(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employment Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
99.1 | |||
99.2 | |||
104.1 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document) |
National Retail Properties, Inc. | ||||
Dated: February 11, 2020 | By: | /s/ Kevin B. Habicht | ||
Kevin B. Habicht | ||||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | ||
99.2 | ||
104.1 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document) |
• | Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts: |
Quarter Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Revenues | $ | 173,376 | $ | 158,976 | $ | 670,487 | $ | 622,661 | |||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | |||||||
Net earnings per common share | $ | 0.34 | $ | 0.17 | $ | 1.56 | $ | 1.65 | |||||||
FFO available to common stockholders | $ | 110,445 | $ | 82,491 | $ | 446,661 | $ | 395,337 | |||||||
FFO per common share | $ | 0.65 | $ | 0.52 | $ | 2.71 | $ | 2.53 | |||||||
Core FFO available to common stockholders | $ | 120,301 | $ | 101,001 | $ | 455,186 | $ | 414,590 | |||||||
Core FFO per common share | $ | 0.70 | $ | 0.63 | $ | 2.76 | $ | 2.65 | |||||||
AFFO available to common stockholders | $ | 122,205 | $ | 103,523 | $ | 462,325 | $ | 418,702 | |||||||
AFFO per common share | $ | 0.71 | $ | 0.65 | $ | 2.80 | $ | 2.68 |
• | Portfolio occupancy was 99.0% at December 31, 2019 as compared to 99.1% at September 30, 2019, and 98.2% at December 31, 2018 |
• | Increased annual FFO per common share 7.1% |
• | Increased annual Core FFO per common share 4.2% |
• | Increased annual AFFO per common share 4.5% |
• | Dividend yield of 3.8% at December 31, 2019 |
• | Annual dividend per common share increased 4.1% to $2.03 marking the 30th consecutive year of annual dividend increases - making the company one of only three equity REITs and less than 90 publicly traded companies in America to have increased annual dividends for 30 or more consecutive years |
• | Maintained high occupancy levels at 99.0% with a weighted average remaining lease term of 11.2 years |
• | Invested $752.5 million in 210 properties with an aggregate gross leasable area of approximately 3,164,000 square feet at an initial cash yield of 6.9% |
• | Sold 59 properties for $126.2 million, producing $32.1 million of gains on sale, net of noncontrolling interest, at a cap rate of 5.9% |
• | Raised $524.8 million in net proceeds from issuance of 9,706,940 common shares |
• | $766.4 million availability on bank credit facility at December 31, 2019 |
• | 99.7% of properties are unencumbered with secured mortgage debt |
• | Total average annual shareholder return of 13.6% over the past 25 years exceeds industry and general equity averages |
• | Investments: |
◦ | $242.9 million in property investments, including the acquisition of 79 properties with an aggregate gross leasable area of approximately 519,000 square feet at an initial cash yield of 6.8% |
• | Dispositions: |
◦ | Sold 16 properties with net proceeds of $31.4 million, producing $7.0 million of gains on sales at a cap rate of 6.4% |
• | Long-term capital: |
◦ | Raised $3.0 million in net proceeds from the issuance of 53,791 common shares |
National Retail Properties, Inc. (in thousands, except per share data) (unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Income Statement Summary | ||||||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 173,163 | $ | 158,827 | $ | 669,009 | $ | 621,399 | ||||||||
Interest and other income from real estate transactions | 213 | 149 | 1,478 | 1,262 | ||||||||||||
173,376 | 158,976 | 670,487 | 622,661 | |||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 10,127 | 8,267 | 37,651 | 34,248 | ||||||||||||
Real estate | 7,258 | 7,649 | 27,656 | 25,099 | ||||||||||||
Depreciation and amortization | 48,102 | 44,117 | 188,871 | 174,398 | ||||||||||||
Impairment losses – real estate, net of recoveries | 10,868 | 18,494 | 31,992 | 28,211 | ||||||||||||
Retirement severance costs | — | 270 | — | 1,013 | ||||||||||||
76,355 | 78,797 | 286,170 | 262,969 | |||||||||||||
Gain on disposition of real estate | 6,955 | 8,020 | 32,463 | 65,070 | ||||||||||||
Earnings from operations | 103,976 | 88,199 | 416,780 | 424,762 | ||||||||||||
Other expenses (revenues): | ||||||||||||||||
Interest and other income | (200 | ) | (1,553 | ) | (3,112 | ) | (1,810 | ) | ||||||||
Interest expense | 30,307 | 34,940 | 120,023 | 115,847 | ||||||||||||
Leasing transaction costs | 83 | — | 261 | — | ||||||||||||
Loss on early extinguishment of debt | — | 18,240 | — | 18,240 | ||||||||||||
30,190 | 51,627 | 117,172 | 132,277 | |||||||||||||
Net earnings | 73,786 | 36,572 | 299,608 | 292,485 | ||||||||||||
Earnings attributable to noncontrolling interests | — | (10 | ) | (428 | ) | (38 | ) | |||||||||
Net earnings attributable to NNN | 73,786 | 36,562 | 299,180 | 292,447 | ||||||||||||
Series E preferred stock dividends | (911 | ) | (4,097 | ) | (13,201 | ) | (16,387 | ) | ||||||||
Series F preferred stock dividends | (4,485 | ) | (4,485 | ) | (17,940 | ) | (17,940 | ) | ||||||||
Excess of redemption value over carrying value of preferred shares redeemed | (9,856 | ) | — | (9,856 | ) | — | ||||||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 170,763 | 159,193 | 164,688 | 155,745 | ||||||||||||
