Last Updated: 08 Nov 2024
Executive Summary
National Retail Properties Inc. (NNN) is a real estate investment trust (REIT) that invests primarily in high-quality retail properties generally subject to long-term net leases. The company's portfolio consists of over 3,000 properties located in 48 states. NNN has a strong financial position with a low debt-to-equity ratio and a consistent dividend payout history. The company's shares have outperformed the S&P 500 Index over the past five years.
Company Overview
NNN was founded in 1991 and is headquartered in Orlando, Florida. The company's portfolio of properties includes shopping centers, grocery-anchored centers, and other retail properties. NNN's tenants include a mix of national and regional retailers, such as Walmart, Kroger, and Starbucks.
Fundamental Analysis
NNN's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate of 5.6% over the past five years. NNN's earnings per share have also grown at a compound annual growth rate of 5.4% over the same period. The company's dividend payout ratio is approximately 80%.
NNN's balance sheet is also strong. The company has a low debt-to-equity ratio of 35.4%. NNN also has a strong liquidity position with over $1 billion in cash and cash equivalents.
Technical Analysis
NNN's stock price has been trading in a range between $35.74 and $48.94 over the past 52 weeks. The stock price is currently trading at $41.51, which is near the middle of its 52-week range. NNN's stock price is above its 50-day moving average of $47.55 and its 200-day moving average of $43.73.
Short Term Outlook
NNN's stock price is expected to continue to trade in a range in the short term. The company's financial performance is expected to remain strong, but the stock price is likely to be pressured by rising interest rates.
Long Term Outlook
NNN's long-term outlook is positive. The company's portfolio of high-quality retail properties is expected to continue to generate strong cash flow. NNN's dividend payout ratio is also expected to remain stable.
Analyst Recommendations
Analysts are generally positive on NNN's stock. The consensus analyst rating is "Buy." The average analyst target price is $47.84, which represents a potential upside of 15.2% from the current price.
Disclaimer
The information contained in this report is for informational purposes only and should not be construed as investment advice. Investors should consult with a financial advisor before making any investment decisions.
