NNN REIT (NNN) AI Stock Analysis

• Market Cap: $7.59B
• Dividend Yield: 6.04%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.20
• Revenue Growth: 4.53%
• EPS Growth: -3.46%
• Country: US
• Employees: 83
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.51
• Shares Outstanding: 189,920,820
• 10 Day Avg. Volume: 1,057,526
• 30 Day Avg. Volume: 1,295,057
• PEG Ratio: 0.00
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 8.63
• P/FCF Ratio: 11.81
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 14.06
• Enterprise Value/Gross Profit: 14.68
• Enterprise Value/Ebitda: 15.03
• 1Y Price Target: $44.00
• Price Target Upside: 10.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $46.00 ▲(15.17% Upside)

NNN REIT's strong financial performance and positive earnings call are the most significant factors contributing to the score. The attractive dividend yield and reasonable valuation further support the stock's appeal. However, technical analysis indicates potential bearish momentum, which slightly tempers the overall score.

Positive Factors

Strong Acquisition Performance

The company's ability to close numerous deals and increase acquisition value to a record high demonstrates its strategic growth and market expansion, enhancing its long-term revenue potential.

High Occupancy and Lease Renewal Rates

High occupancy and lease renewal rates indicate strong tenant relationships and demand for properties, ensuring stable cash flows and reducing vacancy risks over time.

Robust Financial Position

A robust financial position with significant liquidity and long debt maturities provides the company with flexibility to pursue growth opportunities and withstand economic fluctuations.

Negative Factors

Temporary Occupancy Reduction

Temporary occupancy reduction due to legal disputes can impact revenue and operational efficiency, highlighting potential vulnerabilities in tenant agreements.

Increased Competition

Rising competition for property acquisitions can pressure cap rates and profitability, challenging the company's ability to maintain its growth trajectory and market position.

Rising Debt Levels

Increasing debt levels may strain financial flexibility and cash flow, necessitating prudent debt management to ensure long-term financial stability.

NNN REIT Business Overview & Revenue Model

Company Description

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2020, the company owned 3,114 properties in 48 states with a gross leasable area of approximately 32.4 million square feet and with a weighted average remaining lease term of 10.7 years.

How the Company Makes Money

NNN REIT generates revenue primarily through rental income from its portfolio of properties. The company enters into long-term lease agreements with tenants, which typically provide for fixed rent increases over time, creating a predictable revenue stream. As a net lease REIT, NNN's tenants are responsible for most property-related expenses, which minimizes the operating costs for the company and enhances its profit margins. Additionally, the company may benefit from the appreciation of property values over time, allowing for potential gains upon property sales. NNN REIT’s strategic focus on high-quality tenants in essential retail sectors also helps to reduce vacancy rates and maintain stable cash flows. The company may also engage in capital recycling strategies, which involve selling mature properties and reinvesting the proceeds into new acquisitions, further contributing to its revenue generation.

NNN REIT Financial Statement Overview

Summary

NNN REIT exhibits strong financial performance with high profitability and steady revenue growth. The balance sheet is stable, though increasing debt levels should be monitored. Cash flow is robust, supporting the company's operations and growth.

Income Statement

NNN REIT demonstrates strong profitability with consistently high gross profit margins above 95% and net profit margins improving to over 43% in the TTM. Revenue growth is steady, with a notable increase of 1.3% in the TTM. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the slight decline in net income in the TTM suggests a need for cautious monitoring.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio around 1, indicating balanced leverage. Return on equity remains stable around 9%, showcasing effective use of equity. The equity ratio is healthy, suggesting a solid asset base. However, the increase in total debt over time requires careful management to maintain financial stability.

Cash Flow

NNN REIT's cash flow is strong, with free cash flow consistently covering net income. The free cash flow growth rate in the TTM is impressive at 1.8%, indicating efficient cash generation. Operating cash flow to net income ratio is stable, reflecting reliable cash flow operations. The company should continue to focus on maintaining this positive cash flow trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	906.30M	869.27M	828.11M	773.05M	726.41M	660.68M
Gross Profit	867.81M	836.95M	799.73M	746.77M	698.02M	632.32M
EBITDA	847.67M	830.53M	794.86M	706.52M	633.20M	554.85M
Net Income	391.72M	396.83M	392.34M	334.63M	290.11M	228.80M
Balance Sheet
Total Assets	9.48B	8.87B	8.66B	8.15B	7.75B	7.64B
Cash, Cash Equivalents and Short-Term Investments	157.92M	8.73M	1.19M	2.50M	171.32M	267.24M
Total Debt	4.87B	4.37B	4.36B	3.92B	3.75B	3.22B
Total Liabilities	5.06B	4.51B	4.50B	4.02B	3.85B	3.32B
Stockholders Equity	4.42B	4.36B	4.16B	4.12B	3.90B	4.32B
Cash Flow
Free Cash Flow	658.64M	635.50M	612.41M	578.36M	568.42M	450.19M
Operating Cash Flow	658.64M	635.50M	612.41M	578.36M	568.42M	450.19M
Investing Cash Flow	-814.17M	-424.34M	-680.66M	-777.63M	-432.18M	-142.82M
Financing Cash Flow	135.71M	-207.26M	66.63M	34.73M	-232.16M	-41.25M

NNN REIT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNN, the sentiment is Neutral. The current price of 39.94 is above the 20-day moving average (MA) of 39.81, below the 50-day MA of 40.42, and below the 200-day MA of 40.82, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 55.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NNN.

NNN REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NNN	78 Outperform	$7.59B	19.13	8.91%	6.04%	4.53%	-3.46%
FRT	77 Outperform	$8.64B	25.30	10.92%	4.38%	6.05%	14.70%
PECO	75 Outperform	$4.84B	57.28	3.62%	3.52%	10.58%	37.97%
ADC	73 Outperform	$8.25B	42.01	3.47%	4.28%	14.67%	-5.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BRX	65 Neutral	$7.85B	23.76	11.36%	4.41%	6.07%	-0.28%
KRG	61 Neutral	$5.14B	211.12	4.71%	4.55%	3.67%	―

NNN REIT Corporate Events

NNN REIT Secures $300M Term Loan Agreement

On December 17, 2025, NNN REIT, Inc. entered into a $300 million Term Loan Agreement with the potential to expand to $500 million. The loan, set to mature on February 15, 2029, includes favorable interest terms tied to the company’s credit ratings and restrictive covenants aligning with its financial strategy. Additionally, amendments were made to the company’s Revolving Credit Agreement to remove a 10-basis point SOFR credit spread adjustment, signifying strategic recalibrations in its financing arrangements. These updates provide NNN REIT with enhanced flexibility and funding capacity for general corporate purposes.

The most recent analyst rating on (NNN) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on NNN REIT stock, see the NNN Stock Forecast page.