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Here are 1-3 brief analogies to describe NNN REIT:

• American Tower for retail stores.
• Prologis for retail buildings.

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• Leasing of Retail Properties: Provides commercial real estate space to retail tenants through long-term, net lease agreements.

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NNN REIT (National Retail Properties) invests primarily in retail properties subject to long-term net leases. Therefore, its major customers are the businesses that lease its properties to operate their retail stores, restaurants, or service centers.

As of December 31, 2020 (the closest available major tenant data to the September 30, 2020 date mentioned in the background), NNN REIT's top tenants (based on annualized base rent) were a diversified group of companies, primarily in the convenience store, restaurant, and automotive service sectors. No single tenant accounted for more than 5.0% of its total rental revenues.

Here are some of NNN REIT's major customer companies:

• 7-Eleven (Convenience Stores) - Parent: Seven & i Holdings (TYO: 3382)
• GPM Investments (Convenience Stores) - Parent: ARKO Corp (NASDAQ: ARKO)
• Bojangles (Quick-Service Restaurants) - Private Company
• Circle K (Convenience Stores) - Parent: Alimentation Couche-Tard (TSE: ATD.A, ATD.B)
• Mister Car Wash (Car Washes) - Private Company at the time
• Sunoco (Gas Stations & Convenience Stores) - (NYSE: SUN)
• Best Buy (Consumer Electronics Retail) - (NYSE: BBY)
• Walgreens (Drug Stores) - (NASDAQ: WBA)
• Camping World (RV Sales and Service) - (NYSE: CWH)
• BJ's Wholesale Club (Warehouse Clubs) - (NYSE: BJ)

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Stephen A. Horn, Jr. President & Chief Executive Officer

Stephen A. Horn, Jr. has served as Chief Executive Officer and President of NNN REIT since April 2022, having joined the Board of Directors in February 2022. Prior to this role, he held positions including Executive Vice President and Chief Operating Officer from August 2020, and Executive Vice President and Chief Acquisition Officer from January 2014 to August 2020. He also served as Senior Vice President of Acquisitions from June 2008 to December 2013, and Vice President of Acquisitions from 2003 to 2008. Before joining the company, Mr. Horn worked in the mergers and acquisitions group at A.G. Edwards & Sons.

Vincent H. Chao Executive Vice President & Chief Financial Officer

Vincent H. Chao joined NNN REIT in January 2025 as Executive Vice President, Chief Financial Officer, Assistant Secretary, and Treasurer. Previously, Mr. Chao was the Managing Director, Finance at RPT Realty, a publicly-traded retail real estate investment trust that was acquired by Kimco Realty in 2024, where he was responsible for capital markets, corporate finance, investor relations, portfolio management, and data analytics. His past experience also includes serving as the Head of U.S. REIT Research at Deutsche Bank Securities, Inc., and holding operational and project management roles at Procter & Gamble.

Gina M. Steffens Executive Vice President, General Counsel

Gina M. Steffens has served as Executive Vice President, General Counsel, and Secretary since November 2023. In her role, Ms. Steffens leads the legal department and human resources, and oversees corporate governance, compliance, ethics, and the company’s corporate sustainability program. Before joining NNN REIT, she was the Chief Executive Officer and Chief Legal Officer of a privately held food and agricultural company.

Joshua P. Lewis Executive Vice President, Chief Investment Officer

Joshua P. Lewis serves as Executive Vice President, Chief Investment Officer, responsible for leading the company's real estate investments, including structuring, negotiation, and deal execution. He joined the company in 2008 and has held various roles of increasing responsibility within the Acquisitions team, including Senior Vice President, Head of Acquisitions since August 2022.

Michelle L. Miller Chief Accounting & Technology Officer and Executive VP

Michelle L. Miller holds the title of Chief Accounting & Technology Officer and Executive Vice President.

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Key Risks to NNN REIT

1. Tenant Default Risk and Retail Sector Concentration: As a net lease REIT, NNN's revenue stream is highly dependent on its individual tenants fulfilling their lease obligations. A significant risk arises from the possibility of tenant defaults, bankruptcies, or early lease terminations, especially given the company's focus on single-tenant properties where a vacancy means 0% occupancy for that specific asset. The company's exclusive concentration on the U.S. retail sector further amplifies this risk, making it particularly vulnerable to downturns or secular shifts within the retail industry. Evidence from past events, such as the COVID-19 pandemic, demonstrated a material weakness when rent collection significantly dropped due to widespread retail disruptions.
2. Interest Rate Sensitivity: REITs, including NNN, are generally sensitive to fluctuations in interest rates. Rising interest rates can negatively impact NNN by increasing its borrowing costs for new acquisitions and for refinancing existing debt. This can pressure the company's profitability, slow its growth initiatives, and potentially affect its stock price and ability to pay dividends, as higher rates make REIT dividends less attractive compared to other income-generating investments.
3. Economic Downturns and Disruptive Events: Broader economic crises, major disruptive events (such as pandemics), or significant technological shifts pose a risk to NNN's business. Economic downturns can impair the financial health of its retail tenants, affecting their ability to pay rent or leading to business closures. Furthermore, new technologies and evolving consumer behavior can disrupt traditional retail models, impacting the long-term viability of some of NNN's tenants and properties. While NNN diversifies across different retail industries, a widespread economic contraction can still have a significant impact across its portfolio.

