-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
NNN reported Q1 revenue of $240M (+4.1% Y/Y), beating consensus by $2M, driven by a robust 6.9% increase in annual base rent (ABR) compared to $231M a year ago. Occupancy improved to 98.6%, up 90 bps Y/Y and 30 bps Q/Q, reflecting strong operational execution and tenant retention across the portfolio. Management's strategic focus on long-term tenant quality over near-term occupancy improvement continues to support portfolio stability, with weighted average remaining lease term extending to 10.1 years at Q1-end. We expect revenue growth to moderate to 3.5%-5.5% in FY 26 given the favorable lease expiration schedule with only 3.0% of leases expiring in 2026 compared to 6.7% in 2027. Automotive service and auto dealerships demonstrated the strongest ABR growth Y/Y within NNN's diversified portfolio, while full service restaurants and theaters experienced the most significant declines, highlighting varying sector-specific performance trends across the tenant base.