14,057

11,217

28,163

24,225

Real estate

8,266

8,838

18,065

18,213

Depreciation and amortization

71,025

68,349

141,822

132,966

Leasing transaction costs

212

74

356

204

Impairment losses – real estate, net of recoveries

8,067

4,535

18,747

6,047

Retirement and severance costs

368

191

802

2,364

101,995

93,204

207,955

184,019

Gain on disposition of real estate

9,105

16,198

21,290

20,011

Earnings from operations

151,376

149,796

298,025

293,648

Other expenses (revenues):

Interest and other income

(35)

(15)

(63)

(344)

Interest expense

53,487

49,282

106,213

97,005

53,452

49,267

106,150

96,661

Net earnings

$

97,924

$

100,529

$

191,875

$

196,987

Weighted average shares outstanding:

Basic

189,078,464

186,876,693

189,055,792

186,865,955

Diluted

189,620,010

187,070,288

189,635,670

187,088,160

Net earnings per share:

Basic

$

0.52

$

0.54

$

1.01

$

1.05

Diluted

$

0.52

$

0.54

$

1.01

$

1.05

NNN REIT, Inc.

Other Information

(dollars in thousands)

(unaudited)

Quarter Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Rental income from operating leases(1) (2)

$

237,240

$

221,714

$

470,811

$

445,770

Earned income from direct financing leases(1)

$

79

$

112

$

161

$

226

Percentage rent(1)

$

508

$

284

$

824

$

1,170

Real estate expenses reimbursed from tenants(1)

$

4,855

$

4,388

$

10,900

$

9,906

Real estate expenses

(8,266)

(8,838)

(18,065)

(18,213)

Real estate expenses, net of tenant reimbursements

$

(3,411)

$

(4,450)

$

(7,165)

$

(8,307)

Amortization of debt costs

$

1,776

$

1,478

$

3,528

$

2,944

Non-real estate depreciation expense

$

96

$

43

$

191

$

86

(1)

For the quarters ended June 30, 2026 and 2025, the aggregate of such amounts is $242,682 and $226,498, respectively, and $482,696 and $457,072 for the six months ended June 30, 2026 and 2025, respectively, and is classified as rental income on the income statement summary.

(2)

Includes lease termination fees of $1,633 and $2,248 for the quarters ended June 30, 2026 and 2025, respectively, and $2,372 and $10,452 for the six months ended June 30, 2026 and 2025, respectively.

NNN REIT, Inc.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands, except per share data)

(unaudited)

Quarter Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net earnings

$

97,924

$

100,529

$

191,875

$

196,987

Real estate depreciation and amortization

70,933

68,309

141,637

132,886

Gain on disposition of real estate

(9,105)

(16,198)

(21,290)

(20,011)

Impairment losses – depreciable real estate, net of recoveries

8,067

4,535

18,747

6,047

FFO

167,819

157,175

330,969

315,909

Retirement and severance costs

368

191

802

2,364

Core FFO

168,187

157,366

331,771

318,273

Straight-line accrued rent, net of reserves

(838)

425

(2,129)

(84)

Net capital lease rent adjustment

46

62

92

122

Below-market rent amortization

(189)

(1,620)

(315)

(1,713)

Stock based compensation expense

3,368

2,832

7,414

6,403

Capitalized interest expense

(554)

(542)

(1,134)

(1,463)

AFFO

$

170,020

$

158,523

$

335,699

$

321,538

FFO per share:

Basic

$

0.89

$

0.84

$

1.75

$

1.69

Diluted

$

0.89

$

0.84

$

1.75

$

1.69

Core FFO per share:

Basic

$

0.89

$

0.84

$

1.75

$

1.70

Diluted

$

0.89

$

0.84

$

1.75

$

1.70

AFFO per share:

Basic

$

0.90

$

0.85

$

1.78

$

1.72

Diluted

$

0.90

$

0.85

$

1.77

$

1.72

Dividend per share

$

0.60

$

0.58

$

1.20

$

1.16

AFFO payout ratio(1)

67

%

68

%

68

%

67

%

(1)

Calculated as total dividends paid as a percentage of AFFO for each respective period.