Diluted | 171,175 | 159,772 | 165,084 | 156,296 | ||||||||||||
Net earnings per share available to common stockholders: | ||||||||||||||||
Basic | $ | 0.34 | $ | 0.17 | $ | 1.56 | $ | 1.65 | ||||||||
Diluted | $ | 0.34 | $ | 0.17 | $ | 1.56 | $ | 1.65 |
National Retail Properties, Inc. (in thousands, except per share data) (unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Funds From Operations (FFO) Reconciliation: | ||||||||||||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | ||||||||
Real estate depreciation and amortization | 47,998 | 44,037 | 188,537 | 174,076 | ||||||||||||
Gain on disposition of real estate, net of noncontrolling interests | (6,955 | ) | (8,020 | ) | (32,051 | ) | (65,070 | ) | ||||||||
Impairment losses – depreciable real estate, net of recoveries | 10,868 | 18,494 | 31,992 | 28,211 | ||||||||||||
Total FFO adjustments | 51,911 | 54,511 | 188,478 | 137,217 | ||||||||||||
FFO available to common stockholders | $ | 110,445 | $ | 82,491 | $ | 446,661 | $ | 395,337 | ||||||||
FFO per common share: | ||||||||||||||||
Basic | $ | 0.65 | $ | 0.52 | $ | 2.71 | $ | 2.54 | ||||||||
Diluted | $ | 0.65 | $ | 0.52 | $ | 2.71 | $ | 2.53 | ||||||||
Core Funds From Operations Reconciliation: | ||||||||||||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | ||||||||
Total FFO adjustments | 51,911 | 54,511 | 188,478 | 137,217 | ||||||||||||
FFO available to common stockholders | 110,445 | 82,491 | 446,661 | 395,337 | ||||||||||||
Excess of redemption value over carrying value of preferred share redemption | 9,856 | — | 9,856 | — | ||||||||||||
Retirement severance costs | — | 270 | — | 1,013 | ||||||||||||
Gain on sale of equity investments | — | — | (1,331 | ) | — | |||||||||||
Loss on early extinguishment of debt | — | 18,240 | — | 18,240 | ||||||||||||
Total Core FFO adjustments | 9,856 | 18,510 | 8,525 | 19,253 | ||||||||||||
Core FFO available to common stockholders | $ | 120,301 | $ | 101,001 | $ | 455,186 | $ | 414,590 | ||||||||
Core FFO per common share: | ||||||||||||||||
Basic | $ | 0.70 | $ | 0.63 | $ | 2.76 | $ | 2.66 | ||||||||
Diluted | $ | 0.70 | $ | 0.63 | $ | 2.76 | $ | 2.65 | ||||||||
National Retail Properties, Inc. (in thousands, except per share data) (unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Adjusted Funds From Operations (AFFO) Reconciliation: | ||||||||||||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | ||||||||
Total FFO adjustments | 51,911 | 54,511 | 188,478 | 137,217 | ||||||||||||
Total Core FFO adjustments | 9,856 | 18,510 | 8,525 | 19,253 | ||||||||||||
Core FFO available to common stockholders | 120,301 | 101,001 | 455,186 | 414,590 | ||||||||||||
Straight-line accrued rent | (631 | ) | 124 | (2,333 | ) | (747 | ) | |||||||||
Net capital lease rent adjustment | 94 | 220 | 602 | 874 | ||||||||||||
Below market rent amortization | (189 | ) | (288 | ) | (768 | ) | (2,622 | ) | ||||||||
Stock based compensation expense | 2,932 | 2,641 | 10,737 | 9,282 | ||||||||||||
Capitalized interest expense | (302 | ) | (175 | ) | (1,099 | ) | (2,675 | ) | ||||||||
Total AFFO adjustments | 1,904 | 2,522 | 7,139 | 4,112 | ||||||||||||
AFFO available to common stockholders | $ | 122,205 | $ | 103,523 | $ | 462,325 | $ | 418,702 | ||||||||
AFFO per common share: | ||||||||||||||||
Basic | $ | 0.72 | $ | 0.65 | $ | 2.81 | $ | 2.69 | ||||||||
Diluted | $ | 0.71 | $ | 0.65 | $ | 2.80 | $ | 2.68 | ||||||||
Other Information: | ||||||||||||||||
Rental income from operating leases(1) | $ | 167,805 | $ | 152,915 | $ | 650,112 | $ | 602,131 | ||||||||
Earned income from direct financing leases(1) | $ | 174 | $ | 226 | $ | 798 | $ | 923 | ||||||||
Percentage rent(1) | $ | 260 | $ | 543 | $ | 1,310 | $ | 1,561 | ||||||||
Real estate expense reimbursement from tenants(1) | $ | 4,924 | $ | 5,143 | $ | 16,789 | $ | 16,784 | ||||||||
Real estate expenses | (7,258 | ) | (7,649 | ) | (27,656 | ) | (25,099 | ) | ||||||||
Real estate expenses, net of tenant reimbursements | $ | (2,334 | ) | $ | (2,506 | ) | $ | (10,867 | ) | $ | (8,315 | ) | ||||
Amortization of debt costs | $ | 944 | $ | 1,917 | $ | 3,731 | $ | 4,611 | ||||||||
Scheduled debt principal amortization (excluding maturities) | $ | 145 | $ | 138 | $ | 567 | $ | 538 | ||||||||
Non-real estate depreciation expense | $ | 108 | $ | 83 | $ | 346 | $ | 332 |
(1) | The consolidated financial statements for the quarter and year ended December 31, 2019 and 2018 are presented under the new accounting standard, ASU 2016-02, "Leases (Topic 842)." For the quarter and year ended December 31, 2019, the aggregate of such amounts is $173,163 and $669,009, respectively, classified as rental income on the income statement summary. For the quarter and year ended December 31, 2018, the aggregate of such amounts is $158,827 and $621,399, respectively. |
2020 Earnings Guidance (Unchanged from October 2019): | ||||||||
Guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Securities and Exchange Commission. | ||||||||
2020 Guidance | ||||||||
Net earnings per common share excluding any gains on disposition of real estate and impairment charges | $1.70 - $1.74 per share | |||||||
Real estate depreciation and amortization per share | $1.13 per share | |||||||
Core FFO per share | $2.83 - $2.87 per share | |||||||
