NNN REIT, Inc. reported robust financial and operating results for the first quarter ended March 31, 2025. Revenues for the quarter reached $230,854,000, an increase from $215,407,000 in the prior year period. Core FFO per share was $0.86, up from $0.83 in Q1 2024, and AFFO per share was $0.87, compared to $0.84 in the same period last year.
The company continued its disciplined investment activity, investing $232,393,000 across 82 properties during the first quarter. These acquisitions were made at a weighted average initial cash cap rate of 7.4% and featured a weighted average lease term of 18.4 years. Dispositions totaled $15,839,000 from 10 properties at a weighted average cap rate of 4.9%.
NNN provided updates on its efforts to resolve tenant challenges. For the mid-western restaurant operator (Frisch's), all 64 properties subject to eviction proceedings have been taken back, with 31 already re-leased. Regarding the southeast U.S. furniture retailer (Badcock), out of 35 affected properties, NNN had sold seven and re-leased five by March 31, 2025.
As of March 31, 2025, NNN's portfolio comprised 3,641 properties across 50 states, with a gross leasable area of approximately 37.3 million square feet. The occupancy rate stood at 97.7%, and the weighted average remaining lease term was 9.9 years. The company maintained a strong balance sheet with $1.1 billion of total available liquidity, including $1.1 billion of unused line of credit capacity.
The Board of Directors declared a quarterly dividend of $0.58 per share on April 15, 2025, payable on May 15, 2025. This represents an annualized dividend of $2.32 per share and marks the 35th consecutive annual dividend increase. NNN also maintained its previously provided 2025 guidance, with Core FFO per share expected to be $3.33 to $3.38 and AFFO per share at $3.39 to $3.44.
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