Earnings
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, 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
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
(in thousands, except per share data)
Revenues $ 180,357 $ 158,633 $ 539,146 $ 497,397
Net earnings available to common stockholders $ 78,448 $ 51,584 (1) $ 199,088 $ 154,057 (1)
Net earnings per common share $ 0.45 $ 0.30 (1) $ 1.14 $ 0.89 (1)
FFO available to common stockholders $ 124,621 $ 106,423 $ 347,304 $ 320,670
FFO per common share $ 0.71 $ 0.62 $ 1.99 $ 1.87
Core FFO available to common stockholders $ 124,621 $ 106,423 $ 368,632 $ 337,349
Core FFO per common share $ 0.71 $ 0.62 $ 2.11 $ 1.96
AFFO available to common stockholders $ 131,753 (2) $ 106,690 (3) $ 399,660 (2) $ 311,680 (3)
AFFO per common share $ 0.75 (2) $ 0.62 (3) $ 2.29 (2) $ 1.81 (3)
(1) Includes a write-off of $14,758 (or $0.09 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and nine months ended September 30, 2020.
(2) Amounts include $4,294 and $21,996 of net straight-line accrued rent from rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and nine months ended September 30, 2021, respectively. Excluding such, AFFO per common share would have been $0.73 and $2.16 for the quarter and nine months ended September 30, 2021, respectively.
(3) Amounts exclude $8,499 and $38,938 of net straight-line accrued rent from rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and nine months ended September 30, 2020, respectively. Including such, AFFO per common share would have been $0.67 and $2.04 for the quarter and nine months ended September 30, 2020, respectively.
  Third Quarter 2021 Highlights:
  • As of October 27, 2021, NNN had collected approximately 99% of rent originally due for the quarter ended September 30, 2021, and approximately 99% of rent originally due in October 2021
  • Maintained high occupancy levels at 98.6%, with a weighted average remaining lease term of 10.6 years, at September 30, 2021 as compared to 98.3% at June 30, 2021 and 98.5% at December 31, 2020
  • Invested $246.8 million in property investments, including the acquisition of 49 properties with an aggregate 561,000 square feet of gross leasable area at an initial cash yield of 6.4%
  • Sold 27 properties for $30.5 million producing $9.5 million of gains on sales
  • Issued $450 million principal amount of 3.000% senior unsecured notes due 2052
  • Ended the quarter with $543.5 million of cash and no amounts drawn on the $1.1 billion bank credit facility
  Highlights for the nine months ended September 30, 2021:
  • Invested $455.4 million in property investments, including the acquisition of 107 properties with an aggregate 1,090,000 square feet of gross leasable area at an initial cash yield of 6.5%
  • Sold 53 properties for $71.0 million producing $17.9 million of gains on sales
  • Raised $3.1 million net proceeds from the issuance of 76,666 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
  • 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
  • Weighted average debt maturity increased to 14.9 years
NNN has 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 years ending December 31, 2021 and 2020, 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 $27,087,000 of deferred rent was repaid during the nine months ended September 30, 2021. Core FFO guidance for 2021 was increased from a range of $2.75 to $2.80 per share to a range of $2.80 to $2.84 per share. The 2021 AFFO is estimated to be $3.00 to $3.04 per share. The Core FFO guidance equates to net earnings of $1.64 to $1.68 per share, plus $1.16 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, any charges for impairments, preferred stock redemption charges and 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. The company also announced 2022 Core FFO guidance of $2.90 to $2.97 per share and estimated 2022 AFFO to be $2.99 to $3.06 per share. The Core FFO guidance equates to net earnings of $1.73 to $1.80 per share, plus $1.17 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, and any charges for impairments. 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: “We are pleased to report another solid quarter for National Retail Properties, with increasing acquisition volume, continued high occupancy and rent collections, and a rock solid balance sheet. Our impressive performance positions us to once again raise guidance for 2021 and to announce 2022 guidance that reflects our long-term strategy to consistently produce mid-single digits growth per share 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, 2021, the company owned 3,195 properties in 48 states with a gross leasable area of approximately 33.0 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 November 2, 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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