Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 66

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1B
Chunk 66
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 being amortized over the term of the respective notes using the effective interest method.

In accordance with the terms of the indentures pursuant to which NNN's notes have been issued, NNN is required to meet certain restrictive financial covenants, which, among other things, require NNN to maintain (i) certain leverage ratios, and (ii) certain interest coverage. At December 31, 2024, NNN was in compliance with those covenants. 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 does not use derivatives for trading or speculative purposes or currently have any derivatives that are not designated as hedges. NNN had no derivative financial instruments outstanding at December 31, 2024.

Equity Securities

At-The-Market Offerings. NNN has established an ATM which allows NNN to sell shares of common stock from time to time. The following table outlines NNN's ATM:

    2023 ATM
     
    2020 ATM

    Shelf registration statement:

    Effective date
     
    August 2023
     
    August 2020

    Termination date
     
    August 2026
     
    August 2023

    Total allowable shares
     
    17,500,000
     
    17,500,000

    Total shares issued as of December 31, 2024
     
    4,652,100
     
    7,722,511

The following table outlines the common stock issuances pursuant to NNN's ATM for the years ended December 31 (dollars in thousands, except per share data):

    2024

    2023

    Shares of common stock

    4,652,100

    650,135

    Average price per share (net)
     
    $
    45.49

    $
    43.52

    Net proceeds
     
    $
    211,619

    $
    28,292

    Stock issuance costs(1)
     
    $
    3,242

    $
    858

    (1)
    Stock issuance costs consist primarily of