Exhibit 99.2

 

 

 

 

 

img42547576_0.jpg 

 

 

 

 

ANNUAL SUPPLEMENTAL DATA

 

 

 

As of December 31, 2022

 

 


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TABLE OF CONTENTS

 

PAGE REFERENCE

Financial Summary

 

Income Statement Summary

4

Funds From Operations (FFO)

5

Core Funds From Operations

5

Adjusted Funds From Operations (AFFO)

6

Other Information

7

EBITDA

7

Balance Sheet

8

Debt Summary

9

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

 

 

2


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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, including inflation, 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 and the potential impacts of COVID-19, or any epidemic or pandemic on the company's business operations, financial results and financial position and on the world economy. 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, 2022.

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.

3


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INCOME STATEMENT SUMMARY

(in thousands, except per share data)

(unaudited)

 

 

Quarter Ended

 

 

Year Ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

198,217

 

 

$

186,633

 

 

$

771,618

 

 

$

723,859

 

 

Interest and other income from real estate transactions

 

 

303

 

 

 

628

 

 

 

1,435

 

 

 

2,548

 

 

 

 

 

198,520

 

 

 

187,261

 

 

 

773,053

 

 

 

726,407

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

10,788

 

 

 

9,947

 

 

 

41,695

 

 

 

44,640

 

 

Real estate

 

 

7,035

 

 

 

7,520

 

 

 

26,281

 

 

 

28,385

 

 

Depreciation and amortization

 

 

57,322

 

 

 

53,389

 

 

 

223,834

 

 

 

205,220

 

 

Leasing transaction costs

 

 

61

 

 

 

57

 

 

 

320

 

 

 

203

 

 

Impairment losses – real estate, net of recoveries

 

 

1,088

 

 

 

7,310

 

 

 

8,309

 

 

 

21,957

 

 

Executive retirement costs

 

 

715

 

 

 

 

 

 

7,520

 

 

 

 

 

 

 

 

77,009

 

 

 

78,223

 

 

 

307,959

 

 

 

300,405

 

 

Gain on disposition of real estate

 

 

6,787

 

 

 

5,159

 

 

 

17,443

 

 

 

23,094

 

 

Earnings from operations

 

 

128,298

 

 

 

114,197

 

 

 

482,537

 

 

 

449,096

 

 

Other expenses (revenues):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

(29

)

 

 

(57

)

 

 

(149

)

 

 

(216

)

 

Interest expense

 

 

37,665

 

 

 

36,684

 

 

 

148,065

 

 

 

137,874

 

(1)

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

21,328

 

 

 

 

 

37,636

 

 

 

36,627

 

 

 

147,916

 

 

 

158,986

 

 

Net earnings

 

 

90,662

 

 

 

77,570

 

 

 

334,621

 

 

 

290,110

 

 

Loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

5

 

 

 

3

 

 

Net earnings attributable to NNN

 

 

90,662

 

 

 

77,570

 

 

 

334,626

 

 

 

290,113

 

 

Series F preferred stock dividends

 

 

 

 

 

(1,544

)

 

 

 

 

 

(14,999

)

 

Excess of redemption value over carrying value of
     preferred shares redeemed

 

 

 

 

 

(10,897

)

 

 

 

 

 

(10,897

)

 

Net earnings available to common stockholders

 

$

90,662

 

 

$

65,129

 

 

$

334,626

 

 

$

264,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

178,779

 

 

 

174,750

 

 

 

176,404

 

 

 

174,711

 

 

Diluted

 

 

179,472

 

 

 

174,868

 

 

 

177,068

 

 

 

174,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share available to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.51

 

 

$

0.37

 

 

$

1.89

 

 

$

1.51

 

 

Diluted

 

$

0.50

 

 

$

0.37

 

 

$

1.89

 

 

$

1.51

 

 

 

(1)

Includes $2,078 in connection with the redemption of 3.30% senior unsecured notes due 2023 for the year ended December 31, 2021.

