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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: August 1, 2019
 
NATIONAL RETAIL PROPERTIES, INC.
(exact name of registrant as specified in its charter)
 
Maryland
 
001-11290
 
56-1431377
(State or other jurisdiction of
incorporation or organization)
 
(Commission
File Number)
 
(I.R.S. Employment
Identification No.)
450 South Orange Avenue, Suite 900, Orlando, Florida 32801
(Address of principal executive offices, including zip code)
(407) 265-7348
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of exchange on which registered
Common Stock, $0.01 par value
NNN
New York Stock Exchange
5.700% Series E Preferred Stock, $0.01 par value
NNN/PE
New York Stock Exchange
5.200% Series F Preferred Stock, $0.01 par value
NNN/PF
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02.
Results of Operations and Financial Condition.
On August 1, 2019 National Retail Properties, Inc. issued a press release announcing its results of operations and financial condition for the quarter and six months ended June 30, 2019. The press release is attached hereto as Exhibit 99.1.
The information in this Form 8-K is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of such section, nor shall such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01.
Financial Statements and Exhibits.
(d)
Exhibits.
 
 
 
99.1

  




Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
National Retail Properties, Inc.
 
 
 
Dated: August 1, 2019
 
By:
 
/s/ Kevin B. Habicht
 
 
 
 
Kevin B. Habicht
 
 
 
 
Executive Vice President and Chief Financial Officer






EXHIBIT INDEX
 
 
 
 
Exhibit No.
  
Description
 
 
99.1
  


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit

399005615_nnnlogo20190630a04.jpg    

NEWS RELEASE
For information contact:
Kevin B. Habicht
Chief Financial Officer
(407) 265-7348    FOR IMMEDIATE RELEASE
August 1, 2019

SECOND QUARTER 2019 OPERATING RESULTS
ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, August 1, 2019 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and six months ended June 30, 2019. Highlights include:

Operating Results:
Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
 
Quarter Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
 
(in thousands, except per share data)
Revenues
$
164,792

 
$
155,518

 
$
328,504

 
$
308,353

 
 
 
 
 
 
 
 
Net earnings available to common stockholders
$
70,097

 
$
61,992

 
$
141,537

 
$
156,690

Net earnings per common share
$
0.43

 
$
0.40

 
$
0.87

 
$
1.02

 
 
 
 
 
 
 
 
FFO available to common stockholders
$
110,859

 
$
104,944

 
$
221,203

 
$
207,713

FFO per common share
$
0.68

 
$
0.68

 
$
1.37

 
$
1.35

 
 
 
 
 
 
 
 
Core FFO available to common stockholders
$
110,859

 
$
105,204

 
$
219,872

 
$
208,234

Core FFO per common share
$
0.68

 
$
0.68

 
$
1.36

 
$
1.35

 
 
 
 
 
 
 
 
AFFO available to common stockholders
$
112,619

 
$
105,303

 
$
223,249

 
$
208,182

AFFO per common share
$
0.69

 
$
0.68

 
$
1.38

 
$
1.35


Second Quarter 2019 Highlights:

AFFO per common share increased 1.5% over prior year results
Portfolio occupancy was 98.8% at June 30, 2019 as compared to 98.2% on March 31, 2019 and 98.2% on December 31, 2018
Invested $275.8 million in property investments, including the acquisition of 71 properties with an aggregate 1,678,000 square feet of gross leasable area at an initial cash yield of 6.9%
Sold 13 properties for $42.0 million producing $12.6 million of gains on sales, net of noncontrolling interest
Raised $82.0 million net proceeds from the issuance of 1,531,684 common shares





First Half of 2019 Highlights:
FFO per share increased 1.5% over prior year results
Core FFO per share increased 0.7% over prior year results
AFFO per common share increased 2.2% over prior year results
Invested $392.8 million in property investments, including the acquisition of 104 properties with an aggregate 2,112,000 square feet of gross leasable area at an initial cash yield of 6.9%
Sold 30 properties for $61.4 million producing $23.0 million of gains on sales, net of noncontrolling interest
Raised $87.2 million in net proceeds from issuance of 1,632,864 common shares

Jay Whitehurst, Chief Executive Officer, commented: “National Retail Properties posted steady, consistent results in the second quarter of 2019, highlighted by a solid quarter of acquisitions and a meaningful uptick in our occupancy rate. In July, we increased our common stock dividend by three percent to 51.5 cents per quarter, while maintaining our very conservative dividend payout ratio. 2019 will mark our 30th consecutive year of increased annual dividends, a feat matched by only two other REITs and by less than 90 public companies in the United States.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of June 30, 2019, the company owned 3,043 properties in 48 states with a gross leasable area of approximately 32.1 million square feet and with a weighted average remaining lease term of 11.4 years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on August 1, 2019, 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, and, risks related to the company's status as a REIT. 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 (the "Commission”) 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 Commission. 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 Commission for the quarter and six months ended June 30, 2019. 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

2


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.


