8-K
NNN REIT, INC. (NNN)
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: February 11, 2021
NATIONAL RETAIL PROPERTIES, INC.
(exact name of registrant as specified in its charter)
| Maryland | 001-11290 | 56-1431377 |
|---|---|---|
| (State or other jurisdiction of<br>incorporation or organization) | (Commission<br>File Number) | (I.R.S. Employment<br>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 |
| Depositary Shares, each representing one-hundredth of a share of 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 February 11, 2021, National Retail Properties, Inc. (the "Company"), issued a press release announcing its results of operations and financial condition for the quarter and year ended December 31, 2020. The press release is attached hereto as Exhibit 99.1 to this report and the supplemental data is attached hereto as Exhibit 99.2 to this report. The press release and the supplemental data are available on the Company's website.
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 | Press Release, dated February 11, 2021, of National Retail Properties, Inc. |
| 99.2 | Supplemental Data, dated February 11, 2021, of National Retail Properties, Inc. |
| 104.1 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document) |
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: February 11, 2021 | By: | /s/ Kevin B. Habicht |
| Kevin B. Habicht | ||
| Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release, dated February 11, 2021of National Retail Properties, Inc. |
| 99.2 | Supplemental Data, dated February 11, 2021, of National Retail Properties, Inc. |
| 104.1 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document) |
Document
| NEWS RELEASE | |
|---|---|
| For information contact: | |
| Kevin B. Habicht | |
| Chief Financial Officer | |
| (407) 265-7348 | FOR IMMEDIATE RELEASE |
| February 11, 2021 |
ANNUAL RESULTS
ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.
Orlando, Florida, February 11, 2021 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2020. Highlights include:
Operating Results:
•Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
| Quarter Ended | Year Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||
| (in thousands, except per share data) | ||||||||||
| Revenues | $ | 163,284 | $ | 173,376 | $ | 660,681 | $ | 670,487 | ||
| Net earnings available to common stockholders | $ | 56,802 | (1) | $ | 58,534 | $ | 210,859 | (1) | $ | 258,183 |
| Net earnings per common share | $ | 0.33 | (1) | $ | 0.34 | $ | 1.22 | (1) | $ | 1.56 |
| FFO available to common stockholders | $ | 107,565 | $ | 110,445 | $ | 428,236 | $ | 446,661 | ||
| FFO per common share | $ | 0.62 | $ | 0.65 | $ | 2.49 | $ | 2.71 | ||
| Core FFO available to common stockholders | $ | 109,331 | $ | 120,301 | $ | 446,681 | $ | 455,186 | ||
| Core FFO per common share | $ | 0.63 | $ | 0.70 | $ | 2.59 | $ | 2.76 | ||
| AFFO available to common stockholders | $ | 119,764 | (2) | $ | 122,205 | $ | 431,444 | (2) | $ | 462,325 |
| AFFO per common share | $ | 0.69 | (2) | $ | 0.71 | $ | 2.51 | (2) | $ | 2.80 |
(1) Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.13 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
(2) Amounts include the net straight-line accrued rent impact of the rent deferrals (repayments) from the COVID-19 rent deferral lease amendments of ($2,507) and $30,474 for the quarter and year ended December 31, 2020, respectively. Absent such, AFFO per common share results would have been $0.68 and $2.68 for the quarter and year ended December 31, 2020, respectively.
2020 Highlights:
•As of January 31, 2021, NNN had collected approximately 89.7% of rent originally due for the year ended December 31, 2020
•Dividend yield of 5.1% at December 31, 2020
•Annual dividend per common share increased 2.0% to $2.07 marking the 31st consecutive year of annual dividend increases - the third longest record of consecutive annual dividend increases of all public REITs and 99% of all public companies
•Maintained high occupancy levels at 98.5%, with a weighted average remaining lease term of 10.7 years, at December 31, 2020 as compared to 98.4% at September 30, 2020, and 99.0% at December 31, 2019.
2020 Highlights (continued):
•$180.0 million in property investments, including the acquisition of 63 properties with aggregate gross leasable area of approximately 449,000 square feet at an initial cash yield of 6.5%
•Sold 38 properties for $54.5 million, producing $16.2 million of gains on sale, at a cap rate of 6.1%
•Raised $124.3 million in net proceeds from issuance of 3,257,660 common shares
•Raised $395.1 million in net proceeds from the issuance of 2.500% senior unsecured notes due 2030
•Raised $290.5 million in net proceeds from the issuance of 3.100% senior unsecured notes due 2050
•Redeemed $325 million principal amount of 3.800% senior unsecured notes due 2022
•Ended the year with $267.2 million of cash and no amounts drawn on the $900 million bank credit facility
•99.7% of properties are unencumbered with secured mortgage debt
•Total average annual shareholder return of 12% over the past 25 years exceeds industry and general equity averages
Selected Highlights for the quarter ended December 31, 2020:
•As of January 31, 2021, NNN had collected approximately 95.7% of rent originally due for the quarter ended December 31, 2020, and approximately 95.0% of rent originally due in January 2021
•$102.0 million in property investments, including the acquisition of 42 properties with an aggregate gross leasable area of approximately 150,000 square feet at an initial cash yield of 6.2%
•Sold 13 properties with net proceeds of $12.0 million, producing $2.6 million of gains on sales at a cap rate of 7.2%
•Raised $60.1 million in net proceeds from the issuance of 1,501,322 common shares
During the year ended December 31, 2020, NNN entered into rent deferral lease amendments with certain tenants for an aggregate $50,719,000 and $1,410,000 of rent originally due for the year ending December 31, 2020 and 2021, respectively. The rent deferral lease amendments required the deferred rents to be repaid at a later time during the lease term. Approximately $3,259,000 of the deferred rent was repaid in 2020. Deferred rents of $36,794,000, $10,944,000, and $1,132,000 are due to be repaid during the years ended December 31, 2021, 2022 and 2023, respectively.
The company announced 2021 Core FFO guidance of $2.55 to $2.62 per share and estimated 2021 AFFO to be $2.77 to $2.84 per share. The Core FFO guidance equates to net earnings of $1.42 to $1.49 per share, plus $1.13 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, and any charges for impairments. 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.
Jay Whitehurst, Chief Executive Officer, commented: "National Retail Properties posted solid fourth quarter results, with continued high occupancy, strong rent collections and renewed acquisition volume, all bolstered by a fortress-like balance sheet. The value of our consistent, long-term focus was never more apparent than in 2020, as our team of experienced associates addressed the challenges and opportunities of the COVID-19 pandemic and related economic turmoil. This long-term approach to all aspects of our business and our culture positions us well to continue creating shareholder value in the years ahead."
National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2020, the company owned 3,143 properties in 48 states with a gross leasable area of approximately 32.5 million square feet and with a weighted average remaining lease term of 10.7 years. For more information on the company, visit www.nnnreit.com.
Management will hold a conference call on February 11, 2021, 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, the potential impacts of the COVID-19 pandemic on the company's business operations, financial results and financial position and on the world economy, 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.
