Dividend reliability appears well-supported by a 0.69x FFO payout ratio, though the recent drop in cash to $4.6 million suggests a shift toward aggressive capital deployment or increased reliance on credit facilities.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 463.85M | 667.13M | 635.5M | 612.41M | 578.36M | 568.42M | 450.19M | 501.73M | 471.91M | 421.56M | 415.34M | 341.1M | 296.73M | 274.42M | 228.13M | 182.95M | 187.91M | 149.5M | 236.75M | 129.63M | 18.56M | 30.93M | 74.79M | 54.32M | 58.7M | 38.01M | 50.2M | 47.88M | 41.26M | 34.01M | 22.22M |
| Operating CF Growth % | -88.04% | 4.98% | 3.77% | 5.89% | 1.75% | 26.26% | -10.27% | 6.32% | 11.94% | 1.5% | 21.77% | 14.95% | 8.13% | 20.29% | 24.7% | -2.64% | 25.69% | -36.85% | 82.63% | 598.42% | -39.99% | -58.65% | 37.69% | -7.47% | 54.45% | -24.28% | 4.85% | 16.03% | 21.32% | 53.09% | 57.12% |
| Operating CF / Revenue % | 49.57% | 72.03% | 73.11% | 73.95% | 74.81% | 78.25% | 68.14% | 74.83% | 75.79% | 72.07% | 77.83% | 70.63% | 68.24% | 69.95% | 65.04% | 58.84% | 70.22% | 60.2% | 102.3% | 69.42% | 11.69% | 21.31% | 57.84% | 52.91% | 62.57% | 47.2% | 62.06% | 62.55% | 64.36% | 67.84% | 66.58% |
| Net Income | 387.27M | 389.78M | 396.83M | 392.34M | 334.62M | 290.11M | 228.8M | 299.61M | 292.49M | 265.37M | 239.51M | 197.96M | 191.17M | 160.09M | 141.94M | 92.42M | 73.35M | 56.4M | 123.08M | 157.11M | 182.5M | 74.61M | 64.93M | 53.47M | 48.06M | 28.96M | 38.62M | 28.58M | 31.05M | 29.75M | 19.8M |
| Depreciation & Amortization | 204.62M | 268.44M | 249.68M | 238.63M | 223.83M | 205.22M | 196.62M | 188.87M | 174.4M | 173.72M | 149.1M | 134.8M | 116.17M | 99.62M | 75.33M | 58.82M | 49.08M | 48.48M | 45.4M | 32.98M | 24.52M | 22.35M | 17.4M | 13.57M | 11.74M | 9.21M | 9.09M | 8.63M | 6.76M | 5.3M | 3.55M |
| Stock-Based Compensation | 3.5M | 0 | 0 | 0 | 17.33M | 14.49M | 14.48M | 11.55M | 10.42M | 14.22M | 11.4M | 10.47M | 9.84M | 8.52M | 10.14M | 0 | 122K | 4.17M | 2.59M | 0 | 3.17M | 1.97M | 978K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -3.91M | 4.74M | -13.03M | -19.57M | -525K | 4.93M | -6.03M | 4.61M | 11.44M | -3.35M | 17.1M | -13.98M | -14.73M | 254K | 12.68M | 8.28M | 24.6M | 56.91M | -18.77M | -63.24M | -103.69M | -7.7M | 50K | -4.92M | -2.33M | 19.64M | 5.77M | 11.27M | 7.04M | -2.23M | 713K |
| Working Capital Changes | -33.68M | 4.17M | 2.01M | 1.01M | 3.1M | 30.41M | -23.86M | -3.74M | -1.87M | 1.36M | 4.49M | 1.36M | -5.77M | 5.15M | -5.01M | 13.81M | 43.3M | 183K | 90.04M | 7.22M | -79.58M | -57.37M | -7.59M | -7.8M | 1.23M | -19.8M | -3.28M | -606K | -3.59M | 1.19M | -1.85M |
| Cash from Investing | -532.76M | -748.06M | -424.34M | -680.66M | -777.63M | -432.18M | -142.82M | -619.41M | -609.37M | -625.56M | -779.94M | -644.54M | -541.56M | -568.04M | -601.76M | -752.07M | -220.26M | -28.06M | -256.3M | -536.72M | -106.98M | -242.49M | -58.95M | -257.7M | 39.98M | -24.42M | -22.37M | -64.44M | -145.64M | -167M | -144.25M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.22M | 10.7M | 10.31M | 0 | 60.03M | 136.29M | 222.78M | -2.18M | -1.07M | 25.02M | 29.33M | -7.7M | 29.83M | 43.13M | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11.43M | -9.89M | -1.41M | -31.76M | -51.96M | -18.37M | -17.74M | -4K | -240.55M | -120.57M | -114.89M | -520K | -3.95M | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13.82M | 4.01M | 68.18M | 26.07M | 49.31M | 16.85M | 155.5M | 194.02M | 186.19M | 84.19M | 4.73M | 1.19M | 0 | 19.4M | 800K |