3


National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Income Statement Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Rental income
 
$
164,596

 
$
155,153

 
$
327,622

 
$
307,915

Interest and other income from real estate transactions
 
196

 
365

 
882

 
438

 
 
164,792

 
155,518

 
328,504

 
308,353

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
General and administrative
 
9,276

 
8,741

 
18,798

 
17,437

Real estate
 
6,600

 
5,828

 
13,692

 
11,690

Depreciation and amortization
 
46,241

 
43,304

 
92,421

 
87,802

Impairment losses – real estate, net of recoveries
 
7,187

 
3,835

 
10,432

 
6,083

Retirement severance costs
 

 
260

 

 
521

 
 
69,304

 
61,968

 
135,343

 
123,533

Gain on disposition of real estate
 
13,002

 
4,106

 
23,447

 
42,702

Earnings from operations
 
108,490

 
97,656

 
216,608

 
227,522

 
 
 
 
 
 
 
 
 
Other expenses (revenues):
 
 
 
 
 
 
 
 
Interest and other income
 
(487
)
 
(37
)
 
(2,411
)
 
(63
)
Interest expense
 
29,811

 
27,110

 
59,768

 
53,712

Leasing transaction costs
 
75

 

 
127

 

 
 
29,399

 
27,073

 
57,484

 
53,649

 
 
 
 
 
 
 
 
 
Net earnings
 
79,091

 
70,583

 
159,124

 
173,873

Earnings attributable to noncontrolling interests
 
(413
)
 
(10
)
 
(423
)
 
(19
)
 
 
 
 
 
 
 
 
 
Net earnings attributable to NNN
 
78,678

 
70,573

 
158,701

 
173,854

Series E preferred stock dividends
 
(4,096
)
 
(4,096
)
 
(8,194
)
 
(8,194
)
Series F preferred stock dividends
 
(4,485
)
 
(4,485
)
 
(8,970
)
 
(8,970
)
Net earnings available to common stockholders
 
$
70,097

 
$
61,992

 
$
141,537

 
$
156,690

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
161,893

 
153,811

 
161,502

 
153,428

Diluted
 
162,352

 
154,204

 
161,995

 
153,840

 
 
 
 
 
 
 
 
 
Net earnings per share available to common stockholders:
 
 
 
 
 
 
 
 
Basic
 
$
0.43

 
$
0.40

 
$
0.87

 
$
1.02

Diluted
 
$
0.43

 
$
0.40

 
$
0.87

 
$
1.02




4


National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Funds From Operations (FFO) Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
70,097

 
$
61,992

 
$
141,537

 
$
156,690

Real estate depreciation and amortization
 
46,165

 
43,223

 
92,269

 
87,642

Gain on disposition of real estate, net of noncontrolling interests
 
(12,590
)
 
(4,106
)
 
(23,035
)
 
(42,702
)
Impairment losses – depreciable real estate, net of recoveries
 
7,187

 
3,835

 
10,432

 
6,083

Total FFO adjustments
 
40,762

 
42,952

 
79,666

 
51,023

FFO available to common stockholders
 
$
110,859

 
$
104,944

 
$
221,203

 
$
207,713

 
 
 
 
 
 
 
 
 
FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.68

 
$
0.68

 
$
1.37

 
$
1.35

Diluted
 
$
0.68

 
$
0.68

 
$
1.37

 
$
1.35

 
 
 
 
 
 
 
 
 
Core Funds From Operations Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
70,097

 
$
61,992

 
$
141,537

 
$
156,690

Total FFO adjustments
 
40,762

 
42,952

 
79,666

 
51,023

FFO available to common stockholders
 
110,859

 
104,944

 
221,203

 
207,713

 
 
 
 
 
 
 
 
 
Retirement severance costs
 

 
260

 

