Earnings
Orlando, Florida, February 13, 2018 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2017.  Highlights include: Operating Results:
  • Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
Quarter Ended Year Ended
December 31, December 31,
2017 2016 2017 2016
(in thousands, except per share data)
Revenues $ 150,247 $ 141,199 $ 584,933 $ 533,647
Net earnings available to common stockholders $ 63,586 $ 54,044 $ 217,193 $ 200,877
Net earnings per common share $ 0.42 $ 0.37 $ 1.45 $ 1.38
FFO available to common stockholders $ 95,267 $ 88,717 $ 359,179 $ 330,544
FFO per common share $ 0.63 $ 0.60 $ 2.40 $ 2.28
Core FFO available to common stockholders $ 95,459 $ 88,717 $ 376,991 $ 340,643
Core FFO per common share $ 0.63 $ 0.60 $ 2.52 $ 2.35
AFFO available to common stockholders $ 95,692 $ 90,285 $ 379,083 $ 347,933
AFFO per common share $ 0.63 $ 0.62 $ 2.54 $ 2.41
 
  • Portfolio occupancy was 99.1% at December 31, 2017 as compared to 98.8% at September 30, 2017, and 99.0% at December 31, 2016
2017 Highlights:
  • Increased annual net earnings per common share 5.1%
  • Increased annual FFO per common share 5.3%
  • Increased annual Core FFO per common share 7.2%
  • Increased annual AFFO per common share 5.4%
  • Dividend yield of 4.3% at December 31, 2017
  • Annual dividend per common share increased 4.3% to $1.86 marking the 28th consecutive year of annual dividend increases – making the company one of only three equity REITs and one of only 88 public companies with 28 or more consecutive annual dividend increases
  • Maintained high occupancy levels at 99.1% with a weighted average remaining lease term of 11.5 years
  • Invested $754.9 million in 276 properties with an aggregate gross leasable area of approximately 2,243,000 square feet at an initial cash yield of 6.9%
  • Sold 48 properties for $96.8 million, producing $36.3 million of gains on sale, net of noncontrolling interests, at a cap rate of 6.0%
  • Raised $647.9 million of new long-term capital at attractive pricing
    • Raised $253.2 million in net proceeds from the issuance of 6,051,062 common shares
    • Raised $394.7 million in net proceeds from the issuance of 3.50% senior unsecured notes due 2027
  • Paid off $250 million principal amount of 6.875% senior unsecured notes due 2017
  • Expanded unsecured bank credit facility to $900 million while extending the term to January 2022 and reducing the interest rate to LIBOR + 87.5 basis points
  • $779.5 million availability on bank credit facility at December 31, 2017
  • 7% of properties are unencumbered with secured mortgage debt
  • Total average annual shareholder return of over 11% for the past 5-, 10-, 15-, 20-, and 25-years exceeds industry averages
Selected Highlights for the quarter ended December 31, 2017:
  • Investments:
  • $257.4 million in property investments, including the acquisition of 94 properties with an aggregate gross leasable area of approximately 955,000 square feet at an initial cash yield of 6.9%
  • Dispositions:
  • Sold 17 properties with net proceeds of $41.0 million, producing $15.8 million of gains on sales at a cap rate of 5.7%
  • Long-term capital:
    • Raised $81.0 million in net proceeds from the issuance of 1,946,089 common shares
Jay Whitehurst, Chief Executive Officer, commented: “2017 was another very strong year for National Retail Properties in every aspect of our business.  Our healthy portfolio, our broad acquisition pipeline, and our strong balance sheet position us well to continue delivering consistent per share growth over a multi-year term and maintain our guidance of 4-5% growth in per share results for 2018.” National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases.  As of December 31, 2017, the company owned 2,764 properties in 48 states with a gross leasable area of approximately 29.1 million square feet and with a weighted average remaining lease term of 11.5 years.  For more information on the company, visit nnnreit.com. Management will hold a conference call on February 13, 2018, at 10:30 a.m. ET to review these results.  The call can be accessed on the National Retail Properties web site live at https://nnnreit.nnnr.staging.findsomewinmore.com/.  For those unable to listen to the live broadcast, a replay will be available on the company’s web site.  In addition, a summary of any earnings guidance given on the call will be posted to the company’s web site. Click here for the full press release including financial tables.

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