Nnn Reit (NNN) stock price is $41.17, up 0.61% on the day, as of Nov 13, 2026. It has a market cap of $7.98Bn and a P/E ratio of 19.87, and is classified in the Net Lease REITs industry (Real Estate sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap7.98 Bn
P/E19.87
FCF (Yr)-269.95 Mn
ROA (Yr)4.27
EV to EBIT13.03
Net Income (Yr)389.78 Mn
Enterprise Value7.97 Bn
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About
NNN REIT, Inc. is a fully integrated real estate investment trust that acquires owns invests in and develops high quality properties leased primarily to tenants under long term net leases. As of December 31 2025 the company owned 3,692 properties spread across all 50 states the District of Columbia and Puerto Rico. The total leasable area of the portfolio is approximately 39,578,000 square feet and about 98.3% of the units were leased. The weighted average remaining lease…
NNN REIT, Inc. is a fully integrated real estate investment trust that acquires owns invests in and develops high quality properties leased primarily to tenants under long term net leases. As of December 31 2025 the company owned 3,692 properties spread across all 50 states the District of Columbia and Puerto Rico. The total leasable area of the portfolio is approximately 39,578,000 square feet and about 98.3% of the units were leased. The weighted average remaining lease term stands at 10.2 years reflecting the durability of its tenant relationships. Most properties are single tenant facilities operating under triple net structures where tenants cover utilities taxes insurance maintenance and capital expenditures.
The company generates revenue principally from lease payments received under triple net lease agreements where tenants assume responsibility for property operating expenses. Rental income consists of base rent that often includes scheduled increases tied to consumer price index changes or fixed increments. In addition to recurring rent the firm may realize proceeds from the disposition of properties although sales constitute a secondary source of cash flow. NNN also holds the ability to invest in mortgages loans and securities of other real estate entities but its core earnings derive from the lease portfolio. The emphasis on long term leases with built in rent escalators helps to produce predictable and growing cash streams over time.
NNN REIT competes with other real estate investment trusts private equity funds and individual investors seeking net lease assets. Its competitive edge stems from a geographically diversified portfolio a strong track record of dividend growth and a disciplined approach to property acquisition. The firm has increased its annual dividend for 36 consecutive years which places it among the three longest dividend increase streaks in the publicly traded REIT sector. Management evaluates each acquisition based on location visibility tenant credit quality and lease terms aiming to secure assets that provide stable returns. The company maintains investment grade credit ratings and manages its debt load with a ratio of total debt to total gross assets of approximately 42% as of year end 2025.
The company serves a broad range of single tenant tenants primarily in the retail service and industrial sectors. While specific tenant names are not disclosed in the filing the portfolio includes businesses such as restaurants auto parts stores convenience stores and medical service providers. This industry diversification reduces reliance on any single economic segment and enhances the stability of rental income. The tenant base is spread across numerous markets which helps to insulate the portfolio from regional downturns. Many leases include renewal options that allow tenants to extend occupancy under the same terms which supports long term cash flow visibility.
