Matis Farges's questions to NNN REIT Inc (NNN) leadership • Q3 2024
Question
Matis Farges, on for Smedes Rose, asked for an explanation of the moving parts behind the slight decline in the AFFO guidance midpoint, despite lower SG&A and higher acquisition targets. He also inquired again about plans to increase the credit loss assumption for 2025.
Answer
CFO Kevin B. Habicht advised not to read too much into the AFFO guidance tweak, attributing it to minor per-share rounding and an effort to align the Core FFO and AFFO guidance ranges. On the 2025 credit loss, he reiterated that while an assumption above 100 basis points is possible, the company will wait for more clarity on the Frisch's and Badcock situations before issuing formal guidance.