AFFO per share | $2.90 - $2.94 per share | |||||||
General and administrative expenses | $42.0 - $43.0 Million | |||||||
Real estate expenses, net of tenant reimbursements | $8.0 - $9.0 Million | |||||||
Acquisition volume | $550 - $650 Million | |||||||
Disposition volume | $80 - $120 Million |
National Retail Properties, Inc. (in thousands) (unaudited) | ||||||||
December 31, 2019 | December 31, 2018 | |||||||
Balance Sheet Summary | ||||||||
Assets: | ||||||||
Real estate: | ||||||||
Accounted for using the operating method, net of accumulated depreciation and amortization | $ | 7,290,025 | $ | 6,845,446 | ||||
Accounted for using the direct financing method | 4,204 | 8,069 | ||||||
Real estate held for sale | 7,010 | 21,917 | ||||||
Cash and cash equivalents | 1,112 | 114,267 | ||||||
Receivables, net of allowance of $506 and $2,273, respectively | 2,874 | 3,797 | ||||||
Accrued rental income, net of allowance of $1,842 | 28,897 | 25,387 | ||||||
Debt costs, net of accumulated amortization of $15,574 and $14,118, respectively | 2,783 | 4,081 | ||||||
Other assets | 97,962 | 80,474 | ||||||
Total assets | $ | 7,434,867 | $ | 7,103,438 | ||||
Liabilities: | ||||||||
Line of credit payable | $ | 133,600 | $ | — | ||||
Mortgages payable, including unamortized premium and net of unamortized debt costs | 12,059 | 12,694 | ||||||
Notes payable, net of unamortized discount and unamortized debt costs | 2,842,698 | 2,838,701 | ||||||
Accrued interest payable | 18,250 | 19,519 | ||||||
Other liabilities | 96,578 | 77,919 | ||||||
Total liabilities | 3,103,185 | 2,948,833 | ||||||
Stockholders’ equity of NNN | 4,331,675 | 4,154,250 | ||||||
Noncontrolling interests | 7 | 355 | ||||||
Total equity | 4,331,682 | 4,154,605 | ||||||
Total liabilities and equity | $ | 7,434,867 | $ | 7,103,438 | ||||
Common shares outstanding | 171,694 | 161,504 | ||||||
Gross leasable area, Property Portfolio (square feet) | 32,460 | 30,487 | ||||||
National Retail Properties, Inc. Debt Summary As of December 31, 2019 (in thousands) (unaudited) | ||||||||||||||
Unsecured Debt | Principal | Principal, Net of Unamortized Discount | Stated Rate | Effective Rate | Maturity Date | |||||||||
Line of credit payable | $ | 133,600 | $ | 133,600 | L + 87.5 bps | 2.788% | January 2022 | |||||||
Unsecured notes payable: | ||||||||||||||
2022 | 325,000 | 323,426 | 3.800% | 3.985% | October 2022 | |||||||||
2023 | 350,000 | 349,049 | 3.300% | 3.388% | April 2023 | |||||||||
2024 | 350,000 | 349,653 | 3.900% | 3.924% | June 2024 | |||||||||
2025 | 400,000 | 399,391 | 4.000% | 4.029% | November 2025 | |||||||||
2026 | 350,000 | 347,169 | 3.600% | 3.733% | December 2026 | |||||||||
2027 | 400,000 | 398,693 | 3.500% | 3.548% | October 2027 | |||||||||
2028 | 400,000 | 397,445 | 4.300% | 4.388% | October 2028 | |||||||||
2048 | 300,000 | 295,842 | 4.800% | 4.890% | October 2048 | |||||||||
Total | 2,875,000 | 2,860,668 | ||||||||||||
Total unsecured debt | $ | 3,008,600 | $ | 2,994,268 | ||||||||||
Debt costs | $ | (26,932 | ) | |||||||||||
Accumulated amortization | 8,962 | |||||||||||||
Debt costs, net of accumulated amortization | (17,970 | ) | ||||||||||||
Notes payable, net of unamortized discount and unamortized debt costs (1) | $ | 2,842,698 | ||||||||||||
(1) Unsecured notes payable have a weighted average interest rate of 4.0% and a weighted average maturity of 8.3 years |
Mortgages Payable | Principal Balance | Interest Rate | Maturity Date | |||||
Mortgage(1) | $ | 12,116 | 5.230% | July 2023 | ||||
Debt costs | (147 | ) | ||||||
Accumulated amortization | 90 | |||||||
Debt costs, net of accumulated amortization | (57 | ) | ||||||
Mortgages payable, including unamortized premium and net of unamortized debt costs | $ | 12,059 | ||||||
(1) Includes unamortized premium |
As of December 31, | ||||||||
Line of Trade | 2019(1) | 2018(2) | ||||||
1. | Convenience stores | 18.2 | % | 18.0 | % | |||
2. | Restaurants - full service | 11.1 | % | 11.4 | % | |||
3. | Automotive service | 9.6 | % | 8.6 | % | |||
4. | Restaurants - limited service | 8.8 | % | 8.9 | % | |||
5. | Family entertainment centers | 6.7 | % | 7.1 | % | |||
6. | Health and fitness | 5.2 | % | 5.6 | % | |||
7. | Theaters | 4.7 | % | 5.0 | % | |||
8. | Recreational vehicle dealers, parts and accessories | 3.4 | % | 3.4 | % | |||
9. | Automotive parts | 3.1 | % | 3.4 | % | |||
10. | Equipment rental | 2.6 | % | 1.9 | % | |||
11. | Home improvement | 2.6 | % | 2.2 | % | |||
12. | Wholesale clubs | 2.5 | % | 2.3 | % | |||
13. | Medical service providers | 2.1 | % | 2.2 | % | |||
14. | General merchandise | 1.8 | % | 1.6 | % | |||
15. | Home furnishings | 1.7 | % | 1.5 | % | |||
16. | Furniture | 1.6 | % | 1.7 | % | |||
17. | Travel plazas | 1.6 | % | 1.7 | % | |||
18. | Drug stores | 1.6 | % | 1.8 | % | |||
19. | Consumer electronics | 1.5 | % | 1.6 | % | |||
20. | Bank | 1.3 | % | 1.6 | % | |||
Other | 8.3 | % | 8.5 | % | ||||
Total | 100.0 | % | 100.0 | % |
State | % of Total(1) | State | % of Total(1) | |||||||||
1. | Texas | 17.6 | % | 6. | North Carolina | 4.5 | % | |||||
2. | Florida | 8.8 | % | 7. | Indiana | 4.0 | % | |||||
3. | Ohio | 5.8 | % | 8. | Tennessee | 3.8 | % | |||||
4. | Illinois | 5.0 | % | 9. | Virginia | 3.6 | % | |||||
5. | Georgia | 4.5 | % | 10. | California | 3.3 | % |
