NNN REIT, Inc. (NNN): A Bull Case Theory 

We came across a bullish thesis on NNN REIT, Inc. on Compounding Dividends’s Substack by TJ Terwilliger. In this article, we will summarize the bulls’ thesis on NNN. NNN REIT, Inc.’s share was trading at $42.02 as of September 25th. NNN’s trailing and forward P/E were 21.38 and 19.96 respectively according to Yahoo Finance.

NNN is a U.S.-based real estate investment trust (REIT) focused on owning and developing single-tenant retail properties, operating over 3,600 locations nationwide. The company has a long history of stability and consistency, having raised its dividend for 35 consecutive years while maintaining occupancy rates consistently above 98%. Its business model centers on long-term, net leases where tenants cover taxes, insurance, and maintenance, allowing NNN to generate predictable and steady rental income. The company primarily grows through rent increases and selective acquisitions, focusing on single-tenant net lease (STNL) properties that align with its expertise.

Many acquisitions occur via sale-leaseback transactions with existing tenants, strengthening relationships and reducing competition while enabling higher starting returns and built-in rent growth. NNN’s portfolio includes strong, service-oriented tenants such as 7-Eleven, Mister Car Wash, United Rentals, and Lifetime Fitness, which are often essential businesses with growing credit profiles, further mitigating tenant risk. Its financial strength, highlighted by a BBB+ credit rating and conservative leverage, enables resilience amid interest rate cycles and market volatility. Despite a mature retail real estate market, demand remains strong due to low construction levels and increasing rents, supporting NNN’s growth strategy.

The management team, led by CEO Stephen Horn Jr., has a proven track record of FFO per share growth averaging 3–4% annually. While risks include tenant defaults, interest rate fluctuations, and retail industry changes, NNN mitigates these through diversification across over 400 tenants and 49 states, long-term lease structures, and strategic focus on service-oriented businesses. With a high dividend yield, consistent earnings, and a defensive business model, NNN offers investors a stable, income-generating opportunity with limited downside risk.

Previously we covered a bullish thesis on Simon Property Group, Inc. (SPG) by David in April 2025, which highlighted the company’s disciplined capital structure, luxury tenant portfolio, robust free cash flow, and shareholder-friendly dividend growth. The company’s stock price has appreciated approximately by 23.34% since our coverage. The thesis still stands as SPG’s stable income and growth remain intact. TJ Terwilliger shares a similar approach but emphasizes NNN’s single-tenant net lease focus and consistent 35-year dividend growth.

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Disclosure: None.