National Retail Properties
Click to Enlarge Dividend Yield: 5%
Next on the list is National Retail Properties (NNN), a competitor of Realty Income’s in the triple-net retail space.
For those unfamiliar with the term, in a “triple net” lease, the tenant is responsible for property taxes, insurance and maintenance. If a pipe breaks or a health inspector discovers black mold, it’s not the landlord’s problem.
This makes the revenues and profits of triple-net leased properties ridiculously stable, assuming your tenants are good credits and your occupancy rates are stable. And this certainly is the case for National Retail Properties. The REIT owns 1,850 properties across 47 states with a total gross leasable area of more than 20 million square feet. Current occupancy is 98.1%.
Tenant concentration is sometimes a risk for triple-net landlords. Not so for National Retail Properties. The REIT has more than 350 tenants in 38 industry classifications.
National Retail Properties has raised its dividend for 24 consecutive years and currently yields 5%.
Recommendation: Buy NNN every time it dips below $35.