CluenexNNN Reit NNN
NNN Reit scores average on business quality (5.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What NNN Reit does
NNN REIT owns and leases freestanding retail properties to corporate tenants on a net-lease basis, meaning tenants cover property taxes, insurance, and maintenance costs. The firm relies on long-term portfolio expansion to secure steady rental cash flows across market cycles.
- What it does best
The company excels at maintaining elite operating profitability, posting a gross margin of 96.1% that outperforms peers like KIM at 68.9% due to its capital-efficient net-lease structure where tenants absorb operating expenses.
- The main risk
An interest coverage ratio of 2.8x leaves the balance sheet vulnerable to refinancing pressures. With total debt at $4.8 billion against cash of just $5 million, higher borrowing costs directly pinch net income and limit aggressive portfolio acquisitions.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins stand at an elite 61.7%, placing the firm in the top decile of its sector at the 95th percentile. However, negative free cash flow of -$239 million shows heavy capital spending outpaces cash generation despite high margins.
Long-term net-lease agreements lock in corporate retail tenants for over a decade, securing pricing power backed by a top-decile gross margin ranking of 93rd percentile. Replicating this fragmented footprint requires massive scale and capital.
Revenue grew 6.6% to $953 million, building on steady multi-year top-line expansion from $661 million in 2020. This property-level expansion pace is holding steady near the middle of its sector at the 62nd percentile.
Total debt sits at $4.8 billion with an interest coverage ratio of 2.8x, signaling tight debt service relative to earnings. Free cash flow is negative at -$239 million due to heavy capital outlays of $912 million, reflecting a softer liquidity reality.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on NNN
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
NNN Reit scores average on the Cluenex quality check (5.2 of 10), measured against its own industry. Profitability is fair, moat fair, growth steady and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026, before the open.
See NNN today
- Today's verdict on NNN, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “NNN Reit (NNN)”, https://cluenex.com/stocks/nnn/, data as of Oct 10, 2026.