 

4


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FUNDS FROM OPERATIONS (FFO)(1)

(in thousands, except per share data)

(unaudited)

 

 

Quarter Ended

 

 

Year Ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Net earnings available to common stockholders

 

$

90,662

 

 

$

65,129

 

 

$

334,626

 

 

$

264,217

 

 

Real estate depreciation and amortization

 

 

57,215

 

 

 

53,249

 

 

 

223,392

 

 

 

204,753

 

 

Gain on disposition of real estate

 

 

(6,787

)

 

 

(5,159

)

 

 

(17,443

)

 

 

(23,094

)

 

Impairment losses – depreciable real estate, net of
     recoveries

 

 

1,088

 

 

 

7,310

 

 

 

8,309

 

 

 

21,957

 

 

Total FFO adjustments

 

 

51,516

 

 

 

55,400

 

 

 

214,258

 

 

 

203,616

 

 

FFO available to common stockholders

 

$

142,178

 

 

$

120,529

 

 

$

548,884

 

 

$

467,833

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.80

 

 

$

0.69

 

 

$

3.11

 

 

$

2.68

 

 

Diluted

 

$

0.79

 

 

$

0.69

 

 

$

3.10

 

 

$

2.68

 

 

 

(1)

FFO is a non-GAAP financial measure. Please reference the Earnings Release for the quarter and year ended December 31, 2022 for the company's definition and explanation of how the company utilizes this metric.

 

CORE FUNDS FROM OPERATIONS (Core FFO)(1)

(in thousands, except per share data)

(unaudited)

 

 

Quarter Ended

 

 

Year Ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Net earnings available to common stockholders

 

$

90,662

 

 

$

65,129

 

 

$

334,626

 

 

$

264,217

 

 

Total FFO adjustments

 

 

51,516

 

 

 

55,400

 

 

 

214,258

 

 

 

203,616

 

 

FFO available to common stockholders

 

 

142,178

 

 

 

120,529

 

 

 

548,884

 

 

 

467,833

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive retirement costs

 

 

715

 

 

 

 

 

 

7,520

 

 

 

 

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

21,328

 

 

Excess of redemption value over carrying value of
     preferred shares redeemed

 

 

 

 

 

10,897

 

 

 

 

 

 

10,897

 

 

Total Core FFO adjustments

 

 

715

 

 

 

10,897

 

 

 

7,520

 

 

 

32,225

 

 

Core FFO available to common stockholders

 

$

142,893

 

 

$

131,426

 

 

$

556,404

 

 

$

500,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.80

 

 

$

0.75

 

 

$

3.15

 

 

$

2.86

 

 

Diluted

 

$

0.80

 

 

$

0.75

 

 

$

3.14

 

 

$

2.86

 

 

 

(1)

Core FFO is a non-GAAP financial measure. Please reference the Earnings Release for the quarter and year ended December 31, 2022 for the company's definition and explanation of how the company utilizes this metric.

 

5


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ADJUSTED FUNDS FROM OPERATIONS (AFFO)(1)

(in thousands, except per share data)

(unaudited)

 

 

Quarter Ended

 

 

Year Ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Net earnings available to common stockholders

 

$

90,662

 

 

$

65,129

 

 

$

334,626

 

 

$

264,217

 

 

Total FFO adjustments

 

 

51,516

 

 

 

55,400

 

 

 

214,258

 

 

 

203,616

 

 

Total Core FFO adjustments

 

 

715

 

 

 

10,897

 

 

 

7,520

 

 

 

32,225

 

 

Core FFO available to common stockholders

 

 

142,893

 

 

 

131,426

 

 

 

556,404

 

 

 

500,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line accrued rent, net of reserves

 

 

261

 

 

 

2,046

 

 

 

3,559

 

 

 

21,137

 

 

Net capital lease rent adjustment

 

 

78

 

 

 

79

 

 

 

302

 

 

 

340

 

 

Below-market rent amortization

 

 

(100

)

 

 

(280

)

 

 

(510

)

 

 

(710

)

 

Stock based compensation expense

 

 

2,344

 

 

 

1,975

 

 

 

10,078

 

 

 

14,295

 

 

Capitalized interest expense

 

 

(334

)

 

 

(114

)

 

 

(881

)

 

 

(328

)

 

Total AFFO adjustments

 

 

2,249

 

 

 

3,706

 

 

 

12,548

 

 

 

34,734

 

 

AFFO available to common stockholders

 

$

145,142

 

(2)

$

135,132

 

(3)

$

568,952

 

(2)

$

534,792

 

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.81

 

(2)

$

0.77

 

(3)

$

3.23

 

(2)

$

3.06

 

(3)

Diluted

 

$

0.81

 

(2)

$

0.77

 

(3)

$

3.21

 

(2)

$

3.06

 

(3)

 

(1)

AFFO is a non-GAAP financial measure. Please reference the Earnings Release for the quarter and year ended December 31, 2022 for the company's definition and explanation of how the company utilizes this metric.

