(NNN) National Retail Properties - Ratings and Ratios

Naval here. Let me give you the lowdown on National Retail Properties, or NNN REIT, as it’s commonly known. This is a company that’s all about owning high-quality retail real estate, and they do it with a focus on long-term, net leases. These are the kinds of properties that generate stable cash flow, and NNN has built a portfolio of 3,549 properties across 49 states as of September 2024. That’s a significant footprint, with a gross leasable area of about 36.6 million square feet. The weighted average lease term is 10 years, which tells you they’re locked in for the long haul with their tenants.

What’s really impressive about NNN is their dividend track record. They’re one of only three publicly traded REITs that have managed to increase their annual dividends for 35 consecutive years or more. That’s a testament to their consistent cash flow and disciplined management. If you’re an investor looking for stability and income, this is the kind of track record that should grab your attention. They’ve been through multiple economic cycles and have come out the other side still paying—and increasing—dividends.

Financially, NNN is in solid shape. Their market cap is around $7.28 billion, giving them the scale to pursue attractive opportunities while still being nimble enough to manage their portfolio effectively. The P/E ratio of 17.97 suggests they’re valued moderately relative to their earnings, and the forward P/E of 19.16 indicates the market expects continued growth. Their price-to-book ratio of 1.67 tells you that investors are paying a premium for their assets, which is common in REITs with strong, stable cash flows. The price-to-sales ratio of 8.40 reflects the revenue generation capacity of their portfolio.

One thing to note is their focus on net leases. This means their tenants are responsible for operating costs like property taxes, insurance, and maintenance, which reduces N