National Retail Properties Q1 Profit Declines, Misses View; But Revenues Beat

(RTTNews) - National Retail Properties, Inc. (NNN), a real estate investment trust, on Monday reported a decline in profit for the first quarter from last year despite higher revenues. Earnings per share missed analysts' expectations, while revenue beat their estimates.

The company's first-quarter net earnings available to common stockholders declined to $60.69 million or $0.35 per share from $71.44 million or $0.44 per share in the year-ago period.

Funds from Operations or FFO for the quarter were $102.51 million or $0.60 per share, compared to $110.35 million or $0.68 per share in the prior-year period. However, core FFO per share was $0.70, compared to $0.67 per share last year.

Revenues for the quarter rose to $175.06 million from $163.71 million in the year-ago period.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter on revenues of $173.96 million. Analysts' estimates typically exclude special items.

National Retail Properties ended the quarter with $217.4 million of cash and no amounts drawn on $900 million credit bank facility.

Looking ahead, National Retail Properties said it has decided to withdraw its previously issued 2020 earnings guidance due to the rapidly evolving and uncertain impact of the COVID-19 pandemic on the economic environment.

The company added it is actively working with its tenants that have been impacted by the COVID-19 pandemic.

As of April 29, 2020, National Retail Properties has collected about 52 percent of rent originally due in April 2020. However, certain tenants, representing about 37 percent of annualized base rent, have requested short-term rent deferrals of usually 30 to 90 days.

The company said it is negotiating terms with these tenants that would require deferred rental payments to be paid in late 2020 through late 2021.