Company: NNN
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001193125-25-263643
Chunk: 6

Company: NNN REIT, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 3
Chunk 6
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NNN is exposed to interest rate risk primarily as a result of its variable rate Credit Facility and its fixed rate long-term debt which is used to finance NNN's Property acquisitions and construction commitments, as well as for general corporate purposes. NNN's interest rate risk management objective is to limit the impact of interest rate changes on earnings and cash flows and to reduce overall borrowing costs. To achieve its objectives, NNN borrows at both fixed and variable rates on its long-term debt and periodically uses derivatives to hedge the interest rate risk of future borrowings. As of September 30, 2025, NNN had no outstanding derivatives.

As of September 30, 2025, NNN's variable rate Credit Facility had no outstanding balance and a weighted average outstanding balance of $75,529,000 with a weighted average interest rate of 5.25% for the nine months ended September 30, 2025 compared to a weighted average outstanding balance of $75,769,000 with a weighted average interest rate of 6.28% for the same period in 2024.

The table below summarizes NNN's market risks associated with its debt obligations as of September 30, 2025, detailing principal payments and related interest rates by maturity year. The table incorporates only debt obligations that existed as of September 30, 2025, and it does not account for future obligations and therefore has limited predictive value. Actual realized gains or losses from interest rate fluctuations will depend on future exposures, interest rates and NNN's hedging strategies. If interest rates on NNN's variable rate debt increased by one percent, NNN's interest expense would have increased by less than one percent for the nine months ended September 30, 2025.

     Debt Obligations(1) (dollars in thousands)

     Fixed Rate Debt

     Unsecured Debt(2)

     PrincipalDebtObligation

     EffectiveInterestRate

     2025
      
     $
     400,000

     4.03
     %

     2026

     350,000

     3.73
     %

     2027

     400,000

     3.55
     %

     2028

     400,000

     4.39
     %

     2029

     —

     —

     Thereafter

     3,400,000

     4.30
     %
     (3)

     Total