(2)

Amounts include $681 and $5,391 of net straight-line accrued rent from net rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and year ended December 31, 2022, respectively. Excluding such, AFFO per common share would have been $0.80 and $3.18 for the quarter and year ended December 31, 2022, respectively.

(3)

Amounts include $2,949 and $24,945 of net straight-line accrued rent from net rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and year ended December 31, 2021, respectively. Excluding such, AFFO per common share results would have been $0.76 and $2.92 for the quarter and year ended December 31, 2021, respectively.

 

6


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OTHER INFORMATION

(in thousands)

(unaudited)

 

 

Quarter Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Rental income from operating leases(1)

 

$

192,738

 

 

$

181,078

 

 

$

751,680

 

 

$

703,865

 

Earned income from direct financing leases(1)

 

$

146

 

 

$

154

 

 

$

595

 

 

$

623

 

Percentage rent(1)

 

$

310

 

 

$

176

 

 

$

1,541

 

 

$

706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate expense reimbursement from tenants(1)

 

$

5,023

 

 

$

5,225

 

 

$

17,802

 

 

$

18,665

 

Real estate expenses

 

 

(7,035

)

 

 

(7,520

)

 

 

(26,281

)

 

 

(28,385

)

Real estate expenses, net of tenant reimbursements

 

$

(2,012

)

 

$

(2,295

)

 

$

(8,479

)

 

$

(9,720

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of debt costs

 

$

1,200

 

 

$

1,164

 

 

$

4,734

 

 

$

5,186

 

Scheduled debt principal amortization (excluding maturities)

 

$

170

 

 

$

161

 

 

$

664

 

 

$

630

 

Non-real estate depreciation expense

 

$

109

 

 

$

116

 

 

$

454

 

 

$

451

 

 

(1)

For the quarter and year ended December 31, 2022, the aggregate of such amounts is $198,217 and $771,618, respectively, classified as rental income on the income statement summary. For the quarter and year ended December 31, 2021, the aggregate of such amounts is $186,633 and $723,859, respectively.

 

 

EBITDA(1)

Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate:

(in thousands)

(unaudited)

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net earnings attributable to NNN

 

$

90,662

 

 

$

77,570

 

 

$

334,626

 

 

$

290,113

 

Interest expense

 

 

37,665

 

 

 

36,684

 

 

 

148,065

 

 

 

137,874

 

Depreciation and amortization

 

 

57,322

 

 

 

53,389

 

 

 

223,834

 

 

 

205,220

 

Gain on disposition of real estate

 

 

(6,787

)

 

 

(5,159

)

 

 

(17,443

)

 

 

(23,094

)

Impairment losses – real estate, net of recoveries

 

 

1,088

 

 

 

7,310

 

 

 

8,309

 

 

 

21,957

 

Loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

(5

)

 

 

(3

)

EBITDA

 

$

179,950

 

 

$

169,794

 

 

$

697,386

 

 

$

632,067

 

 

(1)

EBITDA is non-GAAP financial measure. Please reference the Earnings Release for the quarter and ended December 31, 2022 for the company's definition and explanation of how the company utilizes this metric.

 

 

7


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BALANCE SHEET

(in thousands)

(unaudited)

 

 

December 31,
2022

 

 

December 31,
2021

 

Assets:

 

 

 

 

 

 

Real estate portfolio, net of accumulated depreciation and amortization

 

$

8,020,814

 

 

$

7,449,846

 

Cash and cash equivalents

 

 

2,505

 

 

 

171,322

 

Restricted cash and cash equivalents

 

 

4,273

 

 

 

 

Receivables, net of allowance of $708 and $782, respectively

 

 

3,612

 

 

 

3,154

 

Accrued rental income, net of allowance of $3,836 and $4,587, respectively

 

 

27,795

 

 

 

31,942

 

Debt costs, net of accumulated amortization of $21,663 and $19,377, respectively

 

 

5,352

 

 

 

7,443

 

Other assets

 

 