NNN REIT, Inc.

Reconciliation of Non-GAAP Financial Measures (continued)

(dollars in thousands)

(unaudited)

Quarter Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net earnings

$

97,924

$

100,529

$

191,875

$

196,987

Interest expense

53,487

49,282

106,213

97,005

Depreciation and amortization

71,025

68,349

141,822

132,966

Gain on disposition of real estate

(9,105)

(16,198)

(21,290)

(20,011)

Impairment losses – real estate, net of recoveries

8,067

4,535

18,747

6,047

EBITDAre

$

221,398

$

206,497

$

437,367

$

412,994

Interest expense

$

53,487

$

49,282

$

106,213

$

97,005

Add back: capitalized interest

554

542

1,134

1,463

Fixed charges

$

54,041

$

49,824

$

107,347

$

98,468

June 30,
2026

December 31,
2025

Total assets

$

9,606,523

$

9,379,355

Accumulated depreciation & amortization

2,352,708

2,259,469

Amortization of direct financing leases

2,546

2,546

Gross Assets

$

11,961,777

$

11,641,370

Debt outstanding:

Line of credit

$

28,500

$

348,100

Term loan, net of unamortized debt costs

496,835

—

Notes payable, net of unamortized discount and
     unamortized debt costs

4,475,938

4,472,324

Total Debt

5,001,273

4,820,424

Unamortized note discount

45,064

47,005

Unamortized debt costs

32,163

30,670

Gross Debt

5,078,500

4,898,099

Total Cash

(4,223)

(5,822)

Net Debt

5,074,277

4,892,277

Net proceeds from unsettled forward equity

(272,109)

—

Pro Forma Net Debt

$

4,802,168

$

4,892,277

NNN REIT, Inc.

Debt Summary

As of June 30, 2026

(dollars in thousands)

(unaudited)

Unsecured Debt

Principal

Principal,
Net of
Unamortized
Discount

Stated
Rate

Effective
Rate

Maturity Date

Line of credit payable

$

28,500

$

28,500

SOFR +
72.5 bps

4.345

%

April 2028

Term loan payable

500,000

500,000

SOFR +
80 bps

4.126

%

(1)

February 2029

Notes payable:

2026

350,000

349,790

3.600

%

3.733

%

December 2026

2027

400,000

399,758

3.500

%

3.548

%

October 2027

2028

400,000

399,238

4.300

%

4.388

%

October 2028

2030

400,000

399,478

2.500

%

2.536

%

April 2030

2031

500,000

496,559

4.600

%

4.766

%

February 2031

2033

500,000

491,002

5.600

%

5.905

%

October 2033

2034

500,000

494,852

5.500

%

5.662

%

June 2034

2048

300,000

296,350

4.800

%

4.890

%

October 2048

2050

300,000

294,776

3.100

%

3.205

%

April 2050

2051

450,000

442,503

3.500

%

3.602

%

April 2051

2052

450,000

440,630

3.000

%

3.118

%

April 2052

Total

4,550,000

4,504,936

Total unsecured debt(2)

$

5,078,500

$

5,033,436

Reconciliation of Debt

Term Loan
Payable

Notes
Payable

Principal, net of unamortized discount

$

500,000

$

4,504,936

Debt costs

(3,604)

(44,420)

Accumulated amortization

439

15,422

Debt costs, net of accumulated
     amortization

(3,165)

(28,998)

Principal, net of unamortized
     discount and unamortized debt costs

$

496,835

$

4,475,938

(1)

SOFR swapped to a weighted average fixed rate of 3.30% on $400,000.

(2)

Unsecured debt has a weighted average interest rate of 4.2% and a weighted average maturity of 10.1 years.

NNN REIT, Inc.

