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.
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