NNN REIT Inc.
02/11/2026 | Press release | Distributed by Public on 02/11/2026 07:36
Annual Report for Fiscal Year Ending 12-31, 2025 (Form 10-K)
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
NNN is exposed to interest rate risk primarily as a result of its variable rate Credit Facility and Term Loan and its fixed rate long-term debt which is used to finance NNN's Property acquisitions and construction commitments, as well as for general corporate purposes. NNN's interest rate risk management objective is to limit the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. To achieve its objectives, NNN borrows at both fixed and variable rates on its long-term debt and periodically uses derivatives to hedge the interest rate risk of future borrowings.
As of December 31, 2025, NNN's variable rate Credit Facility had $348,100,000 outstanding. For the year ended December 31, 2025, the Credit Facility had a weighted average outstanding balance of $106,166,000 and a weighted average interest rate of 5.04% compared to a weighted average outstanding balance of $60,775,000 and a weighted average interest rate of 6.25% for 2024.
In December 2025, NNN entered into the Term Loan, and had no outstanding balance as of December 31, 2025. NNN entered into two forward starting swaps with an aggregate notional amount of $200,000,000 to hedge the risk of changes in the interest cash outflows associated with future draws on NNN's Term Loan. The forward starting swaps were outstanding as of December 31, 2025, and have an effective date of January 15, 2026.
The table below summarizes NNN's market risks associated with its outstanding debt obligations as of December 31, 2025, detailing principal payments and related interest rates by maturity year. The table incorporates only debt obligations that existed as of December 31, 2025, and it does not account for future obligations and therefore has limited predictive value. Actual realized gains or losses from interest rate fluctuations will depend on future exposures, interest rates and NNN's hedging strategies. If interest rates on NNN's variable rate debt increased by one percent, NNN's interest expense would have increased by less than one percent for the year ended December 31, 2025.
|
Debt Obligations(1)(dollars in thousands) |
|||||||||||||||||
|
Variable Rate Debt |
Fixed Rate Debt |
||||||||||||||||
|
Credit Facility |
Unsecured Debt(2) |
||||||||||||||||
|
Debt |
Weighted |
Principal |
Effective |
||||||||||||||
|
2026 |
$ |
- |
- |
$ |
350,000 |
3.73 |
% |
||||||||||
|
2027 |
- |
- |
400,000 |
3.55 |
% |
||||||||||||
|
2028 |
348,100 |
5.04 |
% |
400,000 |
4.39 |
% |
|||||||||||
|
2029 |
- |
- |
- |
- |
|||||||||||||
|
2030 |
- |
- |
400,000 |
2.54 |
% |
||||||||||||
|
Thereafter |
- |
- |
3,000,000 |
4.54 |
% |
(3) |
|||||||||||
|
Total |
$ |
348,100 |
5.04 |
% |
$ |
4,550,000 |
4.20 |
% |
|||||||||
|
Fair Value: |
|||||||||||||||||
|
December 31, 2025 |
$ |
348,100 |
$ |
4,124,161 |
|||||||||||||
|
December 31, 2024 |
$ |
- |
$ |
3,894,030 |
|||||||||||||
|
(1) |
NNN's unsecured debt obligations have a weighted average interest rate of 4.2% and a weighted average maturity of 10.8 years. |
|
(2) |
Includes NNN's notes payable, each exclude unamortized discounts and debt costs. The fair value is based upon quoted market prices as of the close of the year, which is a Level 1 valuation since NNN's notes payable are publicly traded on the over-the-counter market. |
|
(3) |
Weighted average effective interest rate for years after 2030. |
NNN REIT Inc. published this content on February 11, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 11, 2026 at 13:36 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]