| Other Investing | -532.76M | -748.06M | -424.34M | -680.66M | -777.63M | -432.18M | -142.82M | -619.41M | -609.37M | -625.56M | -779.94M | -644.54M | -541.56M | -568.04M | -602.98M | 17.74M | 6.74M | 13.77M | 59.89M | 166.27M | 231.51M | 40.09M | -124.6M | 5.39M | -36.32M | 55.52M | 16.98M | 16.29M | 1.87M | -2.27M | -36.4M |
| Cash from Financing | -11.88M | 77.69M | -207.26M | 66.63M | 34.73M | -232.16M | -41.25M | 4.53M | 250.37M | -89.18M | 644.89M | 307.11M | 253.94M | 293.03M | 373.62M | 569.16M | 19.17M | -108.84M | -5.32M | 432.91M | 81.86M | 217.84M | -19.23M | 206.01M | -103.92M | -8.8M | -28.96M | 18.45M | 103.67M | 133.74M | 123.14M |
| Dividends Paid | -448.37M | -443.2M | -420.24M | -404.46M | -380.54M | -382.29M | -374.35M | -364.83M | -337.49M | -315.05M | -295.63M | -264.13M | -239.59M | -217.03M | -184.92M | -140.5M | -133.04M | -127.59M | -116.89M | -92.99M | -80.83M | -74.7M | -71.95M | -59.98M | -55.18M | -38.64M | -37.76M | -37.49M | -35.67M | -28.38M | -18.87M |
| Common Dividends | -334.87M | -443.2M | -420.24M | -404.46M | -380.54M | -367.29M | -356.41M | -333.69M | -303.16M | -277.12M | -257.01M | -264.13M | -204.16M | -189.11M | -167.5M | -133.72M | -125.39M | -120.81M | 0 | -92.99M | -76.04M | -69.02M | -66.27M | -55.47M | -51.18M | -38.64M | -37.76M | -37.49M | -35.67M | -28.38M | -18.9M |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -287.5M | 0 | -287.5M | 0 | 0 | 0 | 0 | -92M | 0 | 0 | -104K | 0 | -44.54M | 0 | 0 | 0 | 0 | 0 | 0 | -48K | -2.33M | 0 | 0 | -7.5M |
| Other Financing | 25.59M | -8.54M | -13.13M | 0 | -278K | -39.47M | -16.68M | -776K | -18.24M | -84K | -136K | -28K | -1.23M | 0 | 0 | -5.22M | -893K | -6.67M | -5.44M | -47.67M | -5.82M | -3.86M | 2.56M | -6.73M | -1.2M | -3.64M | -5K | 2.23M | -1.74M | -3.86M | -7.5M |
| Net Change in Cash | -127K | -3.24M | 3.91M | -1.62M | -164.54M | -95.91M | 266.12M | -113.16M | 112.9M | -293.18M | 280.28M | 3.66M | 9.12M | -591K | -6K | 34K | -13.18M | 12.6M | -24.87M | 25.82M | -6.56M | 6.29M | -3.39M | 2.63M | -5.24M | 4.78M | -1.14M | 1.89M | -718K | 750K | 1.11M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 5.82M | 9.06M | 5.16M | 6.78M | 171.32M | 267.24M | 1.11M | 114.27M | 1.36M | 294.54M | 14.26M | 10.6M | 1.49M | 2.08M | 2.08M | 2.05M | 15.22M | 2.63M | 27.5M | 1.68M | 8.23M | 1.95M | 5.33M | 1.74M | 6.97M | 2.19M | 3.33M | 1.44M | 2.16M | 1.41M | 301K |
| Cash at End | 5.4M | 5.82M | 9.06M | 5.16M | 6.78M | 171.32M | 267.24M | 1.11M | 114.27M | 1.36M | 294.54M | 14.26M | 10.6M | 1.49M | 2.08M | 2.08M | 2.05M | 15.22M | 2.63M | 27.5M | 1.68M | 8.23M | 1.95M | 4.36M | 1.74M | 6.97M | 2.19M | 3.33M | 1.44M | 2.16M | 1.41M |
| Free Cash Flow | 463.85M | 667.13M | 635.5M | 612.41M | 578.36M | 568.42M | 450.19M | 501.73M | 471.91M | 421.56M | 415.34M | 341.1M | 296.73M | 274.42M | 228.13M | -575.43M | -43.01M | 105.07M | -115.87M | -547.47M | -333.99M | -236.87M | -59.77M | -161.41M | 15.35M | 18.17M | 46.2M | -30.09M | 11.69M | -150.12M | -122.72M |
| FCF Growth % | -28.43% | 4.98% | 3.77% | 5.89% | 1.75% | 26.26% | -10.27% | 6.32% | 11.94% | 1.5% | 21.77% | 14.95% | 8.13% | 20.29% | 139.64% | -1237.78% | -140.94% | 190.68% | 78.84% | -63.92% | -41% | -296.28% | 62.97% | -1151.88% | -15.56% | -60.67% | 253.55% | -357.43% | 107.79% | -22.33% | -134.03% |