Sector:Real EstateSector rationaleThe company is a real estate investment trust (REIT) that generates its primary revenue from lease payments received from owning and developing a portfolio of 3,692 properties. Its core business model is the acquisition and management of physical real property leased under triple net structures, which falls squarely within the Real Estate sector.Industry:Net Lease REITsNet Lease REITsPrimaryThe company is a REIT whose primary business model is acquiring and owning properties leased to single tenants under long-term triple net leases. Its revenue is generated principally from lease payments where tenants cover utilities, taxes, insurance, and maintenance, and its portfolio spans diverse sectors including retail, service, and industrial.Classified using BQ-MICSCIK: 0000751364
Bull & bear
Investment Thesis
▲ Bull case
NNN REIT, Inc. is positioned to benefit from its long-duration lease structure, with a weighted average remaining lease term of 10.1 years and recent acquisitions featuring an average lease term of 19 years, creating a highly predictable and stable cash flow stream that insulates the company from short-term economic volatility and interest rate fluctuations. This duration mismatch—where lease terms significantly outpace debt maturities averaging 10.5 years—provides a natural hedge against refinancing risk and supports consistent AFFO growth, as evidenced by the company’s ability to raise its 2026 AFFO guidance midpoint to $3.56 despite only modest quarterly rental rate increases of 2% on renewals and 10% on new leases, indicating that growth is being driven more by accretive acquisitions and portfolio optimization than by rent escalations alone. The self-funded growth model, reinforced by $1.2 billion of total liquidity and a disciplined 60/40 equity/debt acquisition approach, allows NNN to capitalize on opportunistic sale-leaseback activity in the current macro environment without relying on dilutive equity issuances or expensive debt, as demonstrated by the $74 million of net proceeds from unsettled forward equity and the $300 million term loan drawn at a fixed 4.1% all-in cost. Furthermore, the company’s active portfolio management—evidenced by the disposition of 25 properties generating $35.8 million in proceeds and an economic gain of over 6% on occupied assets—reflects a proactive strategy to upgrade tenant quality and asset longevity, which is reinforced by the occupancy rate climbing to 98.6%, above the long-term average, and the successful repositioning of vacant assets into investment-grade tenancies, reducing future credit risk while enhancing NOI stability. These structural advantages, combined with a Baa1-rated balance sheet and net debt to EBITDAre of 5.6x (pro forma), suggest the market is underestimating the durability of NNN’s cash flows and the runway for mid-single-digit AFFO growth supported by dividend increases for 36 consecutive years—a rarity among REITs that signals exceptional financial discipline and shareholder commitment.
NNN REIT, Inc. is positioned to benefit from its long-duration lease structure, with a weighted average remaining lease term of 10.1 years and recent acquisitions featuring an average lease term of 19 years, creating a highly predictable and stable cash flow stream that insulates the company from short-term economic volatility and interest rate fluctuations. This duration mismatch—where lease terms significantly outpace debt maturities averaging 10.5 years—provides a natural hedge against refinancing risk and supports consistent AFFO growth, as evidenced by the company’s ability to raise its 2026 AFFO guidance midpoint to $3.56 despite only modest quarterly rental rate increases of 2% on renewals and 10% on new leases, indicating that growth is being driven more by accretive acquisitions and portfolio optimization than by rent escalations alone. The self-funded growth model, reinforced by $1.2 billion of total liquidity and a disciplined 60/40 equity/debt acquisition approach, allows NNN to capitalize on opportunistic sale-leaseback activity in the current macro environment without relying on dilutive equity issuances or expensive debt, as demonstrated by the $74 million of net proceeds from unsettled forward equity and the $300 million term loan drawn at a fixed 4.1% all-in cost. Furthermore, the company’s active portfolio management—evidenced by the disposition of 25 properties generating $35.8 million in proceeds and an economic gain of over 6% on occupied assets—reflects a proactive strategy to upgrade tenant quality and asset longevity, which is reinforced by the occupancy rate climbing to 98.6%, above the long-term average, and the successful repositioning of vacant assets into investment-grade tenancies, reducing future credit risk while enhancing NOI stability. These structural advantages, combined with a Baa1-rated balance sheet and net debt to EBITDAre of 5.6x (pro forma), suggest the market is underestimating the durability of NNN’s cash flows and the runway for mid-single-digit AFFO growth supported by dividend increases for 36 consecutive years—a rarity among REITs that signals exceptional financial discipline and shareholder commitment.
