Open the filing on EDGARVincent H. Chao
Chief Financial Officer
NNN REIT, Inc. Announces Third Quarter 2025 Results and Increased 2025 Guidance
Orlando, Florida, November 4, 2025 - NNN REIT, Inc. (NYSE: NNN) (the "Company" or "NNN"), a real estate investment trust, today announced financial and operating results for the quarter and nine months ended September 30, 2025. Highlights include:
Third Quarter 2025 Highlights:
Reported net earnings of $0.51 per diluted share
Grew Core FFO and AFFO per diluted share by 1.2% and 2.4% over prior-year results, respectively, to $0.85 and $0.86, respectively
Increased ABR by 7.2% over prior-year results
Closed on $283.0 million of investments at an initial cash cap rate of 7.3%, with a weighted average lease term of 17.8 years and $748.0 million of investments in the nine months ended September 30, 2025, exceeding the high end of the previously provided guidance range
Sold 23 properties for $41.3 million, including $22.3 million of income producing properties at a weighted average cap rate of 5.9%
Raised $71.7 million in gross proceeds from the issuance of 1,670,737 common shares at an average price per share of $42.89
As previously announced, issued $500 million principal amount of 4.600% senior unsecured notes due 2031 ("2031 Notes")
Maintained balance sheet flexibility with a sector-leading weighted average debt maturity of 10.7 years, no encumbered assets, no floating rate debt and $1.4 billion of total available liquidity
Paid a $0.60 quarterly dividend, representing a 3.4% increase in the quarterly dividend rate, a 5.6% annualized dividend yield and a 70% AFFO payout ratio
Additional Highlights:
Increased and tightened Core FFO per share guidance to a new range of $3.36 to $3.40
Increased and tightened AFFO per share guidance to a new range of $3.41 to $3.45
Increased 2025 acquisition volume guidance to a new range of $850 to $950 million
Increased 2025 disposition volume guidance to a new range of $170 to $200 million
Steve Horn, Chief Executive Officer, commented: "In the third quarter, NNN’s team invested over $280 million in real estate, attaining its highest quarterly acquisition volume since 2018. Our year-to-date activity positions NNN to achieve record-setting investment volume in 2025, while maintaining our strict underwriting standards. This strong operational execution, supported by $1.4 billion in liquidity and an industry-leading balance sheet, allows us to raise our earnings guidance for 2025."
FINANCIAL RESULTS
| Quarter Ended September 30, | Nine Months Ended September 30, |
|---|
| (dollars in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 |
| Revenues | $230,159 | $218,564 | $687,815 | $650,784 |
| Net earnings | $96,839 | $97,904 | $293,826 | $298,941 |
| Net earnings per share | $0.51 | $0.53 | $1.56 | $1.63 |
| FFO | $158,676 | $154,171 | $474,585 | $457,812 |
| FFO per share | $0.84 | $0.84 | $2.53 | $2.50 |
| Core FFO | $159,366 | $154,327 | $477,639 | $458,438 |
| Core FFO per share | $0.85 | $0.84 | $2.54 | $2.50 |
| AFFO | $161,063 | $155,701 | $482,601 | $462,556 |
| AFFO per share | $0.86 | $0.84 | $2.57 | $2.52 |
PORTFOLIO SNAPSHOT
| (dollars in thousands) | September 30, 2025 | June 30, 2025 | September 30, 2024 |
| Number of properties | 3,697 | 3,663 | 3,549 |
| Total gross leasable area (square feet) | 39,209,000 | 38,322,000 | 36,550,000 |
| Occupancy rate | 97.5% | 98.0% | 99.3% |
| Weighted average remaining lease term (years) | 10.1 | 9.8 | 10.0 |
| ABR | $912,218 | $893,782 | $850,976 |
PROPERTY ACQUISITIONS
| (dollars in thousands) | Quarter Ended September 30, 2025 | Nine Months Ended September 30, 2025 |
| Total dollars invested | $283,027 | $747,956 |
| Number of properties | 57 | 184 |
| Gross leasable area (square feet) | 1,120,000 | 3,350,000 |
| Weighted average cap rate | 7.3% | 7.4% |
| Weighted average lease term (years) | 17.8 | 17.8 |
Includes dollars invested in projects under construction or tenant improvements.
