ORLANDO, Fla., Nov. 3,
2016 /PRNewswire/ -- 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,
2016. Highlights include:
Operating Results:
- 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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands, except
per share data)
|
|
Revenues
|
$
|
134,541
|
|
|
$
|
123,143
|
|
|
$
|
392,448
|
|
|
$
|
356,537
|
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common stockholders
|
$
|
41,925
|
|
|
$
|
46,339
|
|
|
$
|
146,833
|
|
|
$
|
128,789
|
|
|
Net earnings per
common share
|
0.28
|
|
|
0.34
|
|
|
1.02
|
|
|
0.96
|
|
|
|
|
|
|
|
|
|
|
FFO available to
common stockholders
|
$
|
81,226
|
|
|
$
|
77,940
|
|
|
$
|
241,827
|
|
|
$
|
221,873
|
|
|
FFO per common
share
|
$
|
0.55
|
|
|
$
|
0.58
|
|
|
$
|
1.68
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
|
Core FFO available to
common stockholders
|
$
|
87,204
|
|
|
$
|
77,993
|
|
|
$
|
251,926
|
|
|
$
|
222,510
|
|
|
Core FFO per common
share
|
$
|
0.59
|
|
|
$
|
0.58
|
|
|
$
|
1.75
|
|
|
$
|
1.67
|
|
|
|
|
|
|
|
|
|
|
AFFO available to
common stockholders
|
$
|
89,367
|
|
|
$
|
79,516
|
|
|
$
|
257,648
|
|
|
$
|
226,819
|
|
|
AFFO per common
share
|
$
|
0.61
|
|
|
$
|
0.59
|
|
|
$
|
1.79
|
|
|
$
|
1.70
|
|
Third Quarter 2016 Highlights:
- Core FFO per share increased 1.7% over prior year results
- AFFO per share increased 3.4% over prior year results
- Portfolio occupancy was 99.0% at September 30, 2016 as compared to 99.1% at
June 30, 2016 and March 31, 2016
- Invested $127.8 million in
property investments, including the acquisition of 38 properties
with an aggregate 350,000 square feet of gross leasable area at an
initial cash yield of 7.1%
- Sold seven properties for $10.6
million producing $4.5 million
of gains on sales
- Raised $56.8 million net proceeds
from the issuance of 1,117,897 common shares
- In October 2016, the company
raised $334.3 million in net proceeds
from the issuance of 13,800,000 depositary shares representing
interests in its 5.20% Series F preferred stock
Highlights for the nine months ended September 30, 2016:
- Core FFO per share increased 4.8% over prior year results
- AFFO per share increased 5.3% over prior year results
- Invested $596.5 million in 249
properties with an aggregate 2,036,000 square feet of gross
leasable area at an initial cash yield of 6.9%
- Sold 24 properties for $83.1
million producing $22.6
million of gains on sales
- Raised $273.1 million in net
proceeds from the issuance of 5,880,862 common shares
The company also announced 2017 FFO guidance of $2.42 to $2.48 per share and estimated 2017 AFFO
to be $2.46 to $2.52 per share. This
FFO guidance equates to net earnings before any gains or losses
from the sale of real estate, impairment charges or severance
charges of $1.37 to $1.43 per share
plus $1.05 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: "Strong acquisition activity in 2016 will
support continued growth in per share results in 2016 and 2017. Our
recent issuance of 5.20% preferred shares marks the second lowest
preferred dividend rate in the REIT industry and is consistent with
our long-term conservative positioning of our balance sheet."
National Retail Properties invests primarily in high-quality
retail properties subject generally to long-term, net leases.
As of September 30, 2016, the company owned 2,485 properties
in 48 states with a gross leasable area of approximately 26.6
million square feet and with a weighted average remaining lease
term of 11.5 years. For more information on the company,
visit www.nnnreit.com.
Management will hold a conference call on November 3, 2016,
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.
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, 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 REIT and the profitability of the company's
taxable subsidiary. 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 Securities and Exchange Commission
("SEC") filings, including, but not limited to, the company's
Annual Report on Form 10-K. Copies of each filing may be
obtained from the company or the SEC. 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. National Retail Properties,
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.
The reported results are preliminary and not final and there
can be no assurance that the results will not vary from the final
information filed on Form 10-Q with the SEC for the quarter and
nine months ended September 30, 2016. In the opinion of
management, all adjustments considered necessary for a fair
presentation of these reported results have been
made.
