ORLANDO,
Fla., Aug. 3, 2022 /PRNewswire/ -- National
Retail Properties, Inc. (NYSE: NNN), a real estate investment
trust, today announced its operating results for the quarter and
six months ended June 30, 2022. Highlights include:
Operating Results:
- Revenues and net earnings, FFO, Core FFO and AFFO available to
common stockholders and diluted per share amounts:
|
|
Quarter Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
Revenues
|
|
$
|
190,783
|
|
|
$
|
179,011
|
|
|
$
|
381,062
|
|
|
$
|
358,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings available
to common stockholders
|
|
$
|
74,171
|
|
|
$
|
68,538
|
|
|
$
|
155,543
|
|
|
$
|
120,640
|
|
|
Net earnings per common
share
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
|
$
|
0.89
|
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO available to common
stockholders
|
|
$
|
135,353
|
|
|
$
|
122,862
|
|
|
$
|
266,946
|
|
|
$
|
222,683
|
|
|
FFO per common
share
|
|
$
|
0.77
|
|
|
$
|
0.70
|
|
|
$
|
1.53
|
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO available to
common stockholders
|
|
$
|
138,008
|
|
|
$
|
122,862
|
|
|
$
|
273,195
|
|
|
$
|
244,011
|
|
|
Core FFO per common
share
|
|
$
|
0.79
|
|
|
$
|
0.70
|
|
|
$
|
1.56
|
|
|
$
|
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO available to
common stockholders
|
|
$
|
142,103
|
|
(1)
|
$
|
134,375
|
|
(2)
|
$
|
280,824
|
|
(1)
|
$
|
267,908
|
|
(2)
|
AFFO per common
share
|
|
$
|
0.81
|
|
(1)
|
$
|
0.77
|
|
(2)
|
$
|
1.60
|
|
(1)
|
$
|
1.53
|
|
(2)
|
|
|
|
(1)
|
|
Amounts include $1,729
and $3,509 of net straight-line accrued rent from net rent deferral
repayments from the COVID-19 rent deferral lease amendments for the
quarter and six months ended June 30, 2022, respectively.
Excluding such, AFFO per common share would have been $0.80 and
$1.58 for the quarter and six months ended June 30, 2022,
respectively.
|
|
|
|
(2)
|
|
Amounts include $8,323
and $17,706 of net straight-line accrued rent from net rent
deferral repayments from the COVID-19 rent deferral lease
amendments for the quarter and six months ended June 30, 2021,
respectively. Excluding such, AFFO per common share would have been
$0.72 and $1.43 for the quarter and six months ended June 30,
2021, respectively.
|
Second Quarter 2022 Highlights:
- Maintained high occupancy levels at 99.1%, with a weighted
average remaining lease term of 10.6 years, at June 30, 2022 as compared to 99.2% at
March 31, 2022 and 99.0% at
December 31, 2021
- Invested $153.8 million in
property investments, including the acquisition of 43 properties
with an aggregate 348,000 square feet of gross leasable area at an
initial cash yield of 6.2%
- Sold 8 properties for $7.9
million producing $0.8 million
of gains on sales
- Raised $31.8 million net proceeds
from the issuance of 734,298 common shares
- Maintained sector leading 14.2 year weighted average debt
maturity for fixed rate debt
First Half of 2022 Highlights:
- Invested $364.6 million in
property investments, including the acquisition of 102 properties
with an aggregate 1,227,000 square feet of gross leasable area at
an initial cash yield of 6.2%
- Sold 18 properties for $28.0
million producing $4.8 million
gains on sales
- Raised $32.5 million net proceeds
from the issuance of 751,869 common shares
Core FFO guidance for 2022 was increased from a range of
$3.01 to $3.08 per share to a range of $3.07 to $3.12 per
share. The 2022 AFFO is estimated to be $3.14 to $3.19 per
share. The Core FFO guidance equates to net earnings of
$1.83 to $1.88 per share, plus $1.24 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.
Steve Horn, Chief Executive
Officer, commented: "National Retail Properties saw continued
operational momentum through the second quarter of 2022,
highlighted by the selective acquisition of just over $150 million in new properties. In July, we
increased our common stock dividend by nearly four percent to
55 cents per share, while preserving
our low dividend payout ratio, marking our 33rd consecutive year of
increased annual dividends, a feat matched by only two other REITs
and by fewer than 90 public companies in the United States."
National Retail Properties invests primarily in high-quality
retail properties subject generally to long-term, net leases.
As of June 30, 2022, the company owned 3,305 properties in 48
states with a gross leasable area of approximately 33.8 million
square feet and with a weighted average remaining lease term of
10.6 years. For more information on the company, visit
www.nnnreit.com.
Management will hold a conference call on August 3, 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
http://www.nnnreit.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.
