National Retail Properties, Inc. (NYSE:NNN) Q4 2022 Earnings Conference Call February 9, 2023 10:30 AM ET
Company Participants
Steve Horn - President and Chief Executive Officer
Kevin Habicht - Chief Financial Officer
Conference Call Participants
Brad Heffern - RBC Capital Markets
Spenser Allaway - Green Street
Joshua Dennerlein - Bank of America
Ronald Kamdem - Morgan Stanley
Nick Joseph - Citi
Linda Tsai - Jefferies
John Massocca - Ladenburg
Wes Golladay - Baird
Tayo Okusanya - Credit Suisse
Operator
Good morning, everybody and welcome to National Retail Properties 2022 Year End Earnings Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Mr. Steve Horn, President and CEO of National Retail Properties. Sir, over to you.
Steve Horn
Thank you, Jenny. Good morning and welcome to National Retail Properties’ fourth quarter 2022 earnings call. Joining me on the call is Chief Financial Officer, Kevin Habicht.
As this morning’s press release reflects, NNN’s performance in 2022 produced 9.8% FFO growth along with an all-time high in acquisitions of nearly $850 million. In addition, the year concluded with high occupancy of 99.4% and an impressive rent collection of 99.7% all driven by our best-in-class team here at NNN. The end of the year surge positions the company well headed into the uncertainty of 2023.
A few highlights of 2022 that I am proud of what NNN accomplished. One, 33rd consecutive annual dividend increase, released its inaugural corporate responsibilities and sustainability report, positioned the Board of Directors for the foreseeable future, and 1 of only 13 REITs included in the 2023 Bloomberg Gender Equality Index.
While there is a change at the helm in 2022, the building blocks to realize long-term value at below average risk for our shareholders remain in the most simplistic form. Continue to execute our strategy using a bottom-up approach, continue to increase our annual dividend maintaining top-tier payout ratio, focused on growing FFO per share in the mid single-digits over multiple years. We do this by setting our acquisition, disposition activity and our balance sheet management to achieve that objective.
As I stated earlier, NNN is in solid footing as we were a month into 2023. First, at year end, NNN had $166 million drawn on our $1.1 billion line of credit after fishing the year at all-time high acquisitions. We have the option keeping leverage neutral to use a reasonable amount of availability of the credit facility to roughly $180 million of free cash flow plus $110 million of dispositions to execute our 2023 strategy. Using those three sources, as I mentioned, leaves NNN with a manageable equity requirements for the year.