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The accelerated shift of consumer spending towards e-commerce and digital platforms, leading to decreased demand for traditional physical retail space and increased tenant bankruptcies, thereby challenging the long-term viability and value of retail properties.

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The addressable market for NNN REIT's main products or services, which involve investing in and leasing single-tenant retail properties under long-term net leases, is primarily the U.S. net-lease retail market.

The annual net-lease investment volume in the U.S. reached approximately $51.4 billion in 2025. Of this total, the retail sector accounted for 21% of the share. Therefore, the addressable market for net-lease retail properties in the U.S. is estimated to be approximately $10.8 billion annually (21% of $51.4 billion).

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NNN REIT (NYSE: NNN) is expected to drive future revenue growth over the next two to three years through a combination of strategic property acquisitions, consistent rent growth from its existing portfolio, high occupancy rates supported by active re-leasing efforts, and the strategic disposition and reinvestment of capital.

Here are the key drivers:

• Strategic Acquisitions of New Properties: NNN REIT consistently expands its portfolio through disciplined acquisitions of high-quality retail properties. The company executed over $550 million in acquisition volume in 2024. In 2025, NNN achieved a record year, deploying over $900 million in real estate investments, with an initial cash cap rate of 7.4% and a weighted average remaining lease term of 17.6 years. For 2026, the company anticipates an acquisition volume between $550 million and $650 million. This ongoing acquisition strategy, focused on properties with long-term, net leases, is a primary driver of increased rental income.
• Rent Growth and Lease Escalations from Existing Portfolio: The company's long-term net leases generally include built-in rent escalations, providing a stable and growing revenue stream. NNN REIT reported an increase in Annualized Base Rent (ABR) by 6.7% in the second quarter of 2025 compared to the prior year period. For the full year 2025, ABR increased by 7.8% over prior-year results, reaching $928.1 million. This organic growth from its existing property base contributes significantly to overall revenue expansion.
• Maintenance of High Occupancy Rates and Proactive Re-leasing: NNN REIT maintains consistently high occupancy rates, which are crucial for maximizing rental income. The company reported a strong occupancy rate of 98.5% in the fourth quarter of 2024, and 98.3% by the fourth quarter of 2025. Furthermore, NNN actively manages its portfolio by re-leasing properties from troubled tenants. For example, in 2024, it re-leased 28 out of 64 properties from a mid-western restaurant operator, with rent commencing in May 2025. In the first quarter of 2025, NNN repositioned properties by re-leasing 31 out of 64 repossessed properties, demonstrating a proactive management approach to maintain and grow revenue.
• Strategic Dispositions and Reinvestment of Capital: While dispositions involve selling existing assets, NNN REIT uses this strategy to optimize its portfolio and fund higher-yielding investments. In 2025, the company sold 116 properties for $190.5 million, including income-producing properties, at a weighted average cap rate of 6.4%. The proceeds from these sales are often reinvested into new acquisitions with more attractive cap rates, enhancing future revenue generation. For 2026, planned dispositions are expected to be between $110 million and $150 million. This capital recycling approach ensures continuous portfolio enhancement and revenue growth.

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Share Repurchases

• No share repurchases have been reported for NNN REIT over the last several years.

Share Issuance

• NNN REIT issued 1,992,955 common shares in 2025, generating $85.4 million in gross proceeds.
• The shares issued in 2025 were primarily through the company's at-the-market equity program at an average price of $42.86 per share.

Outbound Investments

• NNN REIT completed over $931.0 million in acquisitions in 2025, marking the highest annual volume in its history.
• The company plans for $600 million in acquisitions in 2026.
• NNN also sold 116 properties for $190.5 million in 2025, and has planned $130 million in dispositions for 2026.

Capital Expenditures

• NNN REIT reported capital expenditures of $123 million in 2021, $67 million in 2022, $116 million in 2023, and $191 million in 2025.
• Due to its triple-net lease structure, tenants are generally responsible for property operating expenses, including maintenance, taxes, insurance, and utilities, resulting in minimal ongoing capital expenditure requirements for NNN.
• Capital expenditures primarily focus on acquisitions and property development/redevelopment to enhance portfolio value.