(1) | Based on the annualized base rent for all leases in place as of December 31, 2019. |
(2) | Based on the annualized base rent for all leases in place as of December 31, 2018. |
Tenant | Properties | % of Total (1) | |||
7-Eleven | 140 | 5.0% | |||
Mister Car Wash | 116 | 4.6% | |||
Camping World | 47 | 4.2% | |||
LA Fitness | 30 | 3.7% | |||
Flynn Restaurant Group (Taco Bell/Arby's) | 204 | 3.5% | |||
GPM Investments (Convenience Stores) | 151 | 3.3% | |||
AMC Theatres | 20 | 3.0% | |||
Couche-Tard (Pantry) | 85 | 2.8% | |||
BJ's Wholesale Club | 11 | 2.5% | |||
Sunoco | 61 | 2.3% | |||
Chuck E. Cheese's | 53 | 2.1% |
% of Total(1) | # of Properties | Gross Leasable Area (3) | % of Total(1) | # of Properties | Gross Leasable Area (3) | |||||||||||
2020 | 1.7% | 66 | 688,000 | 2026 | 4.5% | 174 | 1,672,000 | |||||||||
2021 | 3.5% | 115 | 1,253,000 | 2027 | 7.1% | 194 | 2,582,000 | |||||||||
2022 | 5.5% | 123 | 1,634,000 | 2028 | 4.5% | 153 | 1,158,000 | |||||||||
2023 | 2.9% | 118 | 1,471,000 | 2029 | 3.0% | 75 | 1,030,000 | |||||||||
2024 | 3.7% | 100 | 1,600,000 | 2030 | 3.7% | 101 | 1,137,000 | |||||||||
2025 | 5.3% | 167 | 1,850,000 | Thereafter | 54.6% | 1,698 | 15,743,000 |
(1) | Based on the annual base rent of $674,338,000, which is the annualized base rent for all leases in place as of December 31, 2019. |
(2) | As of December 31, 2019, the weighted average remaining lease term is 11.2 years. |
(3) | Square feet. |
PAGE REFERENCE | |
Financial Summary | |
Income Statement Summary | |
Funds From Operations (FFO) | |
Core Funds From Operation | |
Adjusted Funds From Operations (AFFO) | |
Other Information | |
Balance Sheet | |
Debt Summary | |
Credit Metrics | |
Credit Facility and Note Covenants | |
Long-Term Dividend History | |
Transaction Summary | |
Property Acquisitions | |
Property Dispositions | |
Property Portfolio | |
Lease Expirations | |
Top 20 Lines of Trade | |
Top 10 States | |
Portfolio By Region | |
Top Tenants | |
Same Store Rental Income | |
Leasing Data | |
Other Property Portfolio Data | |
Earnings Guidance |
INCOME STATEMENT SUMMARY | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 173,163 | $ | 158,827 | $ | 669,009 | $ | 621,399 | ||||||||
Interest and other income from real estate transactions | 213 | 149 | 1,478 | 1,262 | ||||||||||||
173,376 | 158,976 | 670,487 | 622,661 | |||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 10,127 | 8,267 | 37,651 | 34,248 | ||||||||||||
Real estate | 7,258 | 7,649 | 27,656 | 25,099 | ||||||||||||
Depreciation and amortization | 48,102 | 44,117 | 188,871 | 174,398 | ||||||||||||
Impairment losses – real estate, net of recoveries | 10,868 | 18,494 | 31,992 | 28,211 | ||||||||||||
Retirement severance costs | — | 270 | — | 1,013 | ||||||||||||
76,355 | 78,797 | 286,170 | 262,969 | |||||||||||||
Gain on disposition of real estate | 6,955 | 8,020 | 32,463 | 65,070 | ||||||||||||
Earnings from operations | 103,976 | 88,199 | 416,780 | 424,762 | ||||||||||||
Other expenses (revenues): | ||||||||||||||||
Interest and other income | (200 | ) | (1,553 | ) | (3,112 | ) | (1,810 | ) | ||||||||
Interest expense | 30,307 | 34,940 | 120,023 | 115,847 | ||||||||||||
Leasing transaction costs | 83 | — | 261 | — | ||||||||||||
Loss on early extinguishment of debt | — | 18,240 | — | 18,240 | ||||||||||||
30,190 | 51,627 | 117,172 | 132,277 | |||||||||||||
Net earnings | 73,786 | 36,572 | 299,608 | 292,485 | ||||||||||||
Earnings attributable to noncontrolling interests | — | (10 | ) | (428 | ) | (38 | ) | |||||||||
Net earnings attributable to NNN | $ | 73,786 | $ | 36,562 | $ | 299,180 | $ | 292,447 | ||||||||
INCOME STATEMENT SUMMARY | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net earnings attributable to NNN | $ | 73,786 | $ | 36,562 | $ | 299,180 | $ | 292,447 | ||||||||
Series E preferred stock dividends | (911 | ) | (4,097 | ) | (13,201 | ) | (16,387 | ) | ||||||||
Series F preferred stock dividends | (4,485 | ) | (4,485 | ) | (17,940 | ) | (17,940 | ) | ||||||||
Excess of redemption value over carrying value of preferred shares redeemed | (9,856 | ) | — | (9,856 | ) | — | ||||||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 170,763 | 159,193 | 164,688 | 155,745 | ||||||||||||
Diluted | 171,175 | 159,772 | 165,084 | 156,296 | ||||||||||||
Net earnings per share available to common stockholders: | ||||||||||||||||
Basic | $ | 0.34 | $ | 0.17 | $ | 1.56 | $ | 1.65 | ||||||||
Diluted | $ | 0.34 | $ | 0.17 | $ | 1.56 | $ | 1.65 |
FUNDS FROM OPERATIONS (FFO) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(unaudited) | Quarter Ended | Year Ended | ||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | ||||||||
Real estate depreciation and amortization: | 47,998 | 44,037 | 188,537 | 174,076 | ||||||||||||
Gain on disposition of real estate, net of noncontrolling interests | (6,955 | ) | (8,020 | ) | (32,051 | ) | (65,070 | ) | ||||||||
Impairment losses – depreciable real estate, net of recoveries | 10,868 | 18,494 | 31,992 | 28,211 | ||||||||||||
Total FFO adjustments | 51,911 | 54,511 | 188,478 | 137,217 | ||||||||||||
FFO available to common stockholders | $ | 110,445 | $ | 82,491 | $ | 446,661 | $ | 395,337 | ||||||||
FFO per common share: | ||||||||||||||||
Basic | $ | 0.65 | $ | 0.52 | $ | 2.71 | $ | 2.54 | ||||||||
