About Stephen Horn
In a January 2025 interview at Nareit's REITworld conference, NNN REIT CEO Steve Horn discussed the company's outlook for 2025. Horn stated that 2024 was set up with a "light Capital markets footprint" and that 2025 would likely see a return to a "normal run rate of Acquisitions." He identified opportunities with current tenants in sectors like auto service and convenience stores, while citing challenges including uncertainty in capital markets and the direction of the 10-year Treasury yield following the recent election.
Horn noted that common investor questions centered on funding sources and debt markets, as well as potential consumer softening and its effect on the portfolio. He emphasized that NNN REIT is "kind of self-funded," pointing to approximately $2 million of free cash flow and dispositions as covering the company's equity needs. Horn also said the company has spent time analyzing portfolio sales trends in light of the consumer environment.
Source: AI-verified profile updated from Stephen Horn's recent appearances.
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Transcript (6 segments)
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Interviewer0:00
So 2024 we set the year up to have a light capital markets footprint and we've executed that. And then 2025 I think we'll be elevated. We'll go back to kind of our normal run rate of acquisitions. For 2025 we haven't given guidance yet, but as I said here today, I kind of say it feels right to go back to normal. I'm here today with Steve Horn, CEO of NNN RE. Where do you see the strongest opportunities and potential challenges for NNN in 2025?
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Stephen Horn0:28
You know, the opportunities year over year, year in year out, our opportunities are with our current tenants, our relationships. So we see heading into 25 will be a continuation of 24 that we have a lot of good opportunities with that, and it's in the auto service, the convenience store, kind of our current rent roll. Challenges I would say is with the election now recently completed, the uncertainty of the capital markets and the 10-year where it's going to go. So the funding source, it's a little up in the air right now, but as we progress into the year, it'll have a little more clarity.
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Interviewer1:04
And as you're meeting with investors here at RE World this week, are there common questions or issues that you're responding to?
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Stephen Horn1:10
Yeah, I think the two common things: one is kind of the challenges of the funding source of capital markets and the debt markets going into next year. What I feel comfortable about with NNN is we're kind of self-funded. We have about $2 million of free cash flow and then through dispositions really takes care of our equity needs for 2025. The other theme is kind of the consumer softening and how that is affecting our portfolio. So we spent a lot of time looking at the portfolio and the consumer and how sales are trending.
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Interviewer1:43
And how active do you expect to be in the year ahead regarding acquisitions and dispositions?
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Stephen Horn1:48
So 2024 we set the year up to have a light capital markets footprint and we've executed that. And then 2025 I think will be elevated. We'll go back to kind of our normal run rate of acquisitions. For 2025 we haven't given guidance yet, but as I said here today, I kind of say it feels right to go back to normal.
