NNN REIT, Inc. (NYSE:NNN) Q3 2024 Earnings Conference Call October 31, 2024 10:30 AM ET
Company Participants
Steve Horn - CEO
Kevin Habicht - CFO
Conference Call Participants
Joshua Dennerlein - Bank of America Merrill Lynch
Michael Goldsmith - UBS
Maddie Fargis - Citi
Linda Tsai - Jefferies
Ronald Kamdem - Morgan Stanley
R.J. Milligan - Raymond James
John Massocca - B. Riley Securities
Operator
Greetings. Welcome to the NNN REIT Third Quarter 2024 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Steve Horn, Chief Executive Officer. You may begin.
Steve Horn
Hey, thanks, Holly. Good morning, everyone. Welcome to NNN's Third Quarter 2024 Earnings Call. I'm joined today by our Chief Financial Officer, Kevin Habicht. This year, NNN has delivered consistent performance, driven by active portfolio management and strategic acquisitions with our relationships, what we call our NNN mode, that sets us apart and delivers our external growth.
Given our year-to-date results, we are tightening our 2024 core FFO per share guidance to a range of $3.28 to $3.32. Additionally, we are now in position to exceed our original acquisition buying guidance, so we are raising the midpoint by 22% to $550 million. This increase showcases the strength of our pipeline and our execution ability.
On the capital markets front, we raised approximately $175 million through the ATM program this quarter. It's actually our largest quarter since the fall of 2019. The discipline of being selective while deploying capital and opportunistic raising capital over the long duration has NNN in great shape through a volatile economic periods.
In times like today's macroeconomic conditions, NNN's discipline of maintaining a solid balance sheet, reasonable acquisition buying does put NNN in a place to execute the remaining deal flow of 2024 but more importantly, to execute 2025 with limited, if any, needs to access to capital markets.
At the end of the quarter, we had nothing drawn on our $1.2 billion line of credit and nearly $175 million of cash after completing $350 million of volume through the first 9 months. Add in NNN's industry-leading free cash flow as a percentage of acquisition volume to the already high liquidity position, we are ready to capitalize on deals when the right opportunities present.
Shifting the highlights to the third quarter financial results. Our portfolio of 3,549 freestanding single-tenant properties continue to perform well with 10 years of term, maintained high occupancy levels of 99.3%, which remains above our long-term average of 98% plus or minus a fraction and only 24 vacant assets.