NYSE:NNN

Stock Analysis Report

National Retail Properties

Executive Summary

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has National Retail Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

NNN

0.1%

US REITs

2.3%

US Market


1 Year Return

26.1%

NNN

19.1%

US REITs

5.6%

US Market

Return vs Industry: NNN exceeded the US REITs industry which returned 19.1% over the past year.

Return vs Market: NNN exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

NNNIndustryMarket
7 Day0.6%0.1%2.3%
30 Day6.3%0.8%-1.0%
90 Day8.5%5.3%-0.7%
1 Year31.2%26.1%24.4%19.1%7.9%5.6%
3 Year36.7%20.1%33.7%16.6%45.6%36.3%
5 Year87.4%51.5%63.2%28.8%65.8%47.6%

Price Volatility Vs. Market

How volatile is National Retail Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National Retail Properties undervalued compared to its fair value and its price relative to the market?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NNN ($57.06) is trading below our estimate of fair value ($72.15)

Significantly Undervalued: NNN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NNN is poor value based on its PE Ratio (37.6x) compared to the REITs industry average (35.3x).

PE vs Market: NNN is poor value based on its PE Ratio (37.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: NNN is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: NNN is overvalued based on its PB Ratio (2.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is National Retail Properties forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NNN's forecast earnings growth (8.6% per year) is above the savings rate (2.7%).

Earnings vs Market: NNN's earnings (8.6% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: NNN's earnings are forecast to grow, but not significantly.

Revenue vs Market: NNN's revenue (6.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NNN's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NNN's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has National Retail Properties performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NNN's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: NNN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NNN had negative earnings growth (-11%) over the past year, making it difficult to compare to the REITs industry average (17%).


Return on Equity

High ROE: NNN's Return on Equity (6.6%) is considered low.


Return on Assets

ROA vs Industry: NNN has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: NNN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is National Retail Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NNN has a high level of physical assets or inventory.

Debt Coverage by Assets: NNN's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: NNN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NNN has a sufficient allowance for bad loans.

Low Risk Liabilities: NNN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NNN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NNN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NNN has an appropriate level of bad loans.


Next Steps

Dividend

What is National Retail Properties's current dividend yield, its reliability and sustainability?

3.61%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NNN's dividend (3.61%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: NNN's dividend (3.61%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: NNN's dividends per share have been stable in the past 10 years.

Growing Dividend: NNN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.4%), NNN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NNN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

What is the CEO of National Retail Properties's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

Jay Whitehurst (62yo)

2.5yrs

Tenure

US$4,902,894

Compensation

Mr. Julian E. Whitehurst, also known as Jay, has been the Chief Executive Officer of National Retail Properties, Inc. since April 28, 2017. Mr. Whitehurst serves as Chief Operating Officer of National Reta ...


CEO Compensation Analysis

Compensation vs. Market: Jay's total compensation ($USD4.90M) is about average for companies of similar size in the US market ($USD11.23M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.5yrs

Average Tenure

52yo

Average Age

Experienced Management: NNN's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

62yo

Average Age

Experienced Board: NNN's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: NNN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$94,24126 Aug 19
Michelle Miller
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Executive VP
Shares1,700
Max PriceUS$55.44
SellUS$82,36214 Jun 19
Michelle Miller
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Executive VP
Shares1,500
Max PriceUS$54.91
SellUS$1,987,42409 May 19
Paul Bayer
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares37,899
Max PriceUS$52.44
SellUS$374,57429 Mar 19
Paul Bayer
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares6,743
Max PriceUS$55.55
SellUS$65,01425 Mar 19
Michelle Miller
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Executive VP
Shares1,200
Max PriceUS$54.18
SellUS$1,022,84408 Mar 19
Kevin Habicht
EntityIndividual
Role
Member of the Board of Directors
CFO, Executive VP
Shares19,641
Max PriceUS$52.08
SellUS$662,74006 Mar 19
Paul Bayer
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares12,745
Max PriceUS$52.00
SellUS$1,792,05025 Feb 19
Julian Whitehurst
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares34,045
Max PriceUS$52.64
SellUS$1,200,25514 Feb 19
Christopher Tessitore
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares23,000
Max PriceUS$52.19
SellUS$182,94110 Dec 18
Kevin Habicht
EntityIndividual
Role
Member of the Board of Directors
CFO, Executive VP
Shares3,606
Max PriceUS$50.73
SellUS$17,34130 Nov 18
Michelle Miller
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Executive VP
Shares350
Max PriceUS$49.55
SellUS$223,55630 Nov 18
Paul Bayer
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares4,509
Max PriceUS$49.58
SellUS$243,85016 Nov 18
Paul Bayer
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares5,000
Max PriceUS$48.77
SellUS$307,18813 Nov 18
Stephen Horn
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Acquisitions Officer
Shares6,250
Max PriceUS$49.15

Ownership Breakdown


Management Team

  • Kevin Habicht (60yo)

    CFO, Executive VP

    • Tenure: 19.3yrs
    • Compensation: US$2.42m
  • Jay Whitehurst (62yo)

    CEO, President & Director

    • Tenure: 2.5yrs
    • Compensation: US$4.90m
  • Chris Barry (52yo)

    Vice President of Corporate Communications & Investor Relations

    • Tenure: 0yrs
  • Paul Bayer (57yo)

    Executive VP & Chief Investment Officer

    • Tenure: 9.3yrs
    • Compensation: US$1.62m
  • Michelle Miller (50yo)

    Chief Accounting Officer & Executive VP

    • Tenure: 3.6yrs
  • Chris Tessitore (51yo)

    Executive VP

    • Tenure: 13.7yrs
    • Compensation: US$1.71m
  • Steve Horn (47yo)

    Executive VP & Chief Acquisitions Officer

    • Tenure: 5.8yrs
    • Compensation: US$1.68m
  • Margo Moeder

    Vice President of Human Resources

    • Tenure: 0yrs
  • Matt Williams

    Senior Vice President of Underwriting

    • Tenure: 0yrs
  • Mary Morrison

    Senior Vice President of Financial Reporting & Operations

    • Tenure: 0yrs

Board Members

  • Don DeFosset (70yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$237.50k
  • Pam Beall (63yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$226.50k
  • Kevin Habicht (60yo)

    CFO, Executive VP

    • Tenure: 19.3yrs
    • Compensation: US$2.42m
  • Ed Fritsch (60yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$236.00k
  • Steve Cosler (63yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$228.25k
  • Sam Susser (56yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$224.75k
  • Betsy Holden (63yo)

    Director

    • Tenure: 0.7yrs
  • Jay Whitehurst (62yo)

    CEO, President & Director

    • Tenure: 2.5yrs
    • Compensation: US$4.90m
  • David Fick (62yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$243.25k

Company Information

National Retail Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National Retail Properties, Inc.
  • Ticker: NNN
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: US$9.794b
  • Shares outstanding: 171.64m
  • Website: https://www.nnnreit.com

Number of Employees


Location

  • National Retail Properties, Inc.
  • 450 South Orange Avenue
  • Suite 900
  • Orlando
  • Florida
  • 32801
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NNNNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1984
CZ2DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1984
NNN.PRFNYSE (New York Stock Exchange)DEP SHS PFD FUSUSDOct 2016

Biography

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of June 30, 2019, the company owned 3,043 properties in 48 states with a gross  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:55
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.