 
521

Gain on sale of equity investments
 

 

 
(1,331
)
 

Total Core FFO adjustments
 

 
260

 
(1,331
)
 
521

Core FFO available to common stockholders
 
$
110,859

 
$
105,204

 
$
219,872

 
$
208,234

 
 
 
 
 
 
 
 
 
Core FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.68

 
$
0.68

 
$
1.36

 
$
1.36

Diluted
 
$
0.68

 
$
0.68

 
$
1.36

 
$
1.35

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

5


National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Adjusted Funds From Operations (AFFO) Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
70,097

 
$
61,992

 
$
141,537

 
$
156,690

Total FFO adjustments
 
40,762

 
42,952

 
79,666

 
51,023

Total Core FFO adjustments
 

 
260

 
(1,331
)
 
521

Core FFO available to common stockholders
 
110,859

 
105,204

 
219,872

 
208,234

 
 
 
 
 
 
 
 
 
Straight-line accrued rent
 
(413
)
 
68

 
(1,160
)
 
(930
)
Net capital lease rent adjustment
 
167

 
234

 
338

 
462

Below-market rent amortization
 
(173
)
 
(1,417
)
 
(401
)
 
(2,115
)
Stock based compensation expense
 
2,524

 
2,290

 
5,071

 
4,435

Capitalized interest expense
 
(345
)
 
(1,076
)
 
(471
)
 
(1,904
)
Total AFFO adjustments
 
1,760

 
99

 
3,377

 
(52
)
AFFO available to common stockholders
 
$
112,619

 
$
105,303

 
$
223,249

 
$
208,182

 
 
 
 
 
 
 
 
 
AFFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.70

 
$
0.68

 
$
1.38

 
$
1.36

Diluted
 
$
0.69

 
$
0.68

 
$
1.38

 
$
1.35

 
 
 
 
 
 
 
 
 
Other Information:
 
 
 
 
 
 
 
 
Rental income from operating leases(1)
 
$
160,234

 
$
150,969

 
$
318,632

 
$
298,798

Earned income from direct financing leases(1)
 
$
208

 
$
225

 
$
420

 
$
455

Percentage rent(1)
 
$
300

 
$
189

 
$
722

 
$
734

 
 
 
 
 
 
 
 
 
Real estate expense reimbursement from tenants(1)
 
$
3,854

 
$
3,770

 
$
7,848

 
$
7,928

Real estate expenses
 
(6,600
)
 
(5,828
)
 
(13,692
)
 
(11,690
)
Real estate expenses, net of tenant reimbursements
 
$
(2,746
)
 
$
(2,058
)
 
$
(5,844
)
 
$
(3,762
)
 
 
 
 
 
 
 
 
 
Amortization of debt costs
 
$
931

 
$
894

 
$
1,851

 
$
1,781

Scheduled debt principal amortization (excluding maturities)
 
$
139

 
$
132

 
$
281

 
$
266

Non-real estate depreciation expense
 
$
78

 
$
84

 
$
158

 
$
165

(1) 
The condensed consolidated financial statements for the quarter and six months ended June 30, 2019 and 2018 are presented under the new accounting standard, ASU 2016-02, "Leases (Topic 842)."  For the quarter and six months ended June 30, 2019, the aggregate of such amounts is $164,596 and $327,622, respectively, classified as rental income on the income statement summary. For the quarter and six months ended June 30, 2018, the aggregate of such amounts is $155,153 and $307,915, respectively.


6





2019 Earnings Guidance:
 
 
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.
 
 
2019 Guidance 
  Net earnings per common share excluding any gains on disposition of real estate and impairment charges
 
$1.60 - $1.65 per share
  Real estate depreciation and amortization per share
 
$1.11 per share
Core FFO per share
 
$2.71 - $2.76 per share
  AFFO per share
 
$2.76 - $2.81 per share
  G&A expenses
 
$37.0 - $38.0 Million
  Real estate expenses, net of tenant reimbursements
 
$10.0 - $10.5 Million
  Acquisition volume
 
$550 - $650 Million
  Disposition volume
 
$80 - $120 Million


7


National Retail Properties, Inc.
(in thousands)
(unaudited)

 
 
June 30, 2019
 
December 31, 2018
Balance Sheet Summary
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
Real estate:
 
 
 
 
Accounted for using the operating method, net of accumulated depreciation and amortization
 