81,694

 

 

 

87,347

 

Total assets

 

$

8,146,045

 

 

$

7,751,054

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Line of credit payable

 

$

166,200

 

 

$

 

Mortgages payable, including unamortized premium and net of unamortized debt costs

 

 

9,964

 

 

 

10,697

 

Notes payable, net of unamortized discount and unamortized debt costs

 

 

3,739,890

 

 

 

3,735,769

 

Accrued interest payable

 

 

23,826

 

 

 

23,923

 

Other liabilities

 

 

82,663

 

 

 

79,002

 

Total liabilities

 

 

4,022,543

 

 

 

3,849,391

 

 

 

 

 

 

 

 

Stockholders’ equity of NNN

 

 

4,123,502

 

 

 

3,901,662

 

Noncontrolling interests

 

 

 

 

 

1

 

Total equity

 

 

4,123,502

 

 

 

3,901,663

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

8,146,045

 

 

$

7,751,054

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

181,425

 

 

 

175,636

 

 

 

 

 

 

 

 

Gross leasable area, Property Portfolio (square feet)

 

 

35,010

 

 

 

32,753

 

 

8


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DEBT SUMMARY

As of December 31, 2022 (dollars in thousands):

 

(unaudited)

 

Unsecured Debt

 

Principal

 

 

Principal,
Net of
Unamortized
Discount

 

 

Stated
Rate

 

 

Effective
Rate

 

 

Maturity
Date

Line of credit payable

 

$

166,200

 

 

$

166,200

 

 

SOFR + 87.5bps

 

 

 

5.175

%

 

June 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured notes payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

350,000

 

 

 

349,880

 

 

 

3.900

%

 

 

3.924

%

 

June 2024

2025

 

 

400,000

 

 

 

399,684

 

 

 

4.000

%

 

 

4.029

%

 

November 2025

2026

 

 

350,000

 

 

 

348,301

 

 

 

3.600

%

 

 

3.733

%

 

December 2026

2027

 

 

400,000

 

 

 

399,155

 

 

 

3.500

%

 

 

3.548

%

 

October 2027

2028

 

 

400,000

 

 

 

398,210

 

 

 

4.300

%

 

 

4.388

%

 

October 2028

2030

 

 

400,000

 

 

 

399,039

 

 

 

2.500

%

 

 

2.536

%

 

April 2030

2048

 

 

300,000

 

 

 

296,057

 

 

 

4.800

%

 

 

4.890

%

 

October 2048

2050

 

 

300,000

 

 

 

294,289

 

 

 

3.100

%

 

 

3.205

%

 

April 2050

2051

 

 

450,000

 

 

 

441,884

 

 

 

3.500

%

 

 

3.602

%

 

April 2051

2052

 

 

450,000

 

 

 

439,843

 

 

 

3.000

%

 

 

3.118

%

 

April 2052

Total

 

 

3,800,000

 

 

 

3,766,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total unsecured debt(1)

 

$

3,966,200

 

 

$

3,932,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt costs

 

 

 

 

$

(38,145

)

 

 

 

 

 

 

 

 

Accumulated amortization

 

 

 

11,693

 

 

 

 

 

 

 

 

 

Debt costs, net of accumulated amortization

 

 

 

(26,452

)

 

 

 

 

 

 

 

 

Notes payable, net of unamortized discount and
    unamortized debt costs

 

 

$

3,739,890

 

 

 

 

 

 

 

 

 

(1) Unsecured notes payable have a weighted average interest rate of 3.7% and a weighted average maturity of 13.7 years.

 

9


img42547576_1.jpg  

 

DEBT SUMMARY (continued)

As of December 31, 2022 (in thousands):DEBT S SMMARY

Mortgages Payable

 

Principal
Balance

 

 

Interest
Rate

 

 

Maturity
Date

Mortgage(1)

 

$

9,969

 

 

 

5.230

%

 

July 2023

 

 

 

 

 

 

 

 

 

Debt costs

 

 

(147

)

 

 

 

 

 

Accumulated amortization

 

 

142

 

 

 

 

 

 

Debt costs, net of accumulated amortization

 

 

(5

)

 

 

 

 

 

Mortgages payable, including unamortized
    premium and net of unamortized debt costs

 

$

9,964

 

 

 

 

 

 

(1) Includes unamortized premium.

