Earnings
Orlando, Florida, February 9, 2022 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 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

Year Ended

  
   

December 31,

December 31,

  
   

2021

 2020 2021

2020

  
   

(in thousands, except per share data)

  
Revenues

$

187,261

$

163,284

$

726,407

$

660,681
Net earnings available to common stockholders $

65,129

 $

56,802

 (1) $

264,217

 $

210,859

(1)
Net earnings per common share

$

0.37

 $ 0.33 (1) $ 1.51 $

1.22

(1)
FFO available to common stockholders

$

 120,529 $ 107,565 $ 467,833 $

428,236
FFO per common share

$

 0.69 $ 0.62 $ 2.68 $

2.49
Core FFO available to common stockholders

$

 131,426 $ 109,331 $ 500,058 $

446,681
Core FFO per common share

$

 0.75 $ 0.63 $ 2.86 $

2.59
AFFO available to common stockholders

$

135,132

(2)

$

119,764

(3)

$

534,792

(2)

$

431,444

(3)
AFFO per common share

$

0.77

(2)

$

0.69

(3)

$

3.06

(2)

$

2.51

(3)
  1. Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
  2. Amounts include ($2,949) and ($24,945) of net straight-line accrued rent from net rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and year ended December 31, 2021, respectively. Excluding such, AFFO per common share would have been $0.76 and $2.92 for the quarter and year ended December 31, 2021, respectively.
  3. Amounts include ($2,507) and $30,474 of net straight-line accrued rent from net rent deferrals (repayments) from the COVID-19 rent deferral lease amendments for the quarter and year ended December 31, 2020, respectively. Excluding such, AFFO per common share results would have been $0.68 and $2.68 for the quarter and year ended December 31, 2020, respectively.
2021 Highlights:
  • Dividend yield of 4.4% at December 31, 2021
  • Annual dividend per common share increased to $2.10 marking the 32nd consecutive year of annual dividend increases – the third longest record of consecutive annual dividend increases of all public REITs and 99% of all public companies
  • Maintained high occupancy levels at 99.0%, with a weighted average remaining lease term of 10.6 years, at December 31, 2021 as compared to 98.6% at September 30, 2021, and 98.5% at December 31, 2020
  • $555.4 million in property investments, including the acquisition of 156 properties with aggregate gross leasable area of approximately 1,341,000 square feet at an initial cash yield of 6.5%, with a weighted average remaining lease term of 18.2 years
  • Sold 74 properties for $122.0 million, producing $23.1 million of gains on sale, at a cap rate of 7.4%
  • Raised $3.8 million in net proceeds from issuance of 92,577 common shares
  • Issued $450 million principal amount of 3.500% senior unsecured notes due 2051
  • Issued $450 million principal amount of 3.000% senior unsecured notes due 2052
  • Redeemed $350 million principal amount of 3.300% senior unsecured notes due 2023
  • Redeemed all 13,800,000 depositary shares of its 5.200% Series F Preferred Stock for an aggregate redemption price of $25.111944 per depository share
  • Weighted average debt maturity increased to 14.7 years (from 10.2 years at December 31, 2020)
  • Expanded line of credit borrowing capacity from $900 million to $1.1 billion, reduced pricing from LIBOR plus 87.5 basis points to LIBOR plus 77.5 basis points, and extended maturity to June 2025
  • Ended the year with $171.3 million of cash and no amounts drawn on the $1.1 billion bank credit facility
  • 8% of properties are unencumbered with secured mortgage debt
  • Total average annual shareholder return of 12% over the past 25 years exceeds industry and general equity averages
Fourth Quarter 2021 Highlights:
  • As of January 31, 2022, NNN had collected approximately 99.4% of rent originally due for the quarter ended December 31, 2021
  • $100.0 million in property investments, including the acquisition of 49 properties with an aggregate gross leasable area of approximately 251,000 square feet at an initial cash yield of 6.4%, with a weighted average remaining lease term of 19.4 years
  • Sold 21 properties with net proceeds of $51.0 million, producing $5.2 million of gains on sales at a cap rate of 8.0%
  • Raised $0.7 million in net proceeds from the issuance of 15,911 common shares
NNN entered into rent deferral lease amendments with certain tenants for an aggregate $4,758,000 and $52,019,000 of rent originally due for the year ending December 31, 2021 and 2020, respectively. The rent deferral lease amendments required the deferred rents to be repaid at a later time during the lease term.  Approximately $31,776,000 and $3,259,000 of the deferred rent was repaid in 2021 and 2020, respectively. Core FFO guidance for 2022 was increased from a range of $2.90 to $2.97 per share to a range of $2.93 to $3.00 per share. The 2022 AFFO is estimated to be $3.01 to $3.07 per share. The Core FFO guidance equates to net earnings of $1.76 to $1.82 per share, plus $1.18 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, charges for impairments and executive retirement 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: “2021 was an outstanding year for National Retail Properties.  Every aspect of our business is in great position to address the future.  From a balance sheet that has tremendous capacity to fund new investments, to tenant relationships that generate high quality investments and stable long-term cash flow, to management and board leadership enhancements that put the right people in the right seats for the long-term, National Retail Properties is well-positioned to continue its consistent growth and success.” National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases.  As of December 31, 2021, the company owned 3,223 properties in 48 states with a gross leasable area of approximately 32,753,000 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 February 9, 2022, 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 financial tables.

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