NNN REIT (NNN) AI Stock Analysis

• Market Cap: $7.71B
• Dividend Yield: 5.81%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.22
• 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: 1,244,860
• 30 Day Avg. Volume: 1,307,081
• 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: 1.65
• Enterprise Value/Revenue: 14.06
• Enterprise Value/Gross Profit: 14.68
• Enterprise Value/Ebitda: 15.03
• 1Y Price Target: $44.00
• Price Target Upside: 8.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.01
• Revenue Forecast (FY): $912.51M

• Rating: 76 Outperform
• Price Target: $46.00 ▲(13.86% Upside)

NNN REIT's strong financial performance and positive earnings call guidance are significant strengths, supported by a solid dividend yield. However, technical analysis indicates potential bearish momentum, and challenges such as increased competition and temporary occupancy reduction pose risks.

Positive Factors

Strong Acquisition Performance

The successful acquisition strategy enhances NNN's asset base and revenue potential, supporting long-term growth and market position.

Increased Financial Guidance

Higher financial guidance reflects confidence in sustained operational performance and strategic growth initiatives, benefiting shareholders.

High Occupancy and Lease Renewal Rates

High occupancy and lease renewal rates indicate strong tenant relationships and stable cash flow, reinforcing financial stability.

Negative Factors

Temporary Occupancy Reduction

Occupancy reduction due to disputes can impact short-term revenue and requires resolution to restore full income potential.

Increased Competition

Rising competition could pressure cap rates and acquisition costs, potentially affecting profitability and strategic expansion.

Rising Debt Levels

Increasing debt levels may strain financial flexibility and necessitate prudent management to maintain balance sheet health.

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

National Retail Properties generates revenue primarily through rental income from its leased properties. The company acquires retail properties and enters into long-term lease agreements with tenants, who are responsible for property expenses such as maintenance, taxes, and insurance, allowing NNN to benefit from a stable net income stream. Additionally, NNN may earn income through property management services and can benefit from property appreciation over time. The company’s business model is supported by a diverse tenant base, which reduces risk and enhances overall financial stability. Significant partnerships with reliable tenants, combined with a focus on high-quality properties in favorable locations, contribute to NNN's consistent revenue generation and growth prospects.

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: Negative
• Last Price: 40.40
• 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 Negative. The current price of 40.4 is below the 20-day moving average (MA) of 40.79, below the 50-day MA of 41.38, and below the 200-day MA of 40.75, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 69.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NNN.

NNN REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADC	79 Outperform	$8.42B	43.23	3.47%	4.16%	14.67%	-5.17%
FRT	77 Outperform	$8.35B	24.44	10.92%	4.61%	6.05%	14.70%
NNN	76 Outperform	$7.71B	19.72	8.91%	5.81%	4.53%	-3.46%
PECO	72 Outperform	$4.78B	56.59	3.62%	3.56%	10.58%	37.97%
BRX	67 Neutral	$7.92B	24.20	11.36%	4.09%	6.07%	-0.28%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
KRG	63 Neutral	$4.78B	197.86	4.71%	4.85%	3.67%	―

NNN REIT Corporate Events

NNN REIT, Inc. Reports Strong Q3 2025 Results

NNN REIT, Inc., a prominent real estate investment trust, specializes in acquiring high-quality properties primarily under long-term net leases across the United States, boasting a diverse portfolio of 3,697 properties with a focus on stability and minimal capital expenditure requirements.

National Retail Properties Shines in Q3 Earnings Call

The recent earnings call of National Retail Properties (NNN) painted a picture of robust performance and strategic agility. The company showcased its strength through increased acquisitions, raised financial guidance, and effective management of challenges. Despite these positives, temporary occupancy reductions and heightened market competition presented notable challenges.

National Retail Properties Adjusts to New Legislation Changes

NNN REIT, Inc. has announced changes due to recent legislation affecting its disclosures under the Securities Act of 1933. The legislation permanently extends a 20% deduction for non-corporate shareholders on ordinary dividends, which was previously set to expire at the end of 2025. Additionally, starting January 1, 2026, the asset test limit on the value of securities in taxable REIT subsidiaries will increase from 20% to 25%. These changes could impact the company’s financial operations and shareholder benefits.

The most recent analyst rating on (NNN) stock is a Buy with a $48.25 price target. To see the full list of analyst forecasts on National Retail Properties stock, see the NNN Stock Forecast page.