Exhibit 99.2
ANNUAL SUPPLEMENTAL DATA
|
As of December 31, 2025
ANNUAL SUPPLEMENTAL DATA
|
As of December 31, 2025
TABLE OF CONTENTS
|
PAGE |
Financial Summary |
|
4 |
|
5 |
|
6 |
|
6 |
|
7 |
|
8 |
|
8 |
|
9 |
|
10 |
|
10 |
|
11 |
|
Transaction Summary |
|
12 |
|
12 |
|
Property Portfolio |
|
13 |
|
15 |
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16 |
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17 |
|
18 |
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19 |
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19 |
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20 |
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20 |
2
FORWARD-LOOKING STATEMENTS
Statements in this annual supplemental data 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 NNN REIT, Inc.’s (“NNN” or the “Company”) 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 and on the world 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 Securities and Exchange Commission (the “Commission”) filings, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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 annual supplemental data. 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.
3
BALANCE SHEET SUMMARY |
(dollars in thousands)
(unaudited)
|
|
December 31, |
|
|
December 31, |
|
||
Assets: |
|
|
|
|
|
|
||
Real estate portfolio, net of accumulated depreciation and amortization |
|
$ |
9,239,542 |
|
|
$ |
8,746,168 |
|
Cash and cash equivalents |
|
|
5,046 |
|
|
|
8,731 |
|
Restricted cash and cash held in escrow |
|
|
776 |
|
|
|
331 |
|
Receivables, net of allowance of $609 and $617, respectively |
|
|
3,470 |
|
|
|
2,975 |
|
Accrued rental income, net of allowance of $3,393 and $4,156, respectively |
|
|
34,914 |
|
|
|
34,005 |
|
Debt costs, net of accumulated amortization of $29,930 and $27,002, respectively |
|
|
8,645 |
|
|
|
8,958 |
|
Other assets |
|
|
86,962 |
|
|
|
71,560 |
|
Total assets |
|
$ |
9,379,355 |
|
|
$ |
8,872,728 |
|
|
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Line of credit payable |
|
$ |
348,100 |
|
|
$ |
— |
|
Notes payable, net of unamortized discount and unamortized debt costs |
|
|
4,472,324 |
|
|
|
4,373,803 |
|
Accrued interest payable |
|
|
40,557 |
|
|
|
29,699 |
|
Other liabilities |
|
|
110,072 |
|
|
|
106,951 |
|
Total liabilities |
|
|
4,971,053 |
|
|
|
4,510,453 |
|
|
|
|
|
|
|
|
||
Total equity |
|
|
4,408,302 |
|
|
|
4,362,275 |
|
|
|
|
|
|
|
|
||
Total liabilities and equity |
|
$ |
9,379,355 |
|
|
$ |
8,872,728 |
|
|
|
|
|
|
|
|
||
Common shares outstanding |
|
|
189,937,404 |
|
|
|
187,540,929 |
|
4
INCOME STATEMENT SUMMARY |
(dollars in thousands, except per share data)
(unaudited)
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income |
|
$ |
237,535 |
|
|
$ |
218,348 |
|
|
$ |
924,380 |
|
|
$ |
867,468 |
|
Interest and other income from real estate transactions |
|
|
863 |
|
|
|
134 |
|
|
|
1,833 |
|
|
|
1,798 |
|
|
|
|
238,398 |
|
|
|
218,482 |
|
|
|
926,213 |
|
|
|
869,266 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative |
|
|
11,642 |
|
|
|
8,705 |
|
|
|
46,923 |
|
|
|
44,287 |
|
Real estate |
|
|
10,040 |
|
|
|
11,142 |
|
|
|
37,381 |
|
|
|
32,317 |
|
Depreciation and amortization |