Funds From Operations, commonly referred to as 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 and noncontrolling interests on the disposition of certain
assets, the company's share of these items from the company's
unconsolidated partnerships and any impairment charges on a
depreciable real estate asset.
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. The
company's computation of FFO may differ from the methodology for
calculating FFO used by other equity REITs, and therefore, may not
be comparable to such other REITs. A reconciliation of net
earnings (computed in accordance with GAAP) to FFO, as defined by
NAREIT, is included in the financial information accompanying this
release.
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 like
transaction related gains, income or expense, impairments on land
or commercial mortgage residual interests, preferred stock
redemption costs or other non-core amounts as they
occur. The company's computation of Core FFO may differ
from the methodology for calculating Core FFO used by other equity
REITs, and therefore, may not be comparable to such other REITs. A
reconciliation of net earnings (computed in accordance with GAAP)
to Core FFO is included in the financial information accompanying
this release.
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 income 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. The company's computation of AFFO may differ
from the methodology for calculating AFFO used by other equity
REITs, and therefore, may not be comparable to such other
REITs. A reconciliation of net earnings (computed in
accordance with GAAP) to AFFO is included in the financial
information accompanying this release.
|
National Retail
Properties, Inc.
(in
thousands, except per share data)
(unaudited)
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Income Statement
Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Rental and earned
income
|
|
$
|
130,603
|
|
|
$
|
118,889
|
|
|
$
|
380,007
|
|
|
$
|
344,177
|
|
|
Real estate expense
reimbursement from tenants
|
|
3,413
|
|
|
3,469
|
|
|
10,251
|
|
|
10,307
|
|
|
Interest and other
income from real estate transactions
|
|
141
|
|
|
345
|
|
|
905
|
|
|
721
|
|
|
Interest income on
commercial mortgage residual interests
|
|
384
|
|
|
440
|
|
|
1,285
|
|
|
1,332
|
|
|
|
134,541
|
|
|
123,143
|
|
|
392,448
|
|
|
356,537
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
9,116
|
|
|
8,643
|
|
|
27,100
|
|
|
25,078
|
|
|
Real
estate
|
|
4,942
|
|
|
4,782
|
|
|
14,297
|
|
|
14,199
|
|
|
Depreciation and
amortization
|
|
38,970
|
|
|
33,607
|
|
|
110,114
|
|
|
99,950
|
|
|
Impairment –
commercial mortgage residual interests valuation
|
|
5,978
|
|
|
53
|
|
|
6,830
|
|
|
481
|
|
|
Impairment losses –
real estate and other charges, net of recoveries
|
|
4,917
|
|
|
(3)
|
|
|
10,949
|
|
|
3,711
|
|
|
|
63,923
|
|
|
47,082
|
|
|
169,290
|
|
|
143,419
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses
(revenues):
|
|
|
|
|
|
|
|
|
|
Interest and other
income
|
|
(17)
|
|
|
(20)
|
|
|
(108)
|
|
|
(67)
|
|
|
Interest
expense
|
|
24,257
|
|
|
21,996
|
|
|
71,923
|
|
|
65,460
|
|
|
Real estate
acquisition costs
|
|
111
|
|
|
199
|
|
|
520
|
|
|
894
|
|
|
|
24,351
|
|
|
22,175
|
|
|
72,335
|
|
|
66,287
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
—
|
|
|
(545)
|
|
|
—
|
|
|
(491)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before gain
on disposition of real estate, net of income tax expense
|
|
46,267
|
|
|
53,341
|
|
|
150,823
|
|
|
146,340
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition
of real estate, net of income tax expense
|
|
4,505
|
|
|
1,914
|
|
|
22,558
|
|
|
9,145
|
|
|
|
|
|
|
|
|
|
|
|
Earnings including
noncontrolling interests
|
|
50,772
|
|
|
55,255
|
|
|
173,381
|
|
|
155,485
|
|
|
|
|
|
|
|
|
|
|
|
Loss (earnings)
attributable to noncontrolling interests
|
|
12
|
|
|
(57)
|
|
|
28
|
|
|
(120)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to NNN
|
|
50,784
|
|
|
55,198
|
|
|
173,409
|
|
|
155,365
|
|
|
Series D preferred
stock dividends
|
|
(4,762)
|
|
|
(4,762)
|
|
|
(14,285)
|
|
|
(14,285)
|
|
|
Series E preferred
stock dividends
|
|
(4,097)
|
|
|
(4,097)
|
|
|
(12,291)
|
|
|
(12,291)
|
|
|
Net earnings
available to common stockholders
|
|
$
|
41,925
|
|
|
$
|
46,339
|
|
|
$
|
146,833
|
|
|
$
|
128,789
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
146,111
|
|
|
133,893
|
|
|
143,475
|
|
|
132,950
|
|
|
Diluted
|
|
146,682
|
|
|
134,246
|
|
|
144,036
|
|
|
133,306
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share available to common stockholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.29
|
|
|
0.34
|
|
|
1.02
|
|
|
0.96
|
|
|
Diluted
|
|
0.28
|
|
|
0.34
|
|
|
1.02
|
|
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Retail
Properties, Inc.
