Second Quarter 2026
Filed Aug 5, 2026NNN REIT reported second-quarter Core FFO and AFFO per share growth, expanded occupancy and ABR, raised acquisition and AFFO guidance, and increased its quarterly dividend.
Core FFO per share was $0.89 and AFFO per share was $0.90, each above prior-year results of $0.84 and $0.85, respectively. Portfolio occupancy reached 99.1%, ABR reached $959,145 (dollars in thousands), and the Company increased 2026 acquisition volume guidance to $700 - $800 million and AFFO per share guidance to $3.55 - $3.59.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $ 244,266 (dollars in thousands) | – | – |
| Net earningsGAAP | $ 97,924 (dollars in thousands) | – | – |
| Net earnings per shareGAAP | $ 0.52 | – | – |
| FFOnon-GAAP | $ 167,819 (dollars in thousands) | – | – |
| FFO per sharenon-GAAP | $ 0.89 | – | – |
| Core FFOnon-GAAP | $ 168,187 (dollars in thousands) | – | – |
| Core FFO per sharenon-GAAP | $ 0.89 | – | 6.0% |
| AFFOnon-GAAP | $ 170,020 (dollars in thousands) | – | – |
| AFFO per sharenon-GAAP | $ 0.90 | – | 5.9% |
| Six Months RevenuesGAAP | $ 484,690 (dollars in thousands) | – | – |
| Six Months Net earningsGAAP | $ 191,875 (dollars in thousands) | – | – |
| Six Months Net earnings per shareGAAP | $ 1.01 | – | – |
| Six Months FFOnon-GAAP | $ 330,969 (dollars in thousands) | – | – |
| Six Months FFO per sharenon-GAAP | $ 1.75 | – | – |
| Six Months Core FFOnon-GAAP | $ 331,771 (dollars in thousands) | – | – |
| Six Months Core FFO per sharenon-GAAP | $ 1.75 | – | – |
| Six Months AFFOnon-GAAP | $ 335,699 (dollars in thousands) | – | – |
| Six Months AFFO per sharenon-GAAP | $ 1.77 | – | – |
| Number of propertiesother | 3,774 | – | – |
| Total gross leasable areaother | 40,440,000 square feet | – | – |
| Occupancy rateother | 99.1 % | 50 basis points | 110 basis points |
| Weighted average remaining lease termother | 10.1 years | – | – |
| ABRnon-GAAP | $ 959,145 (dollars in thousands) | – | 7.3% |
| Total dollars investedother | $ 291,009 (dollars in thousands) | – | – |
| Weighted average cap rate on property acquisitionsother | 7.3 % | – | – |
| Weighted average lease term on property acquisitionsother | 17.9 years | – | – |
| Net sale proceedsother | $ 36,734 (dollars in thousands) | – | – |
| Weighted average cap rate on occupied property dispositionsother | 5.6 % | – | – |
Updated 2026 Guidance outlook
- Operating expensesGeneral and administrative expenses $53 - $55; Real estate expenses, net of tenant reimbursements $13.5 - $14.5
- NoteNet earnings per share excluding any gains on disposition of real estate, impairment losses and retirement and severance costs $2.01 - $2.05
- NoteReal estate depreciation and amortization per share $1.49
- NoteCore FFO per share $3.50 - $3.54
- NoteAFFO per share $3.55 - $3.59
- NoteAcquisition volume $700 - $800 million
- NoteDisposition volume $120 - $160 million
Capital returns
- Paid a $0.60 quarterly dividend, representing a 5.2% annualized dividend yield and a 67% AFFO payout ratio as of June 30, 2026.
- 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.
- Entered into forward sale agreements for 5,999,528 common shares under the ATM at a weighted average price per share of $45.91.
- Issued 1,681,785 common shares, primarily in settlement of forward sale agreements under the ATM, raising $74.0 million in net proceeds.
What drove it
- Core FFO per share increased 6.0% over prior-year results to $0.89 and AFFO per share increased 5.9% to $0.90.
- ABR increased 7.3% over prior-year results to $959.1 million.
- Occupancy was 99.1%, up 50 basis points over the prior quarter and 110 basis points over the prior-year period.
- NNN 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.
- Six-month investment volume was $436.4 million at an initial cash cap rate of 7.4%.
- The Company raised 2026 acquisition volume guidance to $700 - $800 million and increased 2026 AFFO per share guidance to $3.55 - $3.59.
Concerns
- Quarterly net earnings were $97,924 (dollars in thousands), compared with $100,529 (dollars in thousands) in the prior-year quarter.
- Quarterly net earnings per share were $0.52, compared with $0.54 in the prior-year quarter.
- Six-month net earnings were $191,875 (dollars in thousands), compared with $196,987 (dollars in thousands) in the prior-year period.