 

 

 

img42547576_2.jpg 

 

10


img42547576_1.jpg  

 

CREDIT METRICS (1)

Ratings: Moody's Baa1; S&P BBB+

 

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

2022

 

Debt / Total assets (gross book)

 

 

34.6

%

 

 

35.3

%

 

 

34.4

%

 

 

39.9

%

 

 

40.4

%

Debt + preferred / Total assets (gross book)

 

 

42.6

%

 

 

39.3

%

 

 

38.4

%

 

 

39.9

%

 

 

40.4

%

Debt / EBITDA (last quarter annualized)

 

 

4.7

 

 

 

4.8

 

 

 

5.0

 

 

 

5.2

 

 

 

5.4

 

Debt + preferred / EBITDA (last quarter annualized)

 

 

5.8

 

 

 

5.3

 

 

 

5.6

 

 

 

5.2

 

 

 

5.4

 

EBITDA / Interest expense (cash)

 

 

4.8

 

 

 

5.0

 

 

 

4.6

 

 

 

4.7

 

 

 

4.7

 

EBITDA / Fixed charges (cash)

 

 

3.7

 

 

 

4.0

 

 

 

4.0

 

 

 

4.3

 

 

 

4.7

 

(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, 2022, the company believes it is in compliance with the covenants.

 

Unsecured Credit Facility Key Covenants

 

Required

 

December 31, 2022

Maximum leverage ratio

 

< 0.60

 

0.36

Minimum fixed charge coverage ratio

 

> 1.50

 

4.76

Maximum secured indebtedness ratio

 

< 0.40

 

0.001

Unencumbered asset value ratio

 

> 1.67

 

2.81

Unencumbered interest ratio

 

> 1.75

 

4.82

 

 

 

 

 

Unsecured Notes Key Covenants

 

Required

 

December 31, 2022

Limitation on incurrence of total debt

 

≤ 60%

 

40.0%

Limitation on incurrence of secured debt

 

≤ 40%

 

0.1%

Debt service coverage ratio

 

≥ 1.50

 

4.68

Maintenance of total unencumbered assets

 

≥ 150%

 

250%

 

 

11


img42547576_1.jpg  

 

LONG-TERM DIVIDEND HISTORY

img42547576_3.jpg 

 

 

 

12


img42547576_1.jpg  

 

PROPERTY ACQUISITIONS

(dollars in thousands)

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Total dollars invested(1)

 

$

847,747

 

 

$

555,415

 

Number of Properties

 

 

223

 

 

 

156

 

Gross leasable area (square feet)(2)

 

 

2,629,000

 

 

 

1,341,000

 

Cap rate (3)

 

 

6.4

%

 

 

6.5

%

 

Weighted average lease term greater than 15 years on acquisitions for December 31, 2022 and 2021.

(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.

(3)

The cap rate is a weighted average, calculated as the intial cash annual base rent divided by the total purchase price of the Properties.

 

PROPERTY DISPOSITIONS

(dollars in thousands)

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

Occupied

 

 

Vacant

 

 

Total

 

 

Occupied

 

 

Vacant

 

 

Total

 

Number of properties

 

 

17

 

 

 

16

 

 

 

33

 

 

 

34

 

 

 

40

 

 

 

74

 

Gross leasable area (square feet)

 

 

138,000

 

 

 

173,000

 

 

 

311,000

 

 

 

429,000

 

 

 

586,000

 

 

 

1,015,000

 

Acquisition costs

 

$

39,446

 

 

$

38,282

 

 

$

77,728

 

 

$

93,172

 

 

$

91,947

 

 

$

185,119

 

Net book value

 

$

25,515

 

 

$

22,258

 

 

$

47,773

 

 

$

61,489

 

 

$

40,061

 

 

$

101,550

 

Net sale proceeds

 

$

41,190

 

 

$

24,026

 

 

$

65,216

 

 

$

78,018

 

 

$

44,000

 

 

$

122,018

 

Cap rate(1)

 

 

5.9

%

 

 

 

 

 

5.9

%

 

 

7.4

%

 

 

 

 

 

7.4

%

 

(1)

The cap rate is a weighted average, calculated as the cash annual base rent divided by the total sales price of the properties.

