National Retail Properties, Inc.: 4.5% Yielder Has Raised Dividends for 32 Consecutive Years
Consider NNN Stock for Income & Growth
If you’re looking for a stock that provides consistent dividend growth and share-price gains—and a company that’s taking advantage of the post-pandemic economic recovery—National Retail Properties, Inc. (NYSE:NNN) might be the perfect opportunity.
Admittedly, having the word “retail” in its name might scare off a lot of investors. After all, traditional brick-and-mortar stores are slowly becoming a thing of the past. Fortunately, National Retail Properties, Inc. didn’t get that memo.
National Retail Properties is a real estate investment trust (REIT) that acquires, invests in, and develops high-quality properties that it leases to retailers under long-term (15–20 years) triple net leases. (Source: “Investor Update: November 2021,” National Retail Properties, Inc., last accessed November 25, 2021.)
With a triple net lease, the tenant is responsible for all expenses, including property taxes, building insurance, maintenance, and utilities. In essence, National Retail Properties banks the base rent and has no obligation to spend money on the property.
Why would anyone sign up for a triple net lease? The landlord has a lower initial cost with a triple net property, which means it can offer lower rents. Don’t shed a tear for National Retail Properties, Inc., though. It builds rent increases into its contracts.
The company’s diverse portfolio comprises 3,195 properties leased to more than 370 tenants in more than 30 industries. National Retail Properties’ aggregate gross leasable area is approximately 33.1 million square feet (equal to about 573 football fields) in 48 states. The REIT’s properties are most concentrated in Florida, Illinois, North Carolina, Ohio, and Texas.