NNN REIT, Inc. (NNN) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

NNN REIT, Inc. (NNN) Real Estate Portfolio & Strategy

NNN REIT, Inc. is a leading retail REIT specializing in net-leased, single-tenant properties across 48 states. With a portfolio of 3,114 properties and a weighted average lease term of 10.7 years (as of September 30, 2020), NNN offers investors stable, long-term income through its diversified retail real estate holdings.

What Is the Investment Thesis for NNN?

NNN REIT, Inc. presents a compelling investment case based on its established portfolio of net-leased retail properties and a proven track record of consistent dividend payouts. The company's focus on single-tenant properties under long-term net leases provides a stable and predictable income stream, supported by a diversified tenant base across various retail sectors. With a dividend yield of 5.41%, NNN offers an attractive income opportunity for investors seeking stable returns. Key growth catalysts include strategic acquisitions of high-quality retail properties and proactive asset management to maintain high occupancy rates. Potential risks include fluctuations in interest rates, which could impact borrowing costs and property valuations, and changes in consumer spending patterns, which could affect tenant performance. As of 2026-05-10, the company's P/E ratio of 22.8 reflects investor confidence in its long-term growth prospects.

Based on FMP financials and quantitative analysis

NNN Key Highlights

Market capitalization of $8.80B, reflecting its position as a significant player in the retail REIT sector.

• Profit margin of 41.4%, indicating efficient management and strong profitability from its net-lease model.
• Gross margin of 81.4%, showcasing the effectiveness of its lease agreements in generating revenue while minimizing operating expenses.
• Dividend yield of 5.41%, offering an attractive income stream for investors.
• Beta of 0.83, suggesting lower volatility compared to the overall market, making it a potentially stable investment.

Who Are NNN's Competitors?

NNN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NNN's Key Strengths?

Stable income stream from long-term net leases.

• Diversified tenant base across various retail sectors.
• Extensive portfolio of properties across multiple states.
• Experienced management team.

What Are NNN's Weaknesses?

Exposure to retail sector trends and consumer spending patterns.

• Dependence on tenants' ability to meet lease obligations.
• Sensitivity to interest rate fluctuations.
• Potential impact from economic downturns.

What Could Drive NNN Stock Higher?

Potential acquisitions of new properties to expand the portfolio.

• Lease renewals and rent increases on existing properties.
• Proactive asset management to maintain high occupancy rates.
• Strategic capital allocation to optimize portfolio performance.

What Are the Key Risks for NNN?

Financial-distress signal — its Altman Z-Score of 1.19 sits in the distress zone (elevated bankruptcy risk).

• Economic downturns and reduced consumer spending could impact tenant performance.
• Rising interest rates could increase borrowing costs and reduce property valuations.
• Changes in consumer preferences and the growth of e-commerce could affect retail tenant demand.
• Competition from other REITs and real estate investors.
• Dependence on tenants' ability to meet lease obligations.

What Are the Growth Opportunities for NNN?

• Strategic Acquisitions: NNN REIT can grow by acquiring additional single-tenant retail properties that fit its investment criteria. The market for net-leased properties is substantial, offering opportunities to expand its portfolio and diversify its tenant base further. By focusing on high-quality properties in strong retail locations, NNN can enhance its long-term income stream. The company can target properties leased to tenants in sectors that are less susceptible to e-commerce disruption, such as convenience stores and quick-service restaurants. Timeline: Ongoing.
• Lease Renewals and Rent Increases: NNN REIT has the opportunity to increase its revenue by successfully renewing leases with existing tenants and negotiating rent increases. As leases expire, the company can capitalize on market conditions to secure higher rental rates, boosting its overall profitability. Proactive asset management and strong tenant relationships are crucial for maximizing lease renewal rates and achieving favorable rent adjustments. Timeline: Ongoing.
• Portfolio Optimization: NNN REIT can improve its portfolio performance by selectively selling underperforming assets and reinvesting the proceeds into higher-growth opportunities. This strategic approach allows the company to enhance its overall portfolio quality and increase its long-term returns. By divesting properties in weaker markets or those with less favorable lease terms, NNN can free up capital to pursue more attractive investment opportunities. Timeline: Ongoing.
• Development and Redevelopment: NNN REIT can pursue development and redevelopment projects to enhance the value of its existing properties. By adding new retail space or upgrading existing facilities, the company can attract new tenants and increase rental income. Development and redevelopment projects can also improve the overall appeal of its properties, making them more attractive to both tenants and investors. Timeline: Ongoing.
• Expansion into New Markets: NNN REIT has the potential to expand its geographic footprint by entering new markets with strong retail fundamentals. By diversifying its property holdings across a wider range of states, the company can reduce its exposure to regional economic downturns and enhance its overall portfolio stability. Careful market research and due diligence are essential for identifying attractive investment opportunities in new geographic areas. Timeline: Ongoing.