(in
thousands, except per share data)
(unaudited)
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Funds From
Operations (FFO) Reconciliation:
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common stockholders
|
|
$
|
41,925
|
|
|
$
|
46,339
|
|
|
$
|
146,833
|
|
|
$
|
128,789
|
|
|
Real estate
depreciation and amortization
|
|
38,889
|
|
|
33,513
|
|
|
109,872
|
|
|
99,626
|
|
|
Gain on disposition
of real estate, net of income tax and noncontrolling
interest
|
|
(4,505)
|
|
|
(1,914)
|
|
|
(22,558)
|
|
|
(9,092)
|
|
|
Impairment losses –
depreciable real estate, net of recoveries and income
tax
|
|
4,917
|
|
|
2
|
|
|
7,680
|
|
|
2,550
|
|
|
Total FFO
adjustments
|
|
39,301
|
|
|
31,601
|
|
|
94,994
|
|
|
93,084
|
|
|
FFO available to
common stockholders
|
|
$
|
81,226
|
|
|
$
|
77,940
|
|
|
$
|
241,827
|
|
|
$
|
221,873
|
|
|
|
|
|
|
|
|
|
|
|
FFO per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.56
|
|
|
$
|
0.58
|
|
|
$
|
1.69
|
|
|
$
|
1.67
|
|
|
Diluted
|
|
$
|
0.55
|
|
|
$
|
0.58
|
|
|
$
|
1.68
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
|
|
Core Funds from
Operations Reconciliation:
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common stockholders
|
|
$
|
41,925
|
|
|
$
|
46,339
|
|
|
$
|
146,833
|
|
|
$
|
128,789
|
|
|
Total FFO
adjustments
|
|
39,301
|
|
|
31,601
|
|
|
94,994
|
|
|
93,084
|
|
|
FFO available to
common stockholders
|
|
81,226
|
|
|
77,940
|
|
|
241,827
|
|
|
221,873
|
|
|
|
|
|
|
|
|
|
|
|
Impairment –
commercial mortgage residual interests valuation
|
|
5,978
|
|
|
53
|
|
|
6,830
|
|
|
481
|
|
|
Impairment losses –
non-depreciable real estate and other charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|
Bad debt expense –
loans
|
|
—
|
|
|
—
|
|
|
3,269
|
|
|
—
|
|
|
Total Core FFO
adjustments
|
|
5,978
|
|
|
53
|
|
|
10,099
|
|
|
637
|
|
|
Core FFO available to
common stockholders
|
|
$
|
87,204
|
|
|
$
|
77,993
|
|
|
$
|
251,926
|
|
|
$
|
222,510
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.60
|
|
|
$
|
0.58
|
|
|
$
|
1.76
|
|
|
$
|
1.67
|
|
|
Diluted
|
|
$
|
0.59
|
|
|
$
|
0.58
|
|
|
$
|
1.75
|
|
|
$
|
1.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Adjusted Funds
From Operations (AFFO) Reconciliation:
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common stockholders
|
|
$
|
41,925
|
|
|
$
|
46,339
|
|
|
$
|
146,833
|
|
|
$
|
128,789
|
|
|
Total FFO
adjustments
|
|
39,301
|
|
|
31,601
|
|
|
94,994
|
|
|
93,084
|
|
|
Total Core FFO
adjustments
|
|
5,978
|
|
|
53
|
|
|
10,099
|
|
|
637
|
|
|
Core FFO available to
common stockholders
|
|
87,204
|
|
|
77,993
|
|
|
251,926
|
|
|
222,510
|
|
|
|
|
|
|
|
|
|
|
|
Straight line accrued
rent
|
|
178
|
|
|
179
|
|
|
21
|
|
|
161
|
|
|
Net capital lease
rent adjustment
|
|
362
|
|
|
270
|
|
|
1,055
|
|
|
946
|
|
|
Below market rent
amortization
|
|
(659)
|
|
|
(675)
|
|
|
(2,180)
|
|
|
(2,375)
|
|
|
Stock based
compensation expense
|
|
2,698
|
|
|
2,434
|
|
|
8,069
|
|
|
7,210
|
|
|
Capitalized interest
expense
|
|
(416)
|
|
|
(685)
|
|
|
(1,243)
|
|
|
(1,633)
|
|
|
Total AFFO
