Real Estate Investment Trusts (REITs) - Net-Lease Retail Properties
Strategic Profile
NNN's properties are predominantly leased under triple-net leases where tenants bear operating expenses, reducing the company's exposure to cost inflation while generating stable cash flow. With an occupancy rate of 98.3% as of December 31, 2025, the company maintains strong tenant retention and predictable rental income. The diversified portfolio spans restaurants, automotive services, convenience stores, health and fitness, theaters, and banks.
Cyborg Score Rationale
NNN demonstrates strong operational performance with a 98.3% occupancy rate providing stable cash flow. The company invested $931 million in 2025 at favorable initial cash cap rates of 7.4% with weighted average lease terms of 17.6 years. However, the company faces exposure to interest rate fluctuations and inflation impacts on tenant obligations.
Top Insights
NNN REIT ranks third among all REITs with 36 consecutive years of annual dividend increases.
In 2025, NNN deployed $931 million in acquisitions while selectively disposing 116 properties, demonstrating disciplined portfolio management.
The 98.3% occupancy rate as of year-end 2025 reflects strong market demand and tenant quality across the diversified property base.
The portfolio comprises 3,697 properties leased to approximately 400 tenants across 37 different lines of trade.
Named Competitors
Realty Income — Net-lease REIT with diversified retail and industrial portfolio
Kimco Realty — Retail REIT focused on shopping centers and net-lease properties
VEREIT — Single-tenant net-lease REIT (acquired by Realty Income)
Recent Developments
February 2026 - NNN announced 4Q 2025 FFO, Core FFO, and AFFO of $0.87 per share with 2026 AFFO guidance of $3.52-$3.58 per share.
January 2025 - CFO Kevin B. Habicht announced retirement effective March 31, 2025, with Vincent H. Chao named as successor.
January 2025 - 2025 full-year results showcased $926.2 million in total revenues and $389.8 million in net earnings
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