NNN Stock Overview
National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases.
National Retail Properties Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$39.86|
|52 Week High||US$48.90|
|52 Week Low||US$38.91|
|1 Month Change||-11.23%|
|3 Month Change||-10.41%|
|1 Year Change||-10.37%|
|3 Year Change||-30.06%|
|5 Year Change||-4.41%|
|Change since IPO||398.25%|
Recent News & Updates
National Retail Properties: Stack This 5% Yield Onto Your Dividend Portfolio
Summary National Retail Properties is a high-quality net lease REIT with a long history of dividend growth and bottom line growth. NNN maintains a strong balance sheet and a diversified portfolio of e-commerce resistant tenants. The shares are attractively priced at the moment, especially considering the robust bottom line growth expected this year. I like high yield stocks as much as anyone else, and see value in beaten down names such as Medical Properties Trust (MPW), Capital Southwest (CSWC), and Altria (MO). However, diversification is key to sleeping well at night, and I also reserve a part of my portfolio for middle of the road yields like National Retail Properties (NNN) that provide a good mix of safety and income. Stocks like NNN are good core holdings to have in a portfolio for their durable income characteristics, and in this article, I highlight why the current down cycle presents a great opportunity to layer into this quality name, so let's get started. Why NNN? National Retail Properties is a truly "national" triple net lease REIT with a diverse high-quality portfolio of 3,305 properties that span across 48 states in the contiguous U.S. It has over 380 tenants and this includes long-standing relationships, with its top 25 tenants representing 56% of NNN's annual rent. NNN is led by an experienced management team, with an average 21-year tenure in the senior leadership team. Moreover, 61% of NNN's employees have been with the company for over 5 years. Like its peer, NNN is also a dividend aristocrat, with 33 consecutive years of raises under its belt, including the recent 3.8% raise to $0.55 per share. NNN's national tenant base is comprised mostly of e-commerce resistant tenants in service, experiential, and the quick service restaurant categories. This has enabled NNN to generate rather steady results, even during the tumultuous 2020 timeframe. Since 2003, NNN's occupancy has never fallen below 96.4%, averaging 98.0% over this time period. At present, NNN's occupancy stands at a very healthy 99.1%. NNN Portfolio Mix (Investor Presentation) NNN also maintains long-weighted average lease term of 10.6 years, putting it on par with that of other retail net lease REITs, and its leases are well-staggered, with only 5.9% of leases expiring through 2024. NNN has also been an active consolidator, as it acquired 102 properties in the first half of the year for $365 million with an attractive initial cash yield of 6.2%. Importantly, NNN's bottom line is growing robustly, as first half core FFO per share grew by 11.4% compared to last year. It appears management is showing no signs of slowing down, as it raised guidance three times year. The latest guidance raised core FFO per share from $3.04 at the midpoint to $3.10. Meanwhile, NNN is also not totally dependent on capital markets to fund growth, as it maintains plenty of retained capital. This is reflected by the 68% payout ratio, based on the recently raised $0.55 dividend and Q2 AFFO per share of $0.81. It also maintains a strong BBB+ rated balance sheet, with a 14-year weighted average debt maturity with little near-term maturities. Net debt to EBITDA is at a safe 5.4x and fixed charge coverage ratio is at 4.7x. Management expects to see $180 million in cash flow after dividends and $100 million per year from dispositions, which goes a long way towards funding its $600-700 million a year in acquisitions. Factors that could drive the share price down include general market volatility and the prospect for higher interest rates, which may drive negative investor sentiment towards perceived "slow-growing" net lease REITs. However, higher interest rates are not necessarily a bad thing, as that results in less competition from highly leveraged players that rely more on debt. This is supported by management comments during the recent conference call, noting less competition from private equity players in the 6-7 percent cap rate range on new acquisitions.
|NNN||US REITs||US Market|
Return vs Industry: NNN exceeded the US REITs industry which returned -20.3% over the past year.
Return vs Market: NNN exceeded the US Market which returned -21.5% over the past year.
|NNN Average Weekly Movement||3.0%|
|REITs Industry Average Movement||4.1%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: NNN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NNN's weekly volatility (3%) has been stable over the past year.
About the Company
National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2020, the company owned 3,114 properties in 48 states with a gross leasable area of approximately 32.4 million square feet and with a weighted average remaining lease term of 10.7 years.
National Retail Properties Fundamentals Summary
|NNN fundamental statistics|
Is NNN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NNN income statement (TTM)|
|Cost of Revenue||US$27.41m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||1.69|
|Net Profit Margin||39.86%|
How did NNN perform over the long term?See historical performance and comparison
5.5%Current Dividend Yield
Is NNN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for NNN?