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) | |||||||
|---|---|---|---|---|---|---|---|
| Year Ended | |||||||
| December 31, | |||||||
| 2019 | 2020 | 2019 | |||||
| Income Statement Summary | |||||||
| Revenues: | |||||||
| Rental income | 162,902 | $ | 173,163 | $ | 658,793 | $ | 669,009 |
| Interest and other income from real estate transactions | 213 | 1,888 | 1,478 | ||||
| 173,376 | 660,681 | 670,487 | |||||
| Operating expenses: | |||||||
| General and administrative | 10,127 | 38,161 | 37,651 | ||||
| Real estate | 7,258 | 28,362 | 27,656 | ||||
| Depreciation and amortization | 48,102 | 196,623 | 188,871 | ||||
| Leasing transaction costs | 83 | 76 | 261 | ||||
| Impairment losses – real estate, net of recoveries | 10,868 | 37,442 | 31,992 | ||||
| Retirement severance costs | — | 1,766 | — | ||||
| 76,438 | 302,430 | 286,431 | |||||
| Gain on disposition of real estate | 6,955 | 16,238 | 32,463 | ||||
| Earnings from operations | 103,893 | 374,489 | 416,519 | ||||
| Other expenses (revenues): | |||||||
| Interest and other income | (200) | (417) | (3,112) | ||||
| Interest expense(1) | 30,307 | 129,431 | 120,023 | ||||
| Loss on early extinguishment of debt | — | 16,679 | — | ||||
| 30,107 | 145,693 | 116,911 | |||||
| Net earnings | 73,786 | 228,796 | 299,608 | ||||
| Loss (earnings) attributable to noncontrolling interests | — | 3 | (428) | ||||
| Net earnings attributable to NNN | 73,786 | 228,799 | 299,180 | ||||
| Series E preferred stock dividends | (911) | — | (13,201) | ||||
| Series F preferred stock dividends | (4,485) | (17,940) | (17,940) | ||||
| Excess of redemption value over carrying value of preferred shares redeemed | (9,856) | — | (9,856) | ||||
| Net earnings available to common stockholders | 56,802 | $ | 58,534 | $ | 210,859 | $ | 258,183 |
| Weighted average common shares outstanding: | |||||||
| Basic | 170,763 | 172,110 | 164,688 | ||||
| Diluted | 171,175 | 172,217 | 165,084 | ||||
| Net earnings per share available to common stockholders: | |||||||
| Basic | 0.33 | $ | 0.34 | $ | 1.22 | $ | 1.56 |
| Diluted | 0.33 | $ | 0.34 | $ | 1.22 | $ | 1.56 |
| (1) Includes 2,291 in connection with the early redemption of 3.80% senior unsecured notes due for 2022 for the year ended December 31, 2020 |
All values are in US Dollars.
| National Retail Properties, Inc.(in thousands, except per share data)(unaudited) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Year Ended | |||||||||
| December 31, | |||||||||
| 2019 | 2020 | 2019 | |||||||
| Funds From Operations (FFO) Reconciliation: | |||||||||
| Net earnings available to common stockholders | 56,802 | (1) | $ | 58,534 | $ | 210,859 | (1) | $ | 258,183 |
| Real estate depreciation and amortization | 47,998 | 196,173 | 188,537 | ||||||
| Gain on disposition of real estate, net of noncontrolling interests | (6,955) | (16,238) | (32,051) | ||||||
| Impairment losses – depreciable real estate, net of recoveries | 10,868 | 37,442 | 31,992 | ||||||
| Total FFO adjustments | 51,911 | 217,377 | 188,478 | ||||||
| FFO available to common stockholders | 107,565 | $ | 110,445 | $ | 428,236 | $ | 446,661 | ||
| FFO per common share: | |||||||||
| Basic | 0.62 | $ | 0.65 | $ | 2.49 | $ | 2.71 | ||
| Diluted | 0.62 | $ | 0.65 | $ | 2.49 | $ | 2.71 | ||
| Core Funds From Operations Reconciliation: | |||||||||
| Net earnings available to common stockholders | 56,802 | (1) | $ | 58,534 | $ | 210,859 | (1) | $ | 258,183 |
| Total FFO adjustments | 51,911 | 217,377 | 188,478 | ||||||
| FFO available to common stockholders | 110,445 | 428,236 | 446,661 | ||||||
| Excess of redemption value over carrying value of preferred share redemption | 9,856 | — | 9,856 | ||||||
| Retirement severance costs | — | 1,766 | — | ||||||
| Gain on sale of equity investments | — | — | (1,331) | ||||||
| Loss on early extinguishment of debt | — | 16,679 | — | ||||||
| Total Core FFO adjustments | 9,856 | 18,445 | 8,525 | ||||||
| Core FFO available to common stockholders | 109,331 | $ | 120,301 | $ | 446,681 | $ | 455,186 | ||
| Core FFO per common share: | |||||||||
| Basic | 0.63 | $ | 0.70 | $ | 2.60 | $ | 2.76 | ||
| Diluted | 0.63 | $ | 0.70 | $ | 2.59 | $ | 2.76 | ||
| (1)Includes the write-off of 7,034 (or 0.04 per share) and 21,792 (or 0.13 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively. |
All values are in US Dollars.
| National Retail Properties, Inc.<br><br>(in thousands, except per share data)<br><br>(unaudited) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Quarter Ended | Year Ended | |||||||||
| December 31, | December 31, | |||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||
| Adjusted Funds From Operations (AFFO) Reconciliation: | ||||||||||
| Net earnings available to common stockholders | $ | 56,802 | (1) | $ | 58,534 | $ | 210,859 | (1) | $ | 258,183 |
| Total FFO adjustments | 50,763 | 51,911 | 217,377 | 188,478 | ||||||
| Total Core FFO adjustments | 1,766 | 9,856 | 18,445 | 8,525 | ||||||
| Core FFO available to common stockholders | 109,331 | 120,301 | 446,681 | 455,186 | ||||||
| Straight-line accrued rent, net of reserves | 7,437 | (631) | (26,027) | (2,333) | ||||||
| Net capital lease rent adjustment | 66 | 94 | 210 | 602 | ||||||
| Below market rent amortization | (175) | (189) | (887) | (768) | ||||||
| Stock based compensation expense | 3,275 | 2,932 | 12,855 | 10,737 | ||||||
| Capitalized interest expense | (170) | (302) | (1,388) | (1,099) | ||||||
| Total AFFO adjustments | 10,433 | 1,904 | (15,237) | 7,139 | ||||||
| AFFO available to common stockholders | $ | 119,764 | (2) | $ | 122,205 | $ | 431,444 | (2) | $ | 462,325 |
| AFFO per common share: | ||||||||||
| Basic | $ | 0.69 | (2) | $ | 0.72 | $ | 2.51 | (2) | $ | 2.81 |
| Diluted | $ | 0.69 | (2) | $ | 0.71 | $ | 2.51 | (2) | $ | 2.80 |
| Other Information: | ||||||||||
| Rental income from operating leases(3) | $ | 157,408 | $ | 167,805 | $ | 639,265 | $ | 650,112 | ||
| Earned income from direct financing leases(3) | $ | 160 | $ | 174 | $ | 647 | $ | 798 | ||
| Percentage rent(3) | $ | 114 | $ | 260 | $ | 842 | $ | 1,310 | ||
| Real estate expense reimbursement from tenants(3) | $ | 5,220 | $ | 4,924 | $ | 18,039 | $ | 16,789 | ||
| Real estate expenses | (8,058) | (7,258) | (28,362) | (27,656) | ||||||
| Real estate expenses, net of tenant reimbursements | $ | (2,838) | $ | (2,334) | $ | (10,323) | $ | (10,867) | ||
| Amortization of debt costs | $ | 1,085 | $ | 944 | $ | 5,009 | (4) | $ | 3,731 | |
| Scheduled debt principal amortization (excluding maturities) | $ | 153 | $ | 145 | $ | 596 | $ | 567 | ||
| Non-real estate depreciation expense | $ | 114 | $ | 108 | $ | 461 | $ | 346 |
(1)Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.13 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
(2)Amounts include the net straight-line accrued rent impact of the rent deferrals (repayments) from the COVID-19 rent deferral lease amendments of ($2,507) and $30,474 for the quarter and year ended December 31, 2020, respectively. Absent such, AFFO per common share results would have been $0.68 and $2.68 for the quarter and year ended December 31, 2020, respectively.
(3)The consolidated financial statements for the quarter and year ended December 31, 2020 and 2019 are presented under the accounting standard, ASU 2016-02, "Leases (Topic 842)." For the quarter and year ended December 31, 2020, the aggregate of such amounts is $162,902 and $658,793, respectively, classified as rental income on the income statement summary. For the quarter and year ended December 31, 2019, the aggregate of such amounts is $173,163 and $669,009, respectively.