| FCF / Revenue % | 49.57% | 72.03% | 73.11% | 73.95% | 74.81% | 78.25% | 68.14% | 74.83% | 75.79% | 72.07% | 77.83% | 70.63% | 68.24% | 69.95% | 65.04% | -185.07% | -16.07% | 42.31% | -50.07% | -293.17% | -210.34% | -163.16% | -46.22% | -157.23% | 16.35% | 22.57% | 57.11% | -39.31% | 18.23% | -299.43% | -367.75% |
Interest rate sensitivity
As reported in recent financial statements, NNN consistently generates FFO significantly above GAAP net income, with the 2026Q1 FFO of $164.7 million dwarfing the $94.0 million net income, illustrating how non-cash depreciation charges obscure the true cash-generating capacity of the retail property portfolio.
The persistent gap between GAAP net income and FFO highlights the necessity of focusing on cash-based metrics to evaluate the company's performance. Investors should monitor this spread, as it confirms that GAAP accounting significantly understates the actual economic earnings available to shareholders.
Based on the provided quarterly data, the relationship between FFO and GAAP operating cash flow appears highly volatile, with FFO/NI ratios frequently exceeding 2.0x, suggesting that standard operating cash flow metrics are heavily distorted by working capital fluctuations and non-cash adjustments inherent in the REIT model.
The wide variance in operating cash flow suggests that investors should prioritize FFO as the primary gauge of operational health. This volatility may indicate timing differences in rent collections or tax payments that do not necessarily reflect a deterioration in the underlying quality of the lease portfolio.
According to the latest quarterly filings, NNN maintains a consistent dividend payout ratio relative to FFO, with the 2026Q1 ratio of 0.69x indicating that the company retains a substantial portion of its cash flow to fund future acquisitions and maintain its long-term dividend growth streak.
The stability of the payout ratio suggests a disciplined approach to capital allocation that prioritizes dividend sustainability. This buffer appears sufficient to protect the distribution even during periods of moderate portfolio turnover or temporary increases in vacancy-related costs.
While the provided data shows zero reported CapEx across the last ten quarters, this figure warrants further investigation as it likely masks recurring tenant improvements and leasing commissions that are essential to maintaining the long-term occupancy of the retail portfolio in a competitive market environment.
The absence of reported CapEx in the provided data is atypical for a retail REIT and may suggest an accounting classification that hides the true cost of maintaining the asset base. Analysts should scrutinize whether these costs are being capitalized or if the portfolio is aging without necessary reinvestment.
Quick answers to the most common questions about buying NNN stock.
NNN REIT, Inc. (NNN) generated $667.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NNN REIT, Inc. (NNN) generated $667.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
NNN REIT, Inc. (NNN) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, NNN REIT, Inc. (NNN) returned $443.2M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.