National Retail Properties: A 4% Mid-Yield Alternative To Realty Income
- National Realty Properties is a high-quality commercial REIT alternative to Realty Income.
- The REIT has a large, diversified property portfolio and benefits from outstanding occupancy rates.
- National Retail Properties has increased dividends throughout the Great Recession, which indicates a well-run real estate business.
- Shares currently yield 3.85%.
Want Dividend Security? Buy This High-Dividend Stock With 25 Straight Years Of Dividend Hikes
- Falling oil prices have sent energy stock income investors searching for alternative high-yield securities.
- The REIT sector offers many high-yielding stocks, but not many REIT's offer dividend security based upon 25 years of dividend hikes.
- A few select REIT's offer several very well-covered high dividend yields.
I'll Pay More For A Latte, But I Can't Pay More For This REIT
- I must spend considerable time scrutinizing the opportunity to make sure that the brand promise supports the risk I’m taking of owning shares at a higher price.
- National Retail Properties offers investors with an extraordinary brand promise based on growing dividends. The question remains however, should I buy the shares today?
- Ben Graham also reminds me that the value investor’s purpose is to capitalize upon "a favorable difference between price on the one hand and indicated or appraised value."
- I must maintain some kind of buffer to protect against market fluctuations, and perhaps the most logical time to pick up shares is in a sell-off.
I'm Waiting Patiently For This Blue Chip REIT To Go On Sale
- It’s pain to see that Mr. Market isn’t cooperating with me – since January 1st (2014) NNN has been the best performing Triple Net REIT.
- NNN is better positioned to successfully execute its strategy than many other Triple Net peers in a rising interest rate environment.
- NNN is executing at ALL CYLINDERS and there are few REITs that I covet and this is one of them.
- Finding attractive dividend-paying stocks is only one piece of the puzzle. Buying them is another piece.
W.P. Carey, NNN Report Great Q2 Results Utilizing 2 Very Different Strategies
- National Retail Properties, or NNN, is executing a strategy focused almost solely on U.S. retail locations, and is on the verge of joining the exclusive Dividend Aristocrat club.
- W.P. Carey has also proven to be a very dependable source of dividend income -- having just announced its 53rd consecutive quarterly increase -- while shunning the U.S retail sector.
- W.P. Carey actively pursues larger, sophisticated build-to-suit opportunities; while NNN avoids development risk by growing almost entirely from the acquisition of smaller U.S. retail properties.
- W.P. Carey earns 17% of its revenue from fees generated from over $8 billion of non-traded REIT assets under management, or AUM; while NNN generates no earnings from fee income.
- However, both companies have managed to generate solid returns and dividend growth for shareholders -- while focused on maintaining a strong balance sheet.
- Somewhere National Retail Properties seems to get lost in the shuffle.
- Unlike several of the larger net lease REITs, NNN focuses exclusively on "small-box retail" and the company maintains a consistent strategy of owning relatively smaller transactions.
- Part of NNN's differentiated net lease approach is the higher cap rates that the company generates.
- The most recent bit of good news for NNN has been the announcement by Susser to merge with Energy Transfer Partners.
No "Mud Pie Eating Contest" For National Retail Properties
The Time To Consider National Retail Properties Is Now
National Retail Properties Is Positioned Well For Growth
I Like This Boring REIT, But Mr. Market Likes It More Than Me
This Bloomin' REIT Delivers Some Appetizing Dividends
Tue, Jan. 6, 2:25 PM
- The 10-year Treasury yield plunging all the way to 1.94% makes the dividends on these players even more attractive.
- ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
- Individual names: National Retail Properties (NNN +2.3%), Spirit Realty (SRC +3.2%), Health Care REIT (HCN +1.6%), Ventas (VTR +2.1%), HCP (HCP +2.3%), AvalonBay (AVB +1.4%), Essex Property Trust (ESS +1.2%), Brixmor Property (BRX +1.8%), Macerich (MAC +0.9%), Retail Properties of America (RPAI +1.2%), Tanger Factory (SKT +1.3%), Public Storage (PSA +1.6%), Sovran Self Storage (SSS +1.9%),
Nov. 11, 2014, 9:17 AM
- The size of the offering was upsized to 4.75M shares from 4M, and it priced at $38.16 each. The underwriter greenshoe is for another 712.5K shares at that price.
- Source: Press Release
- NNN -2.1% to $38.10
- Previously: National Retail Properties with 4M share secondary
Nov. 10, 2014, 4:17 PM| Comment!
Oct. 29, 2014, 1:34 PM
- Realty Income (O +2.1%) and National Retail Properties (NNN +1%) - like ARCP - are owners of single-tenant freestanding retail properties (but without the frenetic acquisition pace), and both are seeing gains as American Realty Capital plunges amid accounting issues.
- Previously: American Realty Capital down more than 30% as downgrades roll in
Jul. 25, 2014, 7:27 AM
- National Retail Properties (NYSE:NNN) is lower by 1.5% premarket after Ladenburg cashes in its chips on its Buy call after a big rally thus far this year.
- It's the 2nd valuation-related downgrade of NNN this month.
- Previously: Morgan Stanley pulls buy call on NNN after big run
Apr. 3, 2014, 10:12 AM
Mar. 6, 2014, 10:27 AM
- Notably lower today with the major averages in the green are retail REITs Realty Income (O -1.5%) and National Retail Properties (NNN -1.7%), and shopping-center REITs like Kimco (KIM -1.1%), Inland Real Estate (IRC -0.6%), Federal Realty (FRT -1%), and Brixmor (BRX -1.2%).
- Investors may be mulling over a continuing string of disappointing retail earnings reports and plans for mass store closings from the likes of RadioShack and Staples.