|
|
68,221 |
|
|
|
63,194 |
|
|
|
268,439 |
|
|
|
249,681 |
|
Leasing transaction costs |
|
|
151 |
|
|
|
24 |
|
|
|
486 |
|
|
|
99 |
|
Impairment losses – real estate, net of recoveries |
|
|
15,360 |
|
|
|
3,724 |
|
|
|
28,602 |
|
|
|
6,632 |
|
Retirement and severance costs |
|
|
62 |
|
|
|
42 |
|
|
|
3,116 |
|
|
|
668 |
|
|
|
|
105,476 |
|
|
|
86,831 |
|
|
|
384,947 |
|
|
|
333,684 |
|
Gain on disposition of real estate |
|
|
15,639 |
|
|
|
12,083 |
|
|
|
48,220 |
|
|
|
42,290 |
|
Earnings from operations |
|
|
148,561 |
|
|
|
143,734 |
|
|
|
589,486 |
|
|
|
577,872 |
|
Other expenses (revenues): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and other income |
|
|
(962 |
) |
|
|
(1,040 |
) |
|
|
(4,246 |
) |
|
|
(2,980 |
) |
Interest expense |
|
|
53,572 |
|
|
|
46,880 |
|
|
|
203,955 |
|
|
|
184,017 |
|
|
|
|
52,610 |
|
|
|
45,840 |
|
|
|
199,709 |
|
|
|
181,037 |
|
Net earnings |
|
$ |
95,951 |
|
|
$ |
97,894 |
|
|
$ |
389,777 |
|
|
$ |
396,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
188,832,131 |
|
|
|
186,449,345 |
|
|
|
187,611,451 |
|
|
|
183,688,562 |
|
Diluted |
|
|
189,237,718 |
|
|
|
186,833,150 |
|
|
|
187,986,798 |
|
|
|
184,043,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.51 |
|
|
$ |
0.52 |
|
|
$ |
2.07 |
|
|
$ |
2.16 |
|
Diluted |
|
$ |
0.51 |
|
|
$ |
0.52 |
|
|
$ |
2.07 |
|
|
$ |
2.15 |
|
5
FUNDS FROM OPERATIONS ("FFO")(1) |
(dollars in thousands, except per share data)
(unaudited)
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net earnings |
|
$ |
95,951 |
|
|
$ |
97,894 |
|
|
$ |
389,777 |
|
|
$ |
396,835 |
|
Real estate depreciation and amortization |
|
|
68,125 |
|
|
|
63,154 |
|
|
|
268,223 |
|
|
|
249,324 |
|
Gain on disposition of real estate |
|
|
(15,639 |
) |
|
|
(12,083 |
) |
|
|
(48,220 |
) |
|
|
(42,290 |
) |
Impairment losses – depreciable real estate, net of recoveries |
|
|
15,360 |
|
|
|
3,724 |
|
|
|
28,602 |
|
|
|
6,632 |
|
Total FFO adjustments |
|
|
67,846 |
|
|
|
54,795 |
|
|
|
248,605 |
|
|
|
213,666 |
|
FFO |
|
$ |
163,797 |
|
|
$ |
152,689 |
|
|
$ |
638,382 |
|
|
$ |
610,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.87 |
|
|
$ |
0.82 |
|
|
$ |
3.40 |
|
|
$ |
3.32 |
|
Diluted |
|
$ |
0.87 |
|
|
$ |
0.82 |
|
|
$ |
3.40 |
|
|
$ |
3.32 |
|
(1) |
FFO is a non-GAAP financial measure. Please reference the Company’s earnings press release (included as Exhibit 99.1) for the quarter and year ended December 31, 2025 for the Company's definition and explanation of how the Company utilizes this metric. |
CORE FUNDS FROM OPERATIONS ("Core FFO")(1) |
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net earnings |
|
$ |
95,951 |
|
|
$ |
97,894 |
|
|
$ |
389,777 |
|
|
$ |
396,835 |
|
Total FFO adjustments |
|
|
67,846 |
|
|
|
54,795 |
|
|
|
248,605 |
|
|
|
213,666 |
|
FFO |
|
|
163,797 |
|
|
|
152,689 |
|
|
|
638,382 |
|
|
|
610,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Retirement and severance costs |
|
|
62 |
|
|
|
42 |
|
|
|
3,116 |
|
|
|
668 |
|
Total Core FFO adjustments |
|
|
62 |
|
|
|
42 |
|
|
|
3,116 |
|
|
|
668 |
|
Core FFO |
|
$ |
163,859 |
|
|
$ |
152,731 |
|
|
$ |
641,498 |
|
|
$ |