NNN REIT, Inc. faces mounting headwinds from tenant concentration and sector-specific vulnerabilities that are not being adequately priced into the market, particularly its significant exposure to convenience stores (16.3% of ABR) and automotive service (18.7% of ABR), which together represent over 35% of annualized base rent and are increasingly susceptible to structural shifts in consumer behavior, including the rise of electric vehicles reducing demand for traditional auto service and the ongoing consolidation and efficiency pressures in the convenience store sector driven by discount retailers and changing urban mobility patterns. Although management noted no material credit concerns and highlighted a successful renewal with 7‑Eleven, the average lease term with that tenant is only 8.5 years—materially shorter than the portfolio average—and the company’s average cost basis in its 7‑Eleven portfolio is $2.2 million, implying that a meaningful portion of this high-exposure tenant’s leases will roll off in the near to medium term, creating re-leasing risk at potentially lower cap rates if tenant demand softens. Additionally, the company’s reliance on sale-leaseback transactions as a primary growth driver may be overstated, as the recent acceleration in this activity appears tied to corporate debt refinancing rather than fundamental real estate demand, and the fact that NNN is trending toward the high end of its $550–$650 million acquisition guidance despite only modest cap rate compression (15–25 basis points in auto service and convenience stores) suggests that acquisition yields may be declining relative to historical levels, potentially undermining the accretiveness of future deals. The company’s AFFO growth of 3.5% year-over-year (midpoint of revised guidance) is barely above inflation and relies heavily on non-recurring items—such as the $739 thousand in lease termination fees this quarter versus $8.2 million last year—without which underlying growth was 4.8%, indicating that core operating performance is weaker than headline numbers suggest. Furthermore, while the balance sheet appears strong with $1.2 billion in liquidity, the pro forma net debt to EBITDAre of 5.6x leaves little room for error in a rising rate environment, and the company’s dependence on maintaining its dividend streak—now at 36 years—may constrain capital allocation flexibility during downturns, forcing it to prioritize dividend sustainability over optimal investment timing or deleveraging, which could exacerbate long-term value erosion if macroeconomic conditions deteriorate.
NNN REIT, Inc. faces mounting headwinds from tenant concentration and sector-specific vulnerabilities that are not being adequately priced into the market, particularly its significant exposure to convenience stores (16.3% of ABR) and automotive service (18.7% of ABR), which together represent over 35% of annualized base rent and are increasingly susceptible to structural shifts in consumer behavior, including the rise of electric vehicles reducing demand for traditional auto service and the ongoing consolidation and efficiency pressures in the convenience store sector driven by discount retailers and changing urban mobility patterns. Although management noted no material credit concerns and highlighted a successful renewal with 7‑Eleven, the average lease term with that tenant is only 8.5 years—materially shorter than the portfolio average—and the company’s average cost basis in its 7‑Eleven portfolio is $2.2 million, implying that a meaningful portion of this high-exposure tenant’s leases will roll off in the near to medium term, creating re-leasing risk at potentially lower cap rates if tenant demand softens. Additionally, the company’s reliance on sale-leaseback transactions as a primary growth driver may be overstated, as the recent acceleration in this activity appears tied to corporate debt refinancing rather than fundamental real estate demand, and the fact that NNN is trending toward the high end of its $550–$650 million acquisition guidance despite only modest cap rate compression (15–25 basis points in auto service and convenience stores) suggests that acquisition yields may be declining relative to historical levels, potentially undermining the accretiveness of future deals. The company’s AFFO growth of 3.5% year-over-year (midpoint of revised guidance) is barely above inflation and relies heavily on non-recurring items—such as the $739 thousand in lease termination fees this quarter versus $8.2 million last year—without which underlying growth was 4.8%, indicating that core operating performance is weaker than headline numbers suggest. Furthermore, while the balance sheet appears strong with $1.2 billion in liquidity, the pro forma net debt to EBITDAre of 5.6x leaves little room for error in a rising rate environment, and the company’s dependence on maintaining its dividend streak—now at 36 years—may constrain capital allocation flexibility during downturns, forcing it to prioritize dividend sustainability over optimal investment timing or deleveraging, which could exacerbate long-term value erosion if macroeconomic conditions deteriorate.