Diluted | $ | 0.65 | $ | 0.52 | $ | 2.71 | $ | 2.53 |
CORE FUNDS FROM OPERATIONS | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(unaudited) | Quarter Ended | Year Ended | ||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | ||||||||
Total FFO adjustments | 51,911 | 54,511 | 188,478 | 137,217 | ||||||||||||
FFO available to common stockholders | 110,445 | 82,491 | 446,661 | 395,337 | ||||||||||||
Excess of redemption value over carrying value of preferred share redemption | 9,856 | — | 9,856 | — | ||||||||||||
Retirement severance costs | — | 270 | — | 1,013 | ||||||||||||
Gain on sale of equity investments | — | — | (1,331 | ) | — | |||||||||||
Loss on early extinguishment of debt | — | 18,240 | — | 18,240 | ||||||||||||
Total Core FFO adjustments | 9,856 | 18,510 | 8,525 | 19,253 | ||||||||||||
Core FFO available to common stockholders | $ | 120,301 | $ | 101,001 | $ | 455,186 | $ | 414,590 | ||||||||
Core FFO per common share: | ||||||||||||||||
Basic | $ | 0.70 | $ | 0.63 | $ | 2.76 | $ | 2.66 | ||||||||
Diluted | $ | 0.70 | $ | 0.63 | $ | 2.76 | $ | 2.65 |
ADJUSTED FUNDS FROM OPERATIONS (AFFO) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net earnings available to common stockholders | $ | 58,534 | $ | 27,980 | $ | 258,183 | $ | 258,120 | ||||||||
Total FFO adjustments | 51,911 | 54,511 | 188,478 | 137,217 | ||||||||||||
Total Core FFO adjustments | 9,856 | 18,510 | 8,525 | 19,253 | ||||||||||||
Core FFO available to common stockholders | 120,301 | 101,001 | 455,186 | 414,590 | ||||||||||||
Straight-line accrued rent | (631 | ) | 124 | (2,333 | ) | (747 | ) | |||||||||
Net capital lease rent adjustment | 94 | 220 | 602 | 874 | ||||||||||||
Below market rent amortization | (189 | ) | (288 | ) | (768 | ) | (2,622 | ) | ||||||||
Stock based compensation expense | 2,932 | 2,641 | 10,737 | 9,282 | ||||||||||||
Capitalized interest expense | (302 | ) | (175 | ) | (1,099 | ) | (2,675 | ) | ||||||||
Total AFFO adjustments | 1,904 | 2,522 | 7,139 | 4,112 | ||||||||||||
AFFO available to common stockholders | $ | 122,205 | $ | 103,523 | $ | 462,325 | $ | 418,702 | ||||||||
AFFO per common share: | ||||||||||||||||
Basic | $ | 0.72 | $ | 0.65 | $ | 2.81 | $ | 2.69 | ||||||||
Diluted | $ | 0.71 | $ | 0.65 | $ | 2.80 | $ | 2.68 |
OTHER INFORMATION | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Rental income from operating leases(1) | $ | 167,805 | $ | 152,915 | $ | 650,112 | $ | 602,131 | ||||||||
Earned income from direct financing leases(1) | $ | 174 | $ | 226 | $ | 798 | $ | 923 | ||||||||
Percentage rent(1) | $ | 260 | $ | 543 | $ | 1,310 | $ | 1,561 | ||||||||
Real estate expense reimbursement from tenants(1) | $ | 4,924 | $ | 5,143 | $ | 16,789 | $ | 16,784 | ||||||||
Real estate expenses | $ | (7,258 | ) | $ | (7,649 | ) | $ | (27,656 | ) | $ | (25,099 | ) | ||||
Real estate expenses, net of tenant reimbursements | $ | (2,334 | ) | $ | (2,506 | ) | $ | (10,867 | ) | $ | (8,315 | ) | ||||
Amortization of debt costs | $ | 944 | $ | 1,917 | $ | 3,731 | $ | 4,611 | ||||||||
Scheduled debt principal amortization (excluding maturities) | $ | 145 | $ | 138 | $ | 567 | $ | 538 | ||||||||
Non-real estate depreciation expense | $ | 108 | $ | 83 | $ | 346 | $ | 332 |
(1) | The condensed consolidated financial statements for the quarter and year ended December 31, 2019 and 2018 are presented under the new accounting standard, ASU 2016-02, "Leases (Topic 842)." For the quarter and year ended December 31, 2019, the aggregate of such amounts is $173,163 and $669,009, respectively, classified as rental income on the income statement summary. For the quarter and year ended December 31, 2018, the aggregate of such amounts is $158,827 and $621,399, respectively. |
BALANCE SHEET |
(in thousands) |
(unaudited) |
December 31, 2019 | December 31, 2018 | |||||||
Assets: | ||||||||
Real estate: | ||||||||
Accounted for using the operating method, net of accumulated depreciation and amortization | $ | 7,290,025 | $ | 6,845,446 | ||||
Accounted for using the direct financing method | 4,204 | 8,069 | ||||||
Real estate held for sale | 7,010 | 21,917 | ||||||
Cash and cash equivalents | 1,112 | 114,267 | ||||||
Receivables, net of allowance of $506 and $2,273, respectively | 2,874 | 3,797 | ||||||
Accrued rental income, net of allowance of $1,842 | 28,897 | 25,387 | ||||||
Debt costs, net of accumulated amortization of $15,574 and $14,118, respectively | 2,783 | 4,081 | ||||||
Other assets | 97,962 | 80,474 | ||||||
Total assets | $ | 7,434,867 | $ | 7,103,438 | ||||
Liabilities: | ||||||||
Line of credit payable | $ | 133,600 | $ | — | ||||
Mortgages payable, including unamortized premium and net of unamortized debt costs | 12,059 | 12,694 | ||||||
Notes payable, net of unamortized discount and unamortized debt costs | 2,842,698 | 2,838,701 | ||||||
Accrued interest payable | 18,250 | 19,519 | ||||||
Other liabilities | 96,578 | 77,919 | ||||||
Total liabilities | 3,103,185 | 2,948,833 | ||||||
Stockholders’ equity of NNN | 4,331,675 | 4,154,250 | ||||||
Noncontrolling interests | 7 | 355 | ||||||
Total equity | 4,331,682 | 4,154,605 | ||||||
Total liabilities and equity | $ | 7,434,867 | $ | 7,103,438 | ||||
Common shares outstanding | 171,694 | 161,504 | ||||||
Gross leasable area, Property Portfolio (square feet) | 32,460 | 30,487 |