611,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Core FFO per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.87 |
|
|
$ |
0.82 |
|
|
$ |
3.42 |
|
|
$ |
3.33 |
|
Diluted |
|
$ |
0.87 |
|
|
$ |
0.82 |
|
|
$ |
3.41 |
|
|
$ |
3.32 |
|
(1) |
Core FFO is a non-GAAP financial measure. Please reference the Company’s earnings press release (included as Exhibit 99.1) for the quarter and year ended December 31, 2025 for the Company's definition and explanation of how the Company utilizes this metric. |
6
ADJUSTED FUNDS FROM OPERATIONS ("AFFO")(1) |
(dollars in thousands, except per share data)
(unaudited)
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net earnings |
|
$ |
95,951 |
|
|
$ |
97,894 |
|
|
$ |
389,777 |
|
|
$ |
396,835 |
|
Total FFO adjustments |
|
|
67,846 |
|
|
|
54,795 |
|
|
|
248,605 |
|
|
|
213,666 |
|
Total Core FFO adjustments |
|
|
62 |
|
|
|
42 |
|
|
|
3,116 |
|
|
|
668 |
|
Core FFO |
|
|
163,859 |
|
|
|
152,731 |
|
|
|
641,498 |
|
|
|
611,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line accrued rent, net of reserves |
|
|
(1,206 |
) |
|
|
(302 |
) |
|
|
(1,921 |
) |
|
|
(294 |
) |
Net capital lease rent adjustment |
|
|
49 |
|
|
|
58 |
|
|
|
233 |
|
|
|
222 |
|
Below-market rent amortization |
|
|
(117 |
) |
|
|
(144 |
) |
|
|
(1,898 |
) |
|
|
(495 |
) |
Stock based compensation expense |
|
|
2,831 |
|
|
|
2,775 |
|
|
|
12,025 |
|
|
|
11,816 |
|
Capitalized interest expense |
|
|
(439 |
) |
|
|
(1,061 |
) |
|
|
(2,359 |
) |
|
|
(5,805 |
) |
Total AFFO adjustments |
|
|
1,118 |
|
|
|
1,326 |
|
|
|
6,080 |
|
|
|
5,444 |
|
AFFO |
|
$ |
164,977 |
|
|
$ |
154,057 |
|
|
$ |
647,578 |
|
|
$ |
616,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFFO per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.87 |
|
|
$ |
0.83 |
|
|
$ |
3.45 |
|
|
$ |
3.36 |
|
Diluted |
|
$ |
0.87 |
|
|
$ |
0.82 |
|
|
$ |
3.44 |
|
|
$ |
3.35 |
|
(1) |
AFFO is a non-GAAP financial measure. Please reference the Company’s earnings press release (included as Exhibit 99.1) for the quarter and year ended December 31, 2025 for the Company's definition and explanation of how the Company utilizes this metric. |
7
OTHER INFORMATION |
(dollars in thousands)
(unaudited)
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Rental income from operating leases(1)(2) |
|
$ |
231,546 |
|
|
$ |
212,565 |
|
|
$ |
902,369 |
|
|
$ |
846,653 |
|
Earned income from direct financing leases(1) |
|
$ |
87 |
|
|
$ |
115 |
|
|
$ |
424 |
|
|
$ |
468 |
|
Percentage rent(1) |
|
$ |
168 |
|
|
$ |
189 |
|
|
$ |
1,549 |
|
|
$ |
1,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real estate expenses reimbursed from tenants(1) |
|
$ |
5,734 |
|
|
$ |
5,479 |
|
|
$ |
20,038 |
|
|
$ |
18,811 |
|
Real estate expenses |
|
|
(10,040 |
) |
|
|
(11,142 |
) |
|
|
(37,381 |
) |
|
|
(32,317 |
) |
Real estate expenses, net of tenant reimbursements |
|
$ |
(4,306 |
) |
|
$ |
(5,663 |
) |
|
$ |
(17,343 |
) |
|
$ |
(13,506 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of debt costs |
|
$ |
1,644 |
|
|
$ |
1,455 |
|
|
$ |
6,218 |
|
|
$ |
5,993 |
|
Non-real estate depreciation expense |
|
$ |
99 |
|
|
$ |
43 |
|
|
$ |
229 |
|
|
$ |
370 |
|
(1) |
