As an owner of a large number of properties throughout the United States it is important to NNN REIT to be a good steward of the environment.
NNN REIT demonstrates its commitment to good stewardship of the environment in a variety of ways both at our headquarters in Orlando, Florida and at our properties across the country.
Our commitment has recently been recognized by the Institute for Market Transformation and the U.S. Department of Energy Better Buildings Alliance when we were awarded Green Lease Leader Silver for the sustainability-focused updates we added to our form lease.
NNN REIT Headquarters
NNN REIT’s headquarters building is EPA’s ENERGY STAR® certified. Buildings that have earned EPA’s ENERGY STAR® use 35% less energy and generate 35% fewer greenhouse gas emissions. In order to receive this designation, the following components have been met:
- Utilization of energy efficient LED lighting
- Use of environmentally friendly cleaning products. The products must meet the Green Seal certification standards.
- Variable Frequency drives and more energy efficient motors are purchased and installed in all cooling tower units.
- Mandatory shut down of all lighting and HVAC systems daily.
- The building utilizes a bulb crusher for all lamps which contains a dust removal system that exceed HEPA standards by removing 99.99% of particles for the building fluorescents.
- To minimize generation of waste and release of pollutants, the building requires all paint to be low VOC.
- Storm water retention is managed thru water runoff from roofs and paved areas and are routed to various underground drainage basins. All air handler condensate drain water, fire sprinkler relief and drain water are also piped to this drain field. All water runoff is naturally filtered and returned to the aquifer. This underground system replaces the need for retention ponds.
- Green-friendly native and drought-tolerant plants are used in landscaping to minimize watering needs.
Furthermore, NNN REIT encourages a culture of environmental preservation and efficient usage of environmental resources throughout the company by supporting the following initiatives:
- Associates are provided with a pre-tax payroll deduction for the use of the SunRail train system to limit the number of automobile trips and reduce our carbon footprint.
- Single-stream recycling is implemented at NNN REIT’s headquarters.
- NNN REIT purchases ENERGY STAR® certified desktop and laptop computers, monitors and printers.
- NNN REIT uses ENERGY STAR® power management settings on our computers and monitors.
- NNN REIT recycles old computer equipment, printers and any other electronic items.
- NNN REIT disposes all ink cartridges utilizing TOSHIBA’s recycling program.
- NNN REIT’s document destruction provider recycles all shredded materials (resulting in annual savings of roughly 295 trees a year).
- NNN REIT requires all associates to use personal cups and has installed water machines to limit the use of plastic cups and bottles.
- NNN REIT’s has located its headquarters where our associates can reduce their carbon footprint by using the following green transportation programs:
- Short walk to SunRail commuter rail line station
- Electric vehicle charging stations and designated parking spaces for hybrid vehicles
- Bicycle storage lockers as well as bike rack
- Electric commuter bike rental stations
- Free Lynx bus for travel throughout downtown
- Ample lunch options easily within walking distance of our office
NNN REIT Portfolio of Properties
The properties in NNN REIT’s portfolio are predominately leased to our tenants under long-term net leases which typically carry initial terms ranging from 10 to 20 years, along with additional option periods. These lease terms grant tenants exclusive control of energy conservation and environmental management programs on the premises. Many of NNN REIT’s tenants have conservation and sustainability programs designed to conserve environmental resources and limit the environmental impact associated with the use of our properties. Key initiatives include, but not limited to, implementing green building and lighting standards, emissions reduction programs and recycling efforts.
Our leases also require tenants to fully comply with all environmental laws, rules and regulations, including any remediation requirements. To ensure compliance, our risk management associates monitor environmental conditions at our properties to verify that the tenants fulfill their obligations to remediate and/or mitigate any ongoing environmental issues. As part of our property acquisition process, NNN REIT obtains an environmental assessment from licensed environmental consultants to identify and understand any environmental risks and liabilities associated with a given property and as well as ensure that tenants will address any environmental issues. Furthermore, we maintain a portfolio environmental insurance policy that covers substantially all our properties for certain environmental risks.
