NNN Lifts 2026 Disposition Guidance After Heavier Sales

The Tip Desk · November 4, 2026 · 3 min read

The net-lease REIT raised its 2026 disposition volume outlook to $160 million–$180 million after third-quarter sales of $50.7 million, while Core FFO per share reached $0.90.

NNN REIT, Inc. (NNN) raised its 2026 disposition volume guidance to $160 million–$180 million after selling 32 properties for $50.7 million in the third quarter, including $37.3 million of income-producing assets at a 7.8% weighted average cap rate.

The Orlando-based real estate investment trust, which owns long-term net-lease properties, reported net earnings of $0.57 a share for the quarter ended September 30, 2026, versus $0.51 a year earlier. Revenue was $249.7 million.

Core FFO per diluted share was $0.90, up 5.9% from a year earlier, a slight slowdown from 6.0% growth in the second quarter. AFFO per diluted share was $0.91, up 5.8%.

Annualized base rent rose 6.8% year over year to $974.0 million, slower than the 7.3% increase reported in the second quarter. Occupancy reached 99.2%, up 10 basis points sequentially after a 50-basis-point sequential gain in the prior quarter. The weighted average remaining lease term was 10.1 years. The portfolio held 3,817 properties and about 40.8 million square feet of gross leasable area.

Acquisitions slowed. NNN closed $221.7 million of investments across 76 properties at a 7.3% initial cash cap rate and a 19.6-year weighted average lease term, compared with $291.0 million in the second quarter. For the nine months ended September 30, the company invested $658.1 million at a 7.3% cap rate. Full-year acquisition volume guidance remained $700 million–$800 million.

Disposition proceeds of $50.7 million compared with $36.7 million in the second quarter. Income-producing sales in the third quarter were $37.3 million at a 7.8% weighted average cap rate, versus $9.0 million at 5.6% in the second quarter. The company increased 2026 disposition volume guidance from $120 million–$160 million.

NNN issued 2,014,352 common shares, primarily under its at-the-market program, raising $89.5 million in net proceeds. It entered forward sale agreements for 502,305 shares at a weighted average price of $47.28. As of September 30, 4,501,833 shares remained subject to outstanding forward sales, anticipated to raise about $204.0 million. The company also entered an Equity Distribution Agreement allowing issuance of up to 25,000,000 shares.

Gross debt was $5.1 billion with a 4.2% weighted average interest rate and a 9.8-year weighted average maturity. Floating-rate exposure was 2.3%. Total available liquidity was $1.4 billion, including $1.2 billion of unused line of credit capacity, $204.0 million of outstanding forward equity and $2.7 million of cash. Net debt to annualized EBITDAre was 5.6 times; including unsettled forward equity, pro forma net debt to annualized EBITDAre was 5.3 times.

The board declared a $0.62 quarterly dividend payable November 13, 2026, representing a 6.0% annualized yield and a 68% AFFO payout ratio as of September 30. NNN said it is one of only three publicly traded REITs to have increased its annual dividend for 37 or more consecutive years.

Core FFO per share guidance for 2026 remained $3.50–$3.54 and AFFO guidance $3.55–$3.59, ranges set after second-quarter increases. General and administrative expense guidance moved to $54 million–$56 million. Net earnings per share excluding gains on disposition, impairment losses and retirement and severance costs was guided at $2.00–$2.04.

Chief Executive Officer Steve Horn said the company is well positioned to execute on its investment pipeline and capitalize on opportunities that today’s market volatility may create.