$
7,110,598

 
$
6,851,216

Accounted for using the direct financing method
 
7,052

 
8,069

Real estate held for sale
 
288

 
16,147

Cash and cash equivalents
 
2,209

 
114,267

Receivables, net of allowance of $506 and $2,273, respectively
 
2,507

 
3,797

Accrued rental income, net of allowance of $1,842
 
28,198

 
25,387

Debt costs, net of accumulated amortization
 
3,468

 
4,081

Other assets
 
98,481

 
80,474

Total assets
 
$
7,252,801

 
$
7,103,438

 
 
 
 
 
Liabilities:
 
 
 
 
Line of credit payable
 
$
63,200

 
$

 Mortgages payable, including unamortized premium and net of unamortized debt cost
 
12,379

 
12,694

 Notes payable, net of unamortized discount and unamortized debt costs
 
2,840,674

 
2,838,701

Accrued interest payable
 
17,984

 
19,519

Other liabilities
 
96,113

 
77,919

Total liabilities
 
3,030,350

 
2,948,833

 
 
 
 
 
Stockholders' equity of NNN
 
4,222,449

 
4,154,250

Noncontrolling interests
 
2

 
355

Total equity
 
4,222,451

 
4,154,605

 
 
 
 
 
Total liabilities and equity
 
$
7,252,801

 
$
7,103,438

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
 
163,513

 
161,504

 
 
 
 
 
Gross leasable area, Property Portfolio (square feet)
 
32,053

 
30,487

 
 
 
 
 


8


National Retail Properties, Inc.
Debt Summary
As of June 30, 2019
(in thousands)
(unaudited)
Unsecured Debt
 
Principal
 
Principal, Net of Unamortized Discount
 
Stated Rate
 
Effective Rate
 
Maturity Date
Line of credit payable
 
$
63,200

 
$
63,200

 
L + 87.5 bps

 
3.295
%
 
   January 2022
 
 
 
 
 
 
 
 
 
 
 
Unsecured notes payable:
 
 
 
 
 
 
 
 
 
 
2022
 
325,000

 
323,162

 
3.800
%
 
3.985
%
 
   October 2022
2023
 
350,000

 
348,913

 
3.300
%
 
3.388
%
 
   April 2023
2024
 
350,000

 
349,618

 
3.900
%
 
3.924
%
 
   June 2024
2025
 
400,000

 
399,346

 
4.000
%
 
4.029
%
 
   November 2025
2026
 
350,000

 
346,992

 
3.600
%
 
3.733
%
 
   December 2026
2027
 
400,000

 
398,621

 
3.500
%
 
3.548
%
 
   October 2027
2028
 
400,000

 
397,326

 
4.300
%
 
4.388
%
 
   October 2028
2048
 
300,000

 
295,809

 
4.800
%
 
4.890
%
 
   October 2048
Total
 
2,875,000

 
2,859,787

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total unsecured debt(1)
 
$
2,938,200

 
$
2,922,987

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Debt costs
 
 
 
(26,932
)
 
 
 
 
 
 
Accumulated amortization
 
7,819

 
 
 
 
 
 
Debt costs, net of accumulated amortization
 
(19,113)
 
 
 
 
 
 
Notes payable, net of unamortized discount and unamortized debt costs
 
$
2,840,674

 
 
 
 
 
 
(1)  Unsecured notes payable have a weighted average interest rate of 4.0% and a weighted average maturity of 8.8 years.
 

Mortgages Payable
 
Principal Balance
 
Interest Rate
 
Maturity Date
 
Mortgage(1)
 
$
12,445

 
5.23
%
 
   July 2023
 
 
 
 
 
 
 
 
 
Debt costs
 
(147
)
 
 
 
 
 
Accumulated amortization
 
81

 
 
 
 
 
Debt costs, net of accumulated amortization
 
(66)
 
 
 
 
 
Mortgages payable, including unamortized premium and net of unamortized debt costs
 
$
12,379

 
 
 
 
 
(1)   Includes unamortized premium
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

9


National Retail Properties, Inc.
Property Portfolio

Top 20 Lines of Trade
 
 
 
 
As of June 30,
 
 
 
Line of Trade
 
2019(1)
 
2018(2)
 
1.
 
Convenience stores
 
17.7
%
 
18.8
%
 
2.
 
Restaurants – full service
 
11.1
%
 
12.1
%
 
3.
 