Includes additional square footage from completed construction on existing properties.
Calculated as the initial cash annual base rent divided by the total purchase price of the properties.
PROPERTY DISPOSITIONS
| Quarter Ended September 30, 2025 | Nine Months Ended September 30, 2025 |
|---|
| (dollars in thousands) | Occupied | Vacant | Total | Occupied | Vacant | Total |
| Number of properties | 12 | 11 | 23 | 31 | 25 | 56 |
| Gross leasable area (square feet) | 81,000 | 111,000 | 192,000 | 301,000 | 321,000 | 622,000 |
| Net sale proceeds | $22,309 | $19,027 | $41,336 | $60,376 | $48,047 | $108,423 |
| Weighted average cap rate | 5.9% | - | 5.9% | 5.8% | - | 5.8% |
Calculated as the cash annual base rent divided by the total gross proceeds received for the occupied properties.
CAPITAL MARKETS ACTIVITY
During the third quarter 2025, NNN issued 1,670,737 common shares, raising $71.7 million in gross proceeds at an average price per share of $42.89, primarily through the Company's at-the-market equity program.
As previously announced, on July 1, 2025, NNN issued the 2031 Notes and used the proceeds from the offering to repay the outstanding balance on the Company's unsecured revolving line of credit and to fund investment activity.
BALANCE SHEET AND LIQUIDITY
As of September 30, 2025, Gross Debt was $4.95 billion with a weighted average interest rate of 4.2% and a weighted average debt maturity of 10.7 years. The Company ended the third quarter 2025 with $1.4 billion of total available liquidity, including full capacity on the $1.2 billion line of credit and $158.7 million of cash and restricted cash. Net Debt to annualized EBITDAre and fixed charge coverage was 5.6x and 4.1x, respectively, as of September 30, 2025.
DIVIDEND
As previously announced, on October 14, 2025, the Board of Directors of NNN declared a quarterly dividend of $0.60 per share payable on November 14, 2025, to shareholders of record as of October 31, 2025. The quarterly dividend represents a 3.4% increase over the prior quarterly dividend rate, an annualized dividend of $2.40 per share and an annualized dividend yield of 5.6% as of September 30, 2025.
2025 GUIDANCE
| (dollars in millions, except per diluted share data) | Previous 2025 Guidance | Updated 2025 Guidance |
| Net earnings per share excluding any gains on disposition of real estate, impairment losses and retirement and severance costs | $1.93 - $1.98 | $1.93 - $1.97 |
| Real estate depreciation and amortization per share | $1.41 | $1.43 |
| Core FFO per share | $3.34 - $3.39 | $3.36 - $3.40 |
| AFFO per share | $3.40 - $3.45 | $3.41 - $3.45 |
| General and administrative expenses | $47 - $48 | $47 - $48 |
| Real estate expenses, net of tenant reimbursements | $17 - $18 | $17 - $18 |
| Acquisition volume | $600 - $700 | $850 - $950 |
| Disposition volume | $120 - $150 | $170 - $200 |
Guidance is based on current plans and assumptions and is subject to risks and uncertainties more fully described in this press release and the Company's reports filed with the Securities and Exchange Commission (the "Commission").
CONFERENCE CALL INFORMATION
The Company will host a conference call on November 4, 2025 at 10:30 a.m. ET to discuss third quarter results. A live webcast of the conference call will be available on the Company's website at www.nnnreit.com or by using the following link. The conference call can also be accessed by dialing 888-506-0062 in the U.S. or 973-528-0011 for international callers and entering the participant code 738951 or referencing NNN REIT, Inc.
A telephonic replay of the call will be available through November 11, 2025, by dialing 877-481-4010 in the U.S. or 919-882-2331 internationally and entering the code 53003.
