Orlando, Florida, November 2, 2017 – 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, 2017. Highlights include:
- Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
|Quarter Ended||Nine Months Ended|
|September 30,||September 30,|
|(in thousands, except per share data)|
|Net earnings available to common stockholders||$||52,538||$||41,925||$||153,606||$||146,833|
|Net earnings per common share||$||0.35||$||0.28||$||1.03||$||1.02|
|FFO available to common stockholders||$||97,760||$||81,226||$||263,911||$||241,827|
|FFO per common share||$||0.65||$||0.55||$||1.78||$||1.68|
|Core FFO available to common stockholders||$||97,985||$||87,204||$||281,532||$||251,926|
|Core FFO per common share||$||0.65||$||0.59||$||1.90||$||1.75|
|AFFO available to common stockholders||$||97,934||$||89,367||$||283,391||$||257,648|
|AFFO per common share||$||0.65||$||0.61||$||1.91||$||1.79|
Third Quarter 2017 Highlights:
- FFO per share increased 18.2% over prior year results
- Core FFO per common share increased 10.2% over prior year results
- AFFO per common share increased 6.6% over prior year results
- Portfolio occupancy was 98.8% at September 30, 2017 as compared to 99.3% at June 30, 2017 and 99.1% at March 31, 2017
- Invested $90.1 million in property investments, including the acquisition of 18 properties with an aggregate 206,000 square feet of gross leasable area at an initial cash yield of 6.9%
- Sold six properties for $7.5 million producing $3.2 million of gains on sales
- Raised $98.6 million net proceeds from the issuance of 2,417,352 common shares
- Issued $400 million principal amount of 3.50% senior unsecured notes due 2027 generating net proceeds of $394.7 million
Highlights for the nine months ended September 30, 2017:
- FFO per share increased 6.0% over prior year results
- Core FFO per share increased 8.6% over prior year results
- AFFO per share increased 6.7% over prior year results
- Invested $497.5 million in 182 properties with an aggregate 1,288,000 square feet of gross leasable area at an initial cash yield of 6.9%
- Sold 31 properties for $55.8 million producing $20.5 million of gains on sales, net of noncontrolling interests
- Raised $566.8 million of new long-term capital at attractive pricing
- Raised $172.2 million in net proceeds from the issuance of 4,104,973 common shares
- Raised $394.7 million in net proceeds from the issuance of 3.50% senior unsecured notes due 2027
Core FFO guidance for 2017 was increased from a range of $2.46 to $2.50 to a range of $2.51 to $2.53 per share. The 2017 AFFO is estimated to be $2.54 to $2.56 per share. The Core FFO guidance equates to net earnings of $1.35 to $1.37 per share, plus $1.16 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate and any charges for impairments, retirement severance costs, or preferred stock redemption charges. The 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 company also announced 2018 Core FFO guidance of $2.60 to $2.64 per share and estimated 2018 AFFO to be $2.64 to $2.68 per share. The Core FFO guidance equates to net earnings of $1.53 to $1.57 per share, plus $1.07 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, and any charges for impairments, or retirement severance costs. The guidance is based on current plans and assumptions 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.
Jay Whitehurst, Chief Executive Officer, commented: “National Retail Properties continues to consistently deliver compelling per share results. Our broadly diversified portfolio remains healthy and our pipeline of new acquisitions from relationship tenants is strong. We are pleased to once again raise our Core FFO per share guidance for 2017 and to introduce 2018 Core FFO per share guidance which reflects a continuation of our consistent per share growth rate.”
National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2017, the company owned 2,687 properties in 48 states with a gross leasable area of approximately 28.2 million square feet and with a weighted average remaining lease term of 11.4 years. For more information on the company, visit www.nnnreit.com.
Management will hold a conference call on November 2, 2017, at 10:30 a.m. ET to review these results. The call can be accessed on the National Retail Properties web site live at http://www.nnnreit.com. For those unable to listen to the live broadcast, a replay will be available on the company’s web site. In addition, a summary of any earnings guidance given on the call will be posted to the company’s web site.
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