NNN Stock Recent News

ORLANDO, Fla. , April 3, 2025 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) ("NNN" or the "Company"), a real estate investment trust, today announced that it will release its results for the first quarter 2025, before the market opens on Thursday, May 1, 2025.

Now is a good time to invest in REITs due to low inflation, expected rate cuts, and a bullish technical trend. Analyst upgrades on REITs outnumber downgrades, and many quality REITs offer higher-than-usual yields, making them attractive for income investors. Dividend safety is crucial; Seeking Alpha Premium's Quant Ratings help identify REITs with low risk of dividend cuts, ensuring stable income.

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Despite tenant headwinds, NNN REIT shows solid AFFO growth and remains attractive for income-oriented investors with a strong dividend yield and conservative payout ratio. NNN REIT's financial performance is robust, with stable FFO and revenue, despite macroeconomic challenges and tenant issues. The REIT's conservative management, strong cash flow, and low payout ratio ensure consistent income and long-term growth potential.

Retail investors should consider rotating into income-generating stocks like NNN REIT to ride out market volatility. NNN REIT carries a 35-year track record of dividend raises, a high 98.5% occupancy rate, and strong credit ratings. Recent property acquisitions at attractive cap rates and a forward P/FFO of 12.4 make NNN a compelling value play.

Newly public REITs often carry too much debt, influenced by private equity origins, leading to financial instability and the need for deleveraging. High dividend payouts can hinder growth; successful REITs maintain lower payout ratios to invest retained cash and ensure sustainable earnings growth. Quality of earnings is crucial; persistent property lease earnings are preferable over ephemeral earnings from construction, loans, or asset management.

The spread between the implied cap rate for the Nareit Free Standing subsector and the US 10-year Treasury has narrowed, indicating potential downward pricing pressure. NNN REIT's current deal flow pipeline is expected to come in at tighter spreads, implying less accretion to the bottom line. There is also an insufficient margin of safety between an unbiased measure of fair value and the total return picture for NNN.

Why wouldn't an income investor want to own a stock that has a 14% dividend yield? That's an awfully tempting number, given that the average return of the S&P 500 (^GSPC 2.13%) is generally considered to be around 10% a year.