NNN NYSE Russell 1000 Earnings call
NNN Reit (NNN) · Q2 2026 results and valuation
Share price: $41.40 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 30 Apr 2026
Net income up 4.2% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+4.2%
Net income vs Q1 2026
Outlook given
Net income 97.9M vs 94.0M
Revenue +1.6%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Guidance
NNN Reit raised the midpoint of full-year asset-sale guidance by $10 million and left second-half credit-loss assumptions unchanged.
Valuation
Is NNN Reit undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.2% growth a year (3-year revenue growth), the model's fair value is $35.36 a share — the stock trades 17% above it. Today's price assumes 8.3% growth a year.
Current price
$41.40
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.3% for 10 yrs
Fair value / share
$35.36
Buy below
$26.52
Price vs fair value
Overvalued 17%
Price vs buy-below price
Overvalued 56%
Read between the lines
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Key theme
Looking ahead, NNN Reit believes modest cap rate compression is possible during the second half of the year.
Source quote
“But looking ahead, we believe modest cap rate compression is possible during the second half of the year, supported by the composition... Cap rates have been fairly stable over the past 6 quarters, reflecting competitive investment environment. And the portfolios that are currently in the market today.”
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Figure
The combination created a network of more than 350 stores with over $1.5 billion in annual revenue.
Source quote
“Combination creates a network of more than 350 stores with over $1.5 billion in annual revenue.”
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Fading
The company invested $145 million across 41 properties to achieve risk-adjusted returns and predictable cash flows through the sale-leaseback nature of the transactions.
Source quote
“On the acquisition front, as I said earlier, we invested $145 million across 41 properties with a cash cap rate... ...underway, combined with the solid overall performance of the portfolio, we expect occupancy to continue trending upward in the near term. The sale-leaseback nature of our transactions continues to provide accretive, risk-adjusted returns with long-duration, predictable cash flows.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“An achievement that we are extremely proud of and 1 that reflects the sustainability of our growth model.”
“Updated AFFO per share guidance of $3.55 to $3.59, implies about 3.8% year over year growth at the midpoint and acceleration from the 2.7% growth in 2025.”
“And with that backdrop, we are lifting disposition range to a midpoint of $140 million Active portfolio management is essential to maintain a high quality portfolio that is positioned to...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 244.3M | 240.4M | +1.6% | 226.8M | +7.7% |
| Gross profit | — | 230.6M | — | ||
| Operating income | 151.4M | 145.1M | +4.3% | 149.8M | +1.1% |
| Net income | 97.9M | 94.0M | +4.2% | 100.5M | −2.6% |
| EPS | 0.52 | 0.50 | +4.6% | 0.54 | −3.7% |
| P/E today 19.9 | 22.9 | — | — | 20.6 | +2.3 |
Topics
Most discussed now
- New The product mix is primarily auto service, discount retail, and early childhood education.
- With that backdrop, NNN Reit is lifting disposition range to a midpoint of $140 million Active portfolio management is essential to...
- Had to go a little bit lower than NNN Reit has had the last first half of the year.
- New When NNN Reit is doing dispositions, it usually kinda falls in a couple different categories.
- Given its continued consistent performance of the portfolio, and the acquisition pipeline, NNN Reit is updating its 2026 guidance for…
Faded since Q1 2026
- Fading NNN Reit's proven long-term operating platform and consistent capital allocation focused on sufficiently accretive acquisitions remains…
- Fading Annualized base rent grew 7% year over year to $935 million, driven by NNN Reit's strong acquisition activity, while free cash...
- Fading NNN Reit's average cost basis in its 7‑Eleven portfolio is about $2.2 million.
- Fading As far as 7‑Eleven, NNN Reit has never done quote business directly with 7‑Eleven.
Latest announcements
Official filings, newest first.
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K