NNN REIT NNN Q4 2025 Earnings Call Transcript

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Wednesday, Feb. 11, 2026 astatine 10:30 a.m. ET

• Chief Executive Officer — Stephen Horn

• Chief Financial Officer — Vincent Chao

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Stephen Horn: Thanks, Ali, and bully morning. Welcome to NNN REIT's Fourth Quarter 2025 Earnings Call. Joining maine connected the telephone is our Chief Financial Officer, Vin Chao. As outlined successful this morning's property release, NNN delivered a coagulated operating and fiscal show successful 2025, generating 2.7% maturation successful AFFO per stock and completing implicit $900 cardinal of acquisitions, the highest yearly measurement successful NNN's history. The momentum exiting 2025 driven by elevated acquisition enactment and the portfolio absorption of the vacancies positions NNN good entering much uncertain macroeconomic situation successful 2026.

I americium definite successful the team's quality to execute crossed the afloat concern rhythm from sourcing the close opportunities to thoughtful underwriting to proactive absorption of the highly diversified portfolio by geography, tenant and industry. Before turning to the results and the outlook, I privation to item respective accomplishments successful 2025. First, our 36th consecutive yearly dividend increase. We maintained a highly flexible equilibrium sheet, including a 10.8 twelvemonth weighted mean indebtedness maturity, which is best-in-class. No incumbered assets and $1.2 cardinal of full disposable liquidity. We completed the enforcement squad positioning and besides we continued show connected the acquisition level alongside proactive portfolio management.

The semipermanent worth proposition remains unchanged astatine its core, our strategy inactive continues to absorption connected executing a disciplined bottom-up concern approach, increasing the dividend annually portion maintaining a top-tier payout ratio, delivering mid-single-digit AFFO per stock maturation implicit the agelong term, aligning acquisitions, dispositions and equilibrium expanse absorption to enactment these objectives. Turning to our outlook arsenic we determination done aboriginal of 2026, NNN enters the twelvemonth connected coagulated fiscal footing. At year-end, we had $1.2 cardinal of full disposable liquidity, followed by a grounds acquisition year.

Looking ahead, we expect to money our 2026 strategy done a operation of astir $210 cardinal of retained escaped currency flow, astir $130 cardinal of planned dispositions which unneurotic should effect successful manageable equity needs passim the twelvemonth portion maintaining leverage neutral. NNN's self-funding concern exemplary tin consistently present maturation successful bully and challenging economical conditions. Our long-standing attack to superior deployment remains selective and opportunistic volition not change. Current headdress rates person stabilized for the astir part, the 4th fourth archetypal headdress complaint successful enactment with the 3rd 4th and we're seeing that inclination proceed aboriginal successful the archetypal 4th of 2026, but anticipating flimsy compression arsenic we determination further into the year.