 

13


img42547576_1.jpg  

 

LEASE EXPIRATIONS(1)

 

 

 

% of
Total
(2)

 

# of
Properties

 

 

Gross Leasable
Area
(3)

 

 

 

 

% of
Total
(2)

 

# of
Properties

 

 

Gross Leasable
Area
 (3)

 

2023

 

1.6%

 

 

83

 

 

 

889,000

 

 

2029

 

2.9%

 

 

82

 

 

 

1,032,000

 

2024

 

3.0%

 

 

90

 

 

 

1,439,000

 

 

2030

 

3.5%

 

 

107

 

 

 

1,207,000

 

2025

 

5.4%

 

 

187

 

 

 

1,986,000

 

 

2031

 

7.8%

 

 

186

 

 

 

2,704,000

 

2026

 

5.2%

 

 

219

 

 

 

2,162,000

 

 

2032

 

6.3%

 

 

221

 

 

 

2,358,000

 

2027

 

8.7%

 

 

240

 

 

 

3,637,000

 

 

2033

 

5.0%

 

 

139

 

 

 

1,390,000

 

2028

 

5.1%

 

 

179

 

 

 

1,753,000

 

 

Thereafter

 

45.5%

 

 

1,655

 

 

 

14,272,000

 

 

(1)

As of December 31, 2022, the weighted average remaining lease term is 10.4 years.

(2)

Based on the annual base rent of $771,984,000, which is the annualized base rent for all leases in place as of December 31, 2022.

(3)

Square feet.

 

img42547576_4.jpg 

 

 

14


img42547576_1.jpg  

 

TOP 20 LINES OF TRADE

 

 

 

 

 

As of December 31, 2022

 

 

As of December 31, 2021

 

 

 

Lines of Trade

 

% of Total(1)

 

# of Properties

 

 

% of Total(2)

 

# of Properties

 

1.

 

Convenience stores

 

16.5%

 

 

650

 

 

17.9%

 

 

654

 

2.

 

Automotive service

 

13.7%

 

 

528

 

 

12.3%

 

 

449

 

3.

 

Restaurants – full service

 

9.1%

 

 

420

 

 

9.8%

 

 

421

 

4.

 

Restaurants – limited service

 

8.9%

 

 

611

 

 

9.4%

 

 

603

 

5.

 

Family entertainment centers

 

5.9%

 

 

88

 

 

5.9%

 

 

91

 

6.

 

Health and fitness

 

4.9%

 

 

34

 

 

5.2%

 

 

33

 

7.

 

Theaters

 

4.3%

 

 

33

 

 

4.5%

 

 

33

 

8.

 

Recreational vehicle dealers, parts and accessories

 

4.1%

 

 

52

 

 

3.9%

 

 

47

 

9.

 

Equipment rental

 

3.1%

 

 

100

 

 

3.2%

 

 

95

 

10.

 

Automotive parts

 

2.6%

 

 

152

 

 

3.0%

 

 

155

 

11.

 

Wholesale clubs

 

2.6%

 

 

13

 

 

2.5%

 

 

12

 

12.

 

Drug stores

 

2.6%

 

 

67

 

 

1.3%

 

 

32

 

13.

 

Home improvement

 

2.3%

 

 

50

 

 

2.5%

 

 

50

 

14.

 

Furniture

 

2.3%

 

 

80

 

 

1.7%

 

 

45

 

15.

 

Medical service providers

 

1.9%

 

 

84

 

 

2.0%

 

 

83

 

16.

 

General merchandise

 

1.6%

 

 

74

 

 

1.7%

 

 

73

 

17.

 

Consumer electronics

 

1.4%

 

 

17

 

 

1.5%

 

 

17

 

18.

 

Home furnishings

 

1.4%

 

 

16

 

 

1.5%

 

 

15

 

19.

 

Travel plazas

 

1.4%

 

 

24

 

 

1.5%

 

 

25

 

20.

 

Automobile auctions, wholesale

 

1.3%

 

 

15

 

 

1.3%

 

 

14

 

 

 

Other

 

8.1%

 

 

303

 

 

7.4%

 

 

276

 

 

 

Total

 

100.0%

 

 

3,411

 

 

100.0%

 

 

3,223

 

 

(1)

Based on the annual base rent of $771,984,000, which is the annualized base rent for all leases in place as of December 31, 2022.

