The Necessity Retail REIT, Inc. (RTL)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
The Necessity Retail REIT, Inc. (RTL) trades at $7.61 with AI Score 56/100 (Grade B). The Necessity Retail REIT, Inc. Market cap: $1.09B, Sector: Real estate.
Price live · AI analysis from Mar 18, 2026Analyst Coverage for RTL: RTL does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates RTL against Real Estate peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
RTL: 1/4 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →The Necessity Retail REIT, Inc. (RTL) Real Estate Portfolio & Strategy
The Necessity Retail REIT (RTL) focuses on a diversified portfolio of service-oriented and traditional retail properties within the U.S. real estate market. As a publicly traded REIT, RTL aims to generate income through strategic property acquisitions and management, but currently faces challenges with profitability and dividend payouts.
What Is the Investment Thesis for RTL?
The Necessity Retail REIT (RTL) presents a mixed investment case. Its focus on service-oriented and traditional retail properties offers some stability in a changing retail landscape. However, the current P/E ratio of -8.56 and a negative profit margin of -26.3% raise concerns about profitability. While the gross margin is a healthy 77.3%, the lack of dividend payments may deter income-seeking investors. Key to RTL's success will be its ability to improve profitability and demonstrate sustainable growth in net operating income. Monitoring occupancy rates, lease renewals, and strategic acquisitions will be crucial in assessing the company's future performance.
Based on FMP financials and quantitative analysis
RTL Key Highlights
- Market Cap of $1.09B indicates RTL's size and relative significance within the REIT sector.
- Negative P/E ratio of -8.56 suggests current challenges in profitability.
- Gross Margin of 77.3% demonstrates the company's ability to generate revenue efficiently from its properties.
- Beta of 1.33 indicates higher volatility compared to the overall market.
- No dividend yield may impact investor appeal, particularly for income-focused investors.
Who Are RTL's Competitors?
RTL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AFIN American Finance Trust, Inc. | $8.23 | -0.36% | $1.18B | 52 |
| CLNC Colony Credit Real Estate, Inc. | $10.32 | +1.57% | $1.33B | 45 |
| CLNY Colony Capital, Inc. | $8.50 | +0.00% | $1.36B | 41 |
| PGRU PropertyGuru Limited | $6.70 | +0.60% | $1.10B | 46 |
| RPT Rithm Property Trust Inc. | $14.95 | +1.70% | $116.20M | 32 |
| LNSPF LondonMetric Property Plc | $2.45 | +0.00% | $5.72B | 63 |
| EPRT Essential Properties Realty Trust, Inc. | $31.25 | +0.24% | $6.76B | 61 |
| TKURF Tokyu REIT, Inc. | $1314.00 | +0.00% | $1.26B | 59 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are RTL's Key Strengths?
- Diversified portfolio of retail properties.
- Focus on service-oriented tenants.
- Established presence in the U.S. market.
What Are RTL's Weaknesses?
- Negative profit margin.
- No dividend yield.
- High beta indicates volatility.
What Could Drive RTL Stock Higher?
- Potential acquisitions of new properties to expand the portfolio.
- Efforts to increase occupancy rates and rental income.
- Strategic property improvements and renovations.
What Are the Key Risks for RTL?
- Financial-distress signal — its Altman Z-Score of -0.29 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-7.2%) — the business is not currently generating profit on shareholder capital.
- Economic downturn impacting tenant performance.
- Rising interest rates increasing borrowing costs.
- Competition from other REITs for attractive properties.
- Changes in consumer preferences impacting retail demand.
What Are the Growth Opportunities for RTL?
- Strategic Acquisitions: RTL can expand its portfolio through strategic acquisitions of properties in high-growth areas or sectors. By identifying undervalued assets or properties with strong potential for increased occupancy and rental rates, RTL can enhance its revenue streams and overall portfolio value. The market for commercial real estate acquisitions is competitive, but careful due diligence and a focus on necessity-based retail can provide a competitive edge. This strategy could yield significant returns within the next 3-5 years.
