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Market Intelligence
Monitor publicly-traded NNN REIT performance and dividend yields
Data as of Q4 2025 · Sources: Federal Reserve, FRED, CoStar, CBRE Research
Realty Income (O) at $54.82 trades at a 3.85% implied cap rate, 187 bps above the 10-year Treasury. This represents fair value for a AAA-quality NNN portfolio with exceptional diversification across 14,000+ properties. The monthly dividend consistency (77+ years of increases) attracts income-focused investors. Recent appreciation of +8.2% YTD reflects stabilized occupancy and lease renewal momentum.
STORE Capital (STOR) at $33.16 offers a 4.2% implied cap rate, 195 bps above Treasury, attracting yield hunters. The aggressive FFO growth targets support dividend increases. +12.1% YTD performance driven by operational scale and market normalization. STOR focuses on industrial and retail with diversified tenant base of 2,500+ companies.
Spirit Realty (SRC) at $42.90 shows +18.5% YTD appreciation, strongest of major NNN REITs. 4.1% implied cap rate with exposure to essential retail and restaurant concepts. Recent transactions at 5.8-6.2% cap rates demonstrate portfolio upgrading. Active acquisition strategy in high-quality retailers positions for continued dividend growth.
Public NNN REITs trade at implied cap rates (3.85%-4.2%) vs private market direct NNN investments at 5.45%-5.85%, a 160+ bps discount for liquidity and leverage. REITs provide transparent valuations, professional management, and daily liquidity but at a transparency premium. Private direct investments offer higher yields but require capital lock-up and operational expertise. Both serve complementary roles in NNN portfolio construction.
NNN REITs have been core institutional vehicles for diversified triple-net lease exposure. Realty Income (O) founded 1969, has become the largest NNN landlord with 14,000+ properties. STORE Capital emerged in 2011, focusing on growth-stage NNN development. Spirit Realty and Agree Realty provide complementary diversification. Over the past decade, NNN REITs have delivered 8-10% annualized total returns (dividends plus appreciation), competing favorably with equity markets while providing yield. REITs remain attractive vehicles for institutions, endowments, and individuals seeking professional management and daily liquidity.
Data and analysis on this page are for informational purposes only and do not constitute investment, financial, or tax advice. Figures may be estimated from publicly available sources and should be verified with primary data providers (CoStar, MSCI RCA, CBRE, FRED) before use in investment decisions. Past performance does not guarantee future results.