Statements in this press release that are not strictly
historical are "forward-looking" statements. These statements
generally are characterized by the use of terms such as "believe,"
"expect," "intend," "may," "estimated," or other similar words or
expressions. Forward-looking statements involve known and unknown
risks, which may cause the company's actual future results to
differ materially from expected results. These risks include,
among others, the potential impacts of the COVID-19 pandemic on the
company's business operations, financial results and financial
position and on the world economy, general economic conditions,
local real estate conditions, changes in interest rates, increases
in operating costs, the preferences and financial condition of the
company's tenants, the availability of capital, and, risks related
to the company's status as a REIT. Additional information
concerning these and other factors that could cause actual results
to differ materially from these forward-looking statements is
contained from time to time in the company's Securities and
Exchange Commission (the "Commission") filings, including, but not
limited to, the company's (i) Annual Report on Form 10-K for the
year ended December 31, 2021 and (ii) Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2022 and
June 30, 2022. Copies of each filing may be obtained
from the company or the Commission. Such forward-looking
statements should be regarded solely as reflections of the
company's current operating plans and estimates. Actual
operating results may differ materially from what is expressed or
forecast in this press release. National Retail Properties,
Inc. undertakes no obligation to publicly release the results of
any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date these statements
were made.
Funds From Operations, commonly referred to as FFO, is a
relative non-GAAP financial measure of operating performance of an
equity REIT in order to recognize that income-producing real estate
historically has not depreciated on the basis determined under
GAAP. FFO is defined by the National Association of Real
Estate Investment Trusts ("NAREIT") and is used by the company as
follows: net earnings (computed in accordance with GAAP) plus
depreciation and amortization of assets unique to the real estate
industry, excluding gains (or including losses), any applicable
taxes and noncontrolling interests on the disposition of certain
assets, the company's share of these items from the company's
unconsolidated partnerships and any impairment charges on a
depreciable real estate asset.
FFO is generally considered by industry analysts to be the
most appropriate measure of performance of real estate
companies. FFO does not necessarily represent cash provided
by operating activities in accordance with GAAP and should not be
considered an alternative to net earnings as an indication of the
company's performance or to cash flow as a measure of liquidity or
ability to make distributions. Management considers FFO an
appropriate measure of performance of an equity REIT because it
primarily excludes the assumption that the value of the real estate
assets diminishes predictably over time, and because industry
analysts have accepted it as a performance measure. The
company's computation of FFO may differ from the methodology for
calculating FFO used by other equity REITs, and therefore, may not
be comparable to such other REITs. A reconciliation of net
earnings (computed in accordance with GAAP) to FFO, as defined by
NAREIT, is included in the financial information accompanying this
release.
Core Funds From Operations ("Core FFO") is a non-GAAP measure
of operating performance that adjusts FFO to eliminate the impact
of certain GAAP income and expense amounts that the company
believes are infrequent and unusual in nature and/or not related to
its core real estate operations. Exclusion of these items
from similar FFO-type metrics is common within the REIT industry,
and management believes that presentation of Core FFO provides
investors with a potential metric to assist in their evaluation of
the company's operating performance across multiple periods and in
comparison to the operating performance of its peers because it
removes the effect of unusual items that are not expected to impact
the company's operating performance on an ongoing basis. Core
FFO is used by management in evaluating the performance of the
company's core business operations and is a factor in determining
management compensation. Items included in calculating FFO
that may be excluded in calculating Core FFO may include items such
as transaction related gains, income or expense, impairments on
land or commercial mortgage residual interests, preferred stock
redemption costs, executive retirement costs, loss on early
extinguishment of debt or other non-core amounts as they
occur. The company's computation of Core FFO may differ
from the methodology for calculating Core FFO used by other equity
REITs, and therefore, may not be comparable to such other REITs. A
reconciliation of net earnings (computed in accordance with GAAP)
to Core FFO is included in the financial information accompanying
this release.
Adjusted Funds From Operations ("AFFO") is a non-GAAP
financial measure of operating performance used by many companies
in the REIT industry. AFFO adjusts FFO for certain non-cash items
that reduce or increase net income in accordance with GAAP.
AFFO should not be considered an alternative to net earnings, as an
indication of the company's performance or to cash flow as a
measure of liquidity or ability to make distributions. Management
considers AFFO a useful supplemental measure of the company's
performance. The company's computation of AFFO may differ
from the methodology for calculating AFFO used by other equity
REITs, and therefore, may not be comparable to such other
REITs. A reconciliation of net earnings (computed in
accordance with GAAP) to AFFO is included in the financial
information accompanying this release.
National Retail
Properties, Inc.
