American Made: Why NNN REIT Might Be a Better Choice Than Realty Income

Core Viewpoint - NNN REIT may be a more attractive option for dividend investors compared to Realty Income due to its focused strategy and strong tenant relationships [1][9]. Company Overview - NNN REIT, formerly known as National Retail Properties, has a portfolio of over 3,500 properties located entirely in the U.S. with more than 375 tenants across 37 retail sectors [2]. - The company specializes in net lease retail assets, which allows for easier acquisitions, sales, and re-leasing [2][4]. Investment Strategy - NNN REIT's net lease structure requires tenants to cover most property-level expenses, reducing risk for the landlord [4]. - Approximately 72% of NNN REIT's transaction volume since 2007 has come from companies with existing relationships, enabling informed investment decisions [5]. Competitive Advantage - NNN REIT's smaller size allows for easier growth compared to Realty Income, which has a much larger portfolio of 15,600 buildings [6][7]. - The focus on an all-American property portfolio helps maintain management's concentration, unlike Realty Income's diversification into various sectors [8]. Dividend Performance - NNN REIT has increased its dividend annually for 35 consecutive years, surpassing Realty Income's record [9]. - NNN REIT currently offers a dividend yield of 5.5%, slightly lower than Realty Income's 5.7%, but the premium may be justified due to its strong U.S. retail focus [10].