Other financial metrics that can be useful for relative valuation.
|What is NNN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does NNN's PE Ratio compare to its peers?
|NNN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
FRT Federal Realty Investment Trust
REG Regency Centers
BRX Brixmor Property Group
SRC Spirit Realty Capital
NNN National Retail Properties
Price-To-Earnings vs Peers: NNN is expensive based on its Price-To-Earnings Ratio (23.7x) compared to the peer average (22x).
Price to Earnings Ratio vs Industry
How does NNN's PE Ratio compare vs other companies in the US REITs Industry?
Price-To-Earnings vs Industry: NNN is good value based on its Price-To-Earnings Ratio (23.7x) compared to the US REITs industry average (25.5x)
Price to Earnings Ratio vs Fair Ratio
What is NNN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||23.7x|
|Fair PE Ratio||38x|
Price-To-Earnings vs Fair Ratio: NNN is good value based on its Price-To-Earnings Ratio (23.7x) compared to the estimated Fair Price-To-Earnings Ratio (38x).
Share Price vs Fair Value
What is the Fair Price of NNN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: NNN ($39.86) is trading below our estimate of fair value ($103.59)
Significantly Below Fair Value: NNN is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is National Retail Properties forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NNN's forecast earnings growth (6% per year) is above the savings rate (1.9%).
Earnings vs Market: NNN's earnings (6% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: NNN's earnings are forecast to grow, but not significantly.
Revenue vs Market: NNN's revenue (6.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: NNN's revenue (6.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NNN's Return on Equity is forecast to be low in 3 years time (8.2%).
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How has National Retail Properties performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NNN has high quality earnings.
Growing Profit Margin: NNN's current net profit margins (39.9%) are higher than last year (33.5%).
Past Earnings Growth Analysis
Earnings Trend: NNN's earnings have grown by 2.4% per year over the past 5 years.
Accelerating Growth: NNN's earnings growth over the past year (30.7%) exceeds its 5-year average (2.4% per year).
Earnings vs Industry: NNN earnings growth over the past year (30.7%) underperformed the REITs industry 45.8%.
Return on Equity
High ROE: NNN's Return on Equity (8.1%) is considered low.
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How is National Retail Properties's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: NNN's short term assets ($41.9M) exceed its short term liabilities ($23.2M).
Long Term Liabilities: NNN's short term assets ($41.9M) do not cover its long term liabilities ($3.9B).
Debt to Equity History and Analysis
Debt Level: NNN's net debt to equity ratio (96.7%) is considered high.
Reducing Debt: NNN's debt to equity ratio has increased from 68.6% to 96.7% over the past 5 years.
Debt Coverage: NNN's debt is not well covered by operating cash flow (14.9%).
Interest Coverage: NNN's interest payments on its debt are well covered by EBIT (3.2x coverage).
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What is National Retail Properties's current dividend yield, its reliability and sustainability?
Dividend Score 6/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|National Retail Properties Dividend Yield vs Market|
|Company (National Retail Properties)||5.5%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (REITs)||4.1%|
|Analyst forecast in 3 Years (National Retail Properties)||5.7%|
Notable Dividend: NNN's dividend (5.52%) is higher than the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: NNN's dividend (5.52%) is in the top 25% of dividend payers in the US market (4.7%)
Stability and Growth of Payments
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (67%), NNN's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (69.2%), NNN's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Horn (50 yo)
Mr. Stephen A. Horn, Jr. also known as Steve, serves as President and Chief Executive Officer of National Retail Properties, Inc. since April 2022. He served as Chief Operating Officer at National Retail P...
CEO Compensation Analysis
|Steve Horn's Compensation vs National Retail Properties Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$3m||US$515k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$2m||US$435k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$2m||US$400k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$2m||US$345k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$2m||US$335k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$2m||US$325k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$1m||US$300k|
Compensation vs Market: Steve's total compensation ($USD3.19M) is below average for companies of similar size in the US market ($USD8.64M).
Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.
Experienced Management: NNN's management team is seasoned and experienced (11.5 years average tenure).
Experienced Board: NNN's board of directors are considered experienced (6.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NNN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
|12 Aug 22||SellUS$505,591||Kevin Habicht||Individual||10,520||US$48.06|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||74,216||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
National Retail Properties, Inc.'s employee growth, exchange listings and data sources
- Name: National Retail Properties, Inc.
- Ticker: NNN
- Exchange: NYSE
- Founded: 1984
- Industry: Retail REITs
- Sector: Real Estate
- Implied Market Cap: US$7.060b
- Shares outstanding: 177.11m
- Website: https://www.nnnreit.com
Number of Employees
- National Retail Properties, Inc.
- 450 South Orange Avenue
- Suite 900
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NNN||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Oct 1984|
|CZ2||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 1984|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
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.