UBS Trims NNN REIT Target, Sees 2026 as a Potential Turning Point for REIT Returns

Group 1: Company Overview - NNN REIT, Inc. is recognized as one of the 15 Best High Yield Stocks to Buy [1] - The company invests in single-tenant, net-leased retail properties, including automotive service centers, convenience stores, and restaurants, typically backed by long-term leases of 10 to 20 years structured as triple net leases [4] - NNN REIT maintains a conservative financial approach, distributing a reasonable portion of its cash flow through dividends while keeping a strong balance sheet, allowing for portfolio expansion without excessive risk [5] Group 2: Financial Performance and Dividends - On January 15, NNN REIT's Board of Directors announced a quarterly dividend of $0.60 per share, to be paid on February 13, 2026, to shareholders on record as of January 30, 2026 [3] - NNN REIT is one of only three publicly traded REITs that have increased their annual dividend for at least 36 consecutive years, indicating a strong and steady dividend track record [3] Group 3: Market Outlook - UBS has lowered its price target for NNN REIT to $43 from $44 while maintaining a Neutral rating, suggesting that 2026 could be a significant turning point for REITs with expected total returns in the 9%–11% range [2] - The outlook from UBS is based on improving macro conditions, more attractive valuations, easing supply pressures, and a calmer political backdrop, with expectations of a defensive investment phase in the first half of 2026 followed by stronger catalysts in the second half [2]