NNN REIT: the triple-net alternative to Realty Income
2026-06-23 · By Lubin Danilo, founder of Lubin Investment
NNN REIT: see the full analysis on 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.
Related reading
- Is Realty Income (O) too expensive in 2026?
- Triple-net REITs 2026: O, NNN and ADC compared
- Three out of four flawless stocks pay a dividend
NNN REIT: see the full analysis on Lubin Investment
About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I find fundamental analysis fascinating, and it has delivered excellent results. For three years now, my performance has beaten the S&P 500. But analyzing every stock took too much time: sites with incomplete data, calculation methods and criteria never aligned with mine. And spotting the best stocks was just as time-consuming, even with my own well-defined checklist. So I put my software development background to work to build this software, base my investment strategy on its results, and share it with people who share the same passion as me. It judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).