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Investing.com - National Retail Properties (NYSE:NNN), a REIT with a remarkable 35-year track record of consecutive dividend increases according to InvestingPro, priced $500 million in unsecured bonds with a 5.5-year term at 4.6% interest, according to Stifel on Wednesday.
The notes carry a yield to maturity of 4.766%, with proceeds intended to fully repay outstanding debt under the company’s revolving credit facility and fund future acquisitions. With a debt-to-equity ratio of 1.03 and current total debt of $4.49 billion, this refinancing comes at a crucial time for the company, which maintains a "GREAT" overall financial health score on InvestingPro.
Stifel maintained its Buy rating on National Retail Properties stock with a price target of $48.00 following the announcement.
The real estate investment trust’s debt offering represents a significant capital raise that will restructure its existing debt obligations while providing additional resources for expansion.
Stifel analyst Simon Yarmak commented on the transaction, stating, "NNN Prices Notes, Addresses Outstanding Credit Facility Debt."
In other recent news, NNN REIT Inc. reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.51, compared to the forecast of $0.48. The company’s revenue also exceeded predictions, reaching $230.85 million against the expected $218.67 million. Despite these strong financial results, the company experienced a slight decline in stock price. NNN REIT acquired 82 new properties, as part of its strategy to target $500-600 million in acquisitions for 2025. The company maintains a high occupancy rate of 97.7% and has a strong lease renewal rate. Analysts noted the company’s robust balance sheet and consistent dividend growth, emphasizing its resilience through various economic challenges. NNN REIT plans to refinance $400 million of debt maturing in November at an estimated rate of 5.6%. The company continues to focus on relationships with sophisticated tenants and proactive asset management to ensure long-term success.
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