Triple-net REITs 2026: O, NNN and ADC compared
2026-06-23 · By Lubin Danilo, founder of Lubin Investment
Realty Income (O), NNN REIT and Agree Realty (ADC) are the three leading US triple-net REITs. Our scores: O=6/10, NNN=6/10, ADC=5/10. In FCF multiples, NNN is cheapest (13.1×), followed by O (14.0×) and ADC (17.3×). All three are well above our entry targets.
What is a triple-net REIT?
A triple-net (NNN lease) REIT is a landlord whose tenants pay rent + property taxes + insurance + maintenance. The owner receives a quasi-passive rent stream with no operating expenses. It's the most defensive REIT model, particularly valued by investors seeking stable, long-duration income.
Data ranking of the three main players
| Criterion | Realty Income (O) | NNN REIT (NNN) | Agree Realty (ADC) |
|---|---|---|---|
| Lubin screener score | 6/10 | 6/10 | 5/10 |
| Current FCF multiple | 14.0× | 13.1× | 17.3× |
| Current price | $60.58 | $45.16 | $73.39 |
| Lubin entry target | $29.94 | $21.78 | $36.97 |
| Price vs target | +102% | +107% | +98% |
| FCF/share growth (5Y) | 1.1%/yr | 3.1%/yr | n/a |
| Dilution | +15.1%/yr | +1.2%/yr | high |
| Years of dividend growth | 55 years | 35 years | 10 years |
| Market cap | ~$55B | ~$14B | ~$7B |
| Key tenants | Walgreens, 7-Eleven | 7-Eleven, Sunoco | Walmart, TJX, Best Buy |
Each player's profile
Realty Income (O) is the sector giant — largest, most diversified (86 countries), most liquid. Its monthly dividend since 1969 makes it the default choice for income investors. Its massive dilution (+15%/yr) penalizes our method. NNN REIT offers the cleanest profile on dilution (+1.2%/yr) with 35 years of dividend growth. Agree Realty (ADC) specializes in investment-grade tenants (Walmart, TJX, Best Buy) but has shorter history (10 years dividend growth).
Our conclusion: none are in our buy zone
All three triple-net REITs are 98-107% above our FCF entry targets. Our standard method isn't designed for REITs: P/FCF overstates the price by ignoring real estate depreciation (AFFO is the sector standard). For investors who want REITs, we recommend using AFFO and adjusted dividend yield rather than our proprietary method.
FAQ
Among the three, which would you choose for an income investor?
For pure income investors, NNN REIT offers the best profile: minimal dilution, long dividend history (35 years), slightly cheaper FCF multiple. Realty Income is better if you want monthly (vs quarterly) dividends.
Is Agree Realty actually better than O and NNN?
ADC has higher average tenant quality (Walmart, TJX vs pharmacy/gas station chains). But shorter history and our screener rates it 5/10 vs 6/10 for O and NNN. 'Better' depends on your priority criterion.
Are these REITs exposed to e-commerce growth?
Partially. Tenants like Walgreens and Dollar General have resisted e-commerce because their services are proximity-based or non-substitutable online. Triple-net leases guarantee rents contractually regardless of tenant sales performance.
How to compare these REITs using AFFO?
In AFFO terms, all three trade at 18-22× — reasonable for the sector. That's the appropriate metric for REITs. Our P/FCF is only a comparative filter: it tells you these REITs don't pass our method, not that they're poor investments per se.
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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).