| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 35 | 21.5x | 17.8x | Bottom tier | |
Growth | 39 | 6.5% | 7.1% | Bottom tier | |
Quality | 57 | 6.4% | 4.5% | Around median | |
Safety | 42 | 5.7x | 2.6x | Around median | |
Capital Return | 50 | 5.38% | 2.12% | Around median | |
Momentum | 61 | 12.4% | 2.9% | Around median | |
Sentiment | 47 | 4 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
NNN REIT, Inc. is a real estate investment trust focused on single-tenant, freestanding properties leased under long-term triple-net leases, making rent the primary source of its cash flows. In fiscal Q2 2026, the portfolio included approximately 3,770 properties, and new investments were concentrated in automotive services, discount retail, and early childhood education. The growth strategy relies on direct sale-leaseback transactions with tenants that have existing relationships with the company, alongside selling vacant and non-core properties and reinvesting the proceeds in higher-conviction assets.
In fiscal Q2 2026, revenue was $244.3 million, net income was $97.9 million, and earnings per share were $0.52, equivalent to a calculated net income margin of approximately 40.1%. AFFO per share was $0.90, up 5.9% year over year, while Core FFO per share increased 6.0% to $0.89. The NOI margin was 96.6%, up 70 basis points from the previous quarter, with occupancy rising to 99.1% and uncollected rent declining to less than 5 basis points.
Annual base rent reached $959 million, an increase of more than 7% year over year, driven by acquisition volume. NNN REIT invested slightly more than $290 million in 89 new properties during fiscal Q2 2026, at an initial cash capitalization rate of 7.3% and an average lease term of approximately 18 years. In contrast, it sold 26 properties, including 19 vacant properties, generating approximately $37 million for reinvestment.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $47.88, with a range of $45 to $50 and a neutral consensus; the highest target matches the peak of the 52-week range at $50, while its low is $38.90. A traditional earnings multiple is not available in the provided data, but management referred to a multiple of approximately 13.8 times during the August 5, 2026 call. This valuation balances expected AFFO growth of 3.8% in fiscal 2026 and the dividend track record on one hand, against capitalization-rate compression risks and the refinancing of the December 2026 maturity on the other.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The company relies on acquiring freestanding properties under long-term triple-net leases, particularly through direct sale-leaseback transactions. It invested $430 million in 130 properties during the first half of fiscal 2026, with an average lease term exceeding 18 years and an initial capitalization rate of 7.4%. Following the strength of the transaction pipeline, it raised the midpoint of its annual acquisition guidance from $600 million to $750 million. This was reflected in annual base rent growth of more than 7% to $959 million.
Revenue was $244.3 million, net income was $97.9 million, and earnings per share were $0.52. AFFO per share was $0.90, representing annual growth of 5.9%, while Core FFO per share was $0.89, representing growth of 6.0%. The NOI margin increased to 96.6%, up 70 basis points from the previous quarter. Occupancy also reached 99.1%, and bad debt was only approximately 2 basis points of quarterly annual base rent.
On July 15, 2026, the company announced a quarterly dividend of $0.62 per share, an increase of 3.3% from the previous rate. Fiscal 2026 represents the 37th consecutive year in which NNN REIT has raised its annual dividend. The AFFO payout ratio was approximately 69%, and the REIT generated approximately $56 million in free cash flow after dividends in fiscal Q2 2026. These figures provide operating headroom, but its sustainability remains tied to occupancy, tenant credit quality, and financing costs.
The company deals with retail tenants that may close locations or decide not to renew leases, and it therefore sold 19 vacant properties in fiscal Q2 2026. It also continues to reduce its exposure to movie theaters, as management said that the performance of these assets had not fully returned to pre-COVID pandemic levels. In acquisitions, management expects modest capitalization-rate compression during the second half of fiscal 2026 due to transaction mix and competition. Nevertheless, the credit watchlist on August 5, 2026 did not include any material tenant posing a near-term concern.
Net debt to EBITDA was approximately 5.7 times as of June 30, 2026, and declines on a pro forma basis to 5.2 times after accounting for unsettled forward equity. The average debt maturity reached 10.1 years, there were no encumbered assets, and variable-rate debt represented only 2.5% of total debt. The interest rate on $400 million of a $500 million term loan was fixed at an all-in cost of 4.1%. However, a $350 million maturity is due in December 2026, and management estimated the cost of new 10-year debt at approximately 5.0%–5.6%.
The company raised its AFFO per share range to $3.55–$3.59 on August 5, 2026, the second increase during the year. The midpoint implies annual growth of approximately 3.8%, compared with growth of 2.7% in fiscal 2025. It also raised the midpoint of its acquisition guidance to $750 million and the midpoint of its disposition guidance to $140 million, while lowering its annual bad-debt estimate from 60 to 40 basis points. Actual results remain sensitive to acquisition timing, capital-markets activity, and credit losses.