ABOUT NNN REIT, INC.
NNN invests in high-quality properties subject generally to long-term, net leases with minimal ongoing capital expenditures. As of September 30, 2025, the Company owned 3,697 properties in 50 states with a gross leasable area of approximately 39.2 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded real estate investment trusts to have increased annual dividends for 36 or more consecutive years. For more information on the Company, visit www.nnnreit.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements notice
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, general economic conditions, including inflation, 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, risks related to the Company's status as a real estate investment trust ("REIT"), and the potential impacts of an epidemic or pandemic on the Company’s business operations, financial results and financial position on the world economy. 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 Commission filings, including, but not limited to, the Company’s (i) Annual Report on Form 10-K for the year ended December 31, 2024 and (ii) Quarterly Report on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025. 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. NNN REIT, 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.
DEFINITIONS
Funds From Operations ("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 on the disposition of certain assets and any impairment charges on a depreciable real estate asset, net of recoveries.
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.
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, retirement and severance costs or other non-core amounts as they occur.
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 earnings 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.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate as defined by Nareit (“EBITDAre”) is a metric established by Nareit and commonly used by real estate companies. The measure is a result of net earnings (computed in accordance with GAAP), plus interest expense, income tax expense, depreciation and amortization, excluding any gains (or including any losses) on disposition of real estate, any impairment charges, net of recoveries and after adjustments for income and losses attributable to noncontrolling interests. Management considers the non-GAAP measure of EBITDAre to be an appropriate measure of the Company's performance and should be considered in addition to, net earnings or loss, as a measure of the Company's operating performance.
Total Cash is comprised of cash and cash equivalents and restricted cash and cash held in escrow per GAAP as reported on the balance sheet summary.
Gross Assets represents total assets (reported in accordance with GAAP) adjusted to exclude accumulated amortization and depreciation and amortization of direct financing leases. The result provides an estimate of the investments made by the Company.
Total Debt is defined by the Company as total debt per GAAP as reported on the balance sheet summary including line of credit payable, notes payable, net of unamortized discount and unamortized debt costs and mortgages payable, net of unamortized premium and debt costs, as applicable.
Gross Debt is defined by the Company as Total Debt adjusted to exclude unamortized debt discounts and premiums and unamortized debt costs.
Net Debt is defined by the Company as Gross Debt less Total Cash.
Management considers the non-GAAP measures of Gross Debt and Net Debt each to be a key supplemental measure of the Company's overall liquidity, capital structure and leverage.
The Company’s computation of FFO, Core FFO, AFFO, EBITDAre, Total Cash, Gross Assets, Gross Debt and Net Debt may differ from the methodology for calculating these non-GAAP financial measures used by other REITs, and therefore, may not be comparable to such other REITs. Reconciliations of net earnings, Total Debt and total assets (all computed in accordance with GAAP) to FFO, Core FFO, AFFO, EBITDAre, Gross Assets, Gross Debt and Net Debt (each of which is a non-GAAP financial measure), as applicable, are included in the financial information accompanying this release.
Annualized Base Rent (“ABR”) represents the monthly cash base rent for all leases in place as of the end of the period multiplied by 12. Accordingly, this methodology produces an annualized amount as of a point in time but does not take into consideration future (i) scheduled rent increases, (ii) leasing activity, or (iii) lease expirations.
