NNN REIT, Inc. (NYSE: NNN) Earnings Report Analysis

• Earnings per share (EPS) of $0.52 fell short of the estimated $0.82, indicating a significant gap between expected and actual earnings.
• The company's revenue of approximately $218.5 million slightly surpassed the estimated $217.5 million, showing a positive revenue performance.
• NNN maintains a price-to-earnings (P/E) ratio of 18.64 and a debt-to-equity ratio of 1.00, demonstrating a balanced approach to debt and strong liquidity.

NNN REIT, Inc. (NYSE:NNN) is a real estate investment trust that focuses on owning and managing a diversified portfolio of retail properties. The company operates primarily in the United States, leasing properties to various tenants. NNN competes with other REITs in the market, such as Realty Income Corporation and Kimco Realty Corporation, which also focus on retail properties.

On February 13, 2025, NNN reported earnings per share (EPS) of $0.52, which fell short of the estimated $0.82. This discrepancy highlights a significant gap between expected and actual earnings. Despite this, the company's revenue of approximately $218.5 million slightly surpassed the estimated $217.5 million, indicating a positive revenue performance.

During the Q4 2024 earnings conference call, CEO Steve Horn and CFO Kevin Habicht discussed the company's financial performance with analysts from major financial institutions. The call, held on February 11, 2025, provided insights into NNN's strategic outlook and financial health. The reported revenue of $218.35 million for the quarter marked a 1.5% increase from the previous year, slightly exceeding the Zacks Consensus Estimate of $217.6 million.

NNN's operational activities included initiating eviction proceedings for 64 properties leased to a mid-western restaurant operator. By the end of 2024, NNN regained possession of 33 properties, re-leasing 28 to another operator, with rent commencing on May 1, 2025. Additionally, NNN took possession of 32 properties from a bankrupt furniture retailer, selling six for $21.8 million and re-leasing five others.

Financially, NNN maintains a price-to-earnings (P/E) ratio of 18.64 and a price-to-sales ratio of 8.56, reflecting market valuation. The enterprise value to sales ratio is 13.58, and the enterprise value to operating cash flow ratio is 18.58. With a debt-to-equity ratio of 1.00 and a current ratio of 1.86, NNN demonstrates a balanced approach to debt and strong liquidity to cover short-term liabilities.