- Enhanced Property Management: Improving property management practices can lead to increased occupancy rates and higher rental income. By investing in property upgrades, tenant improvements, and proactive maintenance, RTL can attract and retain high-quality tenants. Efficient property management can also reduce operating expenses, further boosting profitability. This is an ongoing opportunity that can yield immediate and long-term benefits.
- Expansion into Underserved Markets: Identifying and entering underserved markets can provide RTL with a first-mover advantage and access to new customer bases. By focusing on areas with limited retail options or strong demographic growth, RTL can establish a strong presence and generate attractive returns. This expansion strategy requires careful market research and a deep understanding of local market dynamics. This could be a viable growth path within the next 2-4 years.
- Focus on Service-Oriented Retail: Capitalizing on the resilience of service-oriented retail can provide a stable revenue stream. By focusing on properties that house essential services such as healthcare, grocery stores, and pharmacies, RTL can mitigate the impact of e-commerce and economic downturns. This strategy aligns with changing consumer preferences and provides a competitive advantage in the retail REIT sector. This is an ongoing strategy that should provide stability.
- Optimizing Capital Structure: Refinancing debt at lower interest rates or issuing equity to reduce leverage can improve RTL's financial flexibility and reduce its cost of capital. By optimizing its capital structure, RTL can free up cash flow for acquisitions, property improvements, and other growth initiatives. This is an ongoing opportunity that requires careful monitoring of interest rates and market conditions.
What Opportunities Does RTL Have?
- Strategic acquisitions to expand portfolio.
- Improved property management to increase occupancy.
- Expansion into underserved markets.
What Threats Does RTL Face?
- Economic downturn impacting retail spending.
- Rising interest rates increasing borrowing costs.
- Increased competition from other REITs.
What Are RTL's Competitive Advantages?
- Diversified portfolio reduces risk.
- Focus on service-oriented retail provides stability.
- Geographic concentration in the United States.
What Does RTL Do?
The Necessity Retail REIT, Inc., trading under the ticker RTL on the Nasdaq, specializes in acquiring and managing a diverse portfolio of commercial real estate properties. These properties primarily consist of service-oriented and traditional retail locations, along with distribution-related assets, all situated within the United States. The REIT's strategy centers on generating revenue through the strategic acquisition, management, and leasing of these properties. RTL aims to provide stable income and long-term value for its shareholders through its real estate operations. The company's portfolio is designed to cater to the evolving needs of the retail sector, focusing on properties that offer essential services and goods, thereby aiming to maintain occupancy and revenue streams. The REIT's website, www.necessityretailreit.com, provides further details on its portfolio and investment strategy. RTL's focus on necessity-based retail aims to provide resilience against economic fluctuations.
What Products and Services Does RTL Offer?
- Acquires service-oriented retail properties.
- Manages a diversified portfolio of commercial real estate.
- Leases retail and distribution spaces to tenants.
- Focuses on properties in the United States.
- Generates revenue through rental income.
- Seeks to provide stable income for shareholders.
How Does RTL Make Money?
- Acquires commercial real estate properties.
- Leases properties to tenants.
- Generates revenue from rental income.
- Manages and maintains properties to maximize occupancy.
What Industry Does RTL Operate In?
The Necessity Retail REIT operates within the diversified REIT sector, which includes companies that own and manage a variety of property types. The REIT sector is influenced by interest rates, economic growth, and demographic trends. Competition is intense, with REITs vying for attractive properties and tenants. The shift towards e-commerce has impacted traditional retail, but service-oriented retail, a focus for RTL, has shown more resilience. The overall REIT market is expected to grow moderately, driven by increasing urbanization and demand for commercial real estate.
Who Are RTL's Key Customers?
- Retail tenants in service-oriented industries.
- Distribution companies requiring warehouse space.