Balance Sheet Summary
| September 30, 2025 | December 31, 2024 |
|---|
| Assets: | | |
| Real estate portfolio, net of accumulated depreciation and amortization | $9,204,697 | $8,746,168 |
| Cash and cash equivalents | 157,917 | 8,731 |
| Restricted cash and cash held in escrow | 776 | 331 |
| Receivables, net of allowance of $573 and $617, respectively | 2,266 | 2,975 |
| Accrued rental income, net of allowance of $3,325 and $4,156, respectively | 33,897 | 34,005 |
| Debt costs, net of accumulated amortization of $29,174 and $27,002, respectively | 6,973 | 8,958 |
| Other assets | 73,580 | 71,560 |
| Total assets | $9,480,106 | $8,872,728 |
| Liabilities: | | |
| Notes payable, net of unamortized discount and unamortized debt costs | $4,870,460 | $4,373,803 |
| Accrued interest payable | 79,926 | 29,699 |
| Other liabilities | 109,357 | 106,951 |
| Total liabilities | 5,059,743 | 4,510,453 |
| Total equity | 4,420,363 | 4,362,275 |
| Total liabilities and equity | $9,480,106 | $8,872,728 |
| Common shares outstanding | 189,884,648 | 187,540,929 |
Income Statement Summary
(dollars in thousands, except per share data)
| Quarter Ended September 30, | Nine Months Ended September 30, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Revenues: | | | | |
| Rental income | $229,773 | $218,155 | $686,845 | $649,120 |
| Interest and other income from real estate transactions | 386 | 409 | 970 | 1,664 |
| 230,159 | 218,564 | 687,815 | 650,784 |
| Operating expenses: | | | | |
| General and administrative | 11,056 | 11,209 | 35,281 | 35,582 |
| Real estate | 9,128 | 7,263 | 27,341 | 21,175 |
| Depreciation and amortization | 67,252 | 63,369 | 200,218 | 186,487 |
| Leasing transaction costs | 131 | 22 | 335 | 75 |
| Impairment losses - real estate, net of recoveries | 7,195 | 760 | 13,242 | 2,908 |
| Retirement and severance costs | 690 | 156 | 3,054 | 626 |
| 95,452 | 82,779 | 279,471 | 246,853 |
| Gain on disposition of real estate | 12,570 | 7,765 | 32,581 | 30,207 |
| Earnings from operations | 147,277 | 143,550 | 440,925 | 434,138 |
| Other expenses (revenues): | | | | |
| Interest and other income | (2,940) | (845) | (3,284) | (1,940) |
| Interest expense | 53,378 | 46,491 | 150,383 | 137,137 |
| 50,438 | 45,646 | 147,099 | 135,197 |
| Net earnings | $96,839 | $97,904 | $293,826 | $298,941 |
| Weighted average shares outstanding: | | | | |
| Basic | 187,838,711 | 184,007,176 | 187,200,093 | 182,757,097 |
| Diluted | 188,332,789 | 184,561,431 | 187,686,331 | 183,301,570 |
| Net earnings per share available to stockholders: | | | | |
| Basic | $0.51 | $0.53 | $1.57 | $1.63 |
| Diluted | $0.51 | $0.53 | $1.56 | $1.63 |
Other Information
| Quarter Ended September 30, | Nine Months Ended September 30, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Rental income from operating leases(1) (2) | $225,053 | $213,447 | $670,823 | $634,088 |
| Earned income from direct financing leases | $111 | $116 | $337 | $353 |
| Percentage rent | $211 | $200 | $1,381 | $1,347 |
| Real estate expenses reimbursed from tenants | $4,398 | $4,392 | $14,304 | $13,332 |
| Real estate expenses | (9,128) | (7,263) | (27,341) | (21,175) |
| Real estate expenses, net of tenant reimbursements | $(4,730) | $(2,871) | $(13,037) | $(7,843) |
| Amortization of debt costs | $1,630 | $1,450 | $4,574 | $4,538 |
| Non-real estate depreciation expense | $44 | $101 | $130 | $327 |
For the quarters ended September 30, 2025 and 2024, the aggregate of such amounts is $229,773 and $218,155, respectively, and $686,845 and $649,120, for the nine months ended September 30, 2025 and 2024, respectively, and is classified as rental income on the income statement summary.
