NNN REIT, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net earnings of $109.9 million for the quarter ended September 30, 2026, compared to $96.8 million in the prior-year period.
• Net earnings per diluted share were $0.57 for the quarter, up from $0.51 in the prior year; year-to-date earnings per share were $1.58 compared to $1.56.
• Revenues totaled $249.7 million for the quarter, an increase from $230.2 million in the prior year; nine-month revenues were $734.4 million versus $687.8 million.
• Funds From Operations (FFO) per diluted share grew 7.1% year-over-year to $0.90 for the quarter and 4.7% to $2.65 for the nine months.
• Core FFO per diluted share increased 5.9% year-over-year to $0.90 for the quarter and 4.3% to $2.65 for the nine months.
• Adjusted Funds From Operations (AFFO) per diluted share rose 5.8% year-over-year to $0.91 for the quarter and 4.3% to $2.68 for the nine months.
• Net earnings per share excluding gains on disposition, impairment losses, and retirement/severance costs ranged from $2.00 to $2.04 for the full year 2026.
• Net Debt to annualized EBITDAre was 5.6x as of September 30, 2026; Pro Forma Net Debt to annualized EBITDAre was 5.3x.
• Fixed charge coverage ratio was 4.1x as of September 30, 2026.

Guidance and Future Outlook:

• Maintained 2026 Core FFO per share guidance of $3.50 to $3.54.
• Maintained 2026 AFFO per share guidance of $3.55 to $3.59.
• Increased 2026 disposition volume guidance to a range of $160 million to $180 million, up from the previous $120 million to $160 million.
• Maintained 2026 acquisition volume guidance of $700 million to $800 million.
• Updated 2026 general and administrative expense guidance to $54 million to $56 million.
• Updated 2026 real estate depreciation and amortization per share guidance to $1.50.

Business Segments and Product Lines:

• Portfolio occupancy rate increased to 99.2% as of September 30, 2026, up 10 basis points from the prior quarter and 170 basis points from the prior year.
• Portfolio weighted average remaining lease term remained stable at 10.1 years.
• Closed on $221.7 million of investments in the quarter at an initial cash cap rate of 7.3% with a weighted average lease term of 19.6 years.
• Closed on $658.1 million of investments in the first nine months of 2026 at an initial cash cap rate of 7.3% with a weighted average lease term of 18.5 years.
• Sold 32 properties for $50.7 million in the quarter, including $37.3 million of income-producing properties at a weighted average cap rate of 7.8%.
• Sold 83 properties for $123.3 million in the first nine months of 2026, including $64.1 million of income-producing properties at a weighted average cap rate of 7.3%.
• Portfolio grew to 3,817 properties and 40.8 million square feet of gross leasable area as of September 30, 2026.
• Annualized Base Rent (ABR) increased 6.8% year-over-year to $974.0 million.
• Top lines of trade include Automotive service (19.2% of ABR), Convenience stores (15.5%), and Restaurants – limited service (7.6%).
• Top tenant by ABR is 7-Eleven (4.1%), followed by Mister Car Wash (3.7%) and Dave & Buster's (3.5%).

Market and Competitive Landscape:

• Portfolio is diversified across all 50 states, the District of Columbia, and Puerto Rico.
• Texas represents the largest state concentration with 17.6% of ABR, followed by Florida (8.6%) and Illinois (5.3%).
• 53.9% of the portfolio's ABR is scheduled to expire thereafter (beyond 2035).
• The company maintains a sector-leading weighted average debt maturity of 9.8 years.
• Only 2.3% of debt carries floating rate exposure.
• The company has no encumbered assets.

Risks and Challenges:

• Forward-looking statements note risks including general economic conditions, inflation, local real estate conditions, changes in interest rates, and increases in operating costs.
• Risks include the financial condition and preferences of tenants, availability of capital, and the potential impacts of an epidemic or pandemic on business operations.
• Actual results may differ from guidance due to risks and uncertainties described in the press release and SEC filings.

Management Commentary and Tone:

• CEO Steve Horn stated the company is pleased with strong third-quarter results, citing healthy portfolio trends, solid investment activity, and well-timed equity capital markets execution.
• Management expressed confidence in executing on the investment pipeline and capitalizing on opportunities created by market volatility.
• The company highlighted its balance sheet is "built for all market cycles" with $1.4 billion of available liquidity.

Other Key Points:

• Issued 2,014,352 common shares primarily under the ATM program, raising $89.5 million in net proceeds during the quarter.
• Entered into forward sale agreements for 502,305 common shares under the ATM at a weighted average price of $47.28.
• As of September 30, 2026, 4,501,833 shares were subject to outstanding forward sale agreements, anticipated to raise approximately $204.0 million in net proceeds upon settlement.
• Declared a quarterly dividend of $0.62 per share, payable November 13, 2026, representing a 6.0% annualized dividend yield and a 68% AFFO payout ratio.
• The company has increased its annual dividend for 37 or more consecutive years.
• Gross Debt was $5.1 billion with a weighted average interest rate of 4.2% as of September 30, 2026.
• Total available liquidity was $1.4 billion, comprising $1.2 billion of unused line of credit capacity, $204.0 million of outstanding forward equity, and $2.7 million of cash.
• The company entered into an Equity Distribution Agreement allowing the issuance and sale of up to 25,000,000 shares of common stock.