ORLANDO - NNN REIT, Inc. (NYSE: NNN), a real estate investment trust currently trading at $39.57 per share, has announced the retirement of its long-time Executive Vice President and Chief Financial Officer, Kevin B. Habicht, effective March 31, 2025. Vincent H. Chao is set to join the company and will assume the role of CFO and other executive positions starting April 1, 2025. According to InvestingPro data, NNN maintains a "GREAT" financial health score, suggesting strong operational stability during this leadership transition.
Habicht, who has been a part of NNN since December 1993, will also step down from the Board of Directors upon his retirement. His tenure at NNN spans over three decades, during which he has played a crucial role in the company's financial and strategic development. Steve Horn, NNN's CEO, praised Habicht's contributions, emphasizing his steady leadership and financial acumen that have supported the company's growth and navigated market challenges.
Vincent H. Chao, who brings a wealth of experience from the public company and investment banking sectors, will join NNN as Executive Vice President next Monday. Chao's recent role was at RPT Realty (NYSE:RPT), where he managed capital markets and corporate finance, among other responsibilities. His background also includes a stint as the Head of U.S. REIT Research at Deutsche Bank (ETR:DBKGn) Securities, Inc., and roles at Procter and Gamble. Chao holds a Bachelor of Science in Mechanical Engineering from Cornell University and an MBA from New York University's Stern (AS:PBHP) School of Business.
NNN REIT specializes in high-quality retail properties with long-term net leases. As of September 30, 2024, the trust owned 3,549 properties across 49 states, with a gross leasable area of approximately 36.6 million square feet. The company is noted for its consistent dividend growth, having increased annual dividends for 35 consecutive years, currently offering an attractive 5.75% yield. With a strong current ratio of 2.93 and stable revenue growth of 7% over the last twelve months, NNN maintains a solid financial foundation. InvestingPro subscribers can access 6 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of NNN's performance and outlook.
The transition is part of NNN's ongoing leadership changes, and Habicht expressed his gratitude for the time spent with the company and its community. This news is based on a press release statement from NNN REIT, Inc.
In other recent news, National Retail Properties (NYSE:NNN) has seen significant changes in its stock ratings and executive compensation. Jefferies analysts downgraded the company's stock from Buy to Hold, setting a new price target of $43.00, down from the previous $52.00. Their adjusted funds from operations per share (AFFO/sh) forecasts for Fiscal Year 2024 and 2025 were also reduced, suggesting a cautious outlook towards the company's future financial performance.
Meanwhile, Stifel reaffirmed its Buy rating on the company, maintaining a price target of $48.25, and Baird financial analysts adjusted their price target to $45.00 from $44.00. Both firms highlighted the company's strategic management and optimistic outlook despite challenges with certain tenants.
National Retail Properties also reported strong third-quarter performance, raising its acquisition guidance midpoint by 22% to $550 million and tightening its core FFO per share outlook for 2024 to $3.28 to $3.32. The company announced changes in executive compensation, with a new employment agreement for top executive Michelle L. Miller, which includes an annual base salary of $350,000, performance-based cash bonuses, and potential equity awards.
Furthermore, the company is anticipating the return of properties from Badcock to its portfolio in the fourth quarter of 2024, which is expected to contribute positively to the company’s performance. The company also raised $175 million through its ATM program, ending the quarter with a substantial cash balance and no debt maturing until late 2025. These recent developments reflect National Retail Properties' continued focus on prudent risk management and capital allocation.
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