Slide 1: Investor Update
Investor Update October 2024
Slide 2: Safe Harbor
Safe Harbor (All data as of September 30, 2024) 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. Prospec
Slide 3: Multi-Year View
Multi-Year View CONSECUTIVE ANNUAL DIVIDEND INCREASES N th on the FUTURE
Slide 4: Mister
Mister Pee I.
Slide 5: Q3 2024 Highlights
Q3 2024 Highlights ◆ Dividend Yield at September 30, 2024 of 4.7% ◆ Maintained high level of occupancy at 99.3% ◆ Invested $113.6 million in property investments, including the acquisition of eight properties @ 7.6% initial cash cap rate, with a weighted average remaining lease term of 18 years ◆ So
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 lease retail 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 growth
Slide 8: Consistent and Simple Strategy
Consistent and Simple Strategy NNN’s Long-Term Retail 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 approach
Slide 9: Retail Net Lease Strategy Generates a Reliable Income Stream with Low Volatility
Retail Net Lease Strategy Generates a Reliable Income Stream with Low Volatility ◆ Well-selected retail 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 retail 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 retailer ◆ Lower rent
Slide 11: Conservative Balance Sheet Management
Conservative Balance Sheet Management As of September 30, 2024 – Total Gross Book Assets Unsecured Debt 39.6% Unsecured Debt - $4,193.8 million *wtd. avg. maturity 12.3yrs; wtd. avg. effective interest rate 4.1% Common Equity - $6,385.6 million Total Capitalization $10.6 billion (gross book) Interes
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 – September 30, 2024) WEST 130 Properties Properties 3,549 4.6% MIDWEST NORTHEAST 943 Properties 431 Properties Tenants 375+ 24.6% 14.2% Lines of Trade 37+ ROCKY MOUNTAIN 216 Properties 7.2% Top States by Number of Pr
Slide 14: NNN's Strategy Results in Higher Occupancy and Less Volatility
NNN’s Strategy Results in Higher Occupancy and Less Volatility From 2004 – 2024, 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% 99.2% 99.3% 99.1% 99.1% 99.0% 99.0% 98.6% 98.5% 98.3% 98
Slide 15: 2007-2024 Acquisition Volume by Source
2007-2024 Acquisition Volume by Source Relationship @ 7.5% Average Cap Rate ($7,678 million = 72%) Market / Auction @ 7.3% Average Cap Rate ($2,923 million = 28%) ($ in Millions) $848 $820 $900 $847 $850 $772 $800 $755 $716 $752 $726 $750 $697 $707 $700 $630 $618 $650 $600 $555 $550 $500 $450 $400 $
Slide 16: Lease Expirations
Lease Expirations (As a percentage of annual base rent – September 30, 2024) 70% Weighted average remaining lease term of 10.0 years 60% 57.4% Only 3.9% of leases expire through 2025 50% Historically, tenants renew 83% of expiring leases 40% 30% 20% 10% 7.8% 7.0% 3.8% 4.2% 5.5% 4.6% 5.7% 3.9% 0.1% 0
Slide 17: Great People in a Supportive Culture
Great People in a Supportive Culture 11 years Average tenure of is the average tenure Senior Leadership is of an NNN employee 22 years 41% 15% 44% Proud to be a member of the 2023 GEI, > 10 years committed to driving accountability <5 yrs 5-10 yrs through data transparency. Learning & Development Co
Slide 18: Long-Term Dividend History
Long-Term Dividend History 35 Consecutive Years of Annual Dividend Increases Third longest of all public REITS $2.30 $2.20 $2.10 $2.00 $1.90 $1.80 $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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 September 30, 2024 NNN Outperforms 1 Year 2 Years 3 Years 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years (NNN = $48.49 at 9/30/2024) NNN REIT, Inc. (NNN) 44.9% 16.3% 9.4% 2.0% 8.4
Slide 20: 800-NNN-REIT www.nnnreit.com
800-NNN-REIT www.nnnreit.com 20