adjustments
|
|
2,163
|
|
|
1,523
|
|
|
5,722
|
|
|
4,309
|
|
|
AFFO available to
common stockholders
|
|
$
|
89,367
|
|
|
$
|
79,516
|
|
|
$
|
257,648
|
|
|
$
|
226,819
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.61
|
|
|
$
|
0.59
|
|
|
$
|
1.80
|
|
|
$
|
1.71
|
|
|
Diluted
|
|
$
|
0.61
|
|
|
$
|
0.59
|
|
|
$
|
1.79
|
|
|
$
|
1.70
|
|
|
|
|
|
|
|
|
|
|
|
Other
Information:
|
|
|
|
|
|
|
|
|
|
Percentage
rent
|
|
$
|
321
|
|
|
$
|
331
|
|
|
$
|
959
|
|
|
$
|
628
|
|
|
Amortization of debt
costs
|
|
$
|
763
|
|
|
$
|
719
|
|
|
$
|
2,276
|
|
|
$
|
2,142
|
|
|
Scheduled debt
principal amortization (excluding maturities)
|
|
$
|
135
|
|
|
$
|
390
|
|
|
$
|
527
|
|
|
$
|
1,209
|
|
|
Non-real estate
depreciation expense
|
|
$
|
84
|
|
|
$
|
100
|
|
|
$
|
250
|
|
|
$
|
340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Retail
Properties, Inc.
(in
thousands, except per share data)
(unaudited)
|
|
|
|
2016 Earnings
Guidance:
|
|
|
Core FFO guidance for
2016 is $2.32 to $2.35 per share before any impairment expense. The
2016 AFFO is estimated to be $2.37 to $2.40 per share. The FFO
guidance equates to net earnings before any impairments or gains or
losses from the sale of real estate of $1.30 to $1.33 per share,
plus $1.02 per share of expected real estate depreciation and
amortization. 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.
|
|
|
2016
Guidance
|
|
Net earnings per
common share before any impairment charges or gains (losses) on
sale of real estate
|
|
$1.30 - $1.33 per
share
|
|
Real estate
depreciation and amortization per share
|
|
$1.02 per
share
|
|
Core FFO per
share
|
|
$2.32 - $2.35 per
share
|
|
AFFO per
share
|
|
$2.37 - $2.40 per
share
|
|
G&A
expenses
|
|
$36.1
Million
|
|
Real estate expenses,
net of tenant reimbursements
|
|
$6.0 - $6.5
Million
|
|
Acquisition
volume
|
|
$700 - $800
Million
|
|
Disposition
volume
|
|
$90 - $100
Million
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 Earnings
Guidance:
|
|
|
Core FFO guidance for
2017 is $2.42 to $2.48 per share before any impairment or severance
expense. The 2017 AFFO is estimated to be $2.46 to $2.52 per share.
The FFO guidance equates to net earnings before any impairments,
gains or losses from the sale of real estate or severance charges
of $1.37 to $1.43 per share, plus $1.05 per share of expected real
estate depreciation and amortization. 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.
|
|
|
2017
Guidance
|
|
Net earnings per
common share before any impairment charges, gains (losses) on sale
of real estate or severance charges
|
|
$1.37 - $1.43 per
share
|
|
Real estate
depreciation and amortization per share
|
|
$1.05 per
share
|
|
Core FFO per
share
|
|
$2.42 - $2.48 per
share
|
|
AFFO per
share
|
|
$2.46 - $2.52
per share
|
|
G&A expenses
(excluding severance charges)
|
|
$34 - $35
Million
|
|
Real estate expenses,
net of tenant reimbursements
|
|
$6.0 - $6.5
Million
|
|
Acquisition
volume
|
|
$500 - $600
Million
|
|
Disposition
volume
|
|
$80 - $120
Million
|
|
National Retail
Properties, Inc.