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
|
Quarter Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Income Statement
Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
income
|
|
$
|
190,536
|
|
|
$
|
178,004
|
|
|
$
|
380,299
|
|
|
$
|
357,202
|
|
|
Interest and other
income from real estate transactions
|
|
|
247
|
|
|
|
1,007
|
|
|
|
763
|
|
|
|
1,587
|
|
|
|
|
|
190,783
|
|
|
|
179,011
|
|
|
|
381,062
|
|
|
|
358,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
9,740
|
|
|
|
11,868
|
|
|
|
20,782
|
|
|
|
23,616
|
|
|
Real estate
|
|
|
6,173
|
|
|
|
6,619
|
|
|
|
13,371
|
|
|
|
14,344
|
|
|
Depreciation and
amortization
|
|
|
57,444
|
|
|
|
50,875
|
|
|
|
110,124
|
|
|
|
100,855
|
|
|
Leasing transaction
costs
|
|
|
76
|
|
|
|
22
|
|
|
|
164
|
|
|
|
60
|
|
|
Impairment losses –
real estate, net of recoveries
|
|
|
4,618
|
|
|
|
7,735
|
|
|
|
6,250
|
|
|
|
9,866
|
|
|
Executive retirement
costs
|
|
|
2,655
|
|
|
|
—
|
|
|
|
6,249
|
|
|
|
—
|
|
|
|
|
|
80,706
|
|
|
|
77,119
|
|
|
|
156,940
|
|
|
|
148,741
|
|
|
Gain on disposition of
real estate
|
|
|
775
|
|
|
|
4,181
|
|
|
|
4,767
|
|
|
|
8,462
|
|
|
Earnings from
operations
|
|
|
110,852
|
|
|
|
106,073
|
|
|
|
228,889
|
|
|
|
218,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses
(revenues):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income
|
|
|
(52)
|
|
|
|
(33)
|
|
|
|
(87)
|
|
|
|
(98)
|
|
|
Interest
expense
|
|
|
36,739
|
|
|
|
33,085
|
|
|
|
73,438
|
|
|
|
67,672
|
|
(1)
|
Loss on early
extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21,328
|
|
|
|
|
|
36,687
|
|
|
|
33,052
|
|
|
|
73,351
|
|
|
|
88,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
74,165
|
|
|
|
73,021
|
|
|
|
155,538
|
|
|
|
129,608
|
|
|
Loss attributable to
noncontrolling interests
|
|
|
6
|
|
|
|
2
|
|
|
|
5
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to NNN
|
|
|
74,171
|
|
|
|
73,023
|
|
|
|
155,543
|
|
|
|
129,610
|
|
|
Series F preferred
stock dividends
|
|
|
—
|
|
|
|
(4,485)
|
|
|
|
—
|
|
|
|
(8,970)
|
|
|
Net earnings available
to common stockholders
|
|
$
|
74,171
|
|
|
$
|
68,538
|
|
|
$
|
155,543
|
|
|
$
|
120,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
174,957
|
|
|
|
174,611
|
|
|
|
174,867
|
|
|
|
174,600
|
|
|
Diluted
|
|
|
175,108
|
|
|
|
174,727
|
|
|
|
175,022
|
|
|
|
174,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share
available to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
|
$
|
0.89
|
|
|
$
|
0.69
|
|
|
Diluted
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
|
$
|
0.89
|
|
|
$
|
0.69
|
|
|
(1)
|
|
Includes $2,078 in
connection with the redemption of 3.30% senior unsecured notes due
2023 for the six months ended June 30, 2021.
|
National Retail
Properties, Inc.
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
|
Quarter Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Funds From
Operations (FFO) Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings available
to common stockholders
|
|
$
|
74,171
|
|
|
$
|
68,538
|
|
|
$
|
155,543
|
|
|
$
|
120,640
|
|
|
Real estate
depreciation and amortization
|
|
|
57,339
|
|
|
|
50,770
|
|
|
|
109,920
|
|
|
|
100,639
|
|
|
Gain on disposition of
real estate
|
|
|
(775)
|
|
|
|
(4,181)
|
|
|
|
(4,767)
|
|
|
|
(8,462)
|
|
|
Impairment losses –
depreciable real estate, net of recoveries
|
|
|
4,618
|
|
|
|
7,735
|
|
|
|
6,250
|
|
|
|
9,866
|
|
|
Total FFO
adjustments
|
|
|
61,182
|
|
|
|
54,324
|
|
|
|
111,403
|
|
|
|
102,043
|
|
|
FFO available to common
stockholders
|
|
$
|
135,353
|
|
|
$
|
122,862
|
|
|
$
|
266,946
|
|
|
$
|
222,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.77
|
|
|
$
|
0.70
|
|
|
$
|
1.53
|
|
|
$
|
1.28
|
|
|
Diluted
|
|
$
|
0.77
|
|
|
$
|
0.70
|
|
|
$
|
1.53
|
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Funds From
Operations (Core FFO) Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings available
to common stockholders
|
|
$
|
74,171
|
|
|
$
|
68,538
|
|
|
$
|
155,543
|
|
|
$
|
120,640
|
|
|
Total FFO
adjustments
|
|
|
61,182
|
|
|
|
54,324
|
|
|
|
111,403
|
|
|
|
102,043
|
|
|
FFO available to
common stockholders
|
|
|
135,353
|
|
|
|
122,862
|
|
|
|
266,946
|
|
|
|
222,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive retirement
costs
|
|
|
2,655
|
|
|
|
—
|
|
|
|
6,249
|
|
|
|
—
|
|
|
Loss on early
extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21,328
|
|
|
Total Core FFO
adjustments
|
|
|
2,655
|
|
|
|
—
|
|
|
|
6,249
|
|
|
|
21,328
|
|
|
Core FFO available to
common stockholders
|
|
$
|
138,008
|
|
|
$
|
122,862
|
|
|
$
|
273,195
|
|
|
$
|
244,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.79
|
|
|
$
|
0.70
|
|
|
$
|
1.56
|
|
|
$
|
1.40
|
|
|
Diluted
|
|
$
|
0.79
|
|
|
$
|
0.70
|
|
|
$
|
1.56
|
|
|
$
|
1.40
|
|
|
National Retail
Properties, Inc.