(2)

Based on the annual base rent of $713,169,000, which is the annualized base rent for all leases in place as of December 31, 2021.

 

 

 

TOP 10 STATES

 

 

 

State

 

% of Total(1)

 

 

 

State

 

% of Total(1)

1.

 

Texas

 

17.1%

 

6.

 

North Carolina

 

4.0%

2.

 

Florida

 

8.8%

 

7.

 

Indiana

 

3.8%

3.

 

Illinois

 

5.3%

 

8.

 

Tennessee

 

3.8%

4.

 

Ohio

 

5.2%

 

9.

 

Virginia

 

3.6%

5.

 

Georgia

 

4.6%

 

10.

 

California

 

3.5%

 

(1)

Based on the annual base rent of $771,984,000, which is the annualized base rent for all leases in place as of December 31, 2022.

 

15


img42547576_1.jpg  

 

PORTFOLIO BY REGION

As a percentage of annual base rent - December 31, 2022

img42547576_5.jpg 

 

Based on the annual base rent of $771,984,000, which is the annualized base rent for all leases in place as of December 31, 2022.

 

16


img42547576_1.jpg  

 

TOP TENANTS

Creditworthy Retailers

17.5% of annual base rent is from tenants with investment grade rated debt
73.9% of annual base rent is from tenants that are publicly traded and/or have rated debt
Top 25 tenants (55.4% of annual base rent) operate an average of 1,653 stores each

 

 

 

 

Tenant

 

# of
Properties

 

% of
Total
(1)

1.

 

7-Eleven

 

138

 

4.7%

2.

 

Mister Car Wash

 

121

 

4.4%

3.

 

Camping World

 

47

 

3.9%

4.

 

LA Fitness

 

30

 

3.4%

5.

 

GPM Investments (Convenience Stores)

 

152

 

3.1%

6.

 

Dave & Buster's

 

28

 

2.9%

7.

 

Flynn Restaurant Group (Taco Bell/Arby's)

 

204

 

2.9%

8.

 

AMC Theatres

 

20

 

2.8%

9.

 

BJ's Wholesale Club

 

13

 

2.6%

10.

 

Mavis Tire Express Services

 

134

 

2.1%

11.

 

Sunoco

 

59

 

2.1%

12.

 

Walgreens

 

49

 

2.0%

13.

 

Chuck E. Cheese's

 

53

 

1.9%

14.

 

United Rentals

 

52

 

1.8%

15.

 

Couche Tard (Pantry)

 

71

 

1.7%

16.

 

Frisch's Restaurants

 

69

 

1.7%

17.

 

Fikes (Convenience Stores)

 

59

 

1.6%

18.

 

Life Time Fitness

 

3

 

1.4%

19.

 

Best Buy

 

16

 

1.4%

20.

 

Bob Evans

 

106

 

1.4%

 

(1)

Based on the annual base rent of $771,984,000, which is the annualized base rent for all leases in place as of December 31, 2022.

 

17


img42547576_1.jpg  

 

SAME STORE RENTAL INCOME

(dollars in thousands)

Same Store Rental Income – Properties (Cash Basis) (1)

 

 

 

Number of properties

 

 

3,026

 

Year ended December 31, 2022 (2)

 

$

676,882

 

Year ended December 31, 2021 (2)

 

$

666,538

 

Change (in dollars)

 

$

10,344

 

Change (percent)

 

 

1.6

%

 

(1)

Includes all properties owned for current and prior year period excluding any properties under development or re-development.

(2)

Excludes the impact of the rent deferral lease amendments (Reference page 20 of this Annual Supplemental Data).

 

 

 

LEASING DATA

(dollars in thousands)

Year Ended December 31, 2022

 

Renewals With
Same Tenant
(1)

 

 

Vacancy Re-Lease To New Tenant

 

 

Releasing
Totals

 

 

Number of leases

 

 

91

 

 

 

32

 

 

 

123

 

 

Prior cash rents

 

$

21,378

 

 

$

5,514

 

 

$

26,892

 

 

New cash rents

 

$

17,571

 

 

$

4,671

 

 

$

22,242

 

(2)

Recovery rate

 

 

82.2

%

 

 

84.7

%

 

 

82.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Tenant improvements

 

$

5,897

 

 

$

2,781

 

 

$

8,678

 

 

 

(1)

Long-term renewal rate for the period of 2010 through 2022 was 83.1%.