(in
thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
|
Balance Sheet
Summary
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,916
|
|
|
$
|
13,659
|
|
|
Restricted cash and
cash held in escrow
|
|
—
|
|
|
601
|
|
|
Receivables, net of
allowance
|
|
2,473
|
|
|
3,344
|
|
|
Mortgages, notes and
accrued interest receivable, net of allowance
|
|
4,925
|
|
|
8,688
|
|
|
Real estate
portfolio:
|
|
|
|
|
|
Accounted for using
the operating method, net of accumulated
depreciation and
amortization
|
|
5,677,881
|
|
|
5,224,089
|
|
|
Accounted for using
the direct financing method
|
|
13,464
|
|
|
14,518
|
|
|
Real estate held for
sale
|
|
29,234
|
|
|
64,851
|
|
|
Accrued rental income,
net of allowance
|
|
24,915
|
|
|
25,529
|
|
|
Debt costs, net of
accumulated amortization
|
|
3,055
|
|
|
4,003
|
|
|
Commercial mortgage
residual interests
|
|
189
|
|
|
11,115
|
|
|
Other
assets
|
|
94,311
|
|
|
89,647
|
|
|
Total
assets
|
|
$
|
5,856,363
|
|
|
$
|
5,460,044
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Line of credit
payable
|
|
$
|
184,200
|
|
|
$
|
—
|
|
|
Mortgages payable, including unamortized premium and net
of
unamortized debt costs
|
|
16,732
|
|
|
23,964
|
|
|
Notes
payable, net of unamortized discount and unamortized
debt costs
|
|
1,954,244
|
|
|
1,951,980
|
|
|
Accrued interest
payable
|
|
32,792
|
|
|
20,113
|
|
|
Other
liabilities
|
|
89,315
|
|
|
121,594
|
|
|
Total
liabilities
|
|
2,277,283
|
|
|
2,117,651
|
|
|
|
|
|
|
|
Stockholders' equity
of NNN
|
|
3,578,849
|
|
|
3,342,134
|
|
|
Noncontrolling
interests
|
|
231
|
|
|
259
|
|
|
Total
equity
|
|
3,579,080
|
|
|
3,342,393
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
5,856,363
|
|
|
$
|
5,460,044
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
147,123
|
|
|
141,008
|
|
|
|
|
|
|
|
Gross leasable area,
Property Portfolio (square feet)
|
|
26,640
|
|
|
24,964
|
|
|
|
|
|
|
|
National Retail
Properties, Inc.
Debt
Summary
As of September 30,
2016
(in
thousands)
(unaudited)
|
|
|
Unsecured
Debt
|
|
Principal
|
|
Principal, Net of
Unamortized Discount
|
|
Stated
Rate
|
|
Effective
Rate
|
|
Maturity
Date
|
|
Line of credit
payable
|
|
$
|
184,200
|
|
|
$
|
184,200
|
|
|
L + 92.5
bps
|
|
1.449
|
%
|
|
January
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured notes
payable:
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
250,000
|
|
|
249,878
|
|
|
6.875
|
%
|
|
6.924
|
%
|
|
October 2017
|
|
2021
|
|
300,000
|
|
|
297,657
|
|
|
5.500
|
%
|
|
5.689
|
%
|
|
July
2021
|
|
2022
|
|
325,000
|
|
|
321,798
|
|
|
3.800
|
%
|
|
3.985
|
%
|
|
October
2022
|
|
2023
|
|
350,000
|
|
|
348,207
|
|
|
3.300
|
%
|
|
3.388
|
%
|
|
April
2023
|
|
2024
|
|
350,000
|
|
|
349,436
|
|
|
3.900
|
%
|
|
3.924
|
%
|
|
June
2024
|
|
2025
|
|
400,000
|
|
|
399,111
|
|
|
4.000
|
%
|
|
4.029
|
%
|
|
November