(4)Includes $851 in connection with the redemption of the 3.80% senior unsecured notes due 2022 for the year ended December 31, 2020.
| 2021 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 Commission. | |
| 2021 Guidance | |
| Net earnings per common share excluding any gains on disposition of real estate and impairment charges | $1.42 - $1.49 per share |
| Real estate depreciation and amortization per share | $1.13 per share |
| Core FFO per share | $2.55 - $2.62 per share |
| AFFO per share(1) | $2.77 - $2.84 per share |
| General and administrative expenses | $42 - $44 Million |
| Real estate expenses, net of tenant reimbursements | $11 - $13 Million |
| Acquisition volume | $400 - $500 Million |
| Disposition volume | $80 - $100 Million |
(1) Estimates include the net straight-line accrued rent impact of the rent repayment from the COVID-19 rent deferral lease amendments of $28,375,000 for 2021. Absent such, AFFO per common share guidance would have been $2.61 - $2.68 per share for 2021.
| National Retail Properties, Inc.<br><br>(in thousands)<br><br>(unaudited) | |||||||
|---|---|---|---|---|---|---|---|
| December 31, 2020 | December 31, 2019 | ||||||
| Balance Sheet Summary | |||||||
| Assets: | |||||||
| Real estate: | |||||||
| Accounted for using the operating method, net of accumulated depreciation and amortization | $ | 7,208,661 | $ | 7,287,082 | |||
| Accounted for using the direct financing method | 3,994 | 4,204 | |||||
| Real estate held for sale | 5,671 | 9,953 | |||||
| Cash and cash equivalents | 267,236 | 1,112 | |||||
| Receivables, net of allowance of $835 and $506, respectively | 4,338 | 2,874 | |||||
| Accrued rental income, net of allowance of $6,947 and $1,842, respectively | 53,958 | 28,897 | |||||
| Debt costs, net of accumulated amortization of $17,294 and $15,574, respectively | 1,917 | 2,783 | |||||
| Other assets | 92,069 | 97,962 | |||||
| Total assets | $ | 7,637,844 | $ | 7,434,867 | |||
| Liabilities: | |||||||
| Line of credit payable | $ | — | $ | 133,600 | |||
| Mortgages payable, including unamortized premium and net of unamortized debt costs | 11,395 | 12,059 | |||||
| Notes payable, net of unamortized discount and unamortized debt costs | 3,209,527 | 2,842,698 | |||||
| Accrued interest payable | 19,401 | 18,250 | |||||
| Other liabilities | 78,217 | 96,578 | |||||
| Total liabilities | 3,318,540 | 3,103,185 | |||||
| Stockholders’ equity of NNN | 4,319,300 | 4,331,675 | |||||
| Noncontrolling interests | 4 | 7 | |||||
| Total equity | 4,319,304 | 4,331,682 | |||||
| Total liabilities and equity | $ | 7,637,844 | $ | 7,434,867 | |||
| Common shares outstanding | 175,233 | 171,694 | |||||
| Gross leasable area, Property Portfolio (square feet) | 32,461 | 32,460 | |||||
| National Retail Properties, Inc.<br><br>Debt Summary<br><br>As of December 31, 2020<br><br>(in thousands)<br><br>(unaudited) | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Unsecured Debt | Principal | Principal, Net of Unamortized Discount | Stated Rate | Effective Rate | Maturity Date | ||
| Line of credit payable | $ | — | $ | — | L + 87.5 bps | 2.560% | January 2022 |
| Unsecured notes payable: | |||||||
| 2023 | 350,000 | 349,327 | 3.300% | 3.388% | April 2023 | ||
| 2024 | 350,000 | 349,726 | 3.900% | 3.924% | June 2024 | ||
| 2025 | 400,000 | 399,485 | 4.000% | 4.029% | November 2025 | ||
| 2026 | 350,000 | 347,532 | 3.600% | 3.733% | December 2026 | ||
| 2027 | 400,000 | 398,842 | 3.500% | 3.548% | October 2027 | ||
| 2028 | 400,000 | 397,689 | 4.300% | 4.388% | October 2028 | ||
| 2030 | 400,000 | 398,805 | 2.500% | 2.536% | April 2030 | ||
| 2048 | 300,000 | 295,910 | 4.800% | 4.890% | October 2048 | ||
| 2050 | 300,000 | 294,034 | 3.100% | 3.205% | April 2050 | ||
| Total | 3,250,000 | 3,231,350 | |||||
| Total unsecured debt | $ | 3,250,000 | $ | 3,231,350 | |||
| Debt costs | $ | (31,140) | |||||
| Accumulated amortization | 9,317 | ||||||
| Debt costs, net of accumulated amortization | (21,823) | ||||||
| Notes payable, net of unamortized discount and unamortized debt costs (1) | $ | 3,209,527 | |||||
| (1) Unsecured notes payable have a weighted average interest rate of 3.7% and a weighted average maturity of 10.2 years | |||||||
| Mortgages Payable | Principal Balance | Interest Rate | Maturity Date | ||||
| --- | --- | --- | --- | --- | |||
| Mortgage(1) | $ | 11,434 | 5.230% | July 2023 | |||
| Debt costs | (147) | ||||||
| Accumulated amortization | 108 | ||||||
| Debt costs, net of accumulated amortization | (39) | ||||||
| Mortgages payable, including unamortized premium and net of unamortized debt costs | $ | 11,395 | |||||
| (1) Includes unamortized premium |
National Retail Properties, Inc.
Debt Summary
As of December 31, 2020
Credit Facility and Note Covenants
The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2020, the company believes it is in compliance with the covenants.
| Unsecured Credit Facility Key Covenants | Required | December 31, 2020 | |
|---|---|---|---|
| Maximum leverage ratio | < 0.60 | 0.38 | |
| Minimum fixed charge coverage ratio | > 1.50 | 3.89 | |
| Maximum secured indebtedness ratio | < 0.40 | 0.001 | |
| Unencumbered asset value ratio | > 1.67 | 2.67 | |
| Unencumbered interest ratio | > 1.75 | 5.07 | |
| December 31, 2020 | |||
| Unsecured Notes Key Covenants | Required | Notes Due (1) | Notes Due (2) |
| Limitation on incurrence of total debt | ≤ 60% | 36.0% | 36.0% |
| Limitation on incurrence of secured debt | ≤ 40% | 0.1% | 0.1% |
| Debt service coverage ratio | ≥ 1.50 | 4.40 | 4.40 |
| Maintenance of total unencumbered assets | ≥ 150% | 278.4% | 278.2% |
| (1) Calculations pursuant to covenants for notes payable due 2023-2028 and 2048 | |||
| (2) Calculations pursuant to covenants for notes payable due 2030 and 2050 |
National Retail Properties, Inc.
Property Portfolio
Top 20 Lines of Trade
| % of Rent Collections Quarter Ended December 31, 2020(1)(3) | |||||||
|---|---|---|---|---|---|---|---|
| As of December 31, | |||||||
| Line of Trade | 2020(1) | 2019(2) | |||||
| 1. | Convenience stores | 18.2 | % | 18.2 | % | 99.9 | % |
| 2. | Restaurants – full service | 10.5 | % | 11.1 | % | 86.1 | % |
| 3. | Automotive service | 10.3 | % | 9.6 | % | 99.5 | % |
| 4. | Restaurants – limited service | 9.7 | % | 8.8 | % | 99.9 | % |
| 5. | Family entertainment centers | 5.9 | % | 6.7 | % | 99.3 | % |
| 6. | Health and fitness | 5.3 | % | 5.2 | % | 98.4 | % |
| 7. | Theaters | 4.4 | % | 4.7 | % | 42.4 | % |
| 8. | Recreational vehicle dealers, parts and accessories | 3.5 | % | 3.4 | % | 100.0 | % |
| 9. | Automotive parts | 3.1 | % | 3.1 | % | 99.5 | % |
| 10. | Equipment rental | 2.6 | % | 2.6 | % | 99.8 | % |
| 11. | Home improvement | 2.6 | % | 2.6 | % | 99.4 | % |
| 12. | Wholesale clubs | 2.6 | % | 2.5 | % | 99.7 | % |
| 13. | Medical service providers | 2.2 | % | 2.1 | % | 99.9 | % |
| 14. | General merchandise | 1.7 | % | 1.8 | % | 99.2 | % |
| 15. | Furniture | 1.7 | % | 1.6 | % | 99.4 | % |
| 16. | Home furnishings | 1.6 | % | 1.7 | % | 99.9 | % |
| 17. | Consumer electronics | 1.5 | % | 1.5 | % | 100.0 | % |
| 18. | Travel plazas | 1.5 | % | 1.6 | % | 100.0 | % |
| 19. | Drug stores | 1.5 | % | 1.6 | % | 99.9 | % |
| 20. | Bank | 1.3 | % | 1.3 | % | 100.0 | % |
| Other | 8.3 | % | 8.3 | % | 99.4 | % | |
| Total | 100.0 | % | 100.0 | % | 95.7 | % |
Top 10 States
| State | State | % of Total(1) | ||||
|---|---|---|---|---|---|---|
| 1. | Texas | % | 6. | Georgia | 4.4 | % |
| 2. | Florida | % | 7. | Indiana | 4.2 | % |
| 3. | Ohio | % | 8. | Tennessee | 3.7 | % |
| 4. | Illinois | % | 9. | Virginia | 3.5 | % |
| 5. | North Carolina | % | 10. | California | 3.3 | % |
| (1) Based on the annual base rent of 675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020. | ||||||
| (2) Based on the annual base rent of 674,338,000, which is the annualized base rent for all leases in place as of December 31, 2019. | ||||||
| (3) Rent collections received as of January 31, 2021, excluding the repayment of amounts previously deferred according to the rent deferral lease amendments. |
All values are in US Dollars.
