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NNN REIT
(NYSE:NNN)
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Rating:76Outperform
Price Target:
$54.00
â–²(9.36% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by a strong, positive earnings call with raised AFFO guidance, exceptionally high occupancy, and solid liquidity, supported by generally strong multi-year profitability. Offsetting factors are weaker and inconsistent recent cash-flow reporting and meaningful leverage sensitivity, while technical signals are only moderately supportive and valuation is helped more by the dividend yield than by the P/E.
Positive Factors
High Occupancy & Rent Collections
Near-ubiquitous occupancy and very low uncollected rent establish a durable base of contractual cash flows under long-term net leases. That high occupancy reduces vacancy risk, stabilizes AFFO and supports the REIT's ability to fund dividends and acquisitions over the coming 2–6 months and beyond.
Negative Factors
Material Leverage Sensitivity
Leverage near or slightly above internal targets heightens sensitivity to refinancing timing and capital-market swings. For a capital-intensive REIT, elevated net leverage can constrain liquidity use for opportunistic buys, increase cost of capital if markets reprice, and amplify downside in a tighter credit cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy & Rent Collections
Near-ubiquitous occupancy and very low uncollected rent establish a durable base of contractual cash flows under long-term net leases. That high occupancy reduces vacancy risk, stabilizes AFFO and supports the REIT's ability to fund dividends and acquisitions over the coming 2–6 months and beyond.
Read all positive factors
NNN REIT Key Performance Indicators (KPIs)
Any
Occupancy Rate
Share of total rentable space that is currently leased. High occupancy underpins steady income and dividend coverage; falling occupancy often precedes revenue drop, higher tenant improvement or leasing costs, and increased vacancy risk.
Share of total rentable space that is currently leased. High occupancy underpins steady income and dividend coverage; falling occupancy often precedes revenue drop, higher tenant improvement or leasing costs, and increased vacancy risk.
Data provided by:
The Fly
The FlyNNN REIT (NNN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.04B
Dividend Yield5.09%
Average Volume (3M)1.63M
Price to Earnings (P/E)23.1
Beta (1Y)0.17
Revenue Growth5.77%
EPS Growth-4.61%
CountryUS
Employees85
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)2.03
Shares Outstanding190,248,180
10 Day Avg. Volume1,485,485
30 Day Avg. Volume1,627,708
Financial Highlights & Ratios
PEG Ratio-4.59
Price to Book (P/B)1.69
Price to Sales (P/S)8.03
P/FCF Ratio11.14
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$48.00Price Target Upside-2.79% Downside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)2.03
Revenue Forecast (FY)$971.96M
NNN REIT Business Overview & Revenue Model
Company Description
NNN REIT primarily allocates capital to top-tier retail real estate, generally held under extended net lease contracts. As of September 30, 2020, their holdings encompassed 3,114 properties spanning 48 U.S. states. These assets collectively accoun...
How the Company Makes Money
NNN REIT makes money primarily by collecting contractual rental revenue from tenants under long-term, single-tenant net leases. Under net-lease arrangements, tenants are generally responsible for many property-level operating costs (often includin...
NNN REIT Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: very high occupancy, improved rent collections and NOI, year‑over‑year AFFO/FFO growth, active disciplined acquisitions with long lease durations, a raised acquisition target, a conservative and liquid balance sheet, and a dividend increase marking 37 consecutive annual raises. Headwinds are present but largely manageable — short‑term funding timing (a December maturity), modest leverage above target, sector pockets with limited growth (movie theaters, limited‑service restaurants), and competitive acquisition markets that could compress yields. On balance the positives significantly outweigh the manageable risks.Positive Updates
High Occupancy and Strong Rent Collections
Portfolio occupancy 99.1% (up 50 bps Q/Q and up 110 bps YoY); uncollected rent under ~5 basis points; quarterly bad debt ~2 bps of ABR; company lowered full‑year bad debt expectation to ~40 bps (from 60 bps last quarter).
Negative Updates
Near‑Term Debt Maturity and Funding Timing Risk
A $350 million debt maturity in December 2026 represents a short‑term funding item that could influence results depending on timing and execution of capital markets activity.
Read all updates
Q2-2026 Updates
Positive
Negative
High Occupancy and Strong Rent Collections
Portfolio occupancy 99.1% (up 50 bps Q/Q and up 110 bps YoY); uncollected rent under ~5 basis points; quarterly bad debt ~2 bps of ABR; company lowered full‑year bad debt expectation to ~40 bps (from 60 bps last quarter).
