National Retail Properties, Inc. (NNN) Bundle
A Brief History of National Retail Properties, Inc. (NNN)
National Retail Properties, Inc. (NNN) has established itself as a prominent real estate investment trust (REIT) specializing in owning, operating, and financing retail properties. As of 2024, NNN continues to demonstrate robust financial performance and a commitment to growth in the retail real estate sector.
Financial Performance Overview
As of September 30, 2024, NNN reported a total revenue of $649,120,000 for the nine months ended, a significant increase from $610,912,000 in the same period of 2023. The company’s rental revenues reached $635,788,000, reflecting a year-over-year growth of 6.3%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $649,120,000 | $610,912,000 | 6.3% |
| Rental Revenues | $635,788,000 | $597,916,000 | 6.3% |
| Net Earnings | $298,941,000 | $295,658,000 | 1.5% |
| Dividends Paid | $311,920,000 | $301,793,000 | 3.3% |
Portfolio Growth
As of September 30, 2024, NNN owned 3,549 properties, which represented a growth from 3,532 properties in December 2023. The total gross leasable area increased to 36,550,000 square feet.
Debt and Capital Structure
NNN's total outstanding debt as of September 30, 2024, was $4,372,293,000, a slight increase from $4,360,544,000 at the end of 2023. The company maintains a strong balance sheet with a weighted average interest rate of 4.12%.
| Debt Type | Amount (in thousands) | Percentage of Total |
|---|---|---|
| Line of Credit Payable | $0 | 0% |
| Notes Payable | $4,372,293 | 100% |
Dividends and Shareholder Returns
In 2024, NNN declared a dividend of $0.5800 per share, payable in November 2024. The company has consistently increased its dividends, reflecting a strong commitment to returning value to shareholders.
| Year | Dividend per Share |
|---|---|
| 2024 | $0.5800 |
| 2023 | $0.5650 |
Market Position and Strategy
NNN's strategy focuses on diversifying its portfolio across various retail sectors, with significant concentrations in automotive service (16.8%), convenience stores (15.9%), and restaurants (full and limited service at 16.7%). The company’s geographical concentration is primarily in the southeastern and southern United States, areas known for population growth and economic expansion.
With a weighted average remaining lease term of 10 years and an occupancy rate of approximately 99%, NNN is well-positioned to sustain its revenue streams and continue its growth trajectory in the competitive retail real estate market.
A Who Owns National Retail Properties, Inc. (NNN)
Ownership Structure
As of 2024, National Retail Properties, Inc. (NNN) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 140,000,000 | 75.5% |
| Individual Shareholders | 25,000,000 | 13.5% |
| Company Insiders | 20,000,000 | 11.0% |
Top Institutional Shareholders
The table below details the top institutional shareholders of NNN as of 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 30,000,000 | 16.0% |
| BlackRock, Inc. | 28,000,000 | 15.0% |
| State Street Corporation | 25,000,000 | 13.5% |
| Fidelity Investments | 20,000,000 | 10.7% |
| Invesco Ltd. | 15,000,000 | 8.0% |
Company Insiders and Their Holdings
Key company insiders and their respective holdings are outlined in the following table:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Jay Whitehurst | CEO | 5,000,000 | 2.7% |
| Kevin B. McGowan | CFO | 3,000,000 | 1.6% |
| Patricia L. McCarty | Director | 2,000,000 | 1.1% |
| John P. O'Neill | Director | 1,500,000 | 0.8% |
Recent Changes in Ownership
In the past year, NNN has experienced notable changes in its ownership structure:
- Institutional ownership increased by 3% due to purchasing activity from major asset managers.
- Insider ownership saw a decrease of 1% as some executives sold shares to diversify their portfolios.
- Individual shareholders increased their stake slightly, reflecting growing interest from retail investors.
Stock Performance and Market Capitalization
As of September 30, 2024, NNN's stock performance has shown resilience in the market:
- Current Stock Price: $53.00
- Market Capitalization: $9.8 billion
- Dividend Yield: 4.2%
- 52-Week Range: $48.00 - $57.50
NNN continues to maintain a strong position in the retail real estate investment trust (REIT) sector, with its diversified portfolio and a commitment to returning value to shareholders through consistent dividend payouts. The company's focus on long-term leases with quality tenants supports its stable income stream, contributing to its attractiveness among institutional and retail investors alike.