National Retail Properties, Inc.
Property Portfolio
Top 20 Tenants
| Tenant | Properties | % of Total (1) | |
|---|---|---|---|
| 1. | 7-Eleven | 140 | 5.1% |
| 2. | Mister Car Wash | 115 | 4.6% |
| 3. | Camping World | 47 | 4.4% |
| 4. | LA Fitness | 30 | 3.8% |
| 5. | Flynn Restaurant Group (Taco Bell/Arby's) | 202 | 3.5% |
| 6. | GPM Investments (Convenience Stores) | 151 | 3.3% |
| 7. | AMC Theatres | 19 | 2.9% |
| 8. | Couche-Tard (Pantry) | 82 | 2.7% |
| 9. | BJ's Wholesale Club | 11 | 2.6% |
| 10. | Sunoco | 59 | 2.2% |
| 11. | Mavis Tire Express Services | 120 | 2.2% |
| 12. | Main Event | 18 | 1.8% |
| 13. | Frisch's Restaurants | 74 | 1.8% |
| 14. | Bob Evans | 115 | 1.7% |
| 15. | Fikes (Convenience Stores) | 56 | 1.6% |
| 16. | Chuck-E-Cheese's | 53 | 1.6% |
| 17. | Best Buy | 15 | 1.5% |
| 18. | Life Time Fitness | 3 | 1.5% |
| 19. | Dave & Buster's | 11 | 1.5% |
| 20. | Pull-A-Part | 20 | 1.3% |
Lease Expirations(2)
| % of<br><br>Total(1) | # of<br>Properties | Gross Leasable<br><br>Area (3) | % of<br><br>Total(1) | # of<br>Properties | Gross Leasable Area (3) | ||
|---|---|---|---|---|---|---|---|
| 2021 | 3.0% | 108 | 1,120,000 | 2027 | 6.3% | 172 | 2,443,000 |
| 2022 | 5.4% | 123 | 1,577,000 | 2028 | 4.8% | 158 | 1,185,000 |
| 2023 | 2.8% | 114 | 1,426,000 | 2029 | 3.0% | 75 | 1,052,000 |
| 2024 | 3.6% | 96 | 1,481,000 | 2030 | 3.6% | 105 | 1,122,000 |
| 2025 | 6.2% | 198 | 2,093,000 | 2031 | 8.7% | 188 | 2,861,000 |
| 2026 | 4.7% | 186 | 1,768,000 | Thereafter | 47.9% | 1,570 | 13,503,000 |
(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020.
(2) As of December 31, 2020, the weighted average remaining lease term is 10.7 years.
(3) Square feet.
12
Document
Exhibit 99.2
ANNUAL SUPPLEMENTAL DATA
As of December 31, 2020
TABLE OF CONTENTS
| PAGE REFERENCE | |
|---|---|
| Financial Summary | |
| Income Statement Summary | 3 |
| Funds From Operations (FFO) | 5 |
| Core Funds From Operation | 5 |
| Adjusted Funds From Operations (AFFO) | 6 |
| Other Information | 7 |
| Balance Sheet | 8 |
| Rental Income | 9 |
| Debt Summary | 10 |
| Credit Metrics | 11 |
| Credit Facility and Note Covenants | 11 |
| Long-Term Dividend History | 12 |
| Transaction Summary | |
| Property Acquisitions | 13 |
| Property Dispositions | 13 |
| Property Portfolio | |
| Lease Expirations | 14 |
| Top 20 Lines of Trade | 15 |
| Top 10 States | 15 |
| Portfolio By Region | 16 |
| Top Tenants | 17 |
| Same Store Rental Income | 18 |
| Leasing Data | 18 |
| Other Property Portfolio Data | 19 |
| Earnings Guidance | 19 |
| COVID-19 Metrics | 20 |
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, the potential impacts of the COVID-19 pandemic on the company's business operations, financial results and financial position on the world economy, 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. 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 for the year ended December 31, 2020 . 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.
| INCOME STATEMENT SUMMARY | |||||||
|---|---|---|---|---|---|---|---|
| (in thousands, except per share data) | |||||||
| (unaudited) | |||||||
| Year Ended | |||||||
| December 31, | |||||||
| 2019 | 2020 | 2019 | |||||
| Revenues: | |||||||
| Rental income | 162,902 | $ | 173,163 | $ | 658,793 | $ | 669,009 |
| Interest and other income from real estate transactions | 213 | 1,888 | 1,478 | ||||
| 173,376 | 660,681 | 670,487 | |||||
| Operating expenses: | |||||||
| General and administrative | 10,127 | 38,161 | 37,651 | ||||
| Real estate | 7,258 | 28,362 | 27,656 | ||||
| Depreciation and amortization | 48,102 | 196,623 | 188,871 | ||||
| Leasing transaction costs | 83 | 76 | 261 | ||||
| Impairment losses – real estate, net of recoveries | 10,868 | 37,442 | 31,992 | ||||
| Retirement severance costs | — | 1,766 | — | ||||
| 76,438 | 302,430 | 286,431 | |||||
| Gain on disposition of real estate | 6,955 | 16,238 | 32,463 | ||||
| Earnings from operations | 103,893 | 374,489 | 416,519 | ||||
| Other expenses (revenues): | |||||||
| Interest and other income | (200) | (417) | (3,112) | ||||
| Interest expense(1) | 30,307 | 129,431 | 120,023 | ||||
| Loss on early extinguishment of debt | — | 16,679 | — | ||||
| 30,107 | 145,693 | 116,911 | |||||
| Net earnings | 73,786 | 228,796 | 299,608 | ||||
| Loss (earnings) attributable to noncontrolling interests | — | 3 | (428) | ||||
| Net earnings attributable to NNN | 61,287 | $ | 73,786 | $ | 228,799 | $ | 299,180 |
| (1) Includes 2,291 in connection with the early redemption of 3.80% senior unsecured notes due for 2022 for the year ended December 31, 2020 |
All values are in US Dollars.
