NNN REIT: The Middle Of The Net Lease Fairway

NNN maintains disciplined, accretive growth, favoring self-funding and conservative leverage over aggressive acquisitions. NNN’s capital recycling program accelerated, selling $200M in properties and reinvesting at spreads over 100 bps, improving occupancy to 98.6%. Exposure to experiential retail and middle-market tenants presents long-term earnings risk if sector headwinds persist. With NNN’s yield now below 5% and close to treasury rates, I maintain a Hold rating due to diminished risk/reward.

Net lease real estate will always be the core of REITer’s Digest. Collecting growing rent from long term leases with high quality tenants is the secret sauce behind some of the most successful REITs on