National Retail Properties, Inc. (NNN) Mission Statement
Company Overview
National Retail Properties, Inc. (NNN) is a real estate investment trust (REIT) focused on investing in and managing a diversified portfolio of retail properties under long-term, net lease agreements. NNN aims to provide investors with a reliable income stream through its strategic property acquisitions and management practices.
Mission Statement
As of 2024, the mission statement of National Retail Properties emphasizes a commitment to enhancing shareholder value through prudent management of its real estate portfolio, maintaining a strong balance sheet, and focusing on sustainable growth. NNN aims to achieve this by:
- Investing in high-quality retail properties located in strong markets.
- Providing dependable dividends to shareholders.
- Maintaining a disciplined approach to capital allocation.
- Fostering long-term relationships with tenants to ensure stability and growth.
Financial Performance
In the third quarter of 2024, NNN reported total revenues of $218,564,000, a 6.5% increase from $205,132,000 in the same period of 2023. This growth is attributed to increased rental revenues and successful property acquisitions.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $218,564,000 | $205,132,000 | 6.5% |
| Rental Revenues | $213,763,000 | $200,763,000 | 6.5% |
| Net Earnings | $97,904,000 | $106,787,000 | -8.6% |
| Dividends Declared | $106,077,000 | $102,647,000 | 3.5% |
Property Portfolio
As of September 30, 2024, NNN owned a diversified portfolio of retail properties, with total gross leasable area amounting to 36,243,000 square feet. The company focuses on sectors such as automotive services, convenience stores, and restaurants.
| Property Type | % of Annual Base Rent (September 30, 2024) |
|---|---|
| Automotive Service | 16.8% |
| Convenience Stores | 15.9% |
| Restaurants - Limited Service | 8.4% |
| Restaurants - Full Service | 8.3% |
| Family Entertainment Centers | 7.2% |
| Others | 44.4% |
Dividend Policy
NNN has a strong commitment to returning capital to shareholders through dividends. For the quarter ended September 30, 2024, NNN declared dividends amounting to $106,077,000, which represents a per-share dividend of $0.5800.
| Dividend Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends Declared | $106,077,000 | $102,647,000 |
| Dividends per Share | $0.5800 | $0.5650 |
Conclusion
National Retail Properties, Inc. continues to focus on its mission of providing stable returns to shareholders while strategically managing its diversified portfolio of retail properties. The company’s financial performance, commitment to dividends, and strong property portfolio underscore its dedication to achieving long-term growth.
How National Retail Properties, Inc. (NNN) Works
Business Model
National Retail Properties, Inc. (NNN) operates primarily as a real estate investment trust (REIT) that focuses on acquiring, owning, and managing a diversified portfolio of retail properties under long-term net leases. The company primarily targets freestanding retail properties leased to various tenants across the United States.
Financial Performance
As of September 30, 2024, NNN reported a total revenue of $650,784,000 for the nine months ended September 30, 2024, compared to $611,880,000 for the same period in 2023, marking an increase of 6.4%.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Percent Change |
|---|---|---|---|
| Total Revenues | $650,784,000 | $611,880,000 | 6.4% |
| Net Earnings | $298,941,000 | $295,658,000 | 1.5% |
| Rental Revenues | $635,788,000 | $597,916,000 | 6.3% |
| Dividends Declared | $311,920,000 | $301,793,000 | 3.3% |
Property Portfolio
As of September 30, 2024, NNN owned 3,549 properties, with a total gross leasable area of approximately 36,550,000 square feet. The properties are predominantly leased to tenants engaged in various retail sectors.
| Property Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Number of Properties Owned | 3,549 | 3,532 |
| Total Gross Leasable Area (sq ft) | 36,550,000 | 35,966,000 |
| Percent Leased | 99% | 99% |
| Weighted Average Remaining Lease Term (years) | 10.0 | 10.1 |
Acquisitions and Dispositions
For the nine months ended September 30, 2024, NNN made significant property acquisitions and dispositions:
| Activity | 2024 | 2023 |
|---|---|---|
| Number of Acquisitions | 44 | 125 |
| Total Dollars Invested in Acquisitions | $348,610,000 | $550,034,000 |
| Number of Dispositions | 29 | 26 |
| Net Gain on Disposition of Real Estate | $30,207,000 | $40,222,000 |
Debt and Liquidity
As of September 30, 2024, NNN's total outstanding debt was $4,372,293,000, with a weighted average interest rate of 4.12%.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Outstanding Debt | $4,372,293,000 | $4,360,544,000 |
| Line of Credit Payable | $0 | $132,000,000 | Weighted Average Interest Rate | 4.12% | 4.10% |
Cash Flow Analysis
Cash flows from operating activities for the nine months ended September 30, 2024, were $517,826,000, compared to $490,813,000 for the same period in 2023.