For the quarters ended December 31, 2025 and 2024, the aggregate of such amounts is $237,535 and $218,348, respectively, and $924,380 and $867,468, for the year ended December 31, 2025 and 2024, respectively, and is classified as rental income on the income statement summary. |
(2) |
Includes lease termination fees of $243 and $1,234 for the quarters ended December 31, 2025 and 2024, respectively, and $11,363 and $11,386 for the year ended December 31, 2025 and 2024, respectively. |
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE ("EBITDAre")(1) |
|
|
Quarter Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net earnings |
|
$ |
95,951 |
|
|
$ |
97,894 |
|
|
$ |
389,777 |
|
|
$ |
396,835 |
|
Interest expense |
|
|
53,572 |
|
|
|
46,880 |
|
|
|
203,955 |
|
|
|
184,017 |
|
Depreciation and amortization |
|
|
68,221 |
|
|
|
63,194 |
|
|
|
268,439 |
|
|
|
249,681 |
|
Gain on disposition of real estate |
|
|
(15,639 |
) |
|
|
(12,083 |
) |
|
|
(48,220 |
) |
|
|
(42,290 |
) |
Impairment losses – real estate, net of recoveries |
|
|
15,360 |
|
|
|
3,724 |
|
|
|
28,602 |
|
|
|
6,632 |
|
EBITDAre |
|
$ |
217,465 |
|
|
$ |
199,609 |
|
|
$ |
842,553 |
|
|
$ |
794,875 |
|
(1) |
EBITDAre is non-GAAP financial measure. Please reference the Company’s earnings press release (included as Exhibit 99.1) for the quarter and year ended December 31, 2025 for the Company's definition and explanation of how the Company utilizes this metric. |
8
DEBT SUMMARY |
As of December 31, 2025 |
|
(dollars in thousands) |
|
(unaudited) |
Unsecured Debt |
|
Principal |
|
|
Principal, |
|
|
Stated |
|
|
Effective |
|
|
Maturity |
||||
Line of credit payable |
|
$ |
348,100 |
|
|
$ |
348,100 |
|
|
SOFR + 77.5bps |
|
|
|
4.435 |
% |
|
April 2028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Term loan payable(1) |
|
|
— |
|
|
|
— |
|
|
SOFR + 85 bps |
|
|
|
— |
|
|
February 2029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Notes payable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
2026 |
|
|
350,000 |
|
|
|
349,566 |
|
|
|
3.600 |
% |
|
|
3.733 |
% |
|
December 2026 |
2027 |
|
|
400,000 |
|
|
|
399,667 |
|
|
|
3.500 |
% |
|
|
3.548 |
% |
|
October 2027 |
2028 |
|
|
400,000 |
|
|
|
399,081 |
|
|
|
4.300 |
% |
|
|
4.388 |
% |
|
October 2028 |
2030 |
|
|
400,000 |
|
|
|
399,413 |
|
|
|
2.500 |
% |
|
|
2.536 |
% |
|
April 2030 |
2031 |
|
|
500,000 |
|
|
|
496,224 |
|
|
|
4.600 |
% |
|
|
4.766 |
% |
|
February 2031 |
2033 |
|
|
500,000 |
|
|
|
490,514 |
|
|
|
5.600 |
% |
|
|
5.905 |
% |
|
October 2033 |
2034 |
|
|
500,000 |
|
|
|
494,598 |
|
|
|
5.500 |
% |
|
|
5.662 |
% |
|
June 2034 |
2048 |
|
|
300,000 |
|
|
|
296,305 |
|
|
|
4.800 |
% |
|
|
4.890 |
% |
|
October 2048 |
2050 |
|
|
300,000 |
|
|
|
294,703 |
|
|
|
3.100 |
% |
|
|
3.205 |
% |
|
April 2050 |
2051 |
|
|
450,000 |
|
|
|
442,410 |
|
|
|
3.500 |
% |
|
|
3.602 |
% |
|
April 2051 |
2052 |
|
|
450,000 |
|
|
|
440,513 |
|
|
|
3.000 |
% |
|
|
3.118 |
% |
|
April 2052 |
Total |
|
|
4,550,000 |
|
|
|
4,502,994 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total unsecured debt(2) |
|
$ |
4,898,100 |
|
|
$ |
4,851,094 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt costs |
|
|
|
|
$ |
(44,420 |
) |
|
|
|
|
|
|
|
|
|||
Accumulated amortization |
|
|
|
13,750 |
|
|
|
|
|
|
|
|
|
|||||
