NNN Earnings Prediction
The chart below shows how NNN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NNN sees a -1.23% change in stock price 10 days leading up to the earnings, and a +1.20% change 10 days following the report. On the earnings day itself, the stock moves by +0.71%. This data can give you a slight idea of what to expect for the next quarter's release.
NNN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
218.48M
1.04%
-0.04%
Gross Margin
65.98%
-3.55%
-2.51%
Operating Margin
61.99%
-2.44%
-0.91%
Net Margin
44.81%
0.22%
0.04%
EPS
0.52
-1.89%
-1.89%
No Data Available
NNN Earnings Analysis
NNN REIT Inc Corporation (NNN.N) Earnings Conference Call
Positive
Core FFO and AFFO Growth: NNN REIT achieved a 1.8% growth in core FFO for 2024, reaching $3.32 per share, alongside a 2.8% increase in AFFO per share, totaling $3.35 for the year.
High Occupancy Rate: The company reported a strong occupancy rate of 98.5% at year-end, which is above the long-term average of approximately 98%.
Property Investment Highlights: During the fourth quarter, NNN REIT invested $217 million in 31 new properties, achieving an initial cap rate of 7.6% and an expected long-term yield of 8.8%.
Strategic Asset Dispositions: The company successfully executed nearly $150 million in dispositions at a cap rate of 7.3%, enhancing the overall strength of the portfolio through strategic asset management.
Strong Balance Sheet Stability: NNN REIT maintained a robust balance sheet with a net debt to gross book assets ratio of 40.5%, down 150 basis points from the previous year, and ended the year with no amounts outstanding on its $1.2 billion bank line.
Negative
Occupancy Rate Decline: Occupancy decreased to 98.5%, down 80 basis points for the quarter due to challenges with two specific tenants, indicating potential instability in rental income.
Flat Core FFO Results: Core FFO results for Q4 2024 were flat at $0.82 per share compared to the previous year, reflecting stagnation in earnings growth despite expectations for improvement.
Tenant Lease Rejections Impact: The company reported a significant impact from two troubled tenants, Badcock and Frisch's, with Badcock rejecting leases on 32 properties, resulting in a loss of $5.2 million in annual base rent, which is 0.6% of total ABR.
Rental Income Impact: Frisch's properties, which represented 1.5% of annual base rent, saw no rent paid in Q4, leading to a potential long-term impact on revenue as the eviction process is ongoing.
Rising Administrative Expenses: General and administrative expenses for 2024 were reported at $43.4 million, representing 5.1% of total revenues, indicating a higher cost structure that could pressure margins moving forward.
NNN FAQs
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NNN Earning Call Sentiment
Earnings call transcript: NNN REIT Q4 2024 beats EPS estimates, stock rises
NNN.N
5.73%Positive
The earnings call summary presents a mixed sentiment. Strong financial metrics like a solid balance sheet, robust acquisition strategy, and positive free cash flow are countered by tenant challenges and vague management responses in the Q&A. The AFFO growth despite lease terminations and higher expenses suggests some resilience, but concerns about credit losses and unclear guidance on tenant issues temper enthusiasm. Overall, the sentiment is neutral, reflecting both positive financial performance and ongoing uncertainties.
