National Retail Properties, Inc. Q1 2026 Earnings Recap

NNN REIT’s first quarter performance landed in line with market expectations, as the shares closed up 1.0% following results. Modest AFFO growth, improved occupancy, and a slight guidance raise were balanced by flat year-over-year FFO/AFFO per share.

Key Takeaways

• AFFO and core FFO per share were flat year-over-year at $0.87 and $0.86, respectively; excluding lower lease termination fees, underlying AFFO was up 4.8%.
• Company raised full-year 2026 AFFO per share guidance to $3.53–$3.59.
• Portfolio occupancy rose 30 basis points sequentially to 98.6%, with rental rates on renewals up 2% and new leases up 10%.
• $145 million deployed into 41 properties at a 7.5% initial cash yield, with a weighted average lease term of 19 years.
• Balance sheet remains well-capitalized, with $1.2 billion in liquidity and 11-year weighted average debt maturity; free cash flow after dividend was $52 million for the quarter.