ORLANDO-Although National Retail Properties Inc.’s acquisitions activity during the first half of the year was slower than originally anticipated, it is expected to pick up significantly during the second half of the year, according to CEO Craig Macnab. He made the announcement during the company’s second quarter earnings conference call.
“So far this year, we are making acquisitions one property at a time, which means our acquisition volume has been lower,” Macnab said. “The good news is that visibility on pending acquisitions has improved, and our activity in the second half looks like it may allow us to reach our targeted acquisition goal of $170 million for this year.”
During the second quarter, National Retail Properties acquired six properties for a total of $26.2 million with an initial cap rate of 9.43%. So far this year, the REIT has invested $38.6 million in 10 properties.
Based on letters of intent and deals the REIT is currently underwriting, Macnab says the “pipeline right now… looks a whole lot better than it has at different points of this year.”
He added: “We’ve had a more productive month in July than we’ve had thus far, and we expect that to continue into August. We’re working on a number of transactions – they’re relatively modest in size.”
Any acquisitions that close during the second half of 2010 will have a modest impact on this year’s operating results, Macnab says, but will position the REIT “well for 2011 FFO per share growth."
Macnab points out that National Retail Properties has $50 million of cash on its balance sheet and zero outstanding on its $400 million line of credit – a substantial amount of capital available to deploy, he contends. As of June 30, 2010, the REIT owned 1,014 properties totaling 11.4 million square feet in 43 states.
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