NNN REIT raises 2026 disposition forecast, keeps Core FFO outlook

NNN REIT said on Nov. 4 it raised its 2026 disposition volume forecast to $160 million to $180 million, in results for the quarter ended Sept. 30. Revenue of $249.68 million was in line with the $247.75 million consensus estimate.

Shares were little changed in regular-session trading as of 10:07 a.m. ET, from a regular-session close of $41.69.

The company's press release said the net earnings per diluted share were 57 cents for the quarter, against 51 cents a year earlier.

Here's how the company did:

• Revenue: $249.68 million vs. $230.16 million a year earlier, in line with the $247.75 million expected
• Net earnings per diluted share: $0.57 vs. $0.51 a year earlier
• Core FFO per share, diluted: $0.90 vs. $0.85 a year earlier
• AFFO per share, diluted: $0.91 vs. $0.86 a year earlier

NNN REIT is a real estate investment trust that owned 3,817 properties at Sept. 30, with a portfolio occupancy rate of 99.2%, up from 97.5% a year earlier.

Revenue has risen in each of the last three quarters, from $226.8 million to $244.3 million, according to its SEC filings.

Steve Horn, chief executive officer, said: "We are pleased to report strong third quarter results, highlighted by continued healthy portfolio trends, solid investment activity, and well-timed equity capital markets execution."

2026 guidance

The company raised its 2026 disposition volume forecast to $160 million to $180 million, from the $120 million to $160 million range it gave on Aug. 5.

It lowered the net earnings per share outlook, excluding gains on disposition, impairment losses and retirement and severance costs, to $2.00 to $2.04, from $2.01 to $2.05. It raised general and administrative expenses to $54 million to $56 million, from $53 million to $55 million.

It maintained its 2026 Core FFO per share guidance of $3.50 to $3.54 and its AFFO per share guidance of $3.55 to $3.59.

Investments and dispositions

The company closed on $221.7 million of investments in the quarter at an initial cash cap rate of 7.3%, with a weighted average lease term of 19.6 years. For the first nine months, it closed on $658.1 million of investments.

It sold 32 properties for $50.7 million in the quarter.

Capital and liquidity

The company issued 2,014,352 common shares, primarily under its at-the-market equity program, raising $89.5 million in net proceeds.

As of Sept. 30, gross debt was $5.1 billion, with a weighted average interest rate of 4.2% and a weighted average debt maturity of 9.8 years. Total available liquidity was $1.4 billion.

Dividend

The board declared a quarterly dividend of 62 cents per share, payable Nov. 13 to shareholders of record as of Oct. 30. The dividend annualizes to $2.48 per share.