Debt costs, net of accumulated amortization |
|
|
|
(30,670 |
) |
|
|
|
|
|
|
|
|
|||||
Notes payable, net of unamortized discount and |
|
|
$ |
4,472,324 |
|
|
|
|
|
|
|
|
|
|||||
(1) |
On January 15, 2026, the Company drew $200 million on the Term Loan and previously entered into swaps with a notional value of $200 million that fix SOFR at 3.22% through January 15, 2029. |
(2) |
Unsecured debt has a weighted average interest rate of 4.2% and a weighted average maturity of 10.8 years. |
9
CAPITAL STRUCTURE |
As of December 31, 2025 As a percentage of total capital ($12,425.3 million) • Gross Debt – $4,898.1 million • Equity Market Value – $7,527.2 million
|
|
CREDIT METRICS (1) |
Ratings: Moody's Baa1; S&P BBB+
|
|
2021 |
|
2022 |
|
2023 |
|
2024 |
|
2025 |
Gross Debt / Gross Assets |
|
41.3% |
|
40.5% |
|
42.1% |
|
40.7% |
|
42.1% |
Gross Debt + Preferred / Gross Assets |
|
41.3% |
|
40.5% |
|
42.1% |
|
40.7% |
|
42.1% |
Net Debt / EBITDAre (last quarter annualized) |
|
5.4x |
|
5.5x |
|
5.7x |
|
5.6x |
|
5.6x |
Net Debt + Preferred / EBITDAre (last quarter annualized) |
|
5.4x |
|
5.5x |
|
5.7x |
|
5.6x |
|
5.6x |
EBITDAre / Interest expense (cash) |
|
4.6x |
|
4.7x |
|
4.5x |
|
4.2x |
|
4.1x |
EBITDAre / Fixed charges (cash) |
|
4.1x |
|
4.7x |
|
4.5x |
|
4.2x |
|
4.1x |
(1) |
Gross Debt, Gross Assets, Net Debt and EBITDAre are non-GAAP financial measures. Please reference the Company’s earnings press release (included as Exhibit 99.1) for the quarter and year ended December 31, 2025 for the Company's definition and explanation of how the Company utilizes these metrics. |
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, respectively, which are included in the Company's filings with the Commission. These calculations, which are not based on GAAP measurements, are presented to investors to show that as of December 31, 2025, the Company believes it is in compliance with the covenants.
10
Key Covenants |
|
Required |
|
December 31, 2025 |
Unsecured Bank Credit Facility and Term Loan: |
|
|
|
|
Maximum leverage ratio |
|
< 0.60x |
|
0.38x |
Minimum fixed charge coverage ratio |
|
> 1.50x |
|
4.14x |
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% |
|
41% |
Limitation on incurrence of secured debt |
|
≤ 40% |
|
— |
Debt service coverage ratio |
|
≥ 1.5x |
|
4.1x |
Maintenance of total unencumbered assets |
|
≥ 150% |
|
241% |
LONG-TERM DIVIDEND HISTORY |
11
PROPERTY ACQUISITIONS |
(dollars in thousands) |
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Total dollars invested(1) |
|
$ |
931,017 |
|
|
$ |
565,416 |
|
Number of properties |
|
|
239 |
|
|
|
75 |
|
Gross leasable area (square feet)(2) |
|
|
4,193,000 |
|
|
|
1,486,000 |
|
Weighted average cap rate (3) |
|
|
7.4 |
% |
|
|
7.7 |
% |
Weighted average lease term (years) |
|
|
17.6 |
|
|
|
18.5 |
|
(1) |
Includes dollars invested in projects under construction or tenant improvements for each respective year. |
(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 |
(dollars in thousands) |
|
Year Ended December 31, |
|
|||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
|
Occupied |
|
|
Vacant |
|
|
Total |
|
|
Occupied |
|
|
Vacant |
|
|
Total |
|
||||||
Number of properties |
