Comments Off on Third Quarter 2014 Operating Results and 2015 FFO Guidance Announced by National Retail Properties

Orlando, Florida, November 4, 2014 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and nine months ended September 30, 2014. Highlights include:

 

Operating Results:

  • Revenues and net earnings, FFO, Recurring FFO and AFFO available to common stockholders and diluted per share amounts:

 

Quarter Ended Nine Months Ended
September 30, September 30,
2014 2013 2014 2013
(in thousands, except per share data)
Revenues $ 109,856 $ 100,775 $ 319,532 $ 289,534
Net earnings available to common stockholders $ 39,081 $ 34,810 $ 110,268 $ 96,839
Net earnings per common share $ 0.31 $ 0.29 $ 0.89 $ 0.81
FFO available to common stockholders $ 65,369 $ 59,946 $ 188,700 $ 168,871
FFO per common share $ 0.52 $ 0.49 $ 1.53 $ 1.41
Recurring FFO available to common stockholders $ 65,390 $ 59,465 $ 188,956 $ 169,149
Recurring FFO per common share $ 0.52 $ 0.49 $ 1.53 $ 1.42
AFFO available to common stockholders $ 66,644 $ 60,898 $ 192,072 $ 175,312
AFFO per common share $ 0.53 $ 0.50 $ 1.56 $ 1.47

 

 

Third Quarter 2014 Highlights:

  • FFO per share and Recurring FFO per share increased 6.1% over prior year results
  • AFFO per share increased 6.0% over prior year results
  • Portfolio occupancy increased to 98.8% at September 30, 2014, as compared to 98.5% at June 30, 2014 and 98.1% at September 30, 2013
  • Invested $345.5 million in 121 properties with an aggregate 1,484,000 square feet of gross leasable area at an initial cash yield of 7.4%
  • Sold 10 properties for $15.2 million producing $3.5 million of gains on sales, net of income tax
  • Raised $69.8 million in net proceeds from the issuance of 1,906,988 common shares

 

 

 

Highlights for the nine months ended September 30, 2014:

  • FFO per share increased 8.5% over prior year results
  • Recurring FFO per share increased 7.7% over prior year results
  • AFFO per share increased 6.1% over prior year results
  • Invested $531.5 million in 202 properties with an aggregate 2,006,000 square feet of gross leasable area at an initial cash yield of 7.4%
  • Sold 24 properties for $41.4 million producing $7.8 million of gains on sales, net of income tax and noncontrolling interest
  • Raised $491.2 million of new long-term capital at attractive pricing and terms
    • Raised $145.1 million in net proceeds from the issuance of 4,058,593 common shares
    • Raised $346.1 million in net proceeds from the issuance of 3.90% senior unsecured notes due 2024
  • Paid off $150 million principal amount of 6.25% senior unsecured notes due 2014

 

On July 17, 2014, Standard & Poor’s Rating Services raised National Retail Properties’ unsecured debt rating to BBB+.

 

National Retail Properties announced an increase in 2014 FFO guidance from a range of $2.00 to $2.04 to a range of $2.04 to$2.06 per share before any impairment expense. The 2014 AFFO is estimated to be $2.08 to $2.10 per share. The FFO guidance equates to net earnings before any gains or losses from the sale of real estate of $1.17 to $1.19 per share, plus $0.87 per share of expected real estate depreciation, amortization and impairments. The guidance is based on current plans and assumptions and 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 Company also announced 2015 FFO guidance of $2.13 to $2.17 per share and estimated 2015 AFFO to be $2.19 to $2.23 per share. This FFO guidance equates to net earnings before any gains or losses from the sale of real estate and impairment charges of $1.19 to $1.23 per share plus $0.94 per share of expected real estate related depreciation and amortization. The guidance is based on current plans, assumptions, and estimates and is subject to the risks and uncertainties more fully described in this press release and the company’s reports filed with the Securities and Exchange Commission.

 

Craig Macnab, Chief Executive Officer, commented: “We are pleased with the excellent acquisition activity in the third quarter. As a result, our reported third quarter results plus our full year 2014 guidance both indicate 6% growth over 2013 results. We are optimistic that 2015 will allow us to continue to produce solid growth in per share results. Significantly, our recent common dividend declaration marks the 25th consecutive year of increased annual cash dividends paid. This record is testimony to the performance consistency of our single tenant retail assets and the execution of our strategy over many years. This long term record of annually raising our dividend puts NNN in a very small group of public companies and is a record we obviously intend to perpetuate.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2014, the company owned 2,038 properties in 47 states with a gross leasable area of approximately 22.1 million square feet. For more information on the company, visit nnnreit.com.

Click here to read the full press release.

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