- Shareholders seeking income from real estate investments.
Company Profile
The Necessity Retail REIT, Inc. operates in the REIT - Diversified industry within the Real Estate sector. It is headquartered in New York City, US. The company is led by CEO Edward Michael Weil Jr.. RTL has traded publicly since 2018.
F-Score 5/9Financial Health
The Necessity Retail REIT, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.29 places it in the distress zone, a signal of elevated financial risk.
ROE -7%Key Financial Metrics
Return on equity for The Necessity Retail REIT, Inc. stands at -7.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.6%, showing how much profit it generates from its asset base. Its free cash flow yield is 12.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.41 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -11.7%, the inverse of the P/E and a quick read on earnings relative to price.
RTL Valuation & Market Position
With a $1.09B market cap, The Necessity Retail REIT, Inc. sits in the small-cap segment of the market. Relative to its peer group, RTL's quantitative score of 56/100 is above the peer average of 43/100.
RTL Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Diversified portfolio of retail properties.
- Focus on service-oriented tenants.
- Established presence in the U.S. market.
- Upcoming: Potential acquisitions of new properties to expand the portfolio.
Bear Case
- Negative profit margin.
- No dividend yield.
- High beta indicates volatility.
- Potential: Economic downturn impacting tenant performance.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
RTL Latest News
No recent news available for RTL.
RTL Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for RTL.
Price Targets
Wall Street price target analysis for RTL.
RTL MoonshotScore
What does this score mean?
The MoonshotScore rates RTL's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Edward Michael Weil Jr.
CEO
Edward Michael Weil Jr. serves as the CEO of The Necessity Retail REIT. His background includes extensive experience in real estate investment and management. Weil has held leadership positions in various real estate companies, contributing to strategic planning, portfolio management, and capital allocation. His expertise spans across different property types and investment strategies, providing a comprehensive understanding of the real estate market.
Track Record: Under Edward Michael Weil Jr.'s leadership, The Necessity Retail REIT has focused on acquiring and managing a diversified portfolio of service-oriented and traditional retail properties. Key milestones include strategic property acquisitions and efforts to optimize portfolio performance. However, the company still faces challenges with profitability and dividend payouts.
RTL Real Estate Stock FAQ
What does The Necessity Retail REIT, Inc. do?
The Necessity Retail REIT, Inc. (RTL) is a real estate investment trust (REIT) that specializes in acquiring and managing a diversified portfolio of commercial properties, primarily focusing on service-oriented and traditional retail locations in the United States. The company generates revenue through leasing these properties to tenants and aims to provide stable income and long-term value for its shareholders. RTL's strategy involves identifying and acquiring properties that offer essential services and goods, thereby aiming to maintain high occupancy rates.
What are the main risks for RTL?
The Necessity Retail REIT, Inc. (RTL) faces several risks, including economic downturns that could impact tenant performance and occupancy rates. Rising interest rates could increase borrowing costs and reduce profitability. Increased competition from other REITs for attractive properties could also put pressure on rental rates and acquisition opportunities. Changes in consumer preferences and the growth of e-commerce could impact demand for traditional retail spaces, although RTL's focus on service-oriented retail may mitigate this risk.
What are the key factors to evaluate for RTL?
The Necessity Retail REIT, Inc. (RTL) holds an AI score of 56/100 (moderate). Not financial advice.
How frequently does RTL data refresh on this page?
RTL prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven RTL's recent stock price performance?
The Necessity Retail REIT, Inc. (RTL) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified portfolio of retail properties. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider RTL overvalued or undervalued right now?
Valuing The Necessity Retail REIT, Inc. (RTL) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying RTL?
Before investing in The Necessity Retail REIT, Inc. (RTL), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding RTL to a portfolio?
Key strength of The Necessity Retail REIT, Inc. (RTL): Diversified portfolio of retail properties. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- AI analysis is pending and may provide further insights.