What Are NNN's Competitive Advantages?

• Long-term net leases provide a stable and predictable income stream.
• Diversified tenant base reduces exposure to individual tenant performance.
• Extensive portfolio of properties across multiple states provides geographic diversification.
• Experienced management team with a proven track record of success.

What Does NNN Do?

National Retail Properties, now known as NNN REIT, Inc., was founded with the goal of investing in and managing a portfolio of single-tenant retail properties under long-term net leases. The company's strategy revolves around acquiring and managing properties leased to a variety of retail tenants, providing diversification across different retail sectors and geographic locations. NNN REIT's business model focuses on net leases, meaning tenants are responsible for property taxes, insurance, and maintenance, reducing the REIT's operating expenses and providing a more predictable income stream. As of September 30, 2020, NNN REIT owned 3,114 properties in 48 states, encompassing approximately 32.4 million square feet of gross leasable area. These properties are leased to a diverse group of national and regional retailers, operating in various sectors, including convenience stores, restaurants, automotive services, and entertainment. The company's long-term lease structure, with a weighted average remaining lease term of 10.7 years as of September 30, 2020, provides stability and predictability to its cash flows. NNN REIT, Inc. is headquartered in Orlando, Florida, and continues to focus on expanding its portfolio of high-quality retail properties through strategic acquisitions and proactive asset management.

What Products and Services Does NNN Offer?

• Invests in single-tenant retail properties across the United States.
• Focuses on properties leased under long-term net leases.
• Acquires and manages a diversified portfolio of retail properties.
• Generates income through rental payments from tenants.
• Minimizes operating expenses through net lease agreements.
• Provides stable and predictable cash flows to investors.
• Manages a portfolio of over 3,114 properties in 48 states (as of September 30, 2020).

How Does NNN Make Money?

• Acquires single-tenant retail properties.
• Leases properties to retail tenants under long-term net leases.
• Tenants are responsible for property taxes, insurance, and maintenance.
• NNN REIT collects rental income and distributes it to shareholders through dividends.

What Industry Does NNN Operate In?

NNN REIT, Inc. operates within the retail REIT sector, which has been evolving due to changing consumer preferences and the growth of e-commerce. The company's focus on net-leased, single-tenant properties differentiates it from other retail REITs that own and manage larger shopping centers or malls. NNN REIT competes with other net-lease REITs like ADC: Agree Realty Corporation and WPC: W. P. Carey Inc., as well as broader retail REITs such as KIM: Kimco Realty Corporation and REG: Regency Centers Corporation. The retail REIT sector is influenced by macroeconomic factors such as interest rates, employment levels, and consumer confidence. Companies that can maintain high occupancy rates and manage their property portfolios effectively are well-positioned to succeed in this competitive landscape.

Who Are NNN's Key Customers?

• National and regional retail tenants.
• Tenants operate in various sectors, including convenience stores, restaurants, automotive services, and entertainment.
• Tenants are responsible for the day-to-day operations and maintenance of the properties.

Company Profile

NNN REIT, Inc. operates in the REIT - Retail industry within the Real Estate sector. It is headquartered in Orlando, US. The company is led by CEO Stephen A. Horn Jr.. NNN has traded publicly since 1984.

NNN REIT, Inc. Financial Trajectory

NNN REIT, Inc. (NNN) reported $244.3M in revenue for Q2 2026, reflecting 1.6% growth compared to the prior quarter. The company recorded net income of $97.9M, with diluted EPS of $0.52. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Real Estate company. Across the four most recent quarters, NNN averaged $0.51 in diluted EPS.

How NNN REIT, Inc. Is Valued

NNN REIT, Inc. carries a market capitalization of $8.80B, placing it in the mid-cap category. Relative to its peer group, NNN's quantitative score of 72/100 is roughly in line with the peer average of 70/100.

Return on equity for NNN REIT, Inc. stands at 8.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.1%, showing how much profit it generates from its asset base. NNN trades at a trailing price-to-earnings ratio of 22.80, roughly in line with the Real Estate sector average of ~22x. Its free cash flow yield is 7.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.48 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 4.4%, the inverse of the P/E and a quick read on earnings relative to price.

NNN REIT, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.19 places it in the distress zone, a signal of elevated financial risk.

NNN REIT, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.0% above estimates on average.

Wall Street analysts project NNN REIT, Inc. revenue of about $973.9M for fiscal 2026, with EPS near $2.05. The estimate reflects 9 contributing analysts.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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