| INCOME STATEMENT SUMMARY | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| Quarter Ended | Year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2019 | 2020 | 2019 | |||||
| Net earnings attributable to NNN | $ | 61,287 | $ | 73,786 | $ | 228,799 | $ | 299,180 |
| Series E preferred stock dividends | — | (911) | — | (13,201) | ||||
| Series F preferred stock dividends | (4,485) | (4,485) | (17,940) | (17,940) | ||||
| Excess of redemption value over carrying value of preferred shares redeemed | — | (9,856) | — | (9,856) | ||||
| Net earnings available to common stockholders | $ | 56,802 | $ | 58,534 | $ | 210,859 | $ | 258,183 |
| Weighted average common shares outstanding: | ||||||||
| Basic | 173,310 | 170,763 | 172,110 | 164,688 | ||||
| Diluted | 173,453 | 171,175 | 172,217 | 165,084 | ||||
| Net earnings per share available to common stockholders: | ||||||||
| Basic | $ | 0.33 | $ | 0.34 | $ | 1.22 | $ | 1.56 |
| Diluted | $ | 0.33 | $ | 0.34 | $ | 1.22 | $ | 1.56 |
| FUNDS FROM OPERATIONS (FFO) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data) | ||||||||||
| (unaudited) | Quarter Ended | Year Ended | ||||||||
| December 31, | December 31, | |||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||
| Net earnings available to common stockholders | $ | 56,802 | (1) | $ | 58,534 | $ | 210,859 | (1) | $ | 258,183 |
| Real estate depreciation and amortization | 48,984 | 47,998 | 196,173 | 188,537 | ||||||
| Gain on disposition of real estate, net of noncontrolling interests | (2,601) | (6,955) | (16,238) | (32,051) | ||||||
| Impairment losses – depreciable real estate, net of recoveries | 4,380 | 10,868 | 37,442 | 31,992 | ||||||
| Total FFO adjustments | 50,763 | 51,911 | 217,377 | 188,478 | ||||||
| FFO available to common stockholders | $ | 107,565 | $ | 110,445 | $ | 428,236 | $ | 446,661 | ||
| FFO per common share: | ||||||||||
| Basic | $ | 0.62 | $ | 0.65 | $ | 2.49 | $ | 2.71 | ||
| Diluted | $ | 0.62 | $ | 0.65 | $ | 2.49 | $ | 2.71 |
(1) Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
| CORE FUNDS FROM OPERATIONS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data) | ||||||||||
| (unaudited) | Quarter Ended | Year Ended | ||||||||
| December 31, | December 31, | |||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||
| Net earnings available to common stockholders | $ | 56,802 | (1) | $ | 58,534 | $ | 210,859 | (1) | $ | 258,183 |
| Total FFO adjustments | 50,763 | 51,911 | 217,377 | 188,478 | ||||||
| FFO available to common stockholders | 107,565 | 110,445 | 428,236 | 446,661 | ||||||
| Excess of redemption value over carrying value of preferred<br> share redemption | — | 9,856 | — | 9,856 | ||||||
| Retirement severance costs | 1,766 | — | 1,766 | — | ||||||
| Gain on sale of equity investments | — | — | — | (1,331) | ||||||
| Loss on early extinguishment of debt | — | — | 16,679 | — | ||||||
| Total Core FFO adjustments | 1,766 | 9,856 | 18,445 | 8,525 | ||||||
| Core FFO available to common stockholders | $ | 109,331 | $ | 120,301 | $ | 446,681 | $ | 455,186 | ||
| Core FFO per common share: | ||||||||||
| Basic | $ | 0.63 | $ | 0.70 | $ | 2.60 | $ | 2.76 | ||
| Diluted | $ | 0.63 | $ | 0.70 | $ | 2.59 | $ | 2.76 |
(1) Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
| ADJUSTED FUNDS FROM OPERATIONS (AFFO) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data) | ||||||||||
| (unaudited) | ||||||||||
| Quarter Ended | Year Ended | |||||||||
| December 31, | December 31, | |||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||
| Net earnings available to common stockholders | $ | 56,802 | (1) | $ | 58,534 | $ | 210,859 | (1) | $ | 258,183 |
| Total FFO adjustments | 50,763 | 51,911 | 217,377 | 188,478 | ||||||
| Total Core FFO adjustments | 1,766 | 9,856 | 18,445 | 8,525 | ||||||
| Core FFO available to common stockholders | 109,331 | 120,301 | 446,681 | 455,186 | ||||||
| Straight-line accrued rent, net of reserves | 7,437 | (631) | (26,027) | (2,333) | ||||||
| Net capital lease rent adjustment | 66 | 94 | 210 | 602 | ||||||
| Below market rent amortization | (175) | (189) | (887) | (768) | ||||||
| Stock based compensation expense | 3,275 | 2,932 | 12,855 | 10,737 | ||||||
| Capitalized interest expense | (170) | (302) | (1,388) | (1,099) | ||||||
| Total AFFO adjustments | 10,433 | 1,904 | (15,237) | 7,139 | ||||||
| AFFO available to common stockholders | $ | 119,764 | (2) | $ | 122,205 | $ | 431,444 | (2) | $ | 462,325 |
| AFFO per common share: | ||||||||||
| Basic | $ | 0.69 | (2) | $ | 0.72 | $ | 2.51 | (2) | $ | 2.81 |
| Diluted | $ | 0.69 | (2) | $ | 0.71 | $ | 2.51 | (2) | $ | 2.80 |
(1)Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
(2)Amounts include the net straight-line accrued rent impact of the rent deferrals (repayments) from the COVID-19 rent deferral lease amendments of ($2,507) and $30,474 for the quarter and year ended December 31, 2020, respectively. Absent such, AFFO per common share results would have been $0.68 and $2.68 for the quarter and year ended December 31, 2020, respectively.
| OTHER INFORMATION | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | |||||||||
| (unaudited) | |||||||||
| Quarter Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||
| Rental income from operating leases(1) | $ | 157,408 | $ | 167,805 | $ | 639,265 | $ | 650,112 | |
| Earned income from direct financing leases(1) | $ | 160 | $ | 174 | $ | 647 | $ | 798 | |
| Percentage rent(1) | $ | 114 | $ | 260 | $ | 842 | $ | 1,310 | |
| Real estate expense reimbursement from tenants(1) | $ | 5,220 | $ | 4,924 | $ | 18,039 | $ | 16,789 | |
| Real estate expenses | $ | (8,058) | $ | (7,258) | $ | (28,362) | $ | (27,656) | |
| Real estate expenses, net of tenant reimbursements | $ | (2,838) | $ | (2,334) | $ | (10,323) | $ | (10,867) | |
| Amortization of debt costs | $ | 1,085 | $ | 944 | $ | 5,009 | (2) | $ | 3,731 |
| Scheduled debt principal amortization (excluding maturities) | $ | 153 | $ | 145 | $ | 596 | $ | 567 | |
| Non-real estate depreciation expense | $ | 114 | $ | 108 | $ | 461 | $ | 346 |
(1) The consolidated financial statements for the quarter and year ended December 31, 2020 and 2019 are presented under the accounting standard, ASU 2016-02, "Leases (Topic 842)." For the quarter and year ended December 31, 2020, the aggregate of such amounts is $162,902 and $658,793, respectively, classified as rental income on the income statement summary. For the quarter and year ended December 31, 2019, the aggregate of such amounts is $173,163 and $669,009, respectively.
(2) Includes $851 in connection with the redemption of the 3.80% senior unsecured notes due 2022 for the year ended December 31, 2020.
