Earnings
Orlando, Florida, February 12, 2019 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 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 Year Ended
December 31, December 31,
2018 2017 2018 2017
(in thousands, except per share data)
Revenues $ 158,976 $ 150,247 $ 622,661 $ 584,933
Net earnings available to common stockholders $ 27,980 $ 63,586 $ 258,120 $ 217,193
Net earnings per common share $ 0.17 $ 0.42 $ 1.65 $ 1.45
FFO available to common stockholders $ 82,491 $ 95,267 $ 395,337 $ 359,179
FFO per common share $ 0.52 $ 0.63 $ 2.53 $ 2.40
Core FFO available to common stockholders $ 101,001 $ 95,459 $ 414,590 $ 376,991
Core FFO per common share $ 0.63 $ 0.63 $ 2.65 $ 2.52
AFFO available to common stockholders $ 103,523 $ 95,692 $ 418,702 $ 379,083
AFFO per common share $ 0.65 $ 0.63 $ 2.68 $ 2.54
  • Portfolio occupancy was 98.2% at December 31, 2018 as compared to 98.7% at September 30, 2018, and 99.1% at December 31, 2017
2018 Highlights:
  • Increased annual net earnings per common share 13.8%
  • Increased annual FFO per common share 5.4%
  • Increased annual Core FFO per common share 5.2%
  • Increased annual AFFO per common share 5.5%
  • Dividend yield of 4.0% at December 31, 2018
  • Annual dividend per common share increased 4.8% to $1.95 marking the 29th consecutive year of annual dividend increases – making the company one of only three equity REITs and 86 publicly traded companies in America to have increased annual dividends for 29 or more consecutive years
  • Maintained high occupancy levels at 98.2% with a weighted average remaining lease term of 11.5 years
  • Invested $715.6 million in 265 properties with an aggregate gross leasable area of approximately 2,167,000 square feet at an initial cash yield of 6.8%
  • Sold 61 properties for $147.6 million, producing $65.1 million of gains on sale, at a cap rate of 5.1%
  • Raised $1,027.4 million of new long-term capital at attractive pricing
    • Raised $341.5 million in net proceeds from the issuance of 7,689,211 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
  • Paid off $300 million principal amount of 5.500% senior unsecured notes due 2021
  • $900 million availability on bank credit facility at December 31, 2018
  • 7% of properties are unencumbered with secured mortgage debt
  • Total average annual shareholder return of 12.8% over the past 25 years exceeds industry and general equity averages
Selected Highlights for the quarter ended December 31, 2018:
  • Investments:
  • $319.5 million in property investments, including the acquisition of 136 properties with an aggregate gross leasable area of approximately 902,000 square feet at an initial cash yield of 6.7%
  • Dispositions:
  • Sold 15 properties with net proceeds of $26.5 million, producing $8.0 million of gains on sales at a cap rate of 6.2%
  • Long-term capital:
    • Raised $123.8 million in net proceeds from the issuance of 2,567,167 common shares
Jay Whitehurst, Chief Executive Officer, commented: “After a busy and productive fourth quarter, National Retail Properties once again delivered above average returns to our investors while taking below average risk.  Our commitment to consistent per share growth on a multi-year basis produced an annual dividend increase of 4.8% and annual AFFO per share growth of 5.5% in 2018, all while maintaining our low leverage, conservatively financed balance sheet.  Driven by our consistent strategy and focused execution, we are well positioned to continue producing total shareholder returns that we believe will exceed the REIT averages over the long term.” National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases.  As of December 31, 2018, the company owned 2,969 properties in 48 states with a gross leasable area of approximately 30.5 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 12, 2019, 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 release.

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