- Updated 2026 guidance for net earnings per share excluding any gains on disposition of real estate, impairment losses and retirement and severance costs was $2.01 - $2.05, compared with previous guidance of $2.02 - $2.08.
- Gross Debt was $5.1 billion as of June 30, 2026.
What to watch
- Execution against updated 2026 acquisition volume guidance of $700 - $800 million.
- Settlement of 5,999,528 common shares subject to outstanding forward sale agreements, anticipated to raise net proceeds of approximately $272.1 million.
- Portfolio occupancy, which was 99.1% as of June 30, 2026.
- ABR, which was $959,145 (dollars in thousands) as of June 30, 2026.
- Core FFO per share and AFFO per share performance against updated 2026 guidance of $3.50 - $3.54 and $3.55 - $3.59, respectively.
- Disposition activity against updated 2026 guidance of $120 - $160 million.
Balance sheet and cash flow
- 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 as of June 30, 2026.
- Total available liquidity was $1.4 billion, 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 was 5.7x and fixed charge coverage was 4.1x as of June 30, 2026.
- Pro Forma Net Debt to annualized EBITDAre, including the impact of unsettled forward equity, was 5.4x as of 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.
- The SOFR-based margin was lowered to 0.800% from 0.850% for all outstanding Term Loan borrowings and to 0.725% from 0.775% for all Revolving Credit Facility borrowings.
- NNN previously entered into forward starting swaps with a total notional value of $400 million that fix SOFR at 3.30%.
- Outstanding forward sale agreements were anticipated to raise net proceeds of approximately $272.1 million as of June 30, 2026.
Analysis
NNN reported second-quarter revenues of $ 244,266 (dollars in thousands), compared with $ 226,802 (dollars in thousands) in the prior-year quarter. Net earnings were $ 97,924 (dollars in thousands), or $ 0.52 per share, compared with $ 100,529 (dollars in thousands), or $ 0.54 per share. The GAAP earnings comparison contrasts with growth in the Company’s non-GAAP real estate cash-flow measures: FFO per share was $ 0.89 versus $ 0.84, Core FFO per share was $ 0.89 versus $ 0.84, and AFFO per share was $ 0.90 versus $ 0.85.
Portfolio operating indicators strengthened. Occupancy was 99.1 %, compared with 98.6 % at March 31, 2026 and 98.0 % at June 30, 2025. ABR was $ 959,145 (dollars in thousands), compared with $ 934,612 (dollars in thousands) at March 31, 2026 and $ 893,782 (dollars in thousands) at June 30, 2025. The portfolio contained 3,774 properties and 40,440,000 square feet of gross leasable area, while the weighted average remaining lease term was 10.1 years.
Investment activity was substantial during the quarter. NNN invested $ 291,009 (dollars in thousands) across 89 properties at a weighted average cap rate of 7.3 % and a weighted average lease term of 17.9 years. For the six months ended June 30, 2026, total dollars invested were $ 436,403 (dollars in thousands) across 130 properties at a 7.4 % weighted average cap rate. The Company also sold 26 properties for $ 36,734 (dollars in thousands) of net sale proceeds, with occupied dispositions at a 5.6 % weighted average cap rate.
The Company expanded financing capacity and equity funding. It drew the remaining $200 million under its Term Loan, bringing the outstanding balance to $500 million, and reduced applicable SOFR-based margins on the Term Loan and Revolving Credit Facility. NNN entered forward sale agreements for 5,999,528 common shares at a weighted average price per share of $45.91, issued 1,681,785 common shares, and raised $74.0 million in net proceeds. Gross Debt was $5.1 billion, total available liquidity was $1.4 billion, and Pro Forma Net Debt to annualized EBITDAre was 5.4x including unsettled forward equity.
Management raised the 2026 acquisition volume outlook to $700 - $800 million, Core FFO per share guidance to $3.50 - $3.54, and AFFO per share guidance to $3.55 - $3.59. Updated guidance also increased disposition volume to $120 - $160 million. The Board increased the third-quarter dividend to $0.62 per share, an annualized dividend of $2.48 per share, marking the Company’s 37th consecutive annual dividend increase. Attention centers on execution of the expanded acquisition program, settlement of the forward equity, continued occupancy performance, and delivery against the updated Core FFO and AFFO ranges.
Management, verbatim
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.
Steve Horn, Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue and segment operating metrics were not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Revenue guidance was not reported.
- Gross margin guidance was not reported.
- Tax-rate guidance was not reported.
- A separate OUTLOOK section from the previous earnings release was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- Prior-quarter financial results for revenues, net earnings, net earnings per share, FFO, Core FFO, AFFO, and related per-share measures were not reported.
- Percentage changes for revenues, net earnings, net earnings per share, FFO, Core FFO, AFFO, and related per-share measures were not reported on their respective financial-results rows.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.