NNN Closes New Credit Facility - Analyst Blog
May 31 2011 - 8:30AM
Zacks
National Retail Properties,
Inc. (NNN), a publicly owned equity real
estate investment trust, successfully closed a $450 million
unsecured credit facility, with an option of increasing the
facility size up to $650 million. The new credit facility replaces
the company’s existing $400 million credit facility. The new
facility matures in May 2015 and can also be extended till May
2016.
This expanded new facility will
enable the company to attain financial flexibility and seize
investment opportunities and make acquisitions, which in turn will
boost top-line growth. The new credit facility will also facilitate
a hike in annual dividend payout, given the company boasts a track
record of dividend increases for 21 consecutive years. As of
March 31, 2011, National Retail’s cash position stood at $2.5
million.
During the first quarter of 2011,
the company reported FFO (fund from operations) of $31.4 million or
38 cents per share compared with $25.3 million or 31 cents per
share in the year-earlier quarter. Fund from operations, a widely
used metric to gauge the performance of REITs, is obtained after
adding depreciation and amortization and other non-cash expenses to
net income.
National Retail increased its FFO
guidance based on the company's solid property portfolio and
balance sheet coupled with accretive property acquisitions. The
company currently anticipates FFO in the range of $1.49 to $1.53
per share for 2011.
National Retail invests primarily
in high-quality properties subject to long-term net leases. As of
March 31, 2011, the company owned 1,223 Investment properties in 46
states with a gross leasable area of approximately 13.3 million
square feet.
National Retail currently retains a
Zacks #3 Rank, which translates into a short-term Hold rating. We
are also maintaining our long-term Neutral recommendation on the
stock. One of its competitors, Developers Diversified
Realty Corp. (DDR) currently retains a Zacks #3 Rank,
which translates into a short-term Hold rating
DEV DIVERFD RLT (DDR): Free Stock Analysis Report
NATL RETAIL PPT (NNN): Free Stock Analysis Report
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