The flat AFFO and slight GAAP EPS decline suggest limited near-term catalyst. The guidance raise is marginal ($0.01 at midpoint) and likely already priced in. Watch for acquisition volume execution and interest rate sensitivity given the 5.7x net debt/EBITDAre leverage. The 98.6% occupancy provides a floor but limits upside from re-leasing spreads.
Price Chart
Executive Summary
NNN REIT reported Q1 2026 AFFO of $0.87 per diluted share, flat YoY, and GAAP net earnings of $0.50 per diluted share, down from $0.51 a year ago. The company raised its full-year 2026 AFFO guidance to $3.53-$3.59 per share (from $3.52-$3.58), driven by portfolio occupancy expansion to 98.6% and a 6.9% increase in ABR. However, net earnings declined 2.6% YoY due to higher interest expense and impairment losses, and the AFFO payout ratio ticked up to 69% from 66%.
Key Financial Metrics
Key Facts
- Q1 2026 AFFO per diluted share of $0.87, flat vs Q1 2025
- Q1 2026 GAAP net earnings per diluted share of $0.50, down from $0.51 YoY
- Full-year 2026 AFFO guidance raised to $3.53-$3.59 per share (from $3.52-$3.58)
- Portfolio occupancy increased to 98.6% from 97.7% YoY
- ABR grew 6.9% YoY to $934.6 million
- Acquired $145.4 million of properties at a 7.5% cap rate; sold 25 properties for $35.8 million
- Drew down $300 million term loan, fully hedged at 4.10%; total liquidity of $1.2 billion
- Quarterly dividend of $0.60 per share maintained; AFFO payout ratio 69%
- Net debt to annualized EBITDAre of 5.7x; fixed charge coverage of 4.1x
Financial Impact
Q1 AFFO flat YoY; GAAP EPS down ~2%; guidance raised modestly by $0.01-$0.01 per share
Risk Factors
- Higher interest expense ($52.7M vs $47.7M YoY) pressuring net earnings
- Impairment losses of $10.7M in Q1, up from $1.5M a year ago
- AFFO payout ratio increased to 69% from 66%, reducing retained capital for growth
- Net debt/EBITDAre at 5.7x, near the high end of the company's historical range
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-194205 |
| Document: nnn-20260430.htm | 0001193125-26-194205 |
| Document: 0001193125-26-194205-index-headers.html | 0001193125-26-194205 |
| Document: 0001193125-26-194205-index.html | 0001193125-26-194205 |
| Document: 0001193125-26-194205.txt | 0001193125-26-194205 |
| 8-K Data (Synthetic) | 0001193125-26-194205 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 7, 2026 8w ago | 8-K | $46.84 $44.63 | ▼ −4.72% | ▼ −4.32% | $40.20 (−14.18%) |
Aug 6, 2026 8w ago | 424B5 | $46.84 $44.63 | ▲ +4.72% | ▲ +4.32% | $40.20 (+14.18%) |
Aug 5, 2026 8w ago | S-3ASR | $47.00 $45.18 | ▼ −3.87% | ▼ −4.47% | $40.20 (−14.47%) |
Aug 5, 2026 8w ago | 8-K | $47.36 $45.07 | ▼ −4.84% | ▼ −4.23% | $40.20 (−15.12%) |
Jun 23, 2026 14w ago | 8-K | $46.51 $48.97 | ▲ +5.29% | ▲ +3.36% | $40.20 (−13.57%) |
Apr 30, 2026 22w ago | 8-K | $43.79 $44.85 | ▲ +2.42% | ▼ −2.55% | $40.20 (−8.20%) |
Mar 6, 2026 30w ago | Insider Cluster | $44.50 $42.50 | ▼ −4.49% | ▼ −2.45% | $40.20 (−9.66%) |
US Market Status
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