NNN REIT: the triple-net alternative to Realty Income
2026-06-23 · By Lubin Danilo, founder of Lubin Investment
NNN REIT is the second-largest US triple-net landlord after Realty Income. 35 consecutive years of dividend growth, 3,500 properties, diversified retail tenants. Our screener rates it 6/10 — similar to Realty Income but slightly cheaper (13.1× vs 14.0× for O). At $45.16, the price is 107% above our entry target of $21.78.
NNN REIT: Realty Income's direct competitor
NNN REIT Inc. (NYSE: NNN) is the second-largest US triple-net landlord, with ~3,500 properties in 49 states. Tenants are retail, quick-service restaurant, gas station, and fitness chains — sectors with high frequency of visits. NNN is smaller than Realty Income ($14B vs $55B market cap) but boasts 35 consecutive years of dividend growth — 'Dividend Champion' status.
Screener fundamentals as of June 23, 2026
| Criterion | Value | Status |
|---|---|---|
| Net margin | 41.4% | ✅ Pass |
| Revenue growth (5Y) | 6.6%/yr | ❌ Below 10% threshold |
| FCF/share growth (5Y) | 3.1%/yr | ❌ Low |
| Share dilution | +1.20%/yr | ❌ Slight dilution |
| FCF margin | 69.6% | ✅ Pass |
| Margin expansion | Expanding | ✅ Pass |
| ROIC | 14.8% | ❌ Below threshold |
| Debt | 7.45× | ❌ Very high |
| Cash conversion | 1.68× | ✅ Pass |
| DSO | Not calculable | ❌ |
| Valuation | $45.16 vs $21.78 target | ❌ 107% above target |
NNN vs Realty Income: direct comparison
| Criterion | NNN REIT | Realty Income (O) |
|---|---|---|
| Screener score | 6/10 | 6/10 |
| Current FCF multiple | 13.1× | 14.0× |
| FCF/share growth (5Y) | 3.1%/yr | 1.1%/yr |
| Dilution | +1.20%/yr | +15.11%/yr |
| Number of properties | 3,500 | 15,000+ |
| Years of dividend growth | 35 years | 55 years |
| Market cap | ~$14B | ~$55B |
NNN's advantage: much lower dilution
NNN's main advantage over Realty Income is far lower dilution: +1.20%/yr vs +15.11%/yr. This means NNN's FCF/share growth (3.1%/yr) is real — not erased by massive share issuances. A long-term NNN investor dilutes their returns far less than a Realty Income investor. Tradeoff: NNN is smaller, less geographically diversified, and less well-known.
FAQ
NNN REIT or Realty Income: which is better?
Our analysis favors NNN on dilution (1.2%/yr vs 15%/yr) and slightly better FCF/share growth. But both score 6/10. Realty Income is larger, more diversified, and more liquid. For income investors, both are valid options.
Who are NNN REIT's main tenants?
NNN's top 10 tenants include 7-Eleven, Sunoco (gas stations), BJ's Wholesale, Mister Car Wash, Camping World — all high-frequency-visit sectors with recurring revenues. No single tenant exceeds 5% of rents.
Does NNN pay monthly or quarterly dividends?
NNN pays quarterly dividends — unlike Realty Income which pays monthly. If you want monthly cash flow, Realty Income is more appropriate. If you just want a reliable growing dividend, NNN is an excellent alternative.
Is NNN less risky than Realty Income?
Both have similar risk profiles. NNN is slightly less geographically diversified (US only vs O which has European exposure). But NNN dilutes shareholders less — a structural advantage for existing holders.
Why are NNN and Realty Income so far above your targets?
Our target uses FCF/share × 7×. REITs are traditionally valued on AFFO (higher than FCF as it adds back real estate depreciation). Investors pay a premium for dividend reliability and triple-net lease quality — a premium our standard FCF method doesn't recognize.
Voir l'analyse NNN sur Lubin Investment
About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).