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
|
Quarter Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Adjusted Funds From
Operations (AFFO) Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings available
to common stockholders
|
|
$
|
74,171
|
|
|
$
|
68,538
|
|
|
$
|
155,543
|
|
|
$
|
120,640
|
|
|
Total FFO
adjustments
|
|
|
61,182
|
|
|
|
54,324
|
|
|
|
111,403
|
|
|
|
102,043
|
|
|
Total Core FFO
adjustments
|
|
|
2,655
|
|
|
|
—
|
|
|
|
6,249
|
|
|
|
21,328
|
|
|
Core FFO available to
common stockholders
|
|
|
138,008
|
|
|
|
122,862
|
|
|
|
273,195
|
|
|
|
244,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line accrued
rent, net of reserves
|
|
|
1,547
|
|
|
|
7,359
|
|
|
|
2,643
|
|
|
|
15,692
|
|
|
Net capital lease rent
adjustment
|
|
|
74
|
|
|
|
95
|
|
|
|
149
|
|
|
|
185
|
|
|
Below-market rent
amortization
|
|
|
(140)
|
|
|
|
(112)
|
|
|
|
(280)
|
|
|
|
(274)
|
|
|
Stock based
compensation expense
|
|
|
2,790
|
|
|
|
4,235
|
|
|
|
5,391
|
|
|
|
8,421
|
|
|
Capitalized interest
expense
|
|
|
(176)
|
|
|
|
(64)
|
|
|
|
(274)
|
|
|
|
(127)
|
|
|
Total AFFO
adjustments
|
|
|
4,095
|
|
|
|
11,513
|
|
|
|
7,629
|
|
|
|
23,897
|
|
|
AFFO available to
common stockholders
|
|
$
|
142,103
|
|
(1)
|
$
|
134,375
|
|
(2)
|
$
|
280,824
|
|
(1)
|
$
|
267,908
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.81
|
|
(1)
|
$
|
0.77
|
|
(2)
|
$
|
1.61
|
|
(1)
|
$
|
1.53
|
|
(2)
|
Diluted
|
|
$
|
0.81
|
|
(1)
|
$
|
0.77
|
|
(2)
|
$
|
1.60
|
|
(1)
|
$
|
1.53
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income from
operating leases(3)
|
|
$
|
185,791
|
|
|
$
|
173,371
|
|
|
$
|
370,102
|
|
|
$
|
346,954
|
|
|
Earned income from
direct financing leases(3)
|
|
$
|
150
|
|
|
$
|
157
|
|
|
$
|
301
|
|
|
$
|
315
|
|
|
Percentage
rent(3)
|
|
$
|
295
|
|
|
$
|
231
|
|
|
$
|
996
|
|
|
$
|
335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate expense
reimbursement from tenants(3)
|
|
$
|
4,300
|
|
|
$
|
4,245
|
|
|
$
|
8,900
|
|
|
$
|
9,598
|
|
|
Real estate
expenses
|
|
|
(6,173)
|
|
|
|
(6,619)
|
|
|
|
(13,371)
|
|
|
|
(14,344)
|
|
|
Real estate expenses,
net of tenant reimbursements
|
|
$
|
(1,873)
|
|
|
$
|
(2,374)
|
|
|
$
|
(4,471)
|
|
|
$
|
(4,746)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of debt
costs
|
|
$
|
1,178
|
|
|
$
|
1,042
|
|
|
$
|
2,349
|
|
|
$
|
2,882
|
|
(4)
|
Scheduled debt
principal amortization (excluding maturities)
|
|
$
|
163
|
|
|
$
|
155
|
|
|
$
|
328
|
|
|
$
|
312
|
|
|
Non-real estate
depreciation expense
|
|
$
|
108
|
|
|
$
|
108
|
|
|
$
|
210
|
|
|
$
|
222
|
|
|
(1)
|
Amounts include $1,729
and $3,509 of net straight-line accrued rent from net rent deferral
repayments from the COVID-19 rent deferral lease amendments for the
quarter and six months ended June 30, 2022, respectively.
