NNN Stock Forecast & Price Target

NNN REIT Inc. has demonstrated a promising outlook through a forecasted increase in adjusted funds from operations per share (AFFO/sh) of 2.4% and 3.5% for the years 2025 and 2026, respectively, reflecting strong revenue generation primarily from its strategic investments in convenience stores and restaurants. The company's proactive steps in re-tenanting previously leased spaces have shown initial success, bolstering its operational stability while maintaining a lower-than-average credit loss assumption of 60 basis points for its 2025 guidance. Moreover, a potential return to premium valuation multiples, combined with improved acquisition spreads, presents a favorable scenario for NNN REIT moving forward, highlighting its long-standing track record in the net lease sector.

NNN REIT Inc faces significant challenges that contribute to a negative outlook, primarily driven by a decrease in its reNAV per share estimation and an increase in its cost of capital, prompting a reduction in its price target. Economic uncertainties pose substantial risks, with potential tenant defaults, elevated credit risk due to a lower-than-average investment grade weighting, and heightened inflation affecting profitability and cash flow stability. Additionally, further declines in the availability of debt and any contraction in acquisition spreads would adversely impact the company's financial health and growth prospects.