NNNREIT (NNN, Financial) has announced a 3.4% rise in its quarterly dividend, bringing it to 60 cents per share. This dividend is set to be paid on August 15 to shareholders who are recorded by July 31. Notably, this marks the company's 36th consecutive year of annual dividend growth. NNN stands out as one of only three publicly traded REITs that have achieved such a long track record of consistent dividend increases.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for NNN REIT Inc (NNN, Financial) is $44.53 with a high estimate of $48.00 and a low estimate of $42.00. The average target implies an upside of 0.97% from the current price of $44.10. More detailed estimate data can be found on the NNN REIT Inc (NNN) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, NNN REIT Inc's (NNN, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NNN REIT Inc (NNN, Financial) in one year is $46.92, suggesting a upside of 6.39% from the current price of $44.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NNN REIT Inc (NNN) Summary page.
NNN Key Business Developments
Release Date: May 01, 2025
- Core FFO per Share: $0.86, up 3.6% year-over-year.
- AFFO per Share: $0.87, up 3.6% year-over-year.
- Annualized Base Rent: Increased over 5% year-over-year.
- NOI Margin: 95.9% for the quarter.
- G&A as Percentage of Total Revenues: 5.6%.
- Free Cash Flow after Dividend: Approximately $55 million.
- Occupancy Rate: 97.7% at the end of the quarter.
- Acquisitions: 82 new properties for approximately $232 million with an initial cap rate of 7.4%.
- Dispositions: Sold 10 properties generating $16 million in proceeds.
- Liquidity: $1.1 billion available on a $1.2 billion line of credit.
- Net Debt to EBITDA: 5.5 times.
- Dividend: $0.58 per share, equating to a 5.4% yield.
- 2025 Core FFO per Share Guidance: $3.33 to $3.38.
- 2025 AFFO per Share Guidance: $3.39 to $3.44.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NNN REIT Inc (NNN, Financial) successfully acquired 82 new properties for approximately $232 million, with an attractive initial cap rate of 7.4% and a long-term lease duration of over 18 years.
- The company has a strong balance sheet with nearly $1.1 billion available on its $1.2 billion line of credit, providing flexibility for future acquisitions.
- NNN REIT Inc (NNN) reported core FFO of $0.86 per share and AFFO of $0.87 per share for Q1 2025, each up 3.6% over the prior year period.
- Occupancy remained high at 97.7%, reflecting the stability of the portfolio and its cash flows.
- The company has a history of 35 years of consecutive dividend growth, showcasing its long-term financial stability and commitment to shareholder returns.
Negative Points
- The company experienced a slight dip in occupancy from its long-term average due to the finalization of the eviction process.
- NNN REIT Inc (NNN) anticipates some cap rate pressure in 2025 compared to the previous year, which could impact future acquisition pricing.
- The company is dealing with vacancies from two tenant defaults, which are expected to have a minimal impact on annual FFO per share.
- There is ongoing uncertainty in the macroeconomic environment, which could affect tenant growth plans and acquisition opportunities.
- NNN REIT Inc (NNN) has a watch list of tenants, including 'At Home,' which could pose potential risks if economic conditions worsen.