Excluding such, AFFO per common share would have been $0.80 and
$1.58 for the quarter and six months ended June 30, 2022,
respectively.
|
|
|
(2)
|
Amounts include $8,323
and $17,706 of net straight-line accrued rent from net rent
deferral repayments from the COVID-19 rent deferral lease
amendments for the quarter and six months ended June 30, 2021,
respectively. Excluding such, AFFO per common share would have been
$0.72 and $1.43 for the quarter and six months ended June 30,
2021, respectively.
|
|
|
(3)
|
For the quarter and six
months ended June 30, 2022, the aggregate of such amounts is
$190,536 and $380,299, respectively, and is classified as rental
income on the income statement summary. For the quarter and six
months ended June 30, 2021, the aggregate of such amounts is
$178,004 and $357,202, respectively.
|
|
|
(4)
|
Includes $745 in
connection with the redemption of the 3.30% senior unsecured notes
due 2023 for the six months ended June 30, 2021.
|
|
|
National Retail Properties, Inc.
2022 Earnings Guidance
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 Commission.
|
|
2022
Guidance
|
Net earnings per common
share excluding any gains on disposition
of real estate, impairment charges, and
executive retirement costs
|
|
$1.83 - $1.88 per
share
|
Real estate
depreciation and amortization per share
|
|
$1.24 per
share
|
Core FFO per
share
|
|
$3.07 - $3.12 per
share
|
AFFO per
share(1)
|
|
$3.14 - $3.19 per
share
|
General and
administrative expenses
|
|
$40 - $42
Million
|
Real estate expenses,
net of tenant reimbursements
|
|
$9 - $11
Million
|
Acquisition
volume
|
|
$600 - $700
Million
|
Disposition
volume
|
|
$80 - $100
Million
|
|
|
|
(1)
|
|
Estimates include the
net straight-line accrued rent impact of the net rent repayment
from the COVID-19 rent deferral lease amendments of $5.4 million
for 2022. Excluding such, AFFO per common share guidance would have
been $3.11 - $3.16 for 2022.
|
National Retail
Properties, Inc.
|
(in
thousands)
|
(unaudited)
|
|
|
|
June 30,
2022
|
|
|
December 31,
2021
|
|
Balance Sheet
Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Real estate
portfolio
|
|
$
|
7,674,508
|
|
|
$
|
7,444,289
|
|
Real estate held for
sale
|
|
|
3,461
|
|
|
|
5,557
|
|
Cash and cash
equivalents
|
|
|
3,289
|
|
|
|
171,322
|
|
Receivables, net of
allowance of $699 and $782, respectively
|
|
|
2,612
|
|
|
|
3,154
|
|
Accrued rental income,
net of allowance of $4,090 and $4,587, respectively
|
|
|
29,065
|
|
|
|
31,942
|
|
Debt costs, net of
accumulated amortization of $20,515 and $19,377,
respectively
|
|
|
6,427
|
|
|
|
7,443
|
|
Other
assets
|
|
|
84,893
|
|
|
|
87,347
|
|
Total
assets
|
|
$
|
7,804,255
|
|
|
$
|
7,751,054
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Line of credit
payable
|
|
$
|
40,000
|
|
|
$
|
—
|
|
Mortgages payable,
including unamortized premium and net of unamortized debt
cost
|
|
|
10,334
|
|
|
|
10,697
|
|
Notes payable, net of
unamortized discount and unamortized debt costs
|
|
|
3,737,808
|
|
|
|
3,735,769
|
|
Accrued interest
payable
|
|
|
23,178
|
|
|
|
23,923
|
|
Other
liabilities
|
|
|
77,409
|
|
|
|
79,002
|
|
Total
liabilities
|
|
|
3,888,729
|
|
|
|
3,849,391
|
|
|
|
|
|
|
|
|
Stockholders' equity of
NNN
|
|
|
3,915,526
|
|
|
|
3,901,662
|
|
Noncontrolling
interests
|
|
|
—
|
|
|
|
1
|
|
Total
equity
|
|
|
3,915,526
|
|
|
|
3,901,663
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
7,804,255
|
|
|
$
|
7,751,054
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
|
176,615
|
|
|
|
175,636
|
|
|
|
|
|
|
|
|
Gross leasable area,
Property Portfolio (square feet)
|
|
|
33,758
|
|
|
|
32,753
|
|
National Retail
Properties, Inc.