|
|
49 |
|
|
|
67 |
|
|
|
116 |
|
|
|
27 |
|
|
|
14 |
|
|
|
41 |
|
Gross leasable area (square feet) |
|
|
420,000 |
|
|
|
659,000 |
|
|
|
1,079,000 |
|
|
|
640,000 |
|
|
|
209,000 |
|
|
|
849,000 |
|
Acquisition costs |
|
$ |
77,535 |
|
|
$ |
149,891 |
|
|
$ |
227,426 |
|
|
$ |
117,556 |
|
|
$ |
30,276 |
|
|
$ |
147,832 |
|
Net book value |
|
$ |
56,668 |
|
|
$ |
85,586 |
|
|
$ |
142,254 |
|
|
$ |
84,212 |
|
|
$ |
22,294 |
|
|
$ |
106,506 |
|
Net sale proceeds |
|
$ |
90,738 |
|
|
$ |
99,736 |
|
|
$ |
190,474 |
|
|
$ |
115,923 |
|
|
$ |
32,735 |
|
|
$ |
148,658 |
|
Weighted average cap rate(1) |
|
|
6.4 |
% |
|
|
— |
|
|
|
6.4 |
% |
|
|
7.3 |
% |
|
|
— |
|
|
|
7.3 |
% |
(1) |
Calculated as the cash annual base rent divided by the total gross proceeds received for the occupied properties. |
12
PROPERTY PORTFOLIO |
(dollars in thousands) |
|
December 31, 2025 |
|
|
September 30, 2025 |
|
|
December 31, 2024 |
|
|||
Number of properties |
|
|
3,692 |
|
|
|
3,697 |
|
|
|
3,568 |
|
Total gross leasable area (square feet) |
|
|
39,578,000 |
|
|
|
39,209,000 |
|
|
|
36,557,000 |
|
Occupancy rate |
|
|
98.3 |
% |
|
|
97.5 |
% |
|
|
98.5 |
% |
Weighted average remaining lease term (years) |
|
|
10.2 |
|
|
|
10.1 |
|
|
|
9.9 |
|
ABR(1) |
|
$ |
928,081 |
|
|
$ |
912,218 |
|
|
$ |
860,562 |
|
(1) |
Annualized Base Rent (“ABR”) is non-GAAP financial measure. Please reference the Company’s earnings press release (included as Exhibit 99.1) for the quarter and year ended December 31, 2025 for the Company's definition and explanation of how the Company utilizes this metric. |
LEASE EXPIRATIONS(1) |
|
|
# of Properties |
|
Gross Leasable |
|
% of |
|
|
|
# of Properties |
|
Gross Leasable |
|
% of |
2026 |
|
117 |
|
1,019,000 |
|
2.1% |
|
2032 |
|
188 |
|
1,840,000 |
|
4.9% |
2027 |
|
203 |
|
2,714,000 |
|
6.3% |
|
2033 |
|
134 |
|
1,401,000 |
|
4.3% |
2028 |
|
221 |
|
1,970,000 |
|
4.9% |
|
2034 |
|
194 |
|
2,838,000 |
|
5.9% |
2029 |
|
137 |
|
2,043,000 |
|
4.2% |
|
2035 |
|
135 |
|
1,794,000 |
|
4.2% |
2030 |
|
184 |
|
2,417,000 |
|
4.7% |
|
Thereafter |
|
1,853 |
|
17,833,000 |
|
50.6% |
2031 |
|
261 |
|
3,086,000 |
|
7.9% |
|
|
|
|
|
|
|
|
(1) |
As of December 31, 2025, the weighted average remaining lease term is 10.2 years. |
(2) |
Square feet. |
13
14
TOP 20 LINES OF TRADE |
As of December 31, 2025
|
|
Lines of Trade |
|
# of |
|
# of |
|
% of |
1. |
|
Automotive service |
|
48 |
|
740 |
|
18.6% |
2. |
|
Convenience stores |
|
30 |
|
685 |
|
16.3% |
3. |
|
Restaurants – limited service |
|
61 |
|
620 |
|
7.9% |
4. |
|
Entertainment |
|
8 |
|
97 |
|
7.2% |
5. |
|
Dealerships |
|
20 |
|
111 |
|
6.6% |
6. |
|
Restaurants – full service |
|
72 |
|
333 |
|
6.4% |
7. |
|
Health and fitness |
|
8 |
|
37 |
|
3.9% |
8. |
|
Theaters |
|
5 |
|
33 |
|
3.7% |
9. |
|
Automotive parts |
|
7 |
|
143 |
|
3.2% |
10. |
|
Equipment rental |
|
4 |
|
105 |
|
3.1% |
11. |
|
Wholesale clubs |
|
1 |
|
13 |
|
2.3% |
12. |
|
Drug stores |
|
3 |
|
60 |
|
2.0% |
13. |
|
Home improvement |
|
10 |
|
49 |
|
1.9% |
14. |
|
Medical service providers |
|
29 |
|
87 |
|
1.8% |
15. |
|
Pet supplies and services |
|
12 |
|
59 |
|
1.7% |
16. |
|
Early childhood education |
|
6 |
|
61 |
|
1.4% |
