NNN Stock Recent News

ORLANDO, Fla. , May 21, 2024 /PRNewswire/ -- NNN REIT, Inc. (NYSE: NNN) (the "Company"), a real estate investment trust, today announced that it has priced its public offering of $500,000,00 of 5.500% senior unsecured notes due 2034 (the "notes").

Change has a way of impacting everything, it is life's only constant. Land ownership has been a consistent form of wealth generation. I earn truly passive income, free of issues tied to being a landlord.

NNN REIT has a fortress-like balance sheet, strong business metrics, and a defensive strategy, making it a safe harbor for stability-seeking investors. The Company offers an attractive, well-covered dividend and is undervalued compared to its peers. Despite modest growth prospects, NNN has a great risk-to-reward ratio and the potential for double-digit total returns.

These REITs have a price-to-NAV range of 0.27x to 0.59x. There may be upside of more than 200% to the NAV estimate, which will probably decline over time. The estimates may be terrible. That's not my fault. You'll probably have a better time reading this, than reading my competitor's articles.

NNN REIT offers stability and reliability for long-term investors seeking income, with consistent and steady growth in earnings and dividends. The REIT has shown the ability to grow through acquisitions, taking advantage of lower cost of capital and attractive spreads. NNN REIT has a lower payout ratio compared to its peers, indicating potential for higher dividend increases and reinvestment in the business.

While the top- and bottom-line numbers for NNN REIT (NNN) give a sense of how the business performed in the quarter ended March 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

NNN REIT (NNN) came out with quarterly funds from operations (FFO) of $0.84 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to FFO of $0.82 per share a year ago.

The only viable way to afford retirement is through building a steady stream of passive income. NNN logged modest core FFO per share growth in 2023 and more growth should lie ahead. The REIT's BBB+ credit rating from S&P affords it opportunities to access capital on reasonably attractive terms.

NNN REIT Inc. has taken a hit on its valuation due to the current macroeconomic environment and high interest rates. NNN offers a 5%+ dividend yield with a conservative payout ratio. Despite the decline in stock price, NNN has a strong and well-diversified portfolio, good debt management, and an attractive valuation, making it a buy.

The current spread between the cap rate of the Free Standing Retail subsector and the 10-year Treasury is only 233 basis points versus a historic average of 373 basis points. Despite this, NNN is able to achieve a 100 basis point investment spread over their cost of capital. In terms of equity, one measure suggests that it is available at a 76 basis point discount which translates to about an 8.6% discount to fair value.