Read all positive updates
Company Guidance
NNN raised 2026 AFFO per share guidance to $3.55–$3.59 (a $0.01 midpoint bump, implying ~3.8% YoY growth at the midpoint vs. 2.7% in 2025) and similarly nudged core FFO midpoint up $0.01, driven by stronger Q2 results (AFFO $0.90, NOI margin 96.6%), a $150M increase in expected acquisition volume, a $0.5M reduction in net real estate expenses from faster vacancy recovery, and lower full‑year bad debt now expected at ~40 bps (down from 60 bps). Management also raised acquisition midpoint to $750M (from $600M), increased disposition midpoint to $140M (sold 26 properties in Q2 for ≈$37M and 35 vacant assets YTD), and cited ample balance‑sheet flexibility — $1.4B liquidity, $272M unsettled forward equity, $215M expected free cash flow, a $500M term loan (accordioned +$200M) with $400M swapped to a 4.1% fixed rate, 2.5% of debt floating, W.A. debt maturity ~10.1 years, and net debt/EBITDA ~5.7x (5.4x pro forma).NNN REIT Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 953.25M | 926.21M | 869.27M | 828.11M | 773.05M | 726.41M |
| Gross Profit | 779.57M | 351.95M | 836.95M | 799.73M | 746.77M | 698.02M |
| EBITDA | 874.30M | 860.48M | 830.53M | 794.86M | 706.52M | 633.20M |
| Net Income | 384.67M | 389.78M | 396.83M | 392.34M | 334.63M | 290.11M |
Balance Sheet | ||||||
| Total Assets | 9.61B | 9.38B | 8.87B | 8.66B | 8.15B | 7.75B |
| Cash, Cash Equivalents and Short-Term Investments | 4.22M | 5.05M | 8.73M | 1.19M | 2.50M | 171.32M |
| Total Debt | 0.00 | 4.82B | 4.37B | 4.36B | 3.92B | 3.75B |
| Total Liabilities | 5.15B | 4.97B | 4.51B | 4.50B | 4.02B | 3.85B |
| Stockholders Equity | 4.46B | 4.41B | 4.36B | 4.16B | 4.12B | 3.90B |
Cash Flow | ||||||
| Free Cash Flow | 344.43M | 667.13M | 635.50M | 612.41M | 578.36M | 568.42M |
| Operating Cash Flow | 344.43M | 667.13M | 635.50M | 612.41M | 578.36M | 568.42M |
| Investing Cash Flow | -361.10M | -748.06M | -424.34M | -680.66M | -777.63M | -432.18M |
| Financing Cash Flow | 42.27M | 77.69M | -207.26M | 66.63M | 34.73M | -232.16M |
NNN REIT Technical Analysis
Neutral
49.38
Price Trends
46.18
Positive
44.54
Positive
42.39
Positive
Market Momentum
0.38
Positive
51.10
Neutral
22.59
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 49.38 is above the 20-day moving average (MA) of 47.71, above the 50-day MA of 46.18, and above the 200-day MA of 42.39, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 22.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NNN.
NNN REIT Risk Analysis
NNN REIT disclosed 33 risk factors in its most recent earnings report. NNN REIT reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NNN REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.67B | 22.19 | 14.86% | 3.73% | 5.13% | 28.20% | |
76 Outperform | $9.04B | 23.07 | 8.70% | 4.86% | 5.77% | -4.61% | |
73 Outperform | $10.79B | 24.77 | 13.28% | 3.59% | 8.04% | 25.59% | |
72 Outperform | $9.68B | 41.83 | 3.58% | 3.90% | 18.06% | 10.08% | |
71 Outperform | $6.00B | 36.95 | 6.24% | 2.99% | 8.07% | 106.29% | |
68 Neutral | $5.73B | 17.67 | 11.27% | 4.38% | -5.84% | 395.39% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
NNN
NNN REIT
47.00
7.36
18.56%
ADC
Agree Realty
76.35
5.54
7.82%
KRG
Kite Realty Group
26.71
6.35
31.17%
FRT
Federal Realty
117.91
29.38
33.19%
BRX
Brixmor Property
30.15
5.14
20.56%
PECO
Phillips Edison & Company
40.72
8.25
25.39%
NNN REIT Corporate Events
Business Operations and StrategyPrivate Placements and Financing
NNN REIT Expands Term Loan and Lowers Borrowing Costs
Positive
Jun 23, 2026
On June 23, 2026, NNN REIT, Inc. amended its senior unsecured term loan agreement, exercising a $200 million incremental term loan option that increased the total facility to $500 million, with the loan maturing on February 15, 2029 and two one-ye...
Executive/Board ChangesShareholder Meetings
NNN REIT Stockholders Approve Board, Pay and Auditor
Positive
May 12, 2026
On May 12, 2026, NNN REIT, Inc. held its 2026 annual meeting of stockholders, where shareholders elected seven directors to serve until the next annual meeting or until their successors are duly chosen. The director slate, which received strong su...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.