Earnings
Orlando, Florida, May 4, 2021 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter ended March 31, 2021. Highlights include:   Operating Results:
  • Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
 
Quarter Ended
March 31,
2021 2020
(in thousands, except per share data)
Revenues $ 179,778 $ 175,063
Net earnings available to common stockholders $ 52,102 $ 60,693
Net earnings per common share $ 0.30 $ 0.35
FFO available to common stockholders $ 99,821 $ 102,509
FFO per common share $ 0.57 $ 0.60
Core FFO available to common stockholders $ 121,149 $ 119,188
Core FFO per common share $ 0.69 $ 0.70
AFFO available to common stockholders $ 133,532 (1) $ 121,750
AFFO per common share $ 0.76 (1) $ 0.71
(1) Amounts include $9,385 of net straight-line accrued rent from rent deferral repayments from the COVID-19 rent deferral lease
amendments. Excluding such, AFFO per common share would have been $0.71 for the quarter ended March 31, 2021.
  First Quarter 2021 Highlights:
  • As of April 28, 2021, NNN had collected approximately 97% of rent originally due for the quarter ended March 31, 2021, and approximately 98% of rent originally due in April 2021
  • Collected approximately $2.2 million of receivables written-off in 2020 from cash basis tenants
  • Maintained high occupancy levels at 3%, with a weighted average remaining lease term of 10.6 years, at March 31, 2021 as compared to 98.5% at December 31, 2020 and 98.8% at March 31, 2020
  • Invested $105.6 million in property investments, including the acquisition of 29 properties with an aggregate 355,000 square feet of gross leasable area at an initial cash yield of 4%
  • Sold 11 properties for $17.6 million producing $4.3 million of gains on sales
  • Issued $450 million principal amount of 500% senior unsecured notes due 2051
  • Redeemed $350 million principal amount of 300% senior unsecured notes due 2023
  • Weighted average debt maturity increased to 3 years at March 31, 2021
  • Ended the quarter with $311.2 million of cash and no amounts drawn on the $900 million bank credit facility
NNN has entered into rent deferral lease amendments with certain tenants for an aggregate $51,269,000 and $4,677,000 of rent originally due for the years ended December 31, 2020 and December 31, 2021, respectively. The rent deferral lease amendments require the deferred rents to be repaid at a later time during the lease term. Approximately $3,259,000 of deferred rent was repaid in 2020 and approximately $10,817,000 of deferred rent was repaid in the quarter ending March 31, 2021. Core FFO guidance for 2021 was increased from a range of $2.55 to $2.62 to a range of $2.70 to $2.75 per share. The 2021 AFFO is estimated to be $2.91 to $2.96 per share. The Core FFO guidance equates to net earnings of $1.56 to $1.61 per share, plus $1.14 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate and any charges for impairments or loss on early extinguishment of debt. 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: “2021 is off to a great start for National Retail Properties. As the economic effects of the pandemic appear to recede, our impressive results have once again validated our consistent, long-term strategy of acquiring well-located parcels leased to strong regional and national operators at reasonable rents, all while maintaining low leverage and a flexible balance sheet. Based on our continued high occupancy, strong rent collections, solid quarter of acquisitions, and fortress-like balance sheet, we are pleased to increase our guidance for Core FFO per share by approximately six percent. Our acquisition pipeline of direct sale-leaseback transactions with our relationship tenants continues to grow, and with over $300 million of cash in the bank, zero balance drawn on our line of credit, no material debt maturities until 2024, and an average debt duration of over 13 years, we are well positioned to fund our 2021 acquisition guidance with the available capital on hand.” National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of March 31, 2021, the company owned 3,161 properties in 48 states with a gross leasable area of approximately 32.7 million square feet and with a weighted average remaining lease term of 10.6 years. For more information on the company, visit nnnreit.nnnr.staging.findsomewinmore.com. Management will hold a conference call on May 4, 2021, 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 more details.

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