One-glance verdict
Undervalued
$61.65 our estimate vs market $41.31
Wall Street consensus: $46.25 (-25.0% lower than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
NNN REIT, Inc.
NNN · NYQ · Real Estate · REIT - Retail
Current price
$41.31
52-week range
$38.90 - $50.00
Market cap
$8.01B
Balance sheet
Stretched
2.79x Stretched
Net debt $4.99B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.9% last year.
- Reward Returns 8.9% on equity, ahead of 83% of its peers.
- Risk Net debt grew 23.0% over 3 years.
- Risk Insider ownership is only 0.9% (peer median: 1.0%).
What this company does
NNN REIT, Inc.
NNN REIT, Inc. owns a large number of commercial properties, like office buildings and retail spaces, that it leases out to other businesses. The money it makes primarily comes from the rent paid by these businesses, which is often for many years at a time. This steady income stream from rent, known as recurring revenue (money that comes in regularly and predictably), is important because it helps NNN REIT consistently pay its own bills and potentially give money back to its investors.
How the company got here
NNN REIT, Inc. was founded in 1984, originally as Golden Corral Realty Corp., to allow employees of the Golden Corral restaurant chain to invest in the company's real estate. Over time, it evolved and separated from the restaurant chain, eventually becoming Commercial Net Lease Realty in 1993 before changing its name to National Retail Properties, Inc. in 2006. In 1998, it became self-managed and self-advised, gaining more control over its operations. The company has a long history of consistent growth, marked by 37 consecutive annual dividend increases, making it a reliable income-generating investment for shareholders.
What it actually does
NNN REIT, Inc. is a real estate investment trust (REIT) that owns and manages a large portfolio of retail properties across the United States. These properties are leased to single tenants, meaning only one business operates at each location. The leases are typically long-term, often 10 to 20 years, and are structured as 'net leases.' In a net lease, the tenant is responsible for paying not only rent but also property taxes, insurance, and maintenance costs. This model provides NNN REIT with a predictable and stable stream of rental income, as the tenants bear most of the property-related expenses.
Single-Tenant Net-Leased Retail Properties
This is the core business of NNN REIT, Inc. The company owns freestanding retail buildings that are leased to a single business, such as a convenience store, a restaurant, or an auto service center. These tenants are responsible for most of the operating expenses of the property, including property taxes, insurance, and maintenance. This 'triple net lease' structure means NNN REIT has minimal ongoing capital expenditures and receives a steady rental income. The company's portfolio is diversified across many states and tenant types, with a focus on service-oriented and necessity-based retail businesses that are less affected by economic downturns or online competition.
What management is betting on now
NNN REIT's management is focused on a strategy of disciplined, long-term growth. They aim to achieve this by actively managing their real estate portfolio, which includes selling underperforming properties and reinvesting the capital into new, high-quality acquisitions. This approach helps to optimize rental income and manage risk. Management also emphasizes maintaining a strong balance sheet with low leverage, which allows them to fund growth internally and minimize the need for issuing new stock, thereby protecting shareholder value. They are also focused on continuing their long track record of increasing dividends to shareholders.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$249.68M
Net income
$109.93M
Diluted EPS
0.57
Operating cash flow
$220.09M
Free cash flow
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Sources
Revenue
$244.27M
Net income
$97.92M
Diluted EPS
0.52
Operating cash flow
$328.58M
Free cash flow
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Sources
Revenue
$238.40M
Net income
$95.95M
Diluted EPS
0.51
Operating cash flow
$126.17M
Free cash flow
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Sources
Revenue
$230.16M
Net income
$96.84M
Diluted EPS
0.51
Operating cash flow
$218.26M
Free cash flow
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Revenue
$226.80M
Net income
$100.53M
Diluted EPS
0.54
Operating cash flow
$119.42M
Free cash flow
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Sources
Revenue
$230.85M
Net income
$96.46M
Diluted EPS
0.51
Operating cash flow
$203.28M
Free cash flow
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Revenue
$218.48M
Net income
$97.89M
Diluted EPS
0.52
Operating cash flow
$117.68M
Free cash flow
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Is it cheap or expensive?
Fair value $61.65 vs current price $41.31
Wall Street consensus is the average analyst price target: $46.25 (-25.0% lower than our fair-value estimate).
Our most-likely fair value is $61.65 a share — about 49.2% above today's price of $41.31, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $5.0B. Interest coverage 2.8x.
Net debt
$4.99B
Interest coverage
2.79x
NNN REIT, Inc.'s profit covers its interest bill about 2.8 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
NNN
BASELINE
NNN REIT, Inc.
Total debt $4.99B Interest coverage 2.79x This is the baseline the peer rows are being compared against.
Total debt $32.11B Interest coverage 2.34x -16% vs NNN Carries about 1.2x less debt cushion than NNN.
Total debt $3.74B Interest coverage 2.58x -8% vs NNN Has roughly the same debt cushion as NNN.
Total debt $2.98B Interest coverage 3.32x +19% vs NNN Carries about 1.2x more debt cushion than NNN.
Total debt $8.78B Interest coverage 2.99x +7% vs NNN Has roughly the same debt cushion as NNN.
Total debt $1.57B Interest coverage 3.16x +13% vs NNN Has roughly the same debt cushion as NNN.
What you should know
The case for and against NNN
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.9% last year.
-
Returns 8.9% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 23.0% over 3 years.
-
Insider ownership is only 0.9% (peer median: 1.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.77x
Forward P/E
19.70x
P/B
1.76x
P/S
8.24x
EV/EBITDA
14.81x
PEG ratio
4.79x
Profitability
How much profit each dollar creates
Gross margin
96.3%
Operating margin
61.5%
Net margin
40.9%
ROE
8.9%
ROA
3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.10x
Current ratio
0.13x
Quick ratio
0.10x
Total debt
$4.99B
Total cash
$2.73M
Growth
How the business has been compounding
Revenue TTM
$962.50M
Revenue 5Y CAGR
6.3%
EPS TTM
2.09
EPS 5Y CAGR
3.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$893.10M
Free CF TTM
$667.13M
FCF margin
69.3%
Dividend
Shareholder payout
Yield
6.0%
Payout ratio
115.8%
Last ex-div date
2026-10-30