(2)

Represents 2.9% of total annualized base rent as of December 31, 2022.

 

18


img42547576_1.jpg  

 

OTHER PROPERTY PORTFOLIO DATA

As of December 31, 2022

Tenant Financials

 

 

# of
Properties

 

 

% of Annual
Base Rent
(1)

 

Property Level Financial Information

 

 

2,865

 

 

 

80

%

Tenant Corporate Financials

 

 

2,661

 

 

 

78

%

 

Rent Increases

 

% of Annual Base Rent (1)

 

 

Annual

 

Five Year

 

Other

 

Total

CPI

 

35%

 

57%

 

1%

 

93%

Fixed

 

2%

 

 

1%

 

3%

No increases

 

 

 

4%

 

4%

 

 

37%

 

57%

 

6%

 

100%

Lease Structure - as a percentage of the Company's annual base rent(1)

92.0% is from triple net leases
95.2% is from triple net leases or double net leases (with roof warranty)
28.7% is from master leases
98.4% is from leases containing future lease renewal options
0.2% is from leases containing purchase options

 

(1)

Based on the annual base rent of $771,984,000, which is the annualized base rent for all leases in place as of December 31, 2022.

 

 

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.

 

 

 

2023 Guidance

Net earnings per common share excluding any gains on disposition
      of real estate, impairment charges, and executive retirement costs

 

$1.87 - $1.93 per share

Real estate depreciation and amortization per share

 

$1.27 per share

Core FFO per share

 

$3.14 - $3.20 per share

AFFO per share

 

$3.19 - $3.25 per share

General and administrative expenses

 

$43 - $45 Million

Real estate expenses, net of tenant reimbursements

 

$8 - $10 Million

Acquisition volume

 

$500 - $600 Million

Disposition volume

 

$100 - $120 Million

 

 

19


img42547576_1.jpg  

 

COVID-19 METRICS

The following table outlines the rent deferred and corresponding scheduled repayment by quarter of the rent deferral lease amendments executed as of December 31, 2022 (dollars in thousands):

 

 

 

 

Deferred

 

 

 

Scheduled Repayment

 

 

 

 

Accrual
Basis

 

 

Cash
Basis

 

 

Total

 

 

% of
Total

 

 

 

Accrual
Basis

 

 

Cash
Basis

 

 

Total

 

 

% of
Total

 

 

Cumulative
Total

 

2020

 

 

$

33,594

 

 

$

18,425

 

 

$

52,019

 

 

 

91.7

%

 

 

$

3,239

 

 

$

20

 

 

$

3,259

 

 

 

5.7

%

 

 

5.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

990

 

 

 

3,768

 

 

 

4,758

 

 

 

8.3

%

 

 

 

25,935

 

 

 

5,841

 

 

 

31,776

 

 

 

56.0

%

 

 

61.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,780

 

 

 

2,283

 

 

 

4,063

 

 

 

7.2

%

 

 

68.9

%

 

Q2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,729

 

 

 

2,284

 

 

 

4,013

 

 

 

7.1

%

 

 

76.0

%

 

Q3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,201

 

 

 

2,284

 

 

 

3,485

 

 

 

6.1

%

 

 

82.1

%

 

Q4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

681

 

 

 

2,284

 

 

 

2,965

 

 

 

5.2

%

 

 

87.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,391

 

 

 

9,135

 

 

 

14,526

 

 

 

25.6

%

 

 

87.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

1,704

 

 

 

1,713

 

 

 

3.0

%

 

 

90.3

%

 

Q2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

543

 

 

 

553

 

 

 

1.0

%

 

 

91.3

%

 

Q3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

543

 

 

 

543

 

 

 

0.9

%

 

 

92.2

%

 

Q4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

544

 

 

 

544

 

 

 

1.0

%

 

 

93.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

3,334

 

 

 

3,353

 

 

 

5.9

%

 

 

93.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,932

 

 

 

1,932

 

 

 

3.4

%

 

 

96.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,931

 

 

 

1,931

 

 

 

3.4

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

34,584

 

 

$

22,193

 

 

$

56,777

 

 

 

100

%

 

 

$

34,584

 

 

$

22,193

 

 

$

56,777

 

 

 

100

%

 

 

 

 

 

 

 

20