2025
|
|
Total
|
|
1,975,000
|
|
|
1,966,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total unsecured debt
(1)
|
|
$
|
1,975,000
|
|
|
$
|
1,966,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt costs
|
|
|
|
(17,782)
|
|
|
|
|
|
|
|
|
Accumulated
amortization
|
|
5,939
|
|
|
|
|
|
|
|
|
Debt costs, net of
accumulated amortization
|
|
(11,843)
|
|
|
|
|
|
|
|
|
Notes payable, net of
unamortized discount and unamortized debt costs
|
|
$
|
1,954,244
|
|
|
|
|
|
|
|
|
|
(1)
Unsecured notes payable have a weighted average interest rate of
4.5% and a weighted maturity of 6.2 years
|
|
Mortgages
Payable
|
|
Principal
Balance
|
|
Interest
Rate
|
|
Maturity
Date
|
|
Mortgage(1)
|
|
$
|
14,132
|
|
|
5.230
|
%
|
|
July
2023
|
|
Mortgage(3)
|
|
2,714
|
|
|
6.400
|
%
|
|
February
2017
|
|
|
$
|
16,846
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
Debt costs
|
|
(226)
|
|
|
|
|
|
|
Accumulated
amortization
|
|
112
|
|
|
|
|
|
|
Debt costs, net of
accumulated amortization
|
|
(114)
|
|
|
|
|
|
|
Mortgages payable,
including unamortized premium and net of unamortized debt
costs
|
|
$
|
16,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes unamortized premium
|
|
|
|
|
|
|
|
(2)
Mortgages payable have a weighted average interest rate of 5.4% and
a weighted average maturity of 5.7 years
|
|
(3)
Mortgage was paid off in October 2016
|
|
National Retail
Properties, Inc.
|
|
Property
Portfolio
|
|
|
|
Top 20 Lines
of Trade
|
|
|
|
|
|
|
|
As of September
30,
|
|
|
|
Line of
Trade
|
|
2016(1)
|
|
2015(2)
|
|
1.
|
|
Convenience
stores
|
|
16.4
|
%
|
|
16.8
|
%
|
|
2.
|
|
Restaurants – full
service
|
|
12.3
|
%
|
|
11.2
|
%
|
|
3.
|
|
Restaurants – limited
service
|
|
7.6
|
%
|
|
7.0
|
%
|
|
4.
|
|
Automotive
service
|
|
6.8
|
%
|
|
6.9
|
%
|
|
5.
|
|
Family entertainment
centers
|
|
5.8
|
%
|
|
5.4
|
%
|
|
6.
|
|
Theaters
|
|
5.0
|
%
|
|
5.1
|
%
|
|
7.
|
|
Health and
fitness
|
|
4.5
|
%
|
|
3.6
|
%
|
|
8.
|
|
Automotive
parts
|
|
4.0
|
%
|
|
4.3
|
%
|
|
9.
|
|
Recreational vehicle
dealers, parts and accessories
|
|
3.4
|
%
|
|
3.6
|
%
|
|
10.
|
|
Banks
|
|
3.2
|
%
|
|
3.5
|
%
|
|
11.
|
|
Sporting
goods
|
|
2.6
|
%
|
|
3.3
|
%
|
|
12.
|
|
Wholesale
clubs
|
|
2.4
|
%
|
|
2.7
|
%
|
|
13.
|
|
Medical service
providers
|
|
2.4
|
%
|
|
2.2
|
%
|
|
14.
|
|
Drug
stores
|
|
2.1
|
%
|
|
2.4
|
%
|
|
15.
|
|
Consumer
electronics
|
|
2.0
|
%
|
|
2.2
|
%
|
|
16.
|
|
Travel
plazas
|
|
2.0
|
%
|
|
2.2
|
%
|
|
17.
|
|
Furniture
|
|
1.9
|
%
|
|
1.1
|
%
|
|
18.
|
|
General
merchandise
|
|
1.9
|
%
|
|
2.0
|
%
|
|
19.
|
|
Home
improvements
|
|
1.9
|
%
|
|
1.8
|
%
|
|
20.
|
|
Home
furnishings
|
|
1.7
|
%
|
|
1.9
|
%
|
|
|
|
Other
|
|
10.1
|
%
|
|
10.8
|
%
|
|
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
Top 10
States
|
|
|
|
State
|
|
|
% of
Total(1)
|
|
|
State
|
|
|
% of
Total(1)
|
|
1.
