NNN REIT Lifts Occupancy to 99.2% as Q3 Core FFO Rises 5.9% to $0.90 a Share
NNN REIT lifted occupancy to 99.2% and grew core funds from operations per share 5.9% in the third quarter, according to its 8-K released Wednesday, while keeping its 2026 earnings guidance intact.
Core FFO, a key profit measure for real estate investment trusts, rose to $0.90 per diluted share from $0.85. Adjusted FFO increased 5.8% to $0.91. Net earnings were $109.9 million, or $0.57 per share, compared with $96.8 million, or $0.51. Revenue grew to $249.7 million from $230.2 million.
Portfolio growth
Annualized base rent rose 6.8% to $974.0 million. Occupancy climbed 10 basis points from the prior quarter and 170 basis points from a year earlier, with a weighted average remaining lease term of 10.1 years across 3,817 properties.
The net-lease landlord closed $221.7 million of investments in the quarter at an initial cash cap rate of 7.3% and a weighted average lease term of 19.6 years. Year-to-date investments totaled $658.1 million. It sold 32 properties for $50.7 million.
"With $1.4 billion of available liquidity and a balance sheet built for all market cycles, we are well positioned to execute on our investment pipeline and capitalize on the opportunities that today's market volatility may create," said CEO Steve Horn.
Capital and dividend
NNN issued 2,014,352 shares, mainly through its at-the-market program, for net proceeds of $89.5 million, and entered forward sale agreements for 502,305 shares at a weighted average $47.28. Its weighted average debt maturity is 9.8 years, with 2.3% floating-rate exposure.
The REIT paid a $0.62 quarterly dividend, a 68% AFFO payout ratio.
Guidance
NNN kept 2026 core FFO guidance at $3.50 to $3.54 per share and AFFO at $3.55 to $3.59, and maintained acquisition volume guidance of $700 million to $800 million. It raised expected dispositions to $160 million to $180 million from $120 million to $160 million.
By the numbers
- Core FFO per share: $0.90, up 5.9%
- AFFO per share: $0.91, up 5.8%
- Occupancy: 99.2%
- Annualized base rent: $974.0 million, up 6.8%
- Q3 investments: $221.7 million at a 7.3% cap rate
Sources
- NNN REIT Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0000751364-26-000002)
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