DEBT SUMMARY |
(in thousands) |
As of December 31, 2019 |
Unsecured Debt | Principal | Principal, Net of Unamortized Discount | Stated Rate | Effective Rate | Maturity Date | |||||||||
Line of credit payable | $ | 133,600 | $ | 133,600 | L + 87.5 bps | 2.788% | January 2022 | |||||||
Unsecured notes payable: | ||||||||||||||
2022 | 325,000 | 323,426 | 3.800% | 3.985% | October 2022 | |||||||||
2023 | 350,000 | 349,049 | 3.300% | 3.388% | April 2023 | |||||||||
2024 | 350,000 | 349,653 | 3.900% | 3.924% | June 2024 | |||||||||
2025 | 400,000 | 399,391 | 4.000% | 4.029% | November 2025 | |||||||||
2026 | 350,000 | 347,169 | 3.600% | 3.733% | December 2026 | |||||||||
2027 | 400,000 | 398,693 | 3.500% | 3.548% | October 2027 | |||||||||
2028 | 400,000 | 397,445 | 4.300% | 4.388% | October 2028 | |||||||||
2048 | 300,000 | 295,842 | 4.800% | 4.890% | October 2048 | |||||||||
Total | 2,875,000 | 2,860,668 | ||||||||||||
Total unsecured debt | $ | 3,008,600 | $ | 2,994,268 | ||||||||||
Debt costs | $ | (26,932 | ) | |||||||||||
Accumulated amortization | 8,962 | |||||||||||||
Debt costs, net of accumulated amortization | (17,970 | ) | ||||||||||||
Notes payable, net of unamortized discount and unamortized debt costs (1) | $ | 2,842,698 | ||||||||||||
(1) Unsecured notes payable have a weighted average interest rate of 4.0% and a weighted average maturity of 8.3 years |
Mortgages Payable | Interest Rate | Maturity Date | Principal Balance | ||||||
Mortgage(1) | 5.230 | % | July 2023 | $ | 12,116 | ||||
Debt costs | (147 | ) | |||||||
Accumulated amortization | 90 | ||||||||
Debt costs, net of accumulated amortization | (57 | ) | |||||||
Mortgages payable, including unamortized premium and net of unamortized debt costs | $ | 12,059 | |||||||
(1) Includes unamortized premium |
CREDIT METRICS (1) | ||||||||||||||
Ratings: Moody’s Baa1; S&P BBB+; Fitch BBB+ | ||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||
Debt / Total assets (gross book) | 33.2 | % | 30.2 | % | 35.3 | % | 34.6 | % | 35.3 | % | ||||
Debt + preferred / Total assets (gross book) | 42.9 | % | 43.9 | % | 44.0 | % | 42.6 | % | 39.3 | % | ||||
Debt / EBITDA (last four quarters) | 4.6 | 4.3 | 4.9 | 4.8 | 4.9 | |||||||||
Debt + Pref Stock / EBITDA | 5.9 | 6.2 | 6.1 | 5.9 | 5.5 | |||||||||
EBITDA / Interest expense (cash) | 4.6 | 4.8 | 4.7 | 4.8 | 5.0 | |||||||||
EBITDA / Fixed charges (cash) | 3.3 | 3.4 | 3.5 | 3.7 | 4.0 |
CREDIT FACILITY AND NOTES COVENANTS |
Unsecured Credit Facility Key Covenants | Required | December 31, 2019 | ||
Maximum leverage ratio | < 0.60 | 0.34 | ||
Minimum fixed charge coverage ratio | > 1.50 | 4.39 | ||
Maximum secured indebtedness ratio | < 0.40 | 0.001 | ||
Unencumbered asset value ratio | > 1.67 | 3.02 | ||
Unencumbered interest ratio | > 1.75 | 5.36 | ||
Unsecured Notes Key Covenants | Required | December 31, 2019 | ||
Limitation on incurrence of total debt | ≤ 60% | 34.80% | ||
Limitation on incurrence of secured debt | ≤ 40% | 0.14% | ||
Debt service coverage ratio | ≥ 1.50 | 5.01 | ||
Maintenance of total unencumbered assets | ≥ 150% | 287.80% |
LONG-TERM DIVIDEND HISTORY |
PROPERTY ACQUISITIONS |
Year Ended December 31, | ||||||||
2019 | 2018 | |||||||
Total dollars invested | $ | 752,497 | $ | 715,572 | ||||
Number of Properties | 210 | 265 | ||||||
Gross leasable area (square feet) | 3,164,000 | 2,167,000 | ||||||
Cash cap rate | 6.9 | % | 6.8 | % |
PROPERTY DISPOSITIONS |
Year Ended December 31, | |||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||
Occupied | Vacant | Total | Occupied | Vacant | Total | ||||||||||||||||
Number of properties | 22 | 37 | 59 | 37 | 24 | 61 | |||||||||||||||
Gross leasable area (square feet) | 318,000 | 795,000 | 1,113,000 | 552,000 | 134,000 | 686,000 | |||||||||||||||
Acquisition costs | $ | 70,590 | $ | 105,312 | $ | 175,902 | $ | 90,384 | $ | 31,366 | $ | 121,750 | |||||||||
Net book value | $ | 37,451 | $ | 56,280 | $ | 93,731 | $ | 71,091 | $ | 11,660 | $ | 82,751 | |||||||||
Net sale proceeds | $ | 58,396 | $ | 67,798 | $ | 126,194 | $ | 133,804 | $ | 13,842 | $ | 147,646 | |||||||||
Cash cap rate | 5.9 | % | — | 5.9 | % | 5.1 | % | — | 5.1 | % |
LEASE EXPIRATIONS |
% of Total(1) | # of Properties | Gross Leasable Area (2) | % of Total(1) | # of Properties | Gross Leasable Area (2) | |||||||||||||||
2020 | 1.7 | % | 66 | 688,000 | 2026 | 4.5 | % | 174 | 1,672,000 | |||||||||||
2021 | 3.5 | % | 115 | 1,253,000 | 2027 | 7.1 | % | 194 | 2,582,000 | |||||||||||
2022 | 5.5 | % | 123 | 1,634,000 | 2028 | 4.5 | % | 153 | 1,158,000 | |||||||||||
2023 | 2.9 | % | 118 | 1,471,000 | 2029 | 3.0 | % | 75 | 1,030,000 | |||||||||||
2024 | 3.7 | % | 100 | 1,600,000 | 2030 | 3.7 | % | 101 | 1,137,000 | |||||||||||
2025 | 5.3 | % | 167 | 1,850,000 | Thereafter | 54.6 | % | 1,698 | 15,743,000 |
(1) | Based on the annual base rent of $674,338,000, which is the annualized base rent for all leases in place as of December 31, 2019. |
(2) | Square feet. |
TOP 20 LINES OF TRADE |
As of December 31, 2019 | As of December 31, 2018 | |||||||||||||
Line of Trade | % of Total(1) | Properties | % of Total(2) | Properties | ||||||||||
1. | Convenience stores | 18.2 | % | 657 | 18.0 | % | 617 | |||||||
2. | Restaurants - full service | 11.1 | % | 458 | 11.4 | % | 453 | |||||||
