National Retail Properties (NNN) AI Stock Analysis

• Market Cap: $7.86B
• Dividend Yield: 5.53%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.39
• Revenue Growth: 4.82%
• EPS Growth: -5.18%
• Country: US
• Employees: 83
• Sector: Real Estate
• Sector Strength: 46
• Industry: REIT - Retail
• EPS (TTM): 0.54
• Shares Outstanding: 188,781,890
• 10 Day Avg. Volume: 1,343,426
• 30 Day Avg. Volume: 1,378,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 14.22
• Enterprise Value/Gross Profit: 14.83
• Enterprise Value/Ebitda: 15.10
• 1Y Price Target: $44.83
• Price Target Upside: 6.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 75 Outperform
• Price Target: $47.00 ▲(11.56% Upside)

National Retail Properties receives a strong overall score due to its solid financial performance and positive earnings call, which highlight robust growth and strategic initiatives. The valuation is fair, offering both growth and income potential. Technical analysis indicates a neutral trend, which slightly tempers the overall score.

Positive Factors

Earnings Guidance

The company's quarterly AFFO results are in-line with expectations, and the full-year guidance is above consensus.

Liquidity

The company is in a good liquidity position, with approximately $200 million of cash and $1.2 billion available on their revolving credit facility.

Portfolio Acquisition

NNN has completed the acquisition of 82 properties with a weighted average lease term of 18.4 years.

Negative Factors

Debt Levels

Net debt-to-EBITDA was approximately 5.5x at the end of the quarter, an increase from 5.2x in the previous quarter.

Occupancy Levels

The company reported occupancy levels at 97.7%, which is down 170 basis points year-over-year.

Vacancy Expenses

The company anticipates higher property expenses for vacant properties due to increased rent loss.

National Retail Properties Business Overview & Revenue Model

Company Description

National Retail Properties (NNN) is a real estate investment trust (REIT) that specializes in the acquisition and management of retail properties across the United States. Founded in 1984, the company focuses on single-tenant retail properties that are typically leased to high-quality tenants on long-term, net lease agreements. NNN's portfolio includes a diverse range of properties, including convenience stores, drug stores, and restaurants, which are strategically located in various markets to ensure stable cash flow and long-term growth.

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.

National Retail Properties Financial Statement Overview

Summary

National Retail Properties shows solid financial health with strong revenue and profit growth, efficient operational performance, and effective cash flow management. While leverage is moderate, the company maintains a balanced capital structure, supporting continued stability and growth in the retail REIT sector.

Income Statement

National Retail Properties demonstrates strong revenue growth with a solid Gross Profit Margin of 96.1% and a Net Profit Margin of 45.1% in TTM. The company has consistently improved its revenue from $660.7M in 2020 to $884.7M in TTM, reflecting a positive growth trajectory. EBIT and EBITDA margins are also robust at 66% and 95% respectively, indicating healthy operational efficiency.

Balance Sheet

The company maintains a moderate Debt-to-Equity Ratio of 1.03, suggesting manageable leverage levels. Return on Equity (ROE) is commendable at 9.2% in TTM, showcasing effective utilization of equity. The Equity Ratio stands at 48.3%, indicating a balanced capital structure, though slightly leaning towards liabilities.

Cash Flow

National Retail Properties exhibits strong cash flow performance with an Operating Cash Flow to Net Income Ratio of 1.63 and Free Cash Flow to Net Income Ratio of 1.63 in TTM, indicating robust cash generation relative to net earnings. The Free Cash Flow Growth Rate has been positive, showcasing effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	894.70M	869.27M	828.11M	773.05M	726.41M	660.68M
Gross Profit	858.08M	836.95M	799.73M	746.77M	698.02M	632.32M
EBITDA	842.69M	830.53M	793.73M	706.37M	654.32M	571.11M
Net Income	392.79M	396.83M	392.34M	186.71M	152.24M	99.37M
Balance Sheet
Total Assets	9.15B	8.87B	8.66B	8.15B	7.75B	7.64B
Cash, Cash Equivalents and Short-Term Investments	5.97M	8.73M	1.19M	2.50M	171.32M	267.24M
Total Debt	0.00	4.37B	4.36B	3.92B	3.75B	3.22B
Total Liabilities	4.79B	4.51B	4.50B	4.02B	3.85B	3.32B
Stockholders Equity	4.36B	4.36B	4.16B	4.12B	3.90B	4.32B
Cash Flow
Free Cash Flow	647.01M	635.50M	612.41M	578.36M	568.42M	450.19M
Operating Cash Flow	647.01M	635.50M	612.41M	578.36M	568.42M	450.19M
Investing Cash Flow	-671.96M	-424.34M	-680.66M	-777.63M	-432.18M	-142.82M
Financing Cash Flow	14.89M	-207.26M	66.63M	34.73M	-232.16M	-41.25M

National Retail Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 42.13 is above the 20-day moving average (MA) of 41.73, above the 50-day MA of 42.12, and above the 200-day MA of 40.59, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 52.67 is Neutral, neither overbought nor oversold. The STOCH value of 76.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NNN.

National Retail Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NNN	75 Outperform	$7.86B	19.79	9.18%	5.53%	4.82%	-5.18%
BRX	75 Outperform	$8.27B	24.71	11.52%	4.20%	5.98%	12.11%
FRT	74 Outperform	$8.40B	24.53	11.04%	4.56%	6.00%	15.77%
ADC	73 Outperform	$8.13B	43.82	3.44%	4.12%	13.27%	-5.92%
KRG	66 Neutral	$4.87B	28.24	5.53%	4.86%	4.03%	―
PECO	66 Neutral	$4.72B	64.78	3.01%	3.59%	10.31%	14.39%
Sector *	64 Neutral	£934.07M	14.38	6.19%	6.61%	14.91%	65.30%

National Retail Properties Corporate Events

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.

National Retail Properties Promotes Joshua Lewis to EVP

On August 1, 2025, NNN REIT, Inc. announced the promotion of Joshua P. Lewis to Executive Vice President, Chief Investment Officer. With this promotion, Mr. Lewis will lead the company’s real estate investments and participate in the Executive Severance and Change of Control Plan. The terms of his employment include a base salary of $375,000, eligibility for performance-based bonuses, equity awards, and participation in company benefit plans. The Executive Severance Plan, adopted on January 19, 2022, outlines severance benefits for designated employees, including Mr. Lewis, in cases of termination without cause or for good reason, and during change of control events.

National Retail Properties Completes $500M Notes Sale

NNN REIT, Inc. announced the completion of a significant financial transaction involving the sale of $500 million in senior unsecured notes, which closed on July 1, 2025. The notes, bearing an interest rate of 4.600% and maturing in 2031, are intended to help the company repay existing debt, fund property acquisitions, and support general corporate purposes, potentially impacting its financial flexibility and growth strategy.