|
Debt
Summary
|
As of June 30,
2022
|
(in
thousands)
|
(unaudited)
|
|
Unsecured
Debt
|
|
Principal
|
|
|
Principal,
Net of
Unamortized
Discount
|
|
|
Stated
Rate
|
|
|
Effective
Rate
|
|
|
Maturity
Date
|
Line of credit
payable
|
|
$
|
40,000
|
|
|
$
|
40,000
|
|
|
L + 77.5 bps
|
|
|
|
2.038
|
%
|
|
June 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured notes
payable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
|
350,000
|
|
|
|
349,840
|
|
|
|
3.900
|
%
|
|
|
3.924
|
%
|
|
June 2024
|
2025
|
|
|
400,000
|
|
|
|
399,633
|
|
|
|
4.000
|
%
|
|
|
4.029
|
%
|
|
November
2025
|
2026
|
|
|
350,000
|
|
|
|
348,103
|
|
|
|
3.600
|
%
|
|
|
3.733
|
%
|
|
December
2026
|
2027
|
|
|
400,000
|
|
|
|
399,075
|
|
|
|
3.500
|
%
|
|
|
3.548
|
%
|
|
October 2027
|
2028
|
|
|
400,000
|
|
|
|
398,075
|
|
|
|
4.300
|
%
|
|
|
4.388
|
%
|
|
October 2028
|
2030
|
|
|
400,000
|
|
|
|
398,980
|
|
|
|
2.500
|
%
|
|
|
2.536
|
%
|
|
April 2030
|
2048
|
|
|
300,000
|
|
|
|
296,019
|
|
|
|
4.800
|
%
|
|
|
4.890
|
%
|
|
October 2048
|
2050
|
|
|
300,000
|
|
|
|
294,224
|
|
|
|
3.100
|
%
|
|
|
3.205
|
%
|
|
April 2050
|
2051
|
|
|
450,000
|
|
|
|
441,802
|
|
|
|
3.500
|
%
|
|
|
3.602
|
%
|
|
April 2051
|
2052
|
|
|
450,000
|
|
|
|
439,737
|
|
|
|
3.000
|
%
|
|
|
3.118
|
%
|
|
April 2052
|
Total
|
|
|
3,800,000
|
|
|
|
3,765,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total unsecured
debt(1)
|
|
$
|
3,840,000
|
|
|
$
|
3,805,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt costs
|
|
|
|
|
$
|
(38,145)
|
|
|
|
|
|
|
|
|
|
Accumulated
amortization
|
|
|
|
10,465
|
|
|
|
|
|
|
|
|
|
Debt costs, net of
accumulated amortization
|
|
|
|
(27,680)
|
|
|
|
|
|
|
|
|
|
Notes payable, net of
unamortized discount and
unamortized debt costs
|
|
|
$
|
3,737,808
|
|
|
|
(1)
|
|
Unsecured notes payable
have a weighted average interest rate of 3.7% and a weighted
average maturity of 14.2 years.
|
Mortgages
Payable
|
|
Principal
Balance
|
|
|
Interest
Rate
|
|
|
Maturity
Date
|
Mortgage(1)
|
|
$
|
10,347
|
|
|
|
5.230
|
%
|
|
July 2023
|
|
|
|
|
|
|
|
|
|
Debt costs
|
|
|
(147)
|
|
|
|
|
|
|
Accumulated
amortization
|
|
|
134
|
|
|
|
|
|
|
Debt costs, net of
accumulated amortization
|
|
|
(13)
|
|
|
|
|
|
|
Mortgages payable,
including unamortized
premium and net of unamortized debt
costs
|
|
$
|
10,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes unamortized
premium
|
|
|
|
As of June 30, 2022, Debt / EBITDA based on current quarter
EBITDA annualized is 5.4x.
National Retail Properties,
Inc.
Debt Summary – Continued
As of June 30,
2022
(unaudited)
Credit Facility and Note Covenants
The following is a summary of key financial covenants for the
company's unsecured credit facility and notes, as defined and
calculated per the terms of the facility's credit agreement and the
notes' governing documents, respectively, which are included in the
company's filings with the Commission. These calculations, which
are not based on U.S. GAAP measurements, are presented to investors
to show that as of June 30, 2022, the company believes it is
in compliance with the covenants.
Unsecured Credit
Facility Key Covenants
|
|
Required
|
|
June 30,
2022
|
Maximum leverage
ratio
|
|
< 0.60
|
|
0.36
|
Minimum fixed charge
coverage ratio
|
|
> 1.50
|
|
4.59
|
Maximum secured
indebtedness ratio
|
|
< 0.40
|
|
0.001
|
Unencumbered asset
value ratio
|
|
> 1.67
|
|
2.79
|
Unencumbered interest
ratio
|
|
> 1.75
|
|
4.82
|
|
|
|
|
|
Unsecured Notes Key
Covenants
|
|
Required
|
|
June 30,
2022
|
Limitation on
incurrence of total debt
|
|
≤ 60%
|
|
40 %
|
Limitation on
incurrence of secured debt
|
|
≤ 40%
|
|
0.1 %
|
Debt service coverage
ratio
|
|
≥ 1.50
|
|
4.67
|
Maintenance of total
unencumbered assets
|
|
≥ 150%
|
|
247 %
|
National Retail
Properties, Inc.
|
Property
Portfolio
|
Top 20 Lines of
Trade
|
|
|
|
|
|
As of
June 30,
|
|
|
Lines of
Trade
|
|
2022(1)
|
|
2021(2)
|
1.
