NNN REIT, Inc. shares were trading at $41.62 as of January 13th. According to Yahoo Finance, the company's trailing and forward P/E ratios stood at 19.84 and 19.76 respectively.
A bullish thesis on NNN REIT was presented on Jussi Askola, CFA's YouTube Channel. The analysis described NNN as a blue chip net lease REIT trading at a roughly 6% dividend yield.
The company has achieved 36 consecutive years of dividend growth, the second longest streak in the REIT universe. Its portfolio focuses on service-oriented properties including quick service restaurants, convenience stores, home improvement retailers, and car washes.
NNN's assets are largely leased under long-term triple net agreements, typically spanning 15 to 20 years. These leases have about 10 years of remaining term on average. Tenants are responsible for taxes, insurance, and maintenance under this structure.
Leases include annual rent escalations of around 2%. The company has raised its dividend through periods including the dot com crash, the global financial crisis, and the pandemic.
Management maintains a conservative capital allocation strategy. The company has the longest average debt maturity among net lease peers at roughly 12 years. Equity is issued only when reinvestment spreads are attractive.
By retaining about 30% of cash flow, NNN has historically generated 4% to 5% annual FFO per share growth. Combined with the current yield, this supports an expected total return near 10% without valuation recovery.
Years of aggressive rate hikes have driven capital flows into fixed income, leaving REITs near decade low valuations. As interest rates decline and money market yields fall, income-focused capital may rotate back into high quality REITs like NNN.
Previously, a bullish thesis on STAG Industrial, Inc. by Steve Wagner in May 2025 highlighted the company's industrial platform, leasing spreads, capital recycling, and FFO growth. STAG's stock price has appreciated by approximately 13.78% since that coverage.
Jussi Askola, CFA shares a similar focus but emphasizes NNN REIT's long-term triple net leases, predictable cash flows, and sustained dividend growth. This offers a complementary perspective within the REIT sector.
NNN REIT is not on the list of 30 Most Popular Stocks Among Hedge Funds. According to database records, 22 hedge fund portfolios held NNN at the end of the third quarter, down from 24 in the previous quarter.