17. |
|
Discount retail |
|
7 |
|
67 |
|
1.4% |
18. |
|
Furniture |
|
14 |
|
43 |
|
1.2% |
19. |
|
Travel plazas |
|
4 |
|
24 |
|
1.2% |
20. |
|
Consumer electronics |
|
1 |
|
16 |
|
1.1% |
|
|
Other |
|
85 |
|
309 |
|
7.1% |
|
|
Total |
|
|
|
3,692 |
|
100.0% |
15
TOP 20 STATES |
As of December 31, 2025
|
|
State |
|
# of |
|
# of |
|
% of |
1. |
|
Texas |
|
99 |
|
594 |
|
18.4% |
2. |
|
Florida |
|
98 |
|
270 |
|
8.7% |
3. |
|
Illinois |
|
51 |
|
179 |
|
5.1% |
4. |
|
Georgia |
|
64 |
|
172 |
|
4.5% |
5. |
|
Ohio |
|
71 |
|
215 |
|
4.2% |
6. |
|
Michigan |
|
31 |
|
136 |
|
3.8% |
7. |
|
Indiana |
|
44 |
|
165 |
|
3.7% |
8. |
|
Tennessee |
|
46 |
|
156 |
|
3.7% |
9. |
|
Arizona |
|
35 |
|
86 |
|
3.5% |
10. |
|
North Carolina |
|
46 |
|
158 |
|
3.5% |
11. |
|
Virginia |
|
45 |
|
119 |
|
3.3% |
12. |
|
Alabama |
|
38 |
|
155 |
|
2.9% |
13. |
|
California |
|
26 |
|
71 |
|
2.9% |
14. |
|
Pennsylvania |
|
39 |
|
87 |
|
2.3% |
15. |
|
New Jersey |
|
20 |
|
33 |
|
2.3% |
16. |
|
Missouri |
|
33 |
|
102 |
|
2.2% |
17. |
|
Colorado |
|
27 |
|
46 |
|
2.0% |
18. |
|
Maryland |
|
19 |
|
50 |
|
2.0% |
19. |
|
South Carolina |
|
29 |
|
80 |
|
2.0% |
20. |
|
Louisiana |
|
30 |
|
65 |
|
1.8% |
|
|
Other |
|
166 |
|
753 |
|
17.2% |
|
|
Total |
|
|
|
3,692 |
|
100.0% |
16
TOP 20 METROPOLITAN STATISTICAL AREAS |
As of December 31, 2025
|
|
MSA |
|
# of |
|
# of |
|
% of |
1. |
|
Dallas-Fort Worth-Arlington, TX |
|
53 |
|
115 |
|
4.4% |
2. |
|
Chicago-Naperville-Elgin, IL-IN-WI |
|
44 |
|
116 |
|
3.7% |
3. |
|
Atlanta-Sandy Springs-Alpharetta, GA |
|
48 |
|
103 |
|
3.2% |
4. |
|
Phoenix-Mesa-Chandler, AZ |
|
26 |
|
52 |
|
2.4% |
5. |
|
Houston-The Woodlands-Sugar Land, TX |
|
31 |
|
72 |
|
2.3% |
6. |
|
Washington-Arlington-Alexandria, DC-VA-MD-WV |
|
20 |
|
36 |
|
1.9% |
7. |
|
Detroit-Warren-Dearborn, MI |
|
18 |
|
54 |
|
1.8% |
8. |
|
Tampa-St. Petersburg-Clearwater, FL |
|
28 |
|
53 |
|
1.8% |
9. |
|
Orlando-Kissimmee-Sanford, FL |
|
31 |
|
36 |
|
1.7% |
10. |
|
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD |
|
18 |
|
30 |
|
1.6% |
11. |
|
Charlotte-Concord-Gastonia, NC-SC |
|
24 |
|
57 |
|
1.4% |
12. |
|
Austin-Round Rock-Georgetown, TX |
|
17 |
|
40 |
|
1.3% |
13. |
|
New York-Newark-Jersey City, NY-NJ-PA |
|
17 |
|
33 |
|
1.3% |
14. |
|
Denver-Aurora-Lakewood, CO |
|
16 |
|
21 |
|
1.3% |
15. |
|
Indianapolis-Carmel-Anderson, IN |
|
22 |
|
65 |
|
1.3% |
16. |
|
San Antonio-New Braunfels, TX |
|
14 |
|
42 |
|
1.3% |
17. |
|
St. Louis, MO-IL |
|
23 |
|
52 |
|
1.2% |
18. |
|
Miami-Fort Lauderdale-Pompano Beach, FL |
|
20 |
|
30 |
|
1.2% |
19. |
|
Memphis, TN-MS-AR |
|
23 |
|
40 |
|
1.1% |
20. |
|
Midland, TX |
|
6 |
|
23 |
|
1.1% |
|
|
Other |
|
329 |
|
2,622 |
|
62.7% |
|
|
Total |
|
|
|
3,692 |
|
100.0% |
17
TOP 20 TENANTS |
As of December 31, 2025
|
|
Tenant |
|
Primary Line of Trade |
|
# of |
|
% of |
1. |
|
7-Eleven |
|
Convenience stores |
|
145 |
|
4.3% |
2. |
|
Mister Car Wash |
|
Automotive service |
|
120 |
|
3.8% |
3. |
|
Dave & Buster's |
|
Entertainment |
|
34 |
|
3.6% |
4. |
|
Camping World |
|
Dealerships |
|
46 |
|
3.5% |
5. |
|
Kent Distributors |
|
Convenience stores |
|
64 |
|
2.6% |
6. |
|
Flynn Restaurant Group |
|
Restaurants - limited service |
