Summary

National Retail Properties is a blue chip REIT holding.

The real estate investment trust has superb portfolio stats including consistently high occupancy rates.

National Retail Properties has a very high degree of dividend safety. Plus, management has grown the dividend consistently since 1990.

Shares are not cheap, but also not overvalued yet, in my estimation.

An investment in NNN yields 4.3 percent.

National Retail Properties, Inc. (NNN) is a high-quality REIT holding that investors with an average risk-tolerance might want to consider for their portfolios. National Retail Properties is a well-managed real estate investment trust with a large property portfolio and very solid portfolio stats. Importantly, National Retail Properties has a conservative AFFO-payout ratio, and the real estate investment trust regularly raises its dividend, which points at a rising yield on cost over time. Shares are not cheap, but also not overpriced. An investment in National Retail Properties yields 4.3 percent.

National Retail Properties – A Business Snapshot

National Retail Properties is – by equity value and portfolio size – one of the largest retail-focused commercial property REITs in America. The real estate investment trust currently has an equity value of ~$7 billion. The REIT’s real estate portfolio consisted of 2,846 properties at the end of Q2-2018.

Source: National Retail Properties Investor Presentation

National Retail Properties is a well-managed property REIT based on its excellent occupancy rates. Since 2003, the commercial property REIT consistently reported occupancy rates in excess of 96 percent. National Retail Properties’ occupancy rate also beat the industry occupancy rate in each of the last fifteen years by a considerable margin.

Source: National Retail Properties

National Retail Properties has a long-duration lease portfolio with a weighted-average remaining lease term of 11.5 years. The longer the duration of the lease portfolio, the safer the REIT’s cash flows and shareholders’ dividends.

The majority of National Retail Properties’ leases expire after 2027.

Here’s the lease maturity schedule.

Source: National Retail Properties

Balance Sheet

National Retail Properties has a conservative balance with investment-grade credit ratings (BBB+ and Baa1). Common and preferred equity account for ~65 percent of the REIT’s capital structure, while debt makes up the rest, ~35 percent.