Nnn Reit, Inc. · NYSE:NNN
Nnn Reit — Q2 2025 Earnings Presentation
20 slides from Nnn Reit's earnings presentation, Aug 5, 2025
Slide 1: Investor Update
ve REIT NYSE:NNN Investor Update August 2025
Slide 2: Safe Harbor
Safe Harbor (All data as of June 30, 2025) This presentation contains certain statements that are the Company’s and Management’s hopes, intentions, beliefs, expectations, or projections of the future and might be considered to be forward-looking statements under Federal Securities laws. Prospective
Slide 3: Multi-Year View
Multi-Year View CONSECUTIVE ANNUAL DIVIDEND INCREASES IGATING MARKET
Slide 4: Quality Is Our Recipe
QUALITY IS OUR RECIP!
Slide 5: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights ◆ Grew Core FFO and AFFO per diluted share by 1.2% over prior year results, to $0.84 and $0.85, respectively ◆ Increased ABR by 6.7% over the prior year results ◆ Closed on $232.5 million of investments, at an initial cash cap rate of 7.4% and weighted average lease te
Slide 6: Rising Interest Rate & Inflation Update
Rising Interest Rate & Inflation Update ◆ NNN ‘s multi-year approach keeps company well-positioned • Manage each year for current year and next few years • 40-year track record operating in all economic environments ◆ Conservative balance sheet management and strong liquidity • Long-term debt locked
Slide 7: Simple and Consistent Strategy
Simple and Consistent Strategy ◆ Focus on single-tenant net leased (“STNL”) properties ◆ Operate with multi-year strategy focus on per share results ◆ Sustain high occupancy and maximize value of existing real estate assets ◆ Maintain fully diversified portfolio ◆ Grow through internal portfolio gro
Slide 8: Consistent and Simple Strategy
Consistent and Simple Strategy NNN’s Long-Term Single Tenant Net Lease Strategy ◆ Creates a solid foundation of highly predictable operating income NNN’s Disciplined Acquisition Approach ◆ Generates steady earnings growth through higher yields with less risk than development and other acquisitions a
Slide 9: Single Tenant Net Lease Strategy Generates a Reliable Income Stream with Low Volatility
Single Tenant Net Lease Strategy Generates a Reliable Income Stream with Low Volatility ◆ Well-selected tenants provide stronger performance through various economic cycles than office, industrial or other tenant types ◆ Main street locations provide strong market for replacement tenants and rent gr
Slide 10: Thorough Underwriting Strategy
Thorough Underwriting Strategy Buy smart with extensive underwriting process up front ◆ Look for strong real estate locations ◆ For existing tenant AND future alternative tenant NNN’s Disciplined Acquisition Approach ◆ Less money invested allows us to offer lower rent to tenant ◆ Lower rent = lower
Slide 11: Conservative Balance Sheet Management
Conservative Balance Sheet Management As of June 30, 2025 (As a percentage of Total Capital) Gross Debt 36.7% Total Capital - $12.8 billion Gross Debt - $4.7 billion *wtd. avg. maturity 11.1 yrs; wtd. avg. effective interest rate 4.2% Equity - $8.1 billion Interest coverage ratio: 4.2x Fixed-Charge
Slide 12: Well-Laddered Debt Maturities
Well-Laddered Debt Maturities NNN’s Low Leverage Balance Sheet Strategy is Enhanced by its Well-Laddered Debt Maturities* $550 5.6% 5.5% $500 3.5% 3.0% $450 4.0% 3.5% 4.3% 2.5% $400 3.6% $350 4.8% 3.1% Millions $300 $250 $200 $150 $100 $50 $0 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2048 20
Slide 13: Diversification Reduces Risk
Diversification Reduces Risk Nationwide Reach (As a percentage of annual base rent – June 30, 2025) WEST 129 Properties Properties 3,663 4.4% MIDWEST NORTHEAST 1,022 Properties 437 Properties Tenants 400+ 24.3% 14.2% Lines of Trade 35+ ROCKY MOUNTAIN 215 Properties 7.3% Top States by Number of Prope
Slide 14: NNN's Strategy Results in Higher Occupancy and Less Volatility
NNN’s Strategy Results in Higher Occupancy and Less Volatility From 2005 – 2025, NNN’s occupancy never fell below 96.4% while the REIT industry average never rose above 93.7% NNN REIT Industry (Excludes Hotels & Health Care) 100.0% 99.4% 99.5% 99.1% 99.0% 99.1% 99.0% 99.0% 98.6% 98.5% 98.5% 98.3% 98
Slide 15: 2010-2025 Acquisition Volume by Source
2010-2025 Acquisition Volume by Source Relationship @ 7.4% Average Cap Rate ($7,493 million = 74%) Market / Auction @ 7.1% Average Cap Rate ($2,701 million = 26%) ($ in Millions) $848 $820 $900 $847 $850 $772 $716 $752 $800 $755 $726 $750 $707 $700 $630 $618 $650 $600 $565 $555 $550 $500 $465 $450 $
Slide 16: Lease Expirations
Lease Expirations (As a percentage of annual base rent – June 30, 2025) 70% Weighted average remaining lease term of 9.8 years 60% Only 6.1% of leases expire through 2026 55.7% 50% Historically, tenants renew 83% of expiring leases at 97% of prior rent 40% 30% 20% 10% 7.1% 6.8% 5.6% 5.1% 3.9% 4.4% 4
Slide 17: Great People in a Supportive Culture
Great People in a Supportive Culture 10 years Average tenure of is the average tenure Senior Leadership is of an NNN employee 20 years 43% 18% 39% Proud to be recognized as one of <5 yrs 5-10 yrs > 10 years America’s Most Responsible Companies by Newsweek Magazine. Learning & Development Community E
Slide 18: Long-Term Dividend History
Long-Term Dividend History 36 Consecutive Years of Annual Dividend Increases Third longest of all public REITS $2.40 $2.30 $2.20 $2.10 Announced third quarter dividend $2.00 represents an annualized dividend of $2.40 per share with an annualized $1.90 dividend yield of 5.6% as of June 30, 2025. $1.8
Slide 19: NNN Consistently Outperforms the REIT Industry and Major Indices
NNN Consistently Outperforms the REIT Industry and Major Indices Annual Total Return Comparison For Periods Ending June 30, 2025 NNN Outperforms 1 Year 3 Years 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years (NNN = $43.18 at 6/30/2025) NNN REIT, Inc. (NNN) 7.0% 5.6% 9.6% 7.1% 10.0% 9.5% 12.3% 1
Slide 20: 800-NNN-REIT www.nnnreit.com
800-NNN-REIT www.nnnreit.com 20