NNN REIT, Inc. announced its operating results for the third quarter ended September 30, 2024. The company reported revenues of $218,564,000, an increase from $205,132,000 in the prior year period. Core FFO per share for the quarter was $0.84, up from $0.81 in the third quarter of 2023, while AFFO per share was $0.84, compared to $0.82 in the same period last year.
Despite the growth in FFO and AFFO per share, net earnings for the quarter decreased to $97,904,000, or $0.53 per share, from $106,787,000, or $0.59 per share, in the third quarter of 2023. The company narrowed its 2024 Core FFO per share guidance to a range of $3.28 to $3.32, from the previous range of $3.27 to $3.33 per share. The 2024 AFFO is estimated to be $3.31 to $3.35 per share.
NNN REIT also disclosed significant tenant challenges impacting its portfolio. Badcock Furniture rejected leases on 32 properties in the fourth quarter of 2024 following liquidation. Additionally, Frisch's Big Boy ceased rent payments in the fourth quarter of 2024, leading NNN to initiate eviction proceedings for 64 properties.
As of September 30, 2024, NNN owned 3,549 properties across 49 states, with a gross leasable area of approximately 36.6 million square feet. The company maintained a weighted average remaining lease term of 10.0 years. NNN's balance sheet remained strong with over $175 million in cash and $1.2 billion available on its revolving credit facility, with no debt maturities until the fourth quarter of 2025.
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