|
Texas
|
|
|
18.7
|
%
|
|
6.
|
Indiana
|
|
|
4.3
|
%
|
|
2.
|
Florida
|
|
|
9.2
|
%
|
|
7.
|
Georgia
|
|
|
4.2
|
%
|
|
3.
|
Ohio
|
|
|
5.8
|
%
|
|
8.
|
Virginia
|
|
|
3.6
|
%
|
|
4.
|
Illinois
|
|
|
5.2
|
%
|
|
9.
|
Alabama
|
|
|
3.0
|
%
|
|
5.
|
North
Carolina
|
|
|
4.9
|
%
|
|
10.
|
Tennessee
|
|
|
2.9
|
%
|
|
|
|
(1)
|
Based on the
annualized base rent for all leases in place as of September 30,
2016.
|
|
(2)
|
Based on the
annualized base rent for all leases in place as of September 30,
2015.
|
|
National Retail
Properties, Inc.
|
|
Property
Portfolio
|
|
|
Top Tenants ( ≥
2.0%)
|
|
|
|
|
Properties
|
|
% of Total
(1)
|
|
Sunoco
|
|
125
|
|
|
5.5
|
%
|
|
Mister Car
Wash
|
|
92
|
|
|
4.2
|
%
|
|
LA Fitness
|
|
26
|
|
|
3.9
|
%
|
|
Camping
World
|
|
32
|
|
|
3.4
|
%
|
|
Couche-Tard
(Pantry)
|
|
86
|
|
|
3.4
|
%
|
|
7-Eleven
|
|
77
|
|
|
3.3
|
%
|
|
SunTrust
|
|
121
|
|
|
3.1
|
%
|
|
AMC
Theatre
|
|
17
|
|
|
2.9
|
%
|
|
Bell American (Taco
Bell)
|
|
115
|
|
|
2.8
|
%
|
|
Chuck E.
Cheese's
|
|
53
|
|
|
2.6
|
%
|
|
BJ's Wholesale
Club
|
|
8
|
|
|
2.4
|
%
|
|
Frisch's
Restaurant
|
|
74
|
|
|
2.3
|
%
|
|
Gander
Mountain
|
|
12
|
|
|
2.2
|
%
|
|
Bob Evans
|
|
117
|
|
|
2.0
|
%
|
|
Best Buy
|
|
19
|
|
|
2.0
|
%
|
|
|
Lease
Expirations(2)
|
|
|
|
%
of
Total(1)
|
|
# of
Properties
|
|
Gross
Leasable
Area
(3)
|
|
|
|
% of
Total(1)
|
|
# of
Properties
|
|
Gross Leasable
Area (3)
|
|
2016
|
|
0.2
|
%
|
|
8
|
|
|
116,000
|
|
|
2022
|
|
5.8
|
%
|
|
103
|
|
|
1,301,000
|
|
|
2017
|
|
1.8
|
%
|
|
39
|
|
|
721,000
|
|
|
2023
|
|
2.6
|
%
|
|
86
|
|
|
1,016,000
|
|
|
2018
|
|
3.3
|
%
|
|
91
|
|
|
1,185,000
|
|
|
2024
|
|
2.7
|
%
|
|
50
|
|
|
885,000
|
|
|
2019
|
|
3.1
|
%
|
|
77
|
|
|
1,109,000
|
|
|
2025
|
|
5.2
|
%
|
|
131
|
|
|
1,110,000
|
|
|
2020
|
|
3.9
|
%
|
|
133
|
|
|
1,537,000
|
|
|
2026
|
|
6.1
|
%
|
|
178
|
|
|
1,830,000
|
|
|
2021
|
|
4.5
|
%
|
|
119
|
|
|
1,301,000
|
|
|
Thereafter
|
|
60.8
|
%
|
|
1,437
|
|
|
14,034,000
|
|
|
|
|
(1)
|
Based on the annual
base rent of $527,667,000, which is the annualized base rent for
all leases in place as of September 30, 2016.
|
|
(2)
|
As of September 30,
2016, the weighted average remaining lease term is 11.5
years.
|
|
(3)
|
Square
feet.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/third-quarter-2016-operating-results-and-2017-guidance-announced-by-national-retail-properties-inc-300356285.html
SOURCE National Retail Properties, Inc.