National Retail Properties stock rating downgraded by Barclays on valuation

Published 21/07/2025, 22:14
National Retail Properties stock rating downgraded by Barclays on valuation

Investing.com - Barclays (LON:BARC) downgraded National Retail Properties (NYSE:NNN) from Overweight to Underweight on Monday, while lowering its price target to $44.00 from $46.00. The $8.05 billion market cap REIT currently offers a 5.61% dividend yield and has maintained dividend payments for 41 consecutive years, according to InvestingPro data.

The downgrade follows Barclays’ latest model updates and a comprehensive review of Net Lease sector valuations, risks, and opportunities ahead of the upcoming second-quarter earnings season.

National Retail Properties has experienced a strong performance over the 90 days through July 18, returning 4% compared to 0% for the broader Net Lease sub-sector, while matching the RMZ index.

Barclays noted that National Retail Properties is now trading close to its revised price target of $44, limiting potential upside from current levels.

The investment bank specifically mentioned that National Retail Properties is generally viewed as the "cleanest Net Lease proxy for non-investment grade tenancy" and indicated it sees "superior prospective returns elsewhere within Net Lease."

In other recent news, NNN REIT reported strong financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved earnings per share of $0.51, exceeding the forecast of $0.48, while revenue reached $230.85 million, beating the anticipated $218.67 million. Additionally, NNN REIT increased its quarterly dividend by 3.4% to 60 cents per share, marking the 36th consecutive year of dividend growth. The company also raised $500 million through a senior notes offering, with proceeds intended for debt repayment and future acquisitions. NNN REIT’s debt offering was priced at 4.6% interest, and Stifel maintained a Buy rating on the stock. The company plans to acquire $500-600 million in properties this year, having already completed 40% of its acquisition volume. Despite these positive developments, NNN REIT’s stock experienced a slight decline in pre-market trading. The company maintains a high occupancy rate of 97.7% and anticipates refinancing $400 million of debt maturing in November.

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