Includes lease termination fees of $669 and $3,860 for the quarters ended September 30, 2025 and 2024, respectively, and $11,121 and $10,152 for the nine months ended September 30, 2025 and 2024, respectively.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)
| Quarter Ended September 30, | Nine Months Ended September 30, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Net earnings | $96,839 | $97,904 | $293,826 | $298,941 |
| Real estate depreciation and amortization | 67,212 | 63,272 | 200,098 | 186,170 |
| Gain on disposition of real estate | (12,570) | (7,765) | (32,581) | (30,207) |
| Impairment losses - depreciable real estate, net of recoveries | 7,195 | 760 | 13,242 | 2,908 |
| FFO | 158,676 | 154,171 | 474,585 | 457,812 |
| Retirement and severance costs | 690 | 156 | 3,054 | 626 |
| Core FFO | 159,366 | 154,327 | 477,639 | 458,438 |
| Straight-line accrued rent, net of reserves | (631) | (123) | (715) | 8 |
| Net capital lease rent adjustment | 62 | 56 | 184 | 164 |
| Below-market rent amortization | (68) | (109) | (1,781) | (351) |
| Stock based compensation expense | 2,791 | 2,818 | 9,194 | 9,041 |
| Capitalized interest expense | (457) | (1,268) | (1,920) | (4,744) |
| AFFO | $161,063 | $155,701 | $482,601 | $462,556 |
| FFO per share: | | | | |
| Basic | $0.84 | $0.84 | $2.54 | $2.51 |
| Diluted | $0.84 | $0.84 | $2.53 | $2.50 |
| Core FFO per share: | | | | |
| Basic | $0.85 | $0.84 | $2.55 | $2.51 |
| Diluted | $0.85 | $0.84 | $2.54 | $2.50 |
| AFFO per share: | | | | |
| Basic | $0.86 | $0.85 | $2.58 | $2.53 |
| Diluted | $0.86 | $0.84 | $2.57 | $2.52 |
| Dividend per share | $0.600 | $0.580 | $1.760 | $1.710 |
| AFFO payout ratio | 70% | 68% | 68% | 67% |
Calculated as total dividends paid as a percentage of AFFO for each respective period.
Reconciliation of Non-GAAP Financial Measures (continued)
| Quarter Ended September 30, | Nine Months Ended September 30, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Net earnings | $96,839 | $97,904 | $293,826 | $298,941 |
| Interest expense | 53,378 | 46,491 | 150,383 | 137,137 |
| Depreciation and amortization | 67,252 | 63,369 | 200,218 | 186,487 |
| Gain on disposition of real estate | (12,570) | (7,765) | (32,581) | (30,207) |
| Impairment losses - real estate, net of recoveries | 7,195 | 760 | 13,242 | 2,908 |
| EBITDAre | $212,094 | $200,759 | $625,088 | $595,266 |
| Interest expense | $53,378 | $46,491 | $150,383 | $137,137 |
| Add back: capitalized interest | 457 | 1,268 | 1,920 | 4,744 |
| Fixed charges | $53,835 | $47,759 | $152,303 | $141,881 |
| September 30, 2025 | December 31, 2024 | | |
| Total assets | $9,480,106 | $8,872,728 | | |
| Accumulated depreciation & amortization | 2,225,580 | 2,065,520 | | |
| Amortization of direct financing leases | 2,840 | 2,655 | | |
| Gross Assets | $11,708,526 | $10,940,903 | | |
| Debt outstanding: | | | | |
| Line of credit | $ - | $ - | | |
| Notes payable, net of unamortized discount and unamortized debt costs | 4,870,460 | 4,373,803 | | |
| Total Debt | 4,870,460 | 4,373,803 | | |