|
204 |
|
2.5% |
7. |
|
GPM Investments |
|
Convenience stores |
|
143 |
|
2.5% |
8. |
|
AMC Theatres |
|
Theaters |
|
20 |
|
2.4% |
9. |
|
BJ's Wholesale Club |
|
Wholesale clubs |
|
13 |
|
2.3% |
10. |
|
LA Fitness |
|
Health and fitness |
|
25 |
|
2.2% |
11. |
|
Mavis Tire Express Services |
|
Automotive service |
|
140 |
|
2.1% |
12. |
|
Couche-Tard |
|
Convenience stores |
|
92 |
|
2.0% |
13. |
|
Chuck E. Cheese |
|
Entertainment |
|
51 |
|
1.7% |
14. |
|
Walgreens |
|
Drug stores |
|
49 |
|
1.7% |
15. |
|
Sunoco |
|
Convenience stores |
|
53 |
|
1.7% |
16. |
|
United Rentals |
|
Equipment rental |
|
49 |
|
1.6% |
17. |
|
Casey's General Stores |
|
Convenience stores |
|
62 |
|
1.6% |
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 |
|
40 |
|
1.2% |
|
|
Other |
|
|
|
2,274 |
|
54.0% |
|
|
Total |
|
|
|
3,692 |
|
100.0% |
18
SAME STORE RENTAL INCOME |
(dollars in thousands)
Properties (Cash Basis) (1) |
|
|
|
|
Number of properties |
|
|
3,306 |
|
Year ended December 31, 2025 |
|
$ |
788,987 |
|
Year ended December 31, 2024 |
|
$ |
786,167 |
|
Change (in dollars) |
|
$ |
2,820 |
|
Change (percent) (2) |
|
|
0.4 |
% |
(1) |
Includes all properties owned for current and prior year period excluding any properties under development or re-development. |
(2) |
Excluding impact of Frisch's Restaurants and Badcock Furniture bankruptcy, change would have been 1.1% |
LEASING DATA |
(dollars in thousands)
Year Ended December 31, 2025 |
|
Renewals With |
|
|
Vacancy Re-Lease |
|
|
Releasing |
|
|
|||
Number of leases |
|
|
187 |
|
|
|
26 |
|
|
|
213 |
|
|
New cash rents |
|
$ |
44,752 |
|
|
$ |
5,056 |
|
|
$ |
49,808 |
|
|
Prior cash rents |
|
$ |
42,265 |
|
|
$ |
4,670 |
|
|
$ |
46,935 |
|
(2) |
Recovery rate |
|
|
105.9 |
% |
|
|
108.3 |
% |
|
|
106.1 |
% |
|
Tenant improvements |
|
$ |
8,050 |
|
|
$ |
8,372 |
|
|
$ |
16,422 |
|
|
(1) |
Long-term renewal rate for the period of 2011 through 2025 was 84.1%. |
(2) |
Represents 5.1% of total ABR as of December 31, 2025. |
19
OTHER PROPERTY PORTFOLIO DATA |
As of December 31, 2025
|
|
# of |
|
% of ABR |
Property level financial information |
|
3,097 |
|
83% |
Tenant corporate financials |
|
2,873 |
|
79% |
Rent Increases |
|
% of ABR |
||||||
|
|
Annual |
|
Five Year |
|
Other |
|
Total |
CPI |
|
37% |
|
43% |
|
1% |
|
81% |
Fixed |
|
3% |
|
12% |
|
1% |
|
16% |
No increases |
|
— |
|
— |
|
3% |
|
3% |
|
|
40% |
|
55% |
|
5% |
|
100% |
INITIAL EARNINGS GUIDANCE |
Guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in the Company’s earnings press release for the quarter and year ended December 31, 2025 and the Company's reports filed with the Commission.
(dollars in millions, except per diluted share data) |
|
Initial |
Net earnings per share excluding any gains on disposition of real estate, impairment losses and retirement and severance costs |
|
$2.02 - $2.08 |
Real estate depreciation and amortization per share |
|
$1.45 |
Core FFO per share |
|
$3.47 - $3.53 |
AFFO per share |
|
$3.52 - $3.58 |
General and administrative expenses |
|
$53 - $55 |
Real estate expenses, net of tenant reimbursements |
|
$14 - $15 |
Acquisition volume |
|
$550 - $650 |
Disposition volume |
|
$110 - $150 |
20
