Exhibit 99.2

 

 

 

 

 

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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)

 

$