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Investing.com - Stifel has raised its price target on National Retail Properties (NYSE:NNN) to $48.25 from $48.00 while maintaining a Buy rating, citing robust investment activity in the second quarter. The $7.93 billion market cap REIT, which currently trades at $42.17, has earned a GREAT financial health score according to InvestingPro analysis.
National Retail Properties closed approximately $232.5 million of investments across 45 properties in the second quarter of 2025, achieving a 7.4% cap rate with a weighted average lease term of 17.8 years. Year-to-date acquisition volume reached $464.9 million, representing about 85% of the company’s original midpoint guidance for 2025. The company’s strong execution is reflected in its impressive 96.1% gross profit margin and consistent dividend growth, having raised dividends for 35 consecutive years.
The company also sold 23 assets during the quarter, including 13 vacant properties, generating $51.2 million. Eight of the 11 transaction closings in the quarter were with existing relationships, demonstrating the company’s strong tenant connections.
Stifel noted that the strong year-to-date transaction volume and robust pipeline of assets under contract or letter of intent drove National Retail Properties to increase its guided acquisition volume. While current guidance suggests a potential slowdown in the second half of 2025, management indicated limited visibility into the fourth quarter despite a strong outlook for the third quarter.
Management reported no meaningful quarter-over-quarter movement in cap rates so far in the third quarter of 2025, with Stifel suggesting guidance could be raised again in the next quarter. The stock has delivered a 10.04% return year-to-date, demonstrating its resilience. For deeper insights into National Retail Properties’ performance metrics and growth potential, including exclusive Fair Value analysis, visit InvestingPro, where you’ll find comprehensive research reports and expert analysis.
In other recent news, NNN REIT, Inc. has made several noteworthy announcements. The company successfully raised $500 million through a public offering of senior unsecured notes due in 2031, priced at an interest rate of 4.6%. The proceeds from this offering are intended to repay outstanding debt and support future acquisitions. Additionally, NNN REIT announced a 3.4% increase in its quarterly dividend, now set at 60 cents per share, marking the 36th consecutive year of dividend increases.
In a separate development, Barclays (LON:BARC) downgraded National Retail Properties from Overweight to Underweight, adjusting the price target from $46.00 to $44.00. This downgrade comes after Barclays conducted a review of the Net Lease sector’s valuations and risks. These developments provide investors with key insights into the company’s financial strategies and market positioning.
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