NNN REIT notes changes to tax rules for dividends and asset tests

Published 15/08/2025, 21:32
NNN REIT notes changes to tax rules for dividends and asset tests

NNN REIT, Inc. (NYSE:NNN), a $7.8 billion market cap real estate investment trust with a "GOOD" financial health rating according to InvestingPro, reported Friday that recent legislation has resulted in modifications to certain federal income tax considerations relevant to its shareholders and operations. The company disclosed the update in a statement based on a filing with the Securities and Exchange Commission.

According to the company, the new legislation permanently extends the ability of non-corporate shareholders to generally deduct 20% of the aggregate amount of ordinary dividends distributed by NNN REIT. This provision eliminates the previously scheduled expiration of this deduction at the end of 2025. Notably, the company has maintained dividend payments for 41 consecutive years and currently offers a 5.83% dividend yield.

Additionally, the company stated that, effective January 1, 2026, the quarterly limit on the value of NNN REIT’s securities in one or more taxable REIT subsidiaries will increase from 20% to 25%, unless those subsidiaries would otherwise be treated as real estate assets.

NNN REIT is incorporated in Maryland and is listed on the New York Stock Exchange. The company’s update was provided in a press release statement included in its SEC filing.

In other recent news, NNN REIT Inc. reported its second-quarter 2025 earnings, beating analyst expectations. The company achieved an earnings per share (EPS) of $0.54, surpassing the projected $0.49, resulting in a 10.2% surprise. Additionally, NNN REIT’s revenue reached $226.8 million, exceeding the anticipated $223.57 million. Despite these positive financial results, the company’s stock experienced a 1.56% decrease. The stock closed at $43.05, although stock price movements are not the focus here. These developments reflect the company’s recent performance in the market.

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