| BALANCE SHEET | ||||
|---|---|---|---|---|
| (in thousands) | ||||
| (unaudited) | ||||
| December 31, 2020 | December 31, 2019 | |||
| --- | --- | --- | --- | --- |
| Assets: | ||||
| Real estate: | ||||
| Accounted for using the operating method, net of accumulated depreciation and amortization | $ | 7,208,661 | $ | 7,287,082 |
| Accounted for using the direct financing method | 3,994 | 4,204 | ||
| Real estate held for sale | 5,671 | 9,953 | ||
| Cash and cash equivalents | 267,236 | 1,112 | ||
| Receivables, net of allowance of $835 and $506, respectively | 4,338 | 2,874 | ||
| Accrued rental income, net of allowance of $6,947 and $1,842, respectively | 53,958 | 28,897 | ||
| Debt costs, net of accumulated amortization of $17,294 and $15,574, respectively | 1,917 | 2,783 | ||
| Other assets | 92,069 | 97,962 | ||
| Total assets | $ | 7,637,844 | $ | 7,434,867 |
| Liabilities: | ||||
| Line of credit payable | $ | — | $ | 133,600 |
| Mortgages payable, including unamortized premium and net of unamortized debt costs | 11,395 | 12,059 | ||
| Notes payable, net of unamortized discount and unamortized debt costs | 3,209,527 | 2,842,698 | ||
| Accrued interest payable | 19,401 | 18,250 | ||
| Other liabilities | 78,217 | 96,578 | ||
| Total liabilities | 3,318,540 | 3,103,185 | ||
| Stockholders’ equity of NNN | 4,319,300 | 4,331,675 | ||
| Noncontrolling interests | 4 | 7 | ||
| Total equity | 4,319,304 | 4,331,682 | ||
| Total liabilities and equity | $ | 7,637,844 | $ | 7,434,867 |
| Common shares outstanding | 175,233 | 171,694 | ||
| Gross leasable area, Property Portfolio (square feet) | 32,461 | 32,460 |
| EBITDA |
|---|
Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate (dollars in thousands):
| Quarter Ended December 31, | Year Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| Net earnings attributable to NNN | $ | 61,287 | $ | 73,786 | $ | 228,799 | $ | 299,180 |
| Interest expense | 32,084 | 30,307 | 129,431 | 120,023 | ||||
| Depreciation and amortization | 49,095 | 48,102 | 196,623 | 188,871 | ||||
| Gain on disposition of real estate | (2,601) | (6,955) | (16,238) | (32,463) | ||||
| Impairment losses – real estate, net of recoveries | 4,380 | 10,868 | 37,442 | 31,992 | ||||
| Earnings attributable to noncontrolling interests | — | — | (3) | 428 | ||||
| EBITDA | $ | 144,245 | $ | 156,108 | $ | 576,054 | $ | 608,031 |
| RENTAL INCOME | ||||||||
| --- |
NNN recognized the following revenues in rental income (dollars in thousands):
| Quarter Ended December 31, | Year Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| Rental income from operating leases | $ | 157,408 | $ | 167,805 | $ | 639,265 | $ | 650,112 |
| Earned income from direct financing leases | 160 | 174 | 647 | 798 | ||||
| Percentage rent | 114 | 260 | 842 | 1,310 | ||||
| Real estate expense reimbursement from tenants | 5,220 | 4,924 | 18,039 | 16,789 | ||||
| $ | 162,902 | $ | 173,163 | $ | 658,793 | $ | 669,009 | |
| DEBT SUMMARY | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |
| (in thousands) | ||||||||
| As of December 31, 2020 | ||||||||
| Unsecured Debt | Principal | Principal, Net of Unamortized Discount | Stated Rate | Effective Rate | Maturity Date | |||
| Line of credit payable | $ | — | $ | — | L + 87.5 bps | 2.56% | January 2022 | |
| Unsecured notes payable: | ||||||||
| 2023 | 350,000 | 349,327 | 3.300% | 3.388% | April 2023 | |||
| 2024 | 350,000 | 349,726 | 3.900% | 3.924% | June 2024 | |||
| 2025 | 400,000 | 399,485 | 4.000% | 4.029% | November 2025 | |||
| 2026 | 350,000 | 347,532 | 3.600% | 3.733% | December 2026 | |||
| 2027 | 400,000 | 398,842 | 3.500% | 3.548% | October 2027 | |||
| 2028 | 400,000 | 397,689 | 4.300% | 4.388% | October 2028 | |||
| 2030 | 400,000 | 398,805 | 2.500% | 2.536% | April 2030 | |||
| 2048 | 300,000 | 295,910 | 4.800% | 4.890% | October 2048 | |||
| 2050 | 300,000 | 294,034 | 3.100% | 3.205% | April 2050 | |||
| Total | 3,250,000 | 3,231,350 | ||||||
| Total unsecured debt | $ | 3,250,000 | $ | 3,231,350 | ||||
| Debt costs | $ | (31,140) | ||||||
| Accumulated amortization | 9,317 | |||||||
| Debt costs, net of accumulated amortization | (21,823) | |||||||
| Notes payable, net of unamortized discount and unamortized debt costs (1) | $ | 3,209,527 | ||||||
| (1) Unsecured notes payable have a weighted average interest rate of 3.7% and a weighted average maturity of 10.2 years | ||||||||
| Mortgages Payable | Interest Rate | Maturity Date | Principal Balance | |||||
| --- | --- | --- | --- | --- | --- | |||
| Mortgage(1) | 5.230 | % | July 2023 | $ | 11,434 | |||
| Debt costs | (147) | |||||||
| Accumulated amortization | 108 | |||||||
| Debt costs, net of accumulated amortization | (39) | |||||||
| Mortgages payable, including unamortized premium and net of unamortized debt costs | $ | 11,395 | ||||||
| (1) Includes unamortized premium |
| CREDIT METRICS (1) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Ratings: Moody’s Baa1; S&P BBB+; Fitch BBB+ | ||||||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | ||||||
| Debt / Total assets (gross book) | 30.2 | % | 35.3 | % | 34.6 | % | 35.3 | % | 34.4 | % |
| Debt + preferred / Total assets (gross book) | 43.9 | % | 44.0 | % | 42.6 | % | 39.3 | % | 38.4 | % |
| Debt / EBITDA (last four quarters) | 4.3 | 4.9 | 4.8 | 4.9 | 5.0 | |||||
| Debt + Pref Stock / EBITDA | 6.2 | 6.1 | 5.9 | 5.5 | 5.5 | |||||
| EBITDA / Interest expense (cash) | 4.8 | 4.7 | 4.8 | 5.0 | 4.6 | |||||
| EBITDA / Fixed charges (cash) | 3.4 | 3.5 | 3.7 | 4.0 | 4.0 | |||||
| (1) Debt amounts used in calculations are net of cash balances. | ||||||||||
| CREDIT FACILITY AND NOTES COVENANTS | ||||||||||
| --- |
The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2020, the company believes it is in compliance with the covenants.
| Unsecured Credit Facility Key Covenants | Required | December 31, 2020 | |
|---|---|---|---|
| Maximum leverage ratio | < 0.60 | 0.38 | |
| Minimum fixed charge coverage ratio | > 1.50 | 3.89 | |
| Maximum secured indebtedness ratio | < 0.40 | 0.001 | |
| Unencumbered asset value ratio | > 1.67 | 2.67 | |
| Unencumbered interest ratio | > 1.75 | 5.07 | |
| December 31, 2020 | |||
| Unsecured Notes Key Covenants | Required | Notes Due (1) | Notes Due (2) |
| Limitation on incurrence of total debt | ≤ 60% | 36.0% | 36.0% |
| Limitation on incurrence of secured debt | ≤ 40% | 0.1% | 0.1% |
| Debt service coverage ratio | ≥ 1.50 | 4.40 | 4.40 |
| Maintenance of total unencumbered assets | ≥ 150% | 278.4% | 278.2% |
| (1) Calculations pursuant to covenants for notes payable due 2023-2028 and 2048 | |||
| (2) Calculations pursuant to covenants for notes payable due 2030 and 2050 | |||
| LONG-TERM DIVIDEND HISTORY | |||
| --- |
| PROPERTY ACQUISITIONS |
|---|
(dollars in thousands)
| Year Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2019 | ||||||
| Total dollars invested(1) | $ | 179,967 | $ | 752,497 | |||
| Number of Properties | 63 | 210 | |||||
| Gross leasable area (square feet)(2) | 449,000 | 3,164,000 | |||||
| Cash cap rate | 6.5 | % | 6.9 | % |
(1) Includes dollars invested in projects under construction or tenant improvements for each respective year.