|
|
Convenience
stores
|
|
17.0 %
|
|
18.0 %
|
2.
|
|
Automotive
service
|
|
13.1 %
|
|
11.4 %
|
3.
|
|
Restaurants – full
service
|
|
9.6 %
|
|
9.9 %
|
4.
|
|
Restaurants – limited
service
|
|
9.2 %
|
|
9.2 %
|
5.
|
|
Family entertainment
centers
|
|
6.2 %
|
|
6.1 %
|
6.
|
|
Health and
fitness
|
|
5.0 %
|
|
5.2 %
|
7.
|
|
Theaters
|
|
4.3 %
|
|
4.6 %
|
8.
|
|
Recreational vehicle
dealers, parts and accessories
|
|
4.2 %
|
|
3.5 %
|
9.
|
|
Equipment
rental
|
|
3.2 %
|
|
3.2 %
|
10.
|
|
Automotive
parts
|
|
2.9 %
|
|
3.1 %
|
11.
|
|
Home
improvement
|
|
2.4 %
|
|
2.6 %
|
12.
|
|
Wholesale
clubs
|
|
2.4 %
|
|
2.5 %
|
13.
|
|
Furniture
|
|
2.4 %
|
|
1.6 %
|
14.
|
|
Medical service
providers
|
|
2.0 %
|
|
2.2 %
|
15.
|
|
General
merchandise
|
|
1.6 %
|
|
1.7 %
|
16.
|
|
Home
furnishings
|
|
1.5 %
|
|
1.6 %
|
17.
|
|
Travel
plazas
|
|
1.5 %
|
|
1.5 %
|
18.
|
|
Consumer
electronics
|
|
1.5 %
|
|
1.6 %
|
19.
|
|
Automobile auctions,
wholesale
|
|
1.2 %
|
|
1.1 %
|
20.
|
|
Drug stores
|
|
1.2 %
|
|
1.4 %
|
|
|
Other
|
|
7.6 %
|
|
8.0 %
|
|
|
Total
|
|
100.0 %
|
|
100.0 %
|
|
|
State
|
|
% of
Total(1)
|
|
|
|
State
|
|
% of
Total(1)
|
1.
|
|
Texas
|
|
17.0 %
|
|
6.
|
|
North
Carolina
|
|
4.2 %
|
2.
|
|
Florida
|
|
8.9 %
|
|
7.
|
|
Indiana
|
|
3.9 %
|
3.
|
|
Illinois
|
|
5.4 %
|
|
8.
|
|
Tennessee
|
|
3.8 %
|
4.
|
|
Ohio
|
|
5.4 %
|
|
9.
|
|
Virginia
|
|
3.4 %
|
5.
|
|
Georgia
|
|
4.7 %
|
|
10.
|
|
California
|
|
3.3 %
|
As a percentage of
annual base rent, which is the annualized base rent for all leases
in place.
|
|
(1)
|
$738,670,000 as of
June 30, 2022.
|
|
(2)
|
$689,364,000 as of
June 30, 2021.
|
National Retail
Properties, Inc.
|
Property Portfolio –
Continued
|
|
Top 20
Tenants
|
|
|
|
Tenant
|
|
# of
Properties
|
|
% of
Total(1)
|
1.
|
|
7-Eleven
|
|
138
|
|
4.9 %
|
2.
|
|
Mister Car
Wash
|
|
121
|
|
4.5 %
|
3.
|
|
Camping
World
|
|
47
|
|
4.1 %
|
4.
|
|
LA Fitness
|
|
30
|
|
3.5 %
|
5.
|
|
GPM Investments
(Convenience Stores)
|
|
152
|
|
3.3 %
|
6.
|
|
Dave &
Buster's
|
|
29
|
|
3.1 %
|
7.
|
|
Flynn Restaurant Group
(Taco Bell/Arby's)
|
|
204
|
|
3.0 %
|
8.
|
|
AMC Theatre
|
|
20
|
|
2.8 %
|
9.
|
|
BJ's Wholesale
Club
|
|
12
|
|
2.4 %
|
10.
|
|
Mavis Tire Express
Services
|
|
133
|
|
2.2 %
|
11.
|
|
Sunoco
|
|
59
|
|
2.2 %
|
12.
|
|
Chuck E.