Debt Summary – Continued

As of June 30, 2026

(unaudited)

Credit Metrics

June 30,
2026

December 31,
2025

Gross Debt / Gross Assets

42.5 %

42.1 %

Net Debt / EBITDAre (last quarter annualized)

5.7x

5.6x

Pro Forma Net Debt / EBITDAre (last quarter annualized)

5.4x

5.6x

EBITDAre / fixed charges

4.1x

4.1x

Credit Facility, Term Loan and Notes Covenants

The following is a summary of key financial covenants for the Company's unsecured credit facility, term loan and notes, as defined and calculated per the terms of the agreements and indentures governing such debt, which are included in the Company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of June 30, 2026, the Company believes it is in compliance with the covenants.

Key Covenants

Required

June 30,
2026

Unsecured Bank Credit Facility and Term Loan:

Maximum leverage ratio

< 0.60x

0.38x

Minimum fixed charge coverage ratio

> 1.50x

4.08x

Maximum secured indebtedness ratio

< 0.40x

—

Unencumbered asset value ratio

> 1.67x

2.65x

Unencumbered interest ratio

> 1.75x

4.04x

Unsecured Notes:

Limitation on incurrence of total debt

≤ 60%

42 %

Limitation on incurrence of secured debt

≤ 40%

—

Debt service coverage ratio

≥ 1.5x

4.0x

Maintenance of total unencumbered assets

≥ 150%

239 %

NNN REIT, Inc.

Property Portfolio

As of June 30, 2026

Top 20 Lines of Trade

Lines of Trade

# of
Tenants

# of
Properties

% of
ABR

1.

Automotive service

48

761

18.6 %

2.

Convenience stores

32

682

15.9 %

3.

Restaurants – limited service

64

622

7.7 %

4.

Entertainment

7

96

7.3 %

5.

Dealerships

17

112

6.4 %

6.

Restaurants – full service

71

332

6.3 %

7.

Health and fitness

9

37

3.8 %

8.

Theaters

5

32

3.5 %

9.

Automotive parts

7

144

3.2 %

10.

Equipment rental

4

105

3.0 %

11.

Wholesale clubs

1

13

2.2 %

12.

Early childhood education

10

102

2.2 %

13.

Drug stores

3

59

1.9 %

14.

Home improvement

10

49

1.9 %

15.

Discount retail

7

112

1.9 %

16.

Medical service providers

28

84

1.7 %

17.

Pet supplies and services

12

62

1.7 %

18.

Furniture

14

43

1.2 %

19.

Travel plazas

4

24

1.1 %

20.

Automobile auctions, wholesale

2

18

1.1 %

Other

87

285

7.4 %

Total

3,774

100.0 %

NNN REIT, Inc.

Property Portfolio – Continued

As of June 30, 2026

Top 20 States

State

# of
Tenants

# of
Properties

% of
ABR

1.

Texas

97

596

17.9 %

2.

Florida

96

277

8.7 %

3.

Illinois

53

184

5.2 %

4.

Georgia

64

174

4.4 %

5.

Ohio

77

215

4.2 %

6.

Michigan

34

147

3.9 %

7.

North Carolina

49

164

3.8 %

8.

Tennessee

50

160

3.6 %

9.

Indiana

47

165

3.5 %

10.

Arizona

38

88

3.5 %

11.

Virginia

48

126

3.4 %

12.

California

27

75

2.8 %

13.

Alabama

38

155

2.8 %

14.

Missouri

34

107

2.3 %

15.

New Jersey

19

32

2.2 %

16.

Pennsylvania

39

80

2.1 %

17.

Maryland

21

53

2.0 %

18.

Colorado

30

49

2.0 %

19.

South Carolina

31

85

2.0 %

20.

Oklahoma

30

89

1.9 %

Other

167

753

17.8 %

Total

3,774

100.0 %

NNN REIT, Inc.

Property Portfolio – Continued

As of June 30, 2026

Top 20 Tenants

Tenant

Primary Line of Trade

# of
Properties

% of
ABR

1.

7-Eleven

Convenience stores

145

4.2 %

2.

Mister Car Wash

Automotive service

120

3.7 %

3.

Dave & Buster's

Entertainment

34

3.5 %

4.

Camping World

Dealerships

46

3.4 %

5.

Kent Distributors

Convenience stores

64

2.6 %

6.

Flynn Restaurant Group

Restaurants - limited service

203

2.4 %

7.

GPM Investments

Convenience stores

140

2.3 %

8.