Automotive service
 
9.1
%
 
7.7
%
 
4.
 
Restaurants – limited service
 
8.8
%
 
7.9
%
 
5.
 
Family entertainment centers
 
6.9
%
 
6.5
%
 
6.
 
Health and fitness
 
5.4
%
 
5.6
%
 
7.
 
Theaters
 
4.8
%
 
4.8
%
 
8.
 
Recreational vehicle dealers, parts and accessories
 
3.4
%
 
3.1
%
 
9.
 
Automotive parts
 
3.3
%
 
3.6
%
 
10.
 
Equipment rental
 
2.7
%
 
1.9
%
 
11.
 
Home improvement
 
2.6
%
 
1.7
%
 
12.
 
Wholesale clubs
 
2.3
%
 
2.4
%
 
13.
 
Medical service providers
 
2.2
%
 
2.3
%
 
14.
 
General merchandise
 
1.8
%
 
1.8
%
 
15.
 
Home furnishings
 
1.7
%
 
1.6
%
 
16.
 
Furniture
 
1.7
%
 
1.8
%
 
17.
 
Travel plazas
 
1.6
%
 
1.7
%
 
18.
 
Drug stores
 
1.6
%
 
1.9
%
 
19.
 
Consumer electronics
 
1.6
%
 
1.7
%
 
20.
 
Bank
 
1.5
%
 
1.9
%
 
 
 
Other
 
8.2
%
 
9.2
%
 
 
 
Total
 
100.0
%
 
100.0
%
 

Top 10 States
 
State
 
 
% of Total(1)
 
 
State
 
 
% of Total(1)
 
1.
Texas
 
 
17.4
%
 
6.
Georgia
 
 
4.5
%
 
2.
Florida
 
 
8.9
%
 
7.
Indiana
 
 
3.9
%
 
3.
Ohio
 
 
5.7
%
 
8.
Tennessee
 
 
3.9
%
 
4.
Illinois
 
 
5.2
%
 
9.
Virginia
 
 
3.7
%
 
5.
North Carolina
 
 
4.5
%
 
10.
California
 
 
3.1
%
 
 
(1) Based on the annualized base rent for all leases in place as of June 30, 2019.
 
 
(2) Based on the annualized base rent for all leases in place as of June 30, 2018.
 




10


National Retail Properties, Inc.
Property Portfolio

Top Tenants ( ≥ 2.0%)
 
 
 
Properties
 
% of Total(1)
 
7-Eleven
 
140

 
5.2
%
 
Mister Car Wash
 
109

 
4.4
%
 
Camping World
 
46

 
4.2
%
 
LA Fitness
 
30

 
3.8
%
 
Flynn Restaurant Group (Taco Bell/Arby's)
 
203

 
3.6
%
 
GPM Investments (Convenience Stores)
 
151

 
3.5
%
 
AMC Theatre
 
20

 
3.1
%
 
Couche Tard (Pantry)
 
85

 
2.9
%
 
Sunoco
 
61

 
2.3
%
 
BJ's Wholesale Club
 
9

 
2.3
%
 
Chuck E. Cheese's
 
53

 
2.1
%

Lease Expirations(2) 
 
 
% of
Total
(1)
 
# of
Properties
 
Gross Leasable
Area
(3)
 
 
 
% of
Total
(1)
 
# of
Properties
 
Gross Leasable Area(3)
2019
 
0.4
%
 
20

 
418,000

 
2025
 
4.9
%
 
141

 
1,486,000

2020
 
2.3
%
 
97

 
1,060,000

 
2026
 
4.8
%
 
179

 
1,697,000

2021
 
3.7
%
 
119

 
1,301,000

 
2027
 
7.4
%
 
194

 
2,624,000

2022
 
5.7
%
 
123

 
1,634,000

 
2028
 
4.8
%
 
158

 
1,176,000

2023
 
3.0
%
 
117

 
1,456,000

 
2029
 
3.2
%
 
75

 
1,109,000

2024
 
3.6
%
 
96

 
1,546,000

 
Thereafter
 
56.2
%
 
1,684

 
15,813,000


(1) 
Based on the annual base rent of $650,091,000, which is the annualized base rent for all leases in place as of June 30, 2019.
(2) 
As of June 30, 2019, the weighted average remaining lease term is 11.4 years.
(3) 
Square feet.










11
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