On Thursday, Stifel analyst Simon Yarmak updated the price target for National Retail Properties (NYSE: NYSE:NNN), lifting it to $49.50 from the previous target of $46.00. The firm maintained a Buy rating on the stock.
The adjustment follows the company's second-quarter 2024 results, where it reported adjusted funds from operations (AFFO) of $0.84 per share, marginally surpassing both Stifel's and the consensus estimates by $0.01.
Similarly, core funds from operations (FFO) reached $0.83 per share, again slightly above estimates by $0.01. The outperformance was attributed to higher lease term fees.
Earlier in July, National Retail Properties announced an increase in its quarterly dividend to $0.58 per share, which on an annualized basis amounts to $2.32 per share. This dividend hike translates to a 5.1% yield and is supported by a 66.9% estimated funds available for distribution (FAD) payout ratio for the year 2025.
The company's track record of increasing its annual dividend now extends to 35 consecutive years. This consistent performance places National Retail Properties in a distinct category, being one of only two real estate investment trusts (REITs) and among a group of 78 publicly traded companies that have managed to achieve such a streak.
Meanwhile, UBS initiated coverage on the company with a Neutral rating, citing a high-interest rate environment and recent debt issuance as potential growth limiters. Despite these concerns, UBS believes the market has already accounted for these factors in the company's valuation.
On the company's front, National Retail Properties announced an increase in its quarterly dividend to $0.58 per share, extending its annual dividend increase streak to 35 consecutive years.
In Q1 2024, the company showcased a robust performance with a high occupancy rate and successful leasing activities. It also reported a strong balance sheet and plans to meet or exceed its acquisition guidance for 2024.
InvestingPro Insights
As National Retail Properties (NYSE:NNN) continues to demonstrate a strong commitment to shareholder returns, the latest data from InvestingPro offers additional insights into the company's financial standing. With a market capitalization of $8.47 billion, the company's P/E ratio stands at a relatively high 21.19, indicating investor confidence in its future earnings potential. The PEG ratio, which measures the stock's valuation relative to its earnings growth, is at 1.59, suggesting that the company's stock price is somewhat aligned with its expected growth.
InvestingPro Tips highlight that National Retail Properties has not only raised its dividend for 34 consecutive years but has also maintained dividend payments for an impressive 40 years. These milestones are a testament to the company's robust financial health and disciplined capital management. The company's dividend yield is currently at 5.17%, which is particularly attractive to income-focused investors. For those interested in further analysis and additional tips, InvestingPro offers a comprehensive list of insights, with several more tips available at https://www.investing.com/pro/NNN.
The company's stock is also trading near its 52-week high, with the price at 98.76% of this peak, reflecting a strong market sentiment. This bullish outlook is supported by the company's revenue growth over the last twelve months, which stands at 6.68%. National Retail Properties' consistent performance and strategic financial decisions make it a noteworthy consideration for investors looking for stability and long-term growth within the REIT sector.
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