UBS Trims NNN REIT Target, Sees 2026 as a Potential Turning Point for REIT Returns

NNN REIT, Inc. (NYSE:NNN) is included among the 15 Best High Yield Stocks to Buy.

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On January 8, UBS lowered its price target on NNN REIT, Inc. (NYSE:NNN) to $43 from $44 and kept a Neutral rating on the stock. In its research note, UBS said 2026 could end up being a major turning point for REITs, with expected total returns in the 9%–11% range. The firm’s outlook is based on improving macro conditions, more attractive valuations, easing supply pressures, and a calmer political backdrop. UBS also expects the year to be split into two different phases, with investors leaning more defensive in the first half of 2026, before stronger catalysts start showing up in the second half. The firm added that Healthcare, Shopping Centers, and Coastal Apartments could be better positioned if the second half plays out as expected.

On January 15, NNN REIT’s Board of Directors announced a quarterly dividend of $0.60 per share. The dividend will be paid on February 13, 2026, to shareholders on record as of January 30, 2026. NNN is one of just three publicly traded REITs that have increased their annual dividend for at least 36 consecutive years, which highlights how steady its dividend track record has been.

NNN REIT follows a simple and predictable model. It invests in single-tenant, net-leased retail properties, including locations like automotive service centers, convenience stores, and restaurants. These properties are typically backed by long-term leases, usually starting at 10 to 20 years, and structured as triple net leases. That structure shifts most property costs to the tenant, helping NNN generate stable rental income year after year.

NNN REIT, Inc. (NYSE:NNN) also runs with a conservative financial approach. It distributes only a reasonable portion of its cash flow through dividends and maintains a strong balance sheet. That financial discipline gives the company the flexibility to keep expanding its portfolio and continue investing in net lease retail properties without stretching itself too far.

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