What drove NNN's consistent EPS growth in 2024?

NNN's consistent EPS growth in 2024 can be attributed to a combination of factors:

1. Revenue Growth: NNN's total revenue grew by 5% in 2024, reaching $869.27 million. This increase in revenue contributed to the overall financial performance of the company, which in turn supported the growth in EPS.
2. Net Income Growth: The net income of NNN increased by 0.01% in 2024, amounting to $396.84 million. While this growth might seem modest, it still indicates a positive trend that can impact EPS when combined with revenue growth.
3. Efficient Property Management: NNN's focus on property management, particularly in sectors like Convenience Stores, Automotive Service, Restaurants, and Family Entertainment Centers, which account for 55.6% of its annual base rent, has likely contributed to stable and consistent income streams. These sectors tend to have resilient rental income, which can provide a steady foundation for EPS growth.
4. Capital Management: NNN's strategic capital management, such as issuing $21.5 million in common shares, has enhanced its financial position and potentially increased its earnings capacity, thereby supporting EPS growth.
5. Disposition of Real Estate: The company has seen gains from the disposition of real estate, with a reported gain of $7.77 million in Q3 2024. Such gains can directly impact net income and, consequently, EPS.

In summary, NNN's consistent EPS growth in 2024 is a result of a combination of revenue and net income growth, efficient property management, strategic capital management, and successful real estate disposals. These factors together have supported the company's EPS growth trajectory.