NNN REIT, INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>NNN REIT, INC. has filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

NNN REIT, INC. (NNN) filed a Annual Report (10-K) with the SEC on February 8, 2024. NNN REIT, INC. filed its annual report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 450 S Orange Ave, Suite 900, Orlando, FL 32801. NNN REIT, INC. was formerly known as National Retail Properties, Inc. The company is incorporated in Maryland.

Why It Matters

For investors and stakeholders tracking NNN REIT, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of NNN REIT's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors to assess performance and future outlook. Understanding the details within this report allows stakeholders to evaluate the company's real estate portfolio, debt structure, and overall market position within the REIT sector.

Risk Assessment

Risk Level: low — NNN REIT, INC. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or urgent disclosures, indicating a routine update on the company's status.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand NNN REIT's performance and strategic direction for the upcoming year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-08 — Filing Date (Date of submission)
• 0000751364 — Central Index Key (Company identifier)
• 6798 — Standard Industrial Classification (Industry code for Real Estate Investment Trusts)

Key Players & Entities

• NNN REIT, INC. (company) — Filer name
• National Retail Properties, Inc. (company) — Former company name
• Commercial Net Lease Realty Inc (company) — Former company name
• CNL Realty Investors Inc /DE/ (company) — Former company name
• 450 S Orange Ave, Suite 900, Orlando, FL 32801 (company) — Business address

Forward-Looking Statements

• NNN REIT, INC. will continue to operate as a real estate investment trust, focusing on its core business. (NNN REIT, INC.) — high confidence, target: 2024-12-31
• The company will likely maintain its dividend policy, consistent with its REIT structure. (NNN REIT, INC.) — medium confidence, target: 2024-12-31

FAQ

Industry Context

NNN REIT, INC. operates within the Real Estate Investment Trusts (REITs) sector, specifically focusing on net lease properties.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit annual reports.

What Investors Should Do

1. Analyze the company's portfolio diversification and tenant concentration.
2. Examine the debt-to-equity ratio and interest coverage for financial stability.
3. Review management's discussion and analysis for strategic priorities and outlook.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. Previous filings would be required for comparison.

Key Financial Figures

• $0.01 — ge on which registered: Common Stock, $0.01 par value NNN New York Stock Exchan
• $5,155,000 — rties. As of December 31, 2023, NNN had $5,155,000 of cash, cash equivalents and restricte
• $968,000,000 — ash equivalents and restricted cash and $968,000,000 available for future borrowings under t
• $7,000 — e in monthly installments) ranging from $7,000 to $4,085,000 (average of $235,000), an
• $4,085,000 — ly installments) ranging from $7,000 to $4,085,000 (average of $235,000), and generally pr
• $235,000 — g from $7,000 to $4,085,000 (average of $235,000), and generally provide for limited inc

Filing Documents

• nnn-20231231.htm (10-K) — 4361KB
• nnn-ex10_12.htm (EX-10.12) — 90KB
• nnn-ex21.htm (EX-21) — 14KB
• nnn-ex23_1.htm (EX-23.1) — 10KB
• nnn-ex31_1.htm (EX-31.1) — 17KB
• nnn-ex31_2.htm (EX-31.2) — 17KB
• nnn-ex32_1.htm (EX-32.1) — 10KB
• nnn-ex32_2.htm (EX-32.2) — 10KB
• nnn-ex97_1.htm (EX-97.1) — 41KB
• nnn-ex99_1.htm (EX-99.1) — 1KB
• nnn-ex99_1.pdf (EX-99.1) — 414KB
• img227402237_0.jpg (GRAPHIC) — 45KB
• img227402237_1.jpg (GRAPHIC) — 149KB
• img227402237_2.jpg (GRAPHIC) — 170KB
• nnn-ex99_1s1.jpg (GRAPHIC) — 753KB
• nnn-ex99_1s2.jpg (GRAPHIC) — 1099KB
• nnn-ex99_1s3.jpg (GRAPHIC) — 950KB
• nnn-ex99_1s4.jpg (GRAPHIC) — 1325KB
• nnn-ex99_1s5.jpg (GRAPHIC) — 906KB
• 0000950170-24-012540.txt (&nbsp;) — 23450KB
• nnn-20231231.xsd (EX-101.SCH) — 1702KB
• nnn-20231231_htm.xml (XML) — 2959KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 23 Item 1C. Cybersecurity 23 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 24 Item 4. Mine Safety Disclosures 24 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. Reserved 27 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 45 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 78 Item 9A.

Controls and Procedures

Controls and Procedures 78 Item 9B. Other Information 80 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 80 Part III Item 10. Directors, Executive Officers and Corporate Governance 80 Item 11.

Executive Compensation

Executive Compensation 80 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 80 Item 13. Certain Relationships and Related Transactions, and Director Independence 81 Item 14. Principal Accountant Fees and Services 81 Part IV Item 15. Exhibits and Financial Statement Schedules 82 Item 16. Form 10-K Summary 86

Signatures

Signatures 87 PA RT I Unless the context otherwise requires, references in this Annual Report on Form 10-K to the terms "registrant" or "NNN" or the "Company" refer to NNN REIT, Inc. (formerly known as National Retail Properties, Inc.), and all of its consolidated subsidiaries. NNN may elect to treat certain of its subsidiaries as taxable real estate investment trust subsidiaries ("TRS"). On May 1, 2023, National Retail Properties, Inc. changed its name to NNN REIT, Inc.

Forward-Looking Statements

Forward-Looking Statements Statements contained in this Annual Report on Form 10-K, including the documents that are incorporated by reference, that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Also, when NNN uses any of the words "anticipate," "assume," "believe," "estimate," "expect," "intend," or similar expressions, NNN is making forward-looking statements. Although management believes that the expectations reflected in such forward-looking statements are based upon present expectations and reasonable assumptions, NNN's actual results could differ materially from those set forth in the forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and NNN undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. NNN describes risks and uncertainties that could cause actual results and events to differ materially in "Item 1A. Risk Factors," "Item 7A. Quantitative and Qualitative Disclosures About Market Risk," and "Item 7. Management's Discussion and Analysis of Financial Conditions and Results of Operations" of this Annual Report on Form 10-K. 1

Bu siness

Item 1. Bu siness The Company NNN, a Maryland corporation, is a fully integrated real estate investment trust ("REIT") formed in 1984. NNN's assets are primarily real estate assets. NNN's consolidated financial statements are included in "Item 8. Financial Statements and Supplementary Data" of this Annual Report on Form 10-K. The common shares of NNN REIT, Inc. are traded on the New York Stock Exchange (the "NYSE") under the ticker symbol "NNN." Real Estate Assets NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment ("Properties" or "Property Portfolio," or individually a "Property"). NNN owned 3,532 Properties with an aggregate gross leasable area of approximately 35,966,000 square feet, located in 49 states, with a weighted average remaining lease term of 10.1 years as of December 31, 2023. Approximately 99 percent of the Properties were leased as of December 31, 2023. Competition NNN faces active competition from many sources, both domestically and internationally, for net-lease investment opportunities in commercial real estate. Competitors may be willing to accept rates of return, prices, lease terms, other transaction terms, or levels of risk that NNN finds unacceptable. Qualification as a REIT NNN has made an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), and related regulations and intends to continue to operate so as to remain qualified as a REIT for federal income tax purposes. NNN generally will not be subject to federal income taxes on taxable income it distributes to stockholders, provided that it meets certain other requirements for qualifying as a REIT. If NNN fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate rates and will not be permitted to qualify for treatment as