XLRE - NNN REIT: Q1 This 5.5% Yielding Stock Offers Something You Can't Get From Treasury Yields
2024-05-04 07:00:00 ET
Summary
- NNN REIT offers stability and reliability for long-term investors seeking income, with consistent and steady growth in earnings and dividends.
- The REIT has shown the ability to grow through acquisitions, taking advantage of lower cost of capital and attractive spreads.
- NNN REIT has a lower payout ratio compared to its peers, indicating potential for higher dividend increases and reinvestment in the business.
- Portfolio tenants like Big Lots, Frisch's Restaurants, and Joann's are currently facing headwinds due to higher interest rates, and this could impact NNN's financials going forward.
- NNN offers investors double-digit upside to their price target of $46.
Investment Thesis
With high interest rates currently, treasury yields have risen significantly the past two years, in turn causing lower-yielding investments like REITs ( XLRE ) to sell off. And while investors may have flocked to those safer, fixed-rate investments because of this, it has given long-term investors nice entry points into high-quality stocks like NNN REIT ( NNN )....
NNN REIT: Q1, This 5.5% Yielding Stock Offers Something You Can't Get From Treasury Yields