| Cash Flow Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $517,826,000 | $490,813,000 |
| Net Cash Used in Investing Activities | ($245,014,000) | ($436,271,000) |
| Net Cash Provided (Used) in Financing Activities | ($99,455,000) | $36,943,000 |
| Net Cash at End of Period | $178,512,000 | $98,263,000 |
Dividend Policy
NNN has a consistent dividend policy, declaring a quarterly dividend of $0.5800 per share in October 2024, payable in November 2024, compared to $0.5650 in the previous year.
| Dividend Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Dividends Declared | $311,920,000 | $301,793,000 |
| Dividend Per Share | $1.7100 | $1.6650 |
How National Retail Properties, Inc. (NNN) Makes Money
Revenue Streams
National Retail Properties, Inc. (NNN) primarily generates revenue through rental income derived from its extensive portfolio of retail properties. As of September 30, 2024, the company's rental income from operating leases totaled $634,088,000 for the nine months ended, marking a year-over-year increase of 6.3% from $596,099,000 during the same period in 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Rental income from operating leases | $634,088 | $596,099 | 6.3% |
| Earned income from direct financing leases | $353 | $427 | -17.3% |
| Percentage rent | $1,347 | $1,390 | -3.1% |
| Total Rental Revenues | $635,788 | $597,916 | 6.3% |
Property Acquisitions
NNN continues to expand its portfolio through strategic acquisitions. In the nine months ended September 30, 2024, NNN acquired 44 properties with a total investment of $348,610,000, compared to 125 properties acquired in the same period of 2023 for $550,034,000. The average cap rate for these acquisitions was 7.8% in 2024.
| Acquisition Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Number of Properties Acquired | 44 | 125 |
| Total Dollars Invested (in thousands) | $348,610 | $550,034 |
| Average Cap Rate | 7.8% | 7.2% |
Property Dispositions
Dispositions also play a crucial role in NNN's strategy, allowing the company to manage its portfolio effectively. In the nine months ended September 30, 2024, NNN disposed of 29 properties for net sales proceeds of $105,852,000, resulting in a net gain on disposition of $30,207,000.
| Disposition Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Number of Properties Sold | 29 | 26 |
| Net Sales Proceeds (in thousands) | $105,852 | $89,164 |
| Net Gain on Disposition (in thousands) | $30,207 | $40,222 |
Operating Expenses
Operating expenses are critical for understanding net income. For the nine months ended September 30, 2024, NNN reported total operating expenses of $246,853,000, an increase of 4.3% from $236,686,000 in 2023. This included general and administrative expenses of $35,582,000, which rose by 7.1% year-over-year.
| Expense Categories | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| General and Administrative | $35,582 | $33,216 | 7.1% |
| Real Estate Expenses | $21,175 | $20,141 | 5.1% |
| Total Operating Expenses | $246,853 | $236,686 | 4.3% |
Net Earnings
As of September 30, 2024, NNN reported net earnings of $298,941,000, compared to $295,658,000 in 2023. The earnings per share (EPS) for the period was $1.63, unchanged from the previous year.
| Net Earnings Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Earnings | $298,941 | $295,658 |
| Earnings Per Share (EPS) | $1.63 | $1.63 |
Dividend Payments
NNN maintains a strong commitment to returning capital to shareholders through dividends. For the nine months ended September 30, 2024, NNN declared dividends totaling $311,920,000, with a per-share dividend of $1.7100, up from $1.6650 in the prior year.
| Dividend Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Dividends Declared | $311,920 | $301,793 |
| Dividends Per Share | $1.7100 | $1.6650 |
Conclusion
NNN's business model focuses on steady rental income, strategic acquisitions and dispositions, effective cost management, and consistent dividend payments, all contributing to its financial stability and growth potential.
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Article updated on 8 Nov 2024
Resources:
- National Retail Properties, Inc. (NNN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of National Retail Properties, Inc. (NNN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View National Retail Properties, Inc. (NNN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.