(2) Includes additional square footage from completed construction on existing Properties.
| PROPERTY DISPOSITIONS |
|---|
(dollars in thousands)
| Year Ended December 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||||||||||
| Occupied | Vacant | Total | Occupied | Vacant | Total | |||||||||||
| Number of properties | 25 | 13 | 38 | 22 | 37 | 59 | ||||||||||
| Gross leasable area (square feet) | 240,000 | 185,000 | 425,000 | 318,000 | 795,000 | 1,113,000 | ||||||||||
| Acquisition costs | $ | 39,390 | $ | 26,903 | $ | 66,293 | $ | 70,590 | $ | 105,312 | $ | 175,902 | ||||
| Net book value | $ | 22,754 | $ | 12,870 | $ | 35,624 | $ | 37,451 | $ | 56,280 | $ | 93,731 | ||||
| Net sale proceeds | $ | 40,992 | $ | 13,496 | $ | 54,488 | $ | 58,396 | $ | 67,798 | $ | 126,194 | ||||
| Cash cap rate | 6.1 | % | — | 6.1 | % | 5.9 | % | — | 5.9 | % | ||||||
| LEASE EXPIRATIONS | ||||||||||||||||
| --- | ||||||||||||||||
| % of<br><br>Total(1) | # of<br>Properties | Gross Leasable<br><br>Area (2) | % of<br><br>Total(1) | # of<br>Properties | Gross Leasable Area (2) | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| 2021 | 3.0 | % | 108 | 1,120,000 | 2027 | 6.3 | % | 172 | 2,443,000 | |||||||
| 2022 | 5.4 | % | 123 | 1,577,000 | 2028 | 4.8 | % | 158 | 1,185,000 | |||||||
| 2023 | 2.8 | % | 114 | 1,426,000 | 2029 | 3.0 | % | 75 | 1,052,000 | |||||||
| 2024 | 3.6 | % | 96 | 1,481,000 | 2030 | 3.6 | % | 105 | 1,122,000 | |||||||
| 2025 | 6.2 | % | 198 | 2,093,000 | 2031 | 8.7 | % | 188 | 2,861,000 | |||||||
| 2026 | 4.7 | % | 186 | 1,768,000 | Thereafter | 47.9 | % | 1,570 | 13,503,000 |
(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020.
(2) Square feet.
| TOP 20 LINES OF TRADE | |||||||
|---|---|---|---|---|---|---|---|
| As of December 31, 2020 | As of December 31, 2019 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Line of Trade | % of Total(1) | Properties | % of Total(2) | Properties | |||
| 1. | Convenience stores | 18.2 | % | 649 | 18.2 | % | 657 |
| 2. | Restaurants – full service | 10.5 | % | 445 | 11.1 | % | 458 |
| 3. | Automotive service | 10.3 | % | 373 | 9.6 | % | 358 |
| 4. | Restaurants – limited service | 9.7 | % | 568 | 8.8 | % | 530 |
| 5. | Family entertainment centers | 5.9 | % | 98 | 6.7 | % | 98 |
| 6. | Health and fitness | 5.3 | % | 34 | 5.2 | % | 35 |
| 7. | Theaters | 4.4 | % | 32 | 4.7 | % | 33 |
| 8. | Recreational vehicle dealers, parts and accessories | 3.5 | % | 38 | 3.4 | % | 38 |
| 9. | Automotive parts | 3.1 | % | 156 | 3.1 | % | 161 |
| 10. | Equipment rental | 2.6 | % | 80 | 2.6 | % | 80 |
| 11. | Home improvement | 2.6 | % | 49 | 2.6 | % | 48 |
| 12. | Wholesale clubs | 2.6 | % | 11 | 2.5 | % | 11 |
| 13. | Medical service providers | 2.2 | % | 85 | 2.1 | % | 84 |
| 14. | General merchandise | 1.7 | % | 73 | 1.8 | % | 75 |
| 15. | Furniture | 1.7 | % | 46 | 1.6 | % | 45 |
| 16. | Home furnishings | 1.6 | % | 15 | 1.7 | % | 20 |
| 17. | Consumer electronics | 1.5 | % | 16 | 1.5 | % | 17 |
| 18. | Travel plazas | 1.5 | % | 25 | 1.6 | % | 27 |
| 19. | Drug stores | 1.5 | % | 35 | 1.6 | % | 36 |
| 20. | Bank | 1.3 | % | 57 | 1.3 | % | 59 |
| Other | 8.3 | % | 258 | 8.3 | % | 248 | |
| Total | 100.0 | % | 3,143 | 100.0 | % | 3,118 |
(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020.
(2) Based on the annual base rent of $674,338,000, which is the annualized base rent for all leases in place as of December 31, 2019.
| TOP 10 STATES | ||||||||
|---|---|---|---|---|---|---|---|---|
| % of Total(1) | Properties | State | % of Total(1) | Properties | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1. | 17.5 | % | 503 | 6. | Georgia | 4.4 | % | 151 |
| 2. | 8.5 | % | 225 | 7. | Indiana | 4.2 | % | 148 |
| 3. | 5.8 | % | 199 | 8. | Tennessee | 3.7 | % | 141 |
| 4. | 5.1 | % | 145 | 9. | Virginia | 3.5 | % | 114 |
| 5. | 4.5 | % | 156 | 10. | California | 3.3 | % | 65 |
| (1) Based on the annual base rent of 675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020. |
All values are in US Dollars.
| PORTFOLIO BY REGION |
|---|
As a percentage of annual base rent - December 31, 2020
| TOP TENANTS |
|---|
Creditworthy Retailers
▪18.7% of annual base rent is from tenants with investment grade rated debt
▪78.5% of annual base rent is from tenants that are publicly traded and/or have rated debt
▪Top 25 tenants (57.3% of annual base rent) operate an average of 1,089 stores each
| Top 20 Tenants | Properties | % of Total (1) | ||
|---|---|---|---|---|
| 1. | 7-Eleven | 140 | 5.1 | % |
| 2. | Mister Car Wash | 115 | 4.6 | % |
| 3. | Camping World | 47 | 4.4 | % |
| 4. | LA Fitness | 30 | 3.8 | % |
| 5. | Flynn Restaurant Group (Taco Bell/Arby's) | 202 | 3.5 | % |
| 6. | GPM Investments (Convenience Stores) | 151 | 3.3 | % |
| 7. | AMC Theatres | 19 | 2.9 | % |
| 8. | Couche-Tard (Pantry) | 82 | 2.7 | % |
| 9. | BJ's Wholesale Club | 11 | 2.6 | % |
| 10. | Sunoco | 59 | 2.2 | % |
| 11. | Mavis Tire Express Services | 120 | 2.2 | % |
| 12. | Main Event | 18 | 1.8 | % |
| 13. | Frisch's Restaurants | 74 | 1.8 | % |
| 14. | Bob Evans | 115 | 1.7 | % |
| 15. | Fikes (Convenience Stores) | 56 | 1.6 | % |
| 16. | Chuck-E-Cheese's | 53 | 1.6 | % |
| 17. | Best Buy | 15 | 1.5 | % |
| 18. | Life Time Fitness | 3 | 1.5 | % |
| 19. | Dave & Buster's | 11 | 1.5 | % |
| 20. | Pull-A-Part | 20 | 1.3 | % |
(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of
December 31, 2020.
| SAME STORE RENTAL INCOME |
|---|
(dollars in thousands)
| Same Store Rental Income – Properties (Cash Basis) (1) | |||
|---|---|---|---|
| Number of properties | 2,858 | ||
| Year ended December 31, 2020 | $ | 552,728 | |
| Year ended December 31, 2019 | $ | 609,453 | |
| Decrease (in dollars) | $ | (56,725) | |
| Change (percent) | (9.3) | % | |
| (1) Includes all properties owned for current and prior year period excluding any properties under development<br><br>or re-development. | |||
| LEASING DATA | |||
| --- |
(dollars in thousands)
| Year Ended December 31, 2020 | Renewals With Same Tenant(1) | Vacancy <br>Re-lease To New Tenant | Re-leasing Totals | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Number of leases | 76 | 11 | 87 | |||||||
| Prior cash rents | $ | 13,586 | $ | 2,304 | $ | 15,890 | ||||
| New cash rents | $ | 13,557 | $ | 2,143 | $ | 15,700 | (2) | |||
| New rents / prior rents | 99.8 | % | 93.0 | % | 98.8 | % | ||||
| Tenant improvements | $ | — | $ | 2,652 | $ | 2,652 |
(1)Long-term renewal rate for the period of 2010 through 2020 was 83.7%.
