Overview

• US net lease REIT's Q1 revenue rose and beat analyst expectations

• AFFO per share was unchanged yr/yr at $0.87, guidance for 2026 was raised

• Portfolio occupancy climbed to 98.6%, up from 97.7% a year ago

Outlook

• NNN REIT raises 2026 AFFO per share guidance to $3.53-$3.59 from $3.52-$3.58

• Company lifts 2026 Core FFO per share guidance to $3.48-$3.54 from $3.47-$3.53

• NNN REIT maintains 2026 acquisition volume outlook at $550-$650 mln

Result Drivers

• HIGHER BASE RENT - Co said annualized base rent (ABR) rose 6.9% yr/yr to $934.6 mln, contributing to revenue growth

• PROPERTY INVESTMENTS - Co invested $145.4 mln in 41 properties at a 7.5% cap rate, supporting portfolio expansion

• OCCUPANCY GAINS - Portfolio occupancy increased to 98.6%, up 90 bps yr/yr, helping drive stable rental income

Company press release: ID:nPn8kMZpca

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$240.42 mln	$237.57 mln (11 Analysts)
Q1 EPS		$0.50
Q1 Net Income		$93.95 mln
Q1 Income From Operations		$146.65 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• Wall Street's median 12-month price target for NNN REIT Inc is $45.50, about 4.5% above its April 29 closing price of $43.52

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.