3. | Automotive service | 9.6 | % | 358 | 8.6 | % | 291 | |||||||
4. | Restaurants - limited service | 8.8 | % | 530 | 8.9 | % | 498 | |||||||
5. | Family entertainment centers | 6.7 | % | 98 | 7.1 | % | 98 | |||||||
6. | Health and fitness | 5.2 | % | 35 | 5.6 | % | 35 | |||||||
7. | Theaters | 4.7 | % | 33 | 5.0 | % | 33 | |||||||
8. | Recreational vehicle dealers, parts and accessories | 3.4 | % | 38 | 3.4 | % | 36 | |||||||
9. | Automotive parts | 3.1 | % | 161 | 3.4 | % | 179 | |||||||
10. | Equipment rental | 2.6 | % | 80 | 1.9 | % | 59 | |||||||
11. | Home improvement | 2.6 | % | 48 | 2.2 | % | 38 | |||||||
12. | Wholesale clubs | 2.5 | % | 11 | 2.3 | % | 9 | |||||||
13. | Medical service providers | 2.1 | % | 84 | 2.2 | % | 84 | |||||||
14. | General merchandise | 1.8 | % | 75 | 1.6 | % | 59 | |||||||
15. | Home furnishings | 1.7 | % | 20 | 1.5 | % | 18 | |||||||
16. | Furniture | 1.6 | % | 45 | 1.7 | % | 44 | |||||||
17. | Travel plazas | 1.6 | % | 27 | 1.7 | % | 27 | |||||||
18. | Drug stores | 1.6 | % | 36 | 1.8 | % | 37 | |||||||
19. | Consumer electronics | 1.5 | % | 17 | 1.6 | % | 17 | |||||||
20. | Bank | 1.3 | % | 59 | 1.6 | % | 70 | |||||||
Other | 8.3 | % | 248 | 8.5 | % | 267 | ||||||||
Total | 100.0 | % | 3,118 | 100.0 | % | 2,969 |
TOP 10 STATES |
State | % of Total(1) | Properties | State | % of Total(1) | Properties | |||||||||||
1. | Texas | 17.6 | % | 502 | 6. | North Carolina | 4.5 | % | 156 | |||||||
2. | Florida | 8.8 | % | 230 | 7. | Indiana | 4.0 | % | 146 | |||||||
3. | Ohio | 5.8 | % | 199 | 8. | Tennessee | 3.8 | % | 142 | |||||||
4. | Illinois | 5.0 | % | 142 | 9. | Virginia | 3.6 | % | 117 | |||||||
5. | Georgia | 4.5 | % | 151 | 10. | California | 3.3 | % | 65 | |||||||
(1) Based on the annualized base rent for all leases in place as of December 31, 2019. |
PORTFOLIO BY REGION |
TOP TENANTS |
▪ | 18% of annual base rent is from tenants with investment grade rated debt |
▪ | 65% of annual base rent is from tenants that are publicly traded and/or have rated debt |
▪ | Top 25 tenants (58% of annual base rent) operate an average of 1,100 stores each |
Top Tenants (≥2.0%) | Properties | % of Total (1) | ||||
7-Eleven | 140 | 5.0 | % | |||
Mister Car Wash | 116 | 4.6 | % | |||
Camping World | 47 | 4.2 | % | |||
LA Fitness | 30 | 3.7 | % | |||
Flynn Restaurant Group (Taco Bell/Arby's) | 204 | 3.5 | % | |||
GPM Investments (Convenience Stores) | 151 | 3.3 | % | |||
AMC Theatres | 20 | 3.0 | % | |||
Couche-Tard (Pantry) | 85 | 2.8 | % | |||
BJ's Wholesale Club | 11 | 2.5 | % | |||
Sunoco | 61 | 2.3 | % | |||
Chuck E. Cheese's | 53 | 2.1 | % |
Rent Coverage (With Corp. Overhead) | Fixed Charge Coverage | ||
Range | 1.8x - 8.7x | 1.3x - 5.3x | |
Average | 3.5x | 2.2x | |
Weighted average | 3.7x | 2.1x | |
SAME STORE RENTAL INCOME |
Same Store Rental Income – Properties (Cash Basis) (1) | ||||
Number of properties | 2,615 | |||
Year ended December 31, 2019 | $ | 562,307 | ||
Year ended December 31, 2018 | $ | 561,578 | ||
Decrease (in dollars) | $ | 729 | ||
Change (percent) | 0.1 | % | ||
(1) Includes all properties owned for current and prior year period excluding any properties under development or re-development. |
LEASING DATA |
Year Ended December 31, 2019 | Renewals With Same Tenant(1) | Vacancy Re-lease To New Tenant | Re-leasing Totals | ||||||||||
Number of leases | 81 | 23 | 104 | ||||||||||
Prior cash rents | $ | 15,029 | $ | 3,673 | $ | 18,702 | |||||||
New cash rents | $ | 15,701 | $ | 2,902 | $ | 18,603 | (2) | ||||||
New rents / prior rents | 104.5 | % | 79.0 | % | 99.5 | % | |||||||
Tenant improvements | $ | 700 | $ | 3,268 | $ | 3,968 |
(1) | Long-term renewal rate for the period of 2010 through 2019 was 84.3%. |
(2) | Represents 2.8% of total annualized base rent as of December 31, 2019. |
OTHER PROPERTY PORTFOLIO DATA |
# of Properties | % of Annual Base Rent | |||||
Property Level Financial Information | 2,622 | 80 | % | |||
Tenant Corporate Financials | 2,431 | 78 | % |
Rent Increases | % of Annual Base Rent | ||||||||||
Annual | Five Year | Other | Total | ||||||||
CPI – Based | 34 | % | 45 | % | 1 | % | 80 | % | |||
Fixed Rate | 3 | % | 11 | % | 1 | % | 15 | % | |||
No increases | — | — | 5 | % | 5 | % | |||||
37 | % | 56 | % | 7 | % | 100 | % |
▪ | 92% of the company's annual base rent is from NNN leases |
▪ | 95% of the company's annual base rent is from NNN leases and NN leases (with roof warranty) |
EARNINGS GUIDANCE |
Guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Securities and Exchange Commission. |
2020 Guidance | ||||||||
Net earnings per common share excluding any gains on disposition of real estate and impairment charges | $1.70 - $1.74 per share | |||||||
Real estate depreciation and amortization per share | $1.13 per share | |||||||
Core FFO per share | $2.83 - $2.87 per share | |||||||
AFFO per share | $2.90 - $2.94 per share | |||||||
General and administrative expenses | $42.0 - $43.0 Million | |||||||
Real estate expenses, net of tenant reimbursements | $8.0 - $9.0 Million | |||||||
Acquisition volume | $550 - $650 Million | |||||||
Disposition volume | $80 - $120 Million |
/'Q/861+8(*1<(;6BA*0:WXORD$"(K$4B3R%O_#]N?1Z%$
MA.H9[JO5!^#W2CNXK< &*SV!L5HZ!]46KDT@88R[@>JUVPZ/JV[7NE2@_O1P
M3KK.0KM?B[)\@/ D/"$R_
M7V#Z_0+3[Q>8?K_ ]/L$IM\G,/T^@>GW"4S_X7\C3._X'TS_'TS_;X/IU_S?