| Unamortized note discount | 47,983 | 46,437 | | |
| Unamortized debt costs | 31,557 | 29,760 | | |
| Gross Debt | 4,950,000 | 4,450,000 | | |
| Total Cash | (158,693) | (9,062) | | |
| Net Debt | $4,791,307 | $4,440,938 | | |
Debt Summary
| Unsecured Debt | Principal | Principal, Net of Unamortized Discount | Stated Rate | Effective Rate | Maturity Date |
| Line of credit payable | $ - | $ - | SOFR + 87.5 bps | - | April 2028 |
| Unsecured notes payable: | | | | | |
| 2025 | 400,000 | 399,985 | 4.000% | 4.029% | November 2025 |
| 2026 | 350,000 | 349,455 | 3.600% | 3.733% | December 2026 |
| 2027 | 400,000 | 399,622 | 3.500% | 3.548% | October 2027 |
| 2028 | 400,000 | 399,004 | 4.300% | 4.388% | October 2028 |
| 2030 | 400,000 | 399,381 | 2.500% | 2.536% | April 2030 |
| 2031 | 500,000 | 496,053 | 4.600% | 4.766% | February 2031 |
| 2033 | 500,000 | 490,274 | 5.600% | 5.905% | October 2033 |
| 2034 | 500,000 | 494,475 | 5.500% | 5.662% | June 2034 |
| 2048 | 300,000 | 296,283 | 4.800% | 4.890% | October 2048 |
| 2050 | 300,000 | 294,667 | 3.100% | 3.205% | April 2050 |
| 2051 | 450,000 | 442,364 | 3.500% | 3.602% | April 2051 |
| 2052 | 450,000 | 440,454 | 3.000% | 3.118% | April 2052 |
| Total | 4,950,000 | 4,902,017 | | | |
| Total unsecured debt | $4,950,000 | $4,902,017 | | | |
| Debt costs | | $(48,020) | | | |
| Accumulated amortization | 16,463 | | | |
| Debt costs, net of accumulated amortization | (31,557) | | | |
| Notes payable, net of unamortized discount and unamortized debt costs | $4,870,460 | | | |
Unsecured debt has a weighted average interest rate of 4.2% and a weighted average maturity of 10.7 years.
Debt Summary - Continued
Credit Metrics
| September 30, 2025 | December 31, 2024 |
|---|
| Gross Debt / Gross Assets | 42.3% | 40.7% |
| Net Debt / EBITDAre (last quarter annualized) | 5.6 | 5.6 |
| EBITDAre / fixed charges | 4.1 | 4.2 |
Credit Facility and Notes 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 September 30, 2025, the Company believes it is in compliance with the covenants.
| Key Covenants | Required | September 30, 2025 |
| Unsecured Bank Credit Facility: | | |
| Maximum leverage ratio | < 0.60 | 0.39 |
| Minimum fixed charge coverage ratio | > 1.50 | 4.18 |
| Maximum secured indebtedness ratio | < 0.40 | - |
| Unencumbered asset value ratio | > 1.67 | 2.62 |
| Unencumbered interest ratio | > 1.75 | 4.07 |
| Unsecured Notes: | | |
| Limitation on incurrence of total debt | ≤ 60% | 42% |
| Limitation on incurrence of secured debt | ≤ 40% | - |
| Debt service coverage ratio | ≥ 1.5 | 4.1 |
| Maintenance of total unencumbered assets | ≥ 150% | 240% |
Property Portfolio
Top 20 Lines of Trade
| | % of ABR |
|---|
| | As of September 30, |
|---|
| Lines of Trade | 2025 | 2024 |
|---|
| 1. | Automotive service | 18.4% | 17.0% |
| 2. | Convenience stores | 16.2% | 15.9% |
| 3. | Restaurants - limited service | 8.0% | 8.4% |
| 4. | Entertainment | 7.2% | 7.2% |
| 5. | Dealerships | 6.6% | 5.6% |
| 6. | Restaurants - full service | 6.5% | 8.3% |
