Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 34

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1A
Chunk 34
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 of December 31, 2024, NNN had approximately $4,373,803,000 of outstanding debt, none of which was secured debt. NNN's unsecured debt instruments contain various restrictive covenants which include, among others, provisions restricting NNN's ability to:

•incur or guarantee additional debt,

•make certain distributions, investments and other restricted payments,

•enter into transactions with certain affiliates,

•create certain liens,

•consolidate, merge or sell NNN's assets, and

•prepay debt.

Secured debt instruments generally contain customary covenants, including, among others, provisions:

•requiring the maintenance of the property securing the debt,

•restricting its ability to sell, assign or further encumber the properties securing the debt,

•restricting its ability to incur additional debt on the property securing the debt,

•restricting modifications to property improvements,

•restricting its ability to amend or modify existing leases on the property securing the debt, and 

•establishing certain prepayment restrictions.

In addition, NNN's debt instruments may contain cross-default provisions, in which case a default of NNN under one debt instrument will be a default of NNN under multiple or all debt instruments of NNN.

NNN's ability to meet some of its debt covenants, including covenants related to the condition of the property or payment of real estate taxes, may be dependent on the performance by NNN's tenants under their leases.

In addition, certain covenants in NNN's debt instruments, including its Credit Facility, require NNN, among other things, to:

•limit certain leverage ratios,

•maintain certain minimum interest and debt service coverage ratios, and

•limit investments in certain types of assets.

NNN's failure to comply with certain of its debt covenants could result in defaults that accelerate the payment under such debt and limit the dividends paid to NNN's stockholders which would likely have a material adverse impact on NNN's financial condition and results of operations. In addition, these defaults could impair its access to the debt and equity markets.

NNN's ability to pay dividends in the future is subject to many factors.

NNN's ability to pay dividends may be impaired if any of the risks described in this section were to occur. In addition, payment of NNN's dividends depends upon NNN's earnings, financial condition, maintenance of NNN's REIT status and other factors as NNN's Board of Directors may deem relevant from