AMC Theatres

Theaters

19

2.3 %

9.

BJ's Wholesale Club

Wholesale clubs

13

2.2 %

10.

LA Fitness

Health and fitness

24

2.1 %

11.

Mavis Tire Express Services

Automotive service

141

2.0 %

12.

Couche-Tard

Convenience stores

91

2.0 %

13.

Sunoco

Convenience stores

53

1.7 %

14.

Chuck E. Cheese

Entertainment

51

1.6 %

15.

Walgreens

Drug stores

48

1.6 %

16.

Casey's General Stores

Convenience stores

62

1.5 %

17.

United Rentals

Equipment rental

49

1.5 %

18.

Tidal Wave Auto Spa

Automotive service

35

1.4 %

19.

Super Star Car Wash

Automotive service

33

1.3 %

20.

BMW Kar Wash LLC

Automotive service

41

1.3 %

Other

2,362

55.4 %

Total

3,774

100.0 %

Lease Expirations(1)

# of
Properties

Gross
Leasable
Area(2)

% of
ABR

# of
Properties

Gross
Leasable
Area(2)

% of
ABR

2026

37

244,000

0.5 %

2032

199

2,046,000

5.0 %

2027

195

2,534,000

5.8 %

2033

133

1,395,000

4.2 %

2028

222

1,971,000

4.8 %

2034

194

2,838,000

5.7 %

2029

139

2,049,000

4.1 %

2035

136

1,805,000

4.1 %

2030

185

2,427,000

4.6 %

Thereafter

1,988

19,178,000

52.5 %

2031

309

3,593,000

8.7 %

(1)

As of June 30, 2026, the weighted average remaining lease term is 10.1 years.

(2)

Square feet.

SOURCE NNN REIT, Inc.

, /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) ("NNN" or the "Company"), a real estate investment trust ("REIT"), today announced the exercise of its $200 million incremental term loan option under its senior unsecured term loan facility, increasing the aggregate facility size to $500 million (the "Term Loan"). The incremental borrowings carry identical terms to the existing $300 million term loan (after giving effect to the amendments described below). The Term Loan matures on February 15, 2029, with two one-year extension options. NNN expects to use proceeds from the incremental term loan for general corporate purposes.

In anticipation of the incremental term loan, NNN entered into a $100 million forward starting swap that fixes SOFR at 3.43% through February 15, 2029.

"We are pleased with today's transactions, which enhance our financial flexibility, provide capital to fund our business plans, and lower our cost of capital," said Vincent H. Chao, Chief Financial Officer. "We greatly appreciate the continued support and long-standing relationships with our bank group."

Additionally, the Company amended the pricing grids on the Term Loan and its existing senior unsecured revolving credit facility, (the "Revolving Credit Facility"). Based on NNN's current credit ratings, the applicable SOFR-based margin was lowered to 0.800% from 0.850% for all outstanding Term Loan borrowings and 0.725% from 0.775% for all Revolving Credit Facility borrowings.

Wells Fargo Securities, LLC and BofA Securities, Inc., served as the Joint Lead Arrangers and Joint Bookrunners, with Wells Fargo Bank, National Association acting as the Administrative Agent and Bank of America, N.A. acting as the Syndication Agent.

Truist Securities, Inc., PNC Capital Markets LLC, U.S. Bank National Association, Royal Bank of Canada and TD Bank, N.A., served as Joint Lead Arrangers, with Truist Bank, PNC Bank, National Association, U.S. Bank National Association, Royal Bank of Canada, TD Bank, N.A., and Mizuho Bank Ltd., acting as Documentation Agents. Sumitomo Mitsui Banking Corporation, New York Branch, and Raymond James Bank also participated in the transaction.

About NNN REIT, Inc.
NNN is a REIT that invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of March 31, 2026, the Company owned 3,711 properties across all 50 states, the District of Columbia and Puerto Rico, encompassing approximately 39.6 million square feet of gross leasable area, with a weighted average remaining lease term of 10.1 years. For additional information, please visit www.nnnreit.com.

SOURCE NNN REIT, Inc.