| 7. | Health and fitness | 4.0% | 4.0% |
| 8. | Theaters | 3.8% | 4.0% |
| 9. | Automotive parts | 3.2% | 2.4% |
| 10. | Equipment rental | 3.1% | 3.2% |
| 11. | Wholesale clubs | 2.3% | 2.4% |
| 12. | Drug stores | 2.0% | 2.2% |
| 13. | Home improvement | 1.9% | 2.1% |
| 14. | Medical service providers | 1.9% | 1.8% |
| 15. | Pet supplies and services | 1.7% | 1.3% |
| 16. | Discount retail | 1.4% | 1.6% |
| 17. | Early childhood education | 1.3% | 1.1% |
| 18. | Furniture | 1.2% | 1.9% |
| 19. | Travel plazas | 1.2% | 1.2% |
| 20. | Consumer electronics | 1.2% | 1.3% |
| Other | 6.9% | 7.1% |
| Total | 100.0% | 100.0% |
Property Portfolio - Continued
Top 20 States
| State | # of Properties | % of ABR |
|---|
| 1. | Texas | 592 | 18.5% |
| 2. | Florida | 273 | 8.7% |
| 3. | Illinois | 175 | 5.0% |
| 4. | Georgia | 176 | 4.5% |
| 5. | Ohio | 227 | 4.2% |
| 6. | Tennessee | 155 | 3.7% |
| 7. | Indiana | 167 | 3.7% |
| 8. | Michigan | 134 | 3.7% |
| 9. | North Carolina | 160 | 3.6% |
| 10. | Arizona | 87 | 3.6% |
| 11. | Virginia | 119 | 3.3% |
| 12. | California | 71 | 2.9% |
| 13. | Alabama | 150 | 2.8% |
| 14. | Pennsylvania | 86 | 2.3% |
| 15. | New Jersey | 33 | 2.3% |
| 16. | Missouri | 105 | 2.3% |
| 17. | Maryland | 50 | 2.0% |
| 18. | Colorado | 45 | 2.0% |
| 19. | South Carolina | 81 | 2.0% |
| 20. | Oklahoma | 90 | 1.8% |
| Other | 721 | 17.1% |
| Total | 3,697 | 100.0% |
Property Portfolio - Continued
Top 20 Tenants
| Tenant | # of Properties | % of ABR |
|---|
| 1. | 7-Eleven | 146 | 4.3% |
| 2. | Mister Car Wash | 120 | 3.9% |
| 3. | Dave & Buster's | 34 | 3.7% |
| 4. | Camping World | 46 | 3.6% |
| 5. | GPM Investments (convenience stores) | 147 | 2.6% |
| 6. | Flynn Restaurant Group (Taco Bell/Arby's) | 204 | 2.5% |
| 7. | AMC Theatres | 20 | 2.5% |
| 8. | BJ's Wholesale Club | 13 | 2.3% |
| 9. | LA Fitness | 25 | 2.3% |
| 10. | Kent Distributors (convenience stores) | 49 | 2.2% |
| 11. | Mavis Tire Express Services | 140 | 2.1% |
| 12. | Couche Tard (Pantry) | 92 | 2.0% |
| 13. | Chuck E. Cheese | 51 | 1.7% |
| 14. | Walgreens | 49 | 1.7% |
| 15. | Sunoco | 53 | 1.7% |
| 16. | United Rentals | 49 | 1.6% |
| 17. | Casey's General Stores (convenience stores) | 62 | 1.6% |
| 18. | Tidal Wave Auto Spa | 35 | 1.4% |
| 19. | Super Star Car Wash | 33 | 1.3% |
| 20. | Bob Evans Restaurants | 105 | 1.2% |
| Other | 2,224 | 53.8% |
| Total | 3,697 | 100.0% |
Lease Expirations
| % of ABR | # of Properties | Gross Leasable Area | | % of ABR | # of Properties | Gross Leasable Area |
|---|
| 2025 | 0.2% | 16 | 132,000 | 2031 | 7.4% | 216 | 2,953,000 |
| 2026 | 3.0% | 163 | 1,572,000 | 2032 | 4.9% | 188 | 1,840,000 |
| 2027 | 6.7% | 206 | 3,179,000 | 2033 | 4.4% | 134 | 1,401,000 |
| 2028 | 5.2% | 229 | 2,137,000 | 2034 | 5.7% | 191 | 2,376,000 |
| 2029 | 4.3% | 138 | 2,055,000 | Thereafter | 53.4% | 1,938 | 18,375,000 |
| 2030 | 4.8% | 183 | 2,284,000 | | | | |
As of September 30, 2025, the weighted average remaining lease term is 10.1 years.
Square feet.
Contacts
For information contact:
(407) 265-7348