National Retail Properties, Inc. Q2 2026 Earnings Recap

NNN REIT’s shares edged down 0.4% following Q2 results that reflected stable operational performance without notable upside or downside surprises, aligning with market expectations.

Key Takeaways

• AFFO was $0.90 per share, up 5.9% year-over-year, supported by lower-than-expected bad debt of 2 basis points of ABR.
• Portfolio occupancy rose to 99.1%, an increase of 50 basis points sequentially and 110 basis points year-over-year, driving NOI margin to 96.6%, up 70 basis points from Q1.
• Acquisitions totaled $290 million in 89 properties with stable cap rates of 7.3% and an average lease duration of nearly 18 years; full-year acquisition guidance raised to $750 million from $600 million.
• Dispositions included 26 properties generating $37 million, focusing on non-core assets sold at cap rates 170 basis points below acquisition levels; disposition guidance lifted to a midpoint of $140 million.
• Balance sheet remains strong with $1.4 billion liquidity and debt maturity of 10.1 years, maintaining financial flexibility for growth and capital deployment.