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Assessing NNN REIT’s (NNN) Valuation After Recent Total Return And Price Moves

Simply Wall St · 2d ago

Event context and why NNN REIT is on investor radars

NNN REIT (NNN) has drawn renewed attention after recent performance data showed a past 3 months total return decline of 3.5%, alongside a 1 year total return of 10.3%. This has prompted fresh interest in its income profile.

See our latest analysis for NNN REIT.

While NNN REIT’s 1 year total shareholder return of 10.3% contrasts with a 3.5% decline in its 3 month share price return, the recent 2.2% 7 day share price gain suggests momentum has firmed slightly around the current US$40.49 level.

If NNN’s recent moves have you thinking about income and defensiveness, it could also be a good time to scan other healthcare stocks that may fit a similar resilient profile.

With NNN REIT trading at US$40.49 alongside an indicated 47.1% intrinsic discount and a modest gap to analyst targets, you have to ask: is this reliable income on sale, or is the market already factoring in its future growth?

Most Popular Narrative: 9.1% Undervalued

The most followed narrative puts NNN REIT’s fair value at US$44.54 versus the last close at US$40.49, framing the current price as a discount.

The company's ongoing acquisitions of properties with initial cap rates around 7.4% and long lease terms averaging over 17 years, amid robust sales leaseback deal flow and a rising acquisition pipeline, suggest an ability to lock in above average yields and benefit from favorable inflation linked rent escalations. This should provide durable growth in FFO and long term earnings.

Read the complete narrative.

Curious how steady rent escalations, modest growth, and a higher future earnings multiple all come together? The narrative is built around a quietly optimistic earnings path.

Result: Fair Value of $44.54 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this depends on competition not pushing acquisition yields lower and on tenant health holding up, since bankruptcies or slower leasing could quickly challenge that optimism.

Find out about the key risks to this NNN REIT narrative.

Build Your Own NNN REIT Narrative

If this narrative does not quite match how you see NNN REIT, you can review the same numbers yourself and shape a custom view in minutes, Do it your way.

A great starting point for your NNN REIT research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If you only stop at NNN REIT, you could miss other opportunities that fit your style, so take a few minutes to widen your watchlist with focused screens.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.