When a new lease is entered with a tenant we actively engage with our tenants to promote good environmental practices on our properties, including discussions regarding the following:
- Environmental sustainability and recycling requirements
- Energy efficiency requirements, including Energy Star requirements, and EPA Water Sense program requirements
- Environmental conservation and green building requirements, in accordance with industry best practices
- Energy usage reporting requirements, including energy and water data reporting for all new and renewing tenants
Top Tenants Reporting Sustainability Data
| ESG-Reporting Tenants | % of Total (1) |
|---|---|
| 7-Eleven | 4.3% |
| Mister Car Wash | 3.8% |
| Dave & Buster's | 3.6% |
| BJ's Wholesale Club | 2.2% |
| Sunoco | 1.7% |
| Walgreens | 1.6% |
| Casey's General Stores (convenience stores) | 1.6% |
(1) Based on annual base rent as of March 31, 2026
Climate Preparedness
NNN REIT regularly monitors the status of impending natural disasters and the impact of such disasters on our properties. In most leases NNN REIT’s tenants are required to carry full replacement cost coverage on all improvements located on our properties. For those properties located in a nationally designated flood zone, NNN REIT typically requires its tenants to carry flood insurance pursuant to the federal flood insurance program. For those properties located in an area of high earthquake risk, NNN REIT typically requires its tenants to carry earthquake insurance above what is typically covered in an extended coverage policy. In addition, NNN REIT also carries a contingent extended coverage policy on all of its properties which also provides coverage for certain casualty events, including fire and windstorm.
Carbon Offsets
As part of our efforts to be a good steward of our planet, NNN REIT has purchased carbon offsets from Anew Climate, to offset our estimated Scope 1 and 2 emissions related to our Orlando headquarters, as well as our estimated annual Scope 2 emissions from the vacant properties in our portfolio as of year-end 2025. We selected Anew Climate because of their experience and expertise in carbon offset projects. Anew Climate has an over 20-year track record of structuring climate action projects, with over 400 carbon and RNG projects across their portfolio.
The offset projects we invested into are the McCloud River project in Northern California, the Apalachicola River Project in Florida and the Northern Kenya Rangelands Project.
McCloud River Project
Through Anew Climate, NNN is supporting the McCloud River Project, located in Shasta and Siskiyou counties in California. NNN’s investment in meaningful emissions reductions, while supporting the preservation of critical forest ecosystems and water resources, reflects our continued endeavor to make a positive impact in locales where we operate. Aligned with the Sustainable Development Goals, the McCloud River Project significantly contributes to climate action and clean water initiatives. The project is projected to achieve over 1 million metric tons of CO2 emissions reductions in its first 25 years, exemplifying a commitment to environmental sustainability and biodiversity conservation while supporting local economies.
Apalachicola River Project
The Apalachicola River Project through Aurora and Anew, which aims to transition areas historically used for timber production since 1917 back to their natural state, allowing the forest to store more carbon, provide ecosystem benefits, and mitigate future climate-related events.
Northern Kenya Rangelands Project
The Northern Kenya Rangelands Project has been developed to improve grassland health and sequester carbon in the soils of community rangelands in northern Kenya by making livestock grazing more sustainable. It is the first large, landscape-scale soil carbon project of its kind in the world. The land, covering more than 2 million hectares, is on the path to improved soil health, more robust ecosystems and increased carbon sequestration thanks to these strategies. It utilizes carbon sequestration to regenerate grasslands in Northern Kenya to improve grazing practices in the region. Carbon sequestration is the process of capturing and storing atmospheric carbon dioxide. It is one method of reducing the amount of carbon dioxide in the atmosphere with the goal of reducing global climate change. The Northern Kenya Rangelands Project is 1 of only 21 projects worldwide with a CCBA triple gold status.