Cheese's
|
|
53
|
|
2.0 %
|
13.
|
|
Couche Tard
(Pantry)
|
|
71
|
|
1.8 %
|
14.
|
|
Frisch's
Restaurants
|
|
69
|
|
1.8 %
|
15.
|
|
Fikes (Convenience
Stores)
|
|
59
|
|
1.7 %
|
16.
|
|
Life Time
Fitness
|
|
3
|
|
1.5 %
|
17.
|
|
Bob Evans
|
|
106
|
|
1.4 %
|
18.
|
|
Best Buy
|
|
16
|
|
1.4 %
|
19.
|
|
Ahern
Rentals
|
|
39
|
|
1.4 %
|
20.
|
|
Pull-A-Part
|
|
20
|
|
1.3 %
|
|
|
% of
Total(1)
|
|
# of
Properties
|
|
Gross
Leasable
Area(3)
|
|
|
|
% of
Total(1)
|
|
# of
Properties
|
|
Gross
Leasable
Area(3)
|
2022
|
|
0.5 %
|
|
14
|
|
232,000
|
|
2028
|
|
4.7 %
|
|
165
|
|
1,368,000
|
2023
|
|
2.2 %
|
|
102
|
|
1,241,000
|
|
2029
|
|
3.0 %
|
|
81
|
|
1,025,000
|
2024
|
|
3.2 %
|
|
92
|
|
1,447,000
|
|
2030
|
|
3.6 %
|
|
107
|
|
1,205,000
|
2025
|
|
5.7 %
|
|
188
|
|
1,992,000
|
|
2031
|
|
8.2 %
|
|
190
|
|
2,781,000
|
2026
|
|
5.4 %
|
|
216
|
|
2,136,000
|
|
2032
|
|
6.4 %
|
|
219
|
|
2,151,000
|
2027
|
|
8.7 %
|
|
236
|
|
3,596,000
|
|
Thereafter
|
|
48.4 %
|
|
1,665
|
|
14,352,000
|
(1)
|
|
Based on the annual
base rent of $738,670,000, which is the annualized base rent for
all leases in place as of June 30, 2022.
|
(2)
|
|
As of June 30,
2022, the weighted average remaining lease term is 10.6
years.
|
(3)
|
|
Square feet.
|
|
|
|
National Retail Properties,
Inc.
Rent Deferral Lease Amendments
(in
thousands)
The following table outlines the rent deferred and corresponding
scheduled repayment of the COVID-19 rent deferral lease amendments
executed as of June 30, 2022 (dollars in
thousands):
|
|
|
Deferred
|
|
|
|
Scheduled
Repayment
|
|
|
|
|
Accrual
Basis
|
|
|
Cash
Basis
|
|
|
Total
|
|
|
% of
Total
|
|
|
|
Accrual
Basis
|
|
|
Cash
Basis
|
|
|
Total
|
|
|
% of
Total
|
|
|
Cumulative
Total
|
|
2020
|
|
|
$
|
33,594
|
|
|
$
|
18,425
|
|
|
$
|
52,019
|
|
|
|
91.7
|
%
|
|
|
$
|
3,239
|
|
|
$
|
20
|
|
|
$
|
3,259
|
|
|
|
5.7
|
%
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
990
|
|
|
|
3,768
|
|
|
|
4,758
|
|
|
|
8.3
|
%
|
|
|
|
25,935
|
|
|
|
5,841
|
|
|
|
31,776
|
|
|
|
56.0
|
%
|
|
|
61.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
Q1
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,780
|
|
|
|
2,283
|
|
|
|
4,063
|
|
|
|
7.2
|
%
|
|
|
68.9
|
%
|
|
Q2
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,729
|
|
|
|
2,284
|
|
|
|
4,013
|
|
|
|
7.1
|
%
|
|
|
76.0
|
%
|
|
Q3
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,201
|
|
|
|
2,284
|
|
|
|
3,485
|
|
|
|
6.1
|
%
|
|
|
82.1
|
%
|
|
Q4
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
681
|
|
|
|
2,284
|
|
|
|
2,965
|
|
|
|
5.2
|
%
|
|
|
87.3
|
%
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
5,391
|
|
|
|
9,135
|
|
|
|
14,526
|
|
|
|
25.6
|
%
|
|
|
87.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
Q1
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
9
|
|
|
|
1,704
|
|
|
|
1,713
|
|
|
|
2.9
|
%
|
|
|
90.2
|
%
|
|
Q2
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
10
|
|
|
|
543
|
|
|
|
553
|
|
|
|
1.0
|
%
|
|
|
91.2
|
%
|
|
Q3
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
543
|
|
|
|
543
|
|
|
|
1.0
|
%
|
|
|
92.2
|
%
|
|
Q4
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
544
|
|
|
|
544
|
|
|
|
1.0
|
%
|
|
|
93.2
|
%
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
19
|
|
|
|
3,334
|
|
|
|
3,353
|
|
|
|
5.9
|
%
|
|
|
93.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
1,932
|
|
|
|
1,932
|
|
|
|
3.4
|
%
|
|
|
96.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
1,931
|
|
|
|
1,931
|
|
|
|
3.4
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
34,584
|
|
|
$
|
22,193
|
|
|
$
|
56,777
|
|
|
|
|
|
|
$
|
34,584
|
|
|
$
|
22,193
|
|
|
$
|
56,777
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/second-quarter-2022-operating-results-and-increased-2022-guidance-announced-by-national-retail-properties-inc-301598445.html
SOURCE National Retail Properties, Inc.