NNN REIT (NNN) investor relations material

Executive summary

• Delivered strong Q2 2026 results with 99.1% occupancy, robust rent collections, and disciplined acquisitions, totaling 3,774 properties across all 50 states, D.C., and Puerto Rico, with a weighted average lease term of 10.1 years.

• Increased common stock dividend by 3.3% to $0.62 per share for Q3 2026, marking 37 consecutive years of annual increases and a 5.3% yield.

• Raised 2026 AFFO per share guidance to $3.55–$3.59 and Core FFO per share guidance to $3.50–$3.54, reflecting consistent per share growth.

• Maintains a conservative balance sheet, strong liquidity of $1.4 billion, and targets sustainable mid-single-digit annual per share earnings growth.

• Focuses on tenant, line of trade, and geographic diversification, with top sectors in automotive service, convenience stores, and early childhood education.

Financial highlights

• Q2 2026 AFFO per share was $0.90, up 5.9% year-over-year; Core FFO per share was $0.89, up 6.0%; quarterly revenues reached $244.3 million.

• Annualized base rent grew 7.3% year-over-year to $959.1 million.

• Free cash flow after dividend was $56 million in Q2; net cash from operating activities for H1 2026 was $328.6 million.

• Dividend payout ratio was 67% AFFO for Q2 2026.

• Total assets as of June 30, 2026, were $9.61 billion.

Outlook and guidance

• 2026 AFFO per share guidance raised to $3.55–$3.59 and Core FFO per share to $3.50–$3.54, implying 3.8% year-over-year growth at midpoint.

• Acquisition guidance midpoint increased to $750 million; disposition guidance midpoint raised to $140 million.

• Management expects to fund liquidity needs through operations, credit, forward equity, and potential new issuances.

• Baseline “self-funded” earnings growth estimated at 3–4% annually, with upside from cost of capital dependent acquisitions.

• Long-term target remains sustainable mid-single-digit growth.