(2)Represents 2.3% of total annualized base rent as of December 31, 2020.
| OTHER PROPERTY PORTFOLIO DATA |
|---|
As of December 31, 2020
Tenant Financials
| # of Properties | % of Annual Base Rent(1) | |||||||
|---|---|---|---|---|---|---|---|---|
| Property Level Financial Information | 2,637 | 80 | % | |||||
| Tenant Corporate Financials | 2,432 | 78 | % | |||||
| Rent Increases | % of Annual Base Rent(1) | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Annual | Five Year | Other | Total | |||||
| CPI – Based | 33 | % | 46 | % | 2 | % | 81 | % |
| Fixed Rate | 3 | % | 11 | % | 1 | % | 15 | % |
| No increases | — | — | 4 | % | 4 | % | ||
| 36 | % | 57 | % | 7 | % | 100 | % |
Lease Structure
▪91.6% of the company's annual base rent is from NNN leases
▪95.3% of the company's annual base rent is from NNN leases and NN leases (with roof warranty)
(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020.
| 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. | |
| --- | |
| 2021 Guidance | |
| --- | --- |
| Net earnings per common share excluding any gains on disposition of real estate and impairment charges | $1.42 - $1.49 per share |
| Real estate depreciation and amortization per share | $1.13 per share |
| Core FFO per share | $2.55 - $2.62 per share |
| AFFO per share(1) | $2.77 - $2.84 per share |
| General and administrative expenses | $42 - $44 Million |
| Real estate expenses, net of tenant reimbursements | $11 - $13 Million |
| Acquisition volume | $400 - $500 Million |
| Disposition volume | $80 - $100 Million |
(1) Estimates include the net straight-line accrued rent impact of the rent repayment from the COVID-19 rent deferral lease amendments of $28,375,000 for 2021. Absent such, AFFO per common share guidance would have been $2.61 - $2.68 per share for 2021.
| COVID-19 METRICS |
|---|
Collections
The following table details NNN's rent collections as of January 31, 2021, excluding the repayment of amounts previously deferred according to the rent deferral lease amendments:
| Quarter Ended | ||||||
|---|---|---|---|---|---|---|
| June 30, 2020(1) | September 30, 2020(2) | December 31, 2020(3) | ||||
| Collected, as of January 31, 2021 | 73.7 | % | 90.6 | % | 95.7 | % |
| Deferred | 15.4 | % | 4.3 | % | 0.2 | % |
| Abated | 1.3 | % | 0.1 | % | — | |
| Outstanding, as of January 31, 2021 | 9.6 | % | 5.0 | % | 4.1 | % |
| Total | 100.0 | % | 100.0 | % | 100.0 | % |
(1) Based on the annual base rent of $676,538,000, which is the annualized base rent for all leases in place as of June 30, 2020.
(2) Based on the annual base rent of $674,077,000, which is the annualized base rent for all leases in place as of September 30, 2020.
(3) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31,2020.
Collections by Line of Trade
The following table details NNN's rent collections received as of January 31, 2021, excluding the repayment of amounts previously deferred according to the rent deferral lease amendments, by NNN's top 20 lines of trade:
| % of Rent Collected | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| % of Total Annual Base Rent(1) | Quarter Ended | ||||||||||
| June 30,<br><br>2020(2) | September 30, 2020(3) | December 31, 2020(1) | |||||||||
| 1. | 18.2 | % | 99.9 | % | 100.0 | % | 99.9 | % | |||
| 2. | 10.5 | % | 41.2 | % | 76.3 | % | 86.1 | % | |||
| 3. | 10.3 | % | 86.9 | % | 100.0 | % | 99.5 | % | |||
| 4. | 9.7 | % | 80.1 | % | 73.6 | % | 99.9 | % | |||
| 5. | 5.9 | % | 9.2 | % | 88.6 | % | 99.3 | % | |||
| 6. | 5.3 | % | 58.4 | % | 86.3 | % | 98.4 | % | |||
| 7. | 4.4 | % | 6.3 | % | 34.8 | % | 42.4 | % | |||
| 8. | 3.5 | % | 100.0 | % | 99.7 | % | 100.0 | % | |||
| 9. | 3.1 | % | 88.0 | % | 100.0 | % | 99.5 | % | |||
| 10. | 2.6 | % | 100.0 | % | 100.0 | % | 99.8 | % | |||
| 11. | 2.6 | % | 97.2 | % | 99.0 | % | 99.4 | % | |||
| 12. | 2.6 | % | 100.0 | % | 100.0 | % | 99.7 | % | |||
| 13. | 2.2 | % | 60.3 | % | 98.8 | % | 99.9 | % | |||
| 14. | 1.7 | % | 93.8 | % | 99.9 | % | 99.2 | % | |||
| 15. | 1.7 | % | 51.0 | % | 96.9 | % | 99.4 | % | |||
| 16. | 1.6 | % | 22.8 | % | 99.2 | % | 99.9 | % | |||
| 17. | 1.5 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
| 18. | 1.5 | % | 98.9 | % | 100.0 | % | 100.0 | % | |||
| 19. | 1.5 | % | 100.0 | % | 100.0 | % | 99.9 | % | |||
| 20. | 1.3 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
| 8.3 | % | 89.5 | % | 98.9 | % | 99.4 | % | ||||
| 100.0 | % | 73.7 | % | 90.6 | % | 95.7 | % | ||||
| (1) Based on annual base rent of 675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020. | |||||||||||
| (2) Based on annual base rent of 676,538,000, which is the annualized base rent for all leases in place as of June 30, 2020. | |||||||||||
| (3) Based on annual base rent of 674,077,000, which is the annualized base rent for all leases in place as of September 30, 2020. |
All values are in US Dollars.
The following table outlines the rent deferred and corresponding recapture payback by quarter of the rent deferral lease amendments executed as of December 31, 2020 (dollars in thousands):
| Deferred | Repayment | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Accrual Basis Tenants | Cash Basis Tenants | Total | % of Total | Accrual Basis Tenants | Cash Basis Tenants | Total | % of Total | Cumulative Total | |||||||||||
| 2020 | Q2 | $ | 26,069 | $ | 7,791 | $ | 33,860 | 65.0 | % | $ | — | $ | — | $ | — | — | — | ||
| Q3 | 7,329 | 5,402 | 12,731 | 24.4 | % | 417 | — | 417 | 0.8 | % | 0.8 | % | |||||||
| Q4 | 315 | 3,813 | 4,128 | 7.9 | % | 2,822 | 20 | 2,842 | 5.5 | % | 6.3 | % | |||||||
| 33,713 | 17,006 | 50,719 | 97.3 | % | 3,239 | 20 | 3,259 | 6.3 | % | 6.3 | % | ||||||||
| 2021 | Q1 | 141 | 1,269 | 1,410 | 2.7 | % | 10,813 | 1,313 | 12,126 | 23.2 | % | 29.5 | % | ||||||
| Q2 | — | — | — | — | 9,571 | 2,405 | 11,976 | 23.0 | % | 52.5 | % | ||||||||
| Q3 | — | — | — | — | 4,875 | 2,280 | 7,155 | 13.7 | % | 66.2 | % | ||||||||
| Q4 | — | — | — | — | 3,257 | 2,280 | 5,537 | 10.6 | % | 76.8 | % | ||||||||
| 141 | 1,269 | 1,410 | 2.7 | % | 28,516 | 8,278 | 36,794 | 70.5 | % | 76.8 | % | ||||||||
| 2022 | Q1 | — | — | — | — | 1,221 | 2,216 | 3,437 | 6.6 | % | 83.4 | % | |||||||
| Q2 | — | — | — | — | 719 | 2,216 | 2,935 | 5.6 | % | 89.0 | % | ||||||||
| Q3 | — | — | — | — | 70 | 2,216 | 2,286 | 4.4 | % | 93.4 | % | ||||||||
| Q4 | — | — | — | — | 70 | 2,216 | 2,286 | 4.4 | % | 97.8 | % | ||||||||
| — | — | — | — | 2,080 | 8,864 | 10,944 | 21.0 | % | 97.8 | % | |||||||||
| 2023 | Q1 | — | — | — | — | 10 | 1,113 | 1,123 | 2.2 | % | 100.0 | % | |||||||
| Q2 | — | — | — | — | 9 | — | 9 | — | 100.0 | % | |||||||||
| — | — | — | — | 19 | 1,113 | 1,132 | 2.2 | % | 100.0 | % | |||||||||
| $ | 33,854 | $ | 18,275 | $ | 52,129 | $ | 33,854 | $ | 18,275 | $ | 52,129 |
22