NNN REIT, Inc. (NNN) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Greetings. Welcome to the NNN REIT Inc. First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Steve Horn, CEO. You may begin. Hey, thanks, John. Hey, good morning, and thank you for joining NNN REIT's first quarter 2025 earnings call. With me today is Vin Chow, our Chief Financial Officer. I'd like to start with a high-level update on our vacant furniture and restaurant assets before we delve into the first quarter results. We're making excellent progress resolving these vacancies, and I'm confident that we will be in a solid position to have the vast majority resolved by year-end. On a post-quarter update, in terms of our 35 furniture stores, 15 are resolved through leasing or sale and 15 have significant interest and we anticipate nearly all be handled by the end of the third quarter. For the restaurant assets, we gained full possession this quarter following the conclusion of the eviction process. We've leased or sold 38 and have strong interest in the other 31. Looking ahead as we fully put to bed the two tenant defaults from the fourth quarter of 2024, We anticipate a total impact of only 1.5 to 2.5 cents on our stabilized core FFO per share for the year. That's less than 1%. This minimal effect serves to highlight the lasting significance of robust real estate fundamentals throughout the duration of a 20-year lease. Let's go to the highlights of our first quarter financial performance. Our portfolio of 3,641 freestanding single-tenant properties c...