Earnings
Orlando, Florida, November 1, 2018 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and nine months ended September 30, 2018.  Highlights include:   Operating Results:
  • Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
Quarter Ended Nine Months Ended
September 30, September 30,
2018 2017 2018 2017
(in thousands, except per share data)
Revenues $ 155,331 $ 147,705 $ 463,683 $ 434,686
Net earnings available to common stockholders $ 73,450 $ 52,538 $ 230,140 $ 153,606
Net earnings per common share $ 0.47 $ 0.35 $ 1.48 $ 1.03
FFO available to common stockholders $ 105,134 $ 97,760 $ 312,847 $ 263,911
FFO per common share $ 0.67 $ 0.65 $ 2.02 $ 1.78
Core FFO available to common stockholders $ 105,356 $ 97,985 $ 313,590 $ 281,532
Core FFO per common share $ 0.67 $ 0.65 $ 2.02 $ 1.90
AFFO available to common stockholders $ 106,997 $ 97,934 $ 315,180 $ 283,391
AFFO per common share $ 0.68 $ 0.65 $ 2.03 $ 1.91
Third Quarter 2018 Highlights:
  • FFO and Core FFO per common share increased 3.1% over prior year results
  • AFFO per common share increased 4.6% over prior year results
  • Portfolio occupancy was 98.7% at September 30, 2018 as compared to 98.5% on June 30, 2018 and 99.2% on March 31, 2018
  • Invested $78.6 million in property investments, including the acquisition of 18 properties with an aggregate 529,000 square feet of gross leasable area at an initial cash yield of 6.9%
  • Sold 18 properties for $37.6 million producing $14.3 million of gains on sales
  • Raised $87.2 million net proceeds from the issuance of 1,940,583 common shares
  • Issued $400 million principal amount of 4.30% senior unsecured notes due 2028 generating net proceeds of $393.5 million
  • Issued $300 million principal amount of 4.80% senior unsecured notes due 2048 generating net proceeds of $292.4 million
Highlights for the nine months ended September 30, 2018:
  • FFO per share increased 13.5% over prior year results
  • Core FFO and AFFO per share increased 6.3% over prior year results
  • Invested $396.1 million in property investments, including the acquisition of 129 properties with an aggregate 1,265,000 square feet of gross leasable area at an initial cash yield of 6.9%
  • Sold 46 properties for $121.1 million producing $57.1 million of gains on sales
  • Raised $903.6 million of new long-term capital at attractive pricing
    • Raised $217.7 million in net proceeds from the issuance of 5,122,044 common shares
    • Raised $393.5 million in net proceeds from the issuance of 4.30% senior unsecured notes due 2028
    • Raised $292.4 million in net proceeds from the issuance of 4.80% senior unsecured notes due 2048
Core FFO guidance mid-point for 2018 was increased from a range of $2.62 to $2.66 to a range of $2.64 to $2.66 per share. The 2018 AFFO is estimated to be $2.66 to $2.68 per share. The Core FFO guidance equates to net earnings of $1.53 to $1.55 per share, plus $1.11 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, and any charges for impairments, retirement severance costs and $18.2 million make-whole charge in connection with redeeming $300 million of 5.50% notes due 2021. The guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company’s reports filed with the Securities and Exchange Commission. The company also announced 2019 Core FFO guidance of $2.71 to $2.76 per share and estimated 2019 AFFO to be $2.76 to $2.81 per share. The Core FFO guidance equates to net earnings of $1.60 to $1.65 per share, plus $1.11 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, and any charges for impairments and retirement severance costs. The guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company’s reports filed with the Securities and Exchange Commission. Jay Whitehurst, Chief Executive Officer, commented: “National Retail Properties continued its consistent performance in the third quarter. Our ability to access almost $800M of long-term capital at very attractive pricing positions us well to address future opportunities and challenges. We are pleased to raise the mid-point of our guidance for 2018 and to introduce 2019 guidance, which reflects our strategic focus on consistently growing per share results on a multi-year basis.” National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases.  As of September 30, 2018, the company owned 2,847 properties in 48 states with a gross leasable area of approximately 29.7 million square feet and with a weighted average remaining lease term of 11.4 years.  For more information on the company, visit nnnreit.com. Management will hold a conference call on November 1, 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.

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