- Brixmor is also the subject of a downgrade from Buy to Neutral from UBS.
Jan. 31, 2014, 10:26 AM
- Working today - and for the whole month of January - as the broader market sells off are the REITs. The sector - both the equity REITs and mREITs - had been punished in 2013 as rates moved higher starting last May, but another four basis point decline this morning brings the 10-year Treasury yield down to 2.66% after starting the year at about 3%.
- At least for the mREITs, nearly all put in what may turn out to be major bottoms late in 2013 amid jitters over year-end tax-loss selling and the commencement of the taper - sell the rumor, buy the news ... indeed.
- Mortgage REITs: Annaly (NLY +1.1%) +7.4% YTD, American Capital (AGNC +1.3%) +9.1%, Invesco (IVR +0.5%) +6.7%, Anworth (ANH +0.6%) +10.9%, Apollo Residential (AMTG +0.7%) +9.1%, AG Mortgage Investment (MITT +0.6%) +5.6%.
- ETFs: REM, MORT, MORL
- Equity players: Realty Income (O +0.5%) +9.6% YTD, National Retail (NNN +0.7%) +9.8%, AvalonBay (AVB +0.8%) +4.1%, Public Storage (PSA +0.6%) +4.9%, Boston Properties (BXP +0.2%) +7.8%, Liberty Trust (LRY +1%) +7.9%.
- Related ETFs: IYR, VNQ, REM, DRN, REZ, URE, SRS, RWR, ICF, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, WREI
Jan. 10, 2014, 2:44 PM
- The broad averages are struggling following the jobs number, but the big decline in interest rates (the 10-year Treasury is now off 10 bps to 2.87%) has the equity REIT sector lit up bright green.
- Ventas (VTR +4.4%) is having the biggest day, continuing to cruise through a couple of early-year downgrades (latest was Barclays on Wednesday). Among those also higher: National Retail Properties (NNN +3.1%), Realty Income (O +1.6%), Health Care REIT (HCN +2.5%), HCP (HCP +3.8%), RAIT Finanical (RAS +1.4%), Apartment Investment (AIV +2.9%), General Growth (GGP +1.6%), Inland Real Estate (IRC +1.5%), Government Properties (GOV +1.6%), American Campus (ACC +1.7%).
- Relevant ETFs: IYR, VNQ, REM, DRN, REZ, URE, SRS, RWR, ICF, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, WREI
Dec. 19, 2013, 11:19 AM
- The broad market is quiet today following yesterday's big session, but the equity REIT sector has its eyes focused on rising Treasury yields, particularly in the belly of the curve where the 5-year yield is higher by 10 basis points on the session and all the way up to 1.64% (it was 1.3% at Thanksgiving).
- Realty Income (O -3.6%), National Retail (NNN -2.4%), Health Care REIT (HCN -3.1%), LTC Properties (LTC -3.6%), Medical Properties (MPW -2.5%), Federal Realty (FRT -1.9%), Retail Opportunity (ROIC -1.1%), Chambers Street (CSG -1.8%).
- Related ETFs: IYR, VNQ, DRN, URE, SRS, RWR, ICF, SCHH, DRV, KBWY, REK, FRI, FTY, PSR, WREI
Dec. 11, 2013, 3:08 PM
- The equity REITs are particularly weak today as the 10-year Treasury yield heads higher by 4 basis points to 2.85%. Senior Housing (SNH -2.3%), Omega Healthcare (OHI -2.6%), American Realty Capital (ARCP -1.7%), Stag Industrial (STAG -2%), Equity Residential (EQR -1.4%).
- Retail and shopping center/mall REITs also have the weak retail traffic numbers to mull over: Realty Income (O -1.4%), National Retail (NNN -2.8%), Simon Property (SPG -1.4%), General Growth (GGP -2.6%), Kimco (KIM -2.6%), Brixmor (BRX -0.8%).
Oct. 23, 2013, 11:45 AM
- "This is taking the number two and number three net-lease REITs and creating kind of a game-over, category-killer in the sector," says Cole Real Estate (COLE +8.7%) CEO Marc Nemer of the deal to sell itself to American Realty Capital Properties (ARCP -1.5%) for $11.2B in cash and stock. The combined company will push into first place in size in the popular triple-net-lease sector, surpassing Realty Income (O +0.7%).
- ARCP's acquisition-happy chief Nicholas Schorsch in the past has typically raised private money for non-traded REITs and then sold the portfolios to ARCP in order to cash out his investors, but this is a massive public deal. "How many REITs have the ability to raise both public and private capital," he says. "The ability for us to acquire non-traded REITs, either whole or in part, is only increased" by this Cole deal.
- S&P 500 inclusion next? The investor presentation (slide 8) notes the combined company's market cap will be larger than index constituents Kimco Realty and Macerich.
- Under the impression the CEOs of the two companies hated each other, SNL Financial's Jake Mooney wants the backstory. Earlier this year: Still a non-traded REIT, Cole rebuffs ARCP's buyout attempt for $9.7B.
- Earlier today: The deal announcement.
- Other triple-net players: National Retail (NNN +1.2%), W.P. Carey (WPC +1%), Spirit Realty (SRC +3.2%), EPR Properties (EPR +0.8%).
May. 7, 2013, 3:25 PMGramercy Property Trust (GPT +1%) moves about 3% off the session low as the earnings call/business plan update reveals a management focused and executing on its plan to turn the company into a pure play equity REIT. The implied cap rate (pg. 27-31) of net lease companies (O, WPC, NNN, LXP, EPR, SRC, ARCP,GTY) of 5%-6.5% is far below the 7.5%-8.5% Gramercy is closing deals at - "(the) widest arbitrage in our experience." | 4 Comments
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