MPO0G_U_"]#O^!]/_/\!T N*2X0JGRTY&H\ELL=CM!I/)8C&:C,:#/[N);[/#
M9K7:K!:KS62R61TV&PIF4">2B<>:S!SP@>Y&.X\PF5"RXL-L,%ML-O'[H/E@
M,!KG%VF/Y!%F3.D"!YBUW6"S@Q<4N%D$K&QSV"Q.G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MBZ1",0THE\LE8[R/:"@>R0>@WE@NCBF@93V1B);+B5PHUABPD(B,-=\P>B
M<*@"0!\^O:E4,.;S)MG: 6(N9S*!#G@GE(N! -7J6<(C"G=J/HMW;"#B4ESR
MP:O%)>,\^\NI1%*/171=\>JQDJY']&0DGDIUZ*D8W-^@IL#[PH3!(*S,E8:7
M%U2]LA9,X9X.VH*01#*FZZFVA?M] A2"-HN$I0?=@Y(M\Y(J\:D4LC,F;3
M2"?9$!#4PE3ZC:!O$K0R[-?EO^OR'W7Y/W3YL[K\-ET>TGE<#&=7-O@%=3*5
MKA9TA:#Y86=2_D%2/BXI]R7E$5GZG(35:530A*!1IM*K=RKC"MF_)KU*XYA)
MFFV6DKB212:U9ILCR [,-IO&/:_P!ACQ1B37O!LS<-C4K8!!U^6.7+?]^<
M#V:M\QH3G@XRG\4=_P G_F98&M&&*E&/PR/J2OAO]K__ )+?J'_7I;?^BQ7W
M)7PW^U__ ,EOU#_KTMO_ $6*X,D_WE^C_0[,V_@?,^D_V4O^2!>&_P#MZ_\
M2J:O4:\N_92_Y(%X;_[>O_2J:O4:\_%?QY^K_,[<-_!AZ+\C\_\ ]I+_ )+A
MXH_Z^E_]%I7V!X7U:30?V==*UR&))9=.\)0W:1N?EF?#7QMHOC_ ,+Q^(-",ZV[2O"\
M4X42Q.IY5PI(!P58N&;WNX.J->J+>G I!] E%HWY(D ^=QA.-]Q:SJ):E)$FR)@CHZ\O
MZ@V[PC!DS:&I7 ZJ0340A9^J^A4X2:YLSI?S97V^;#00# !R#B= =\$>/5!F7D*"_#3U(B7(S,Q;X^*/8+[R1[%-J)>YI3Y
M%%PC0BL>1UA-A:,^1SK*,0K?VQ>,(? /%>%(0HDF8CB6(2T8=48@TA!4&F05
MQ9Q1G^IS>'TJG@C0H)_?.+A7M) #N@II,1Q;@%8J%0U'HN$ HJ;[HE$ "0:C
M$(E'HZ%<+I(*A/*0+9X<*M_G7J_A7,#EZMC_<+QYFM765D@E2]/K]'SF5\
M/BI7='(ZW9Y ()."CQ (\4_M!UT=/&IA^(5$-):(:(FX6TV$
NT$;=Q*[T'R4!^T"S2(J1Q))-QZVRV,WF/\4UT
MAHV&W.7>J^[\Q2K,<KSR?]4/HJ=BS-.^H]HS@0.QOPK<8_Y_#'R/.\P?%;C'N4?XQX3'
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M)X
3!.164LX85613_EXZ1?M%7J3J^(^$[ .;43X\B^#*#B>R^:54'[J9^F2,
M4Z.0<&1WU$J*NZ8,EC@!D P-@;C5=NHFYVWM(VFKNE\$#;_?&'T*8[''
MVAZ+/UQXK/1,_)GD,ZFG>P_77U)>"+Z@OU2;'OB5^BO]KY93 R&UI.AJFY[(
M98JETGE*62WK\V+=Z7)N"875] %]H#QP8H!]L8!N*-Q6NC.WI\0NR U9AV*,
M%/?'O?/K RL""]*\ZBZB1/'RV$.QAXIL$P/;V," D76FBK23BA798!)>13#
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ME2*L^Q L
,! 1.1J
]REQKM=K\
MMH1FY&H:\1MU]U4F-#2H(9CC>D+;IYW2..U@_. WS>GY8,HX,D
MJ&]V=J(OU S7V6Z:A>>6PC\+U]W=9R?_PG"=;9\WK[V]?]ZG_!T#C04+BD%)
MB 1"&3MR
KK^!FTRNOS^'P6/\I7V;
M-W;$ D'GQV):T7L.>O:2W>VY_H;^X17OG#P_'N^T"1N2&SY/?_;+N1B!($0Y
M*8JU8KK7PSS7A)]<@+!_/UF;Z1%.,V?73)6PV@ "O+#&LL%;!$:@8^1,(:$[
M78RBIGA :A_%>"(P% G_+WH!N(HM.:'8DA.*0$GA D4HC412\(L*1LE=3V4F"VA[V)^_?WGCTYW4:;'F#Z"(2N#GFK%
M2K83&LE'?