NNN REIT, Inc.

We also leased seven new properties to new tenants at rates of 124% of previous rents, demonstrating strong demand and execution. Our asset management team and leasing team have done a fantastic job getting deals done at a high level. Our tenant base remains stable, no material concerns at this time. Moving to acquisitions, during the quarter we invested $283,057,000 in new assets, an initial cap rate of 7.3. with an average lease duration nearly 18 years due to the sale-leaseback nature of our deals. The first nine months, we've invested $750 million in 184 properties. The cash cap rate is 7.4, which has NNN tracked into a record year of acquisition volume. As we've moved through the year, cap rates, for the most part, have stabilized, and I don't see any material way either up or down as we head into the fourth quarter and for the deals we were pricing for the first quarter of 2026. As one of the original net lease companies in the public markets, NNN has successfully operated through diverse economic cycles. While private capital has increased competition, especially for the large portfolios, our disciplined approach and long-standing tenant relationships enable us to consistently execute and deliver a highly competitive environment. During the quarter, we sold 23 properties, 11 of which were vacant, generating $41 million in proceeds for redeployment into income-producing properties. Also, the properties we sold were not core assets, and the sales were executed at approximately 145 basis points below our invested cash cap rate, demonstrating strong upfront underwriting and value extraction. Our balance sheet is one of the strongest in the sector. Our credit facility has plenty of capacity, as I mentioned earlier, with no balance outstanding, and we maintain the industry-best nearly 11 years' weighted debt maturity. NNN is well-positioned to fund our remaining 2025 acquisition guidance and beyond. With a robust pipeline, strong financial foundation, and proven leadership, NNN is well-positioned for continued success. We are committed to optimizing our portfolio, driving sustainable growth, and enhancing shareholder value. With that, let me turn the call over to Vin for more color and detail on our quarterly numbers and updated guidance.

Thank you, Steve. Let's start with our customary cautionary statements. During this call, we will make certain statements that may be considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we may not release revisions to these forward-looking statements to reflect changes after the statements remain. Factors and risks that could cause actual results to differ from expectations are disclosed in greater detail in the company's filings with the SEC and in this morning's press releases. Now on to results. This morning we reported core FO 85 cents per share and AFO of 86 cents per share for the third quarter of 2025, up 1.2% and 2.4% respectively over the prior year periods. Annualized base rent was 912 million at the end of the quarter, an increase of over 7% year over year. Our NOI margin was 98% for the quarter, while G&A as a percentage of total revenues and as a percentage of NOI was about 5%. Cash G&A was 3.6% of total revenues. AFO per share for the quarter was slightly ahead of our expectations, driven primarily by lower than planned bad debt and higher interest income on our cash balances. Free cash flow after dividend was about $48 million in the third quarter. Lease termination fees totaled $669,000 in the quarter, or less than half a penny per share. This line item has begun to normalize following the proactive monetization of the largest of our dark but paying tenants. From a watch list perspective, there have been no material changes since last quarter, and while we remain vigilant regarding potential issues, we do not currently view any of our watch list tenants as near-term concerns. At Home, which remains on the watch list, successfully exited bankruptcy with a significantly de-risked capital structure, reducing total debt by $1.5 billion through the bankruptcy process. As expected, At Home assumed all of our properties, reflecting the strength of our underwriting and the high quality of our real estate. Turning to the balance sheet. Our BAA1 balance sheet remains in great shape. At the end of the quarter, we had no floating rate debt, no encumbered assets, and $1.4 billion of liquidity, including full capacity on our $1.2 billion revolver, and almost $160 million of cash. Our leverage ticked down modestly to 5.6 times from 5.7 times last quarter, and our debt duration remained the highest in the net lease space at 10.7 years. As previously announced, on July 1st, we issued $500 million of 4.6% five-year unsecured notes, Additionally, during the quarter, we issued 1.7 million shares, primarily through our ATM, as part of our overall capital plan for the year. In total, we raised $72 million in gross proceeds at a weighted average price of $42.89 per share. Looking forward, we have a $400 million 4% coupon bond maturing later this month. With our July bond offering, we have pre-funded a portion of this pending maturity, and our forced balance sheet provides us with multiple options to refinance the balance. As I've stated on prior calls, our balance sheet is a source of strength, and we will look for ways to utilize this competitive advantage to support growth while protecting downside risk. On October 14th, we announced a $0.60 quarterly dividend payable on November 14th, which equates to an attractive 5.6% analyzed dividend yield and a healthy 70% to AFFO payout ratio. Notably, since going public in 1984, NNN has paid over $5 billion in total dividends. I will conclude my opening remarks with some additional comments regarding our updated outlook. We are raising core FO per share guidance to a new range of $3.36 to $3.40, and AF FO per share to $3.41 to $3.45. Increases reflect our year-to-date outperformance versus plan, as well as our updated assumptions over the balance of the year. We now expect to complete 850 to 950 million of acquisitions, up 250 million from a prior forecast, We expect fourth quarter acquisitions will be weighted towards the back half of the quarter. At the $900 million midpoint, our updated guidance represents a record level of annual investment volume for the company. We are also increasing our disposition outlook by $50 million to a new range of $170 to $200 million. As a reminder, we typically fund our investments with a leverage neutral 60-40 mix of equity and debt. From a credit loss perspective, we are now including 25 basis points of bad debt in our full year outlook. including about 20 basis points booked year-to-date. This is down from our prior 60 basis points projection given our limited losses thus far, the successful resolution of the at-home bankruptcy, and the collection of preposition rent from at-home. Lastly, there were no notable run rate adjustments to call out in the third quarter. With that, I'll turn the call back over to the operator for questions.

Certainly. The floor is now open for questions. If you have any questions or comments, please press star 1 on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please hold just a moment while we vote for any questions. Your first question is coming from Jana Galan with Bank of America. Please pose your question. Your line is live.