Here is a list of select net lease REITs ranked by various key metrics (operations, funds from operations, distributions, debt, valuation, and projections). The stocks are rated item by item (from best #1 to worst #5), and at the end, there is a consolidated result.
These are the companies:
EPR Properties (NYSE: EPR)
National Retail Properties (NYSE: NNN)
Lexington Realty Trust (NYSE: LXP)
Spirit Realty Capital’s (NYSE: SRC)
STAG Industrial (NYSE: STAG)
| Ranking Item by Item (Rates from 1 – best to 5 – worst) | |||||||
| Metrics | NNN | STAG | EPR | SRC | LXP | Metric Criteria | |
| Operations | |||||||
| Q1 Revenue growth (YoY) | 3 | 1 | 4 | 2 | 5 | The higher the better | |
| Q1 NOI growth (YoY) | 2 | 1 | 3 | 4 | 5 | The higher the better | |
| Q1 Occupancy | 1 | 4 | 5 | 2 | 3 | The higher the better | |
| Funds From Operations | |||||||
| Q1 FFO per share growth (YoY) | 2 | 3 | 5 | 4 | 1 | The higher the better | |
| Q1 Company FFO per share growth (YoY) | 2 | 4 | 1 | 3 | 5 | The higher the better | |
| Q1 AFFO per share growth (YoY) | 1 | 4 | 3 | 2 | 5 | The higher the better | |
| Distributions | |||||||
| Q1 Dividend payout ratio | 2 | 4 | 5 | 3 | 1 | The lower the better | |
| Q1 Dividend per share growth (YoY) | 3 | 1 | 2 | 5 | 4 | The higher the better | |
| Debt | |||||||
| Q1 Total debt to total capitalization value | 1 | 2 | 3 | 4 | 4 | The lower the better | |
| Valuation | |||||||
| Q1 Implied cap rate | 5 | 3 | 4 | 2 | 1 | The higher the better | |
| Q1 Dividend yield | 5 | 3 | 2 | 4 | 1 | The higher the better | |
| Projections | |||||||
| Dividend per share growth (2015 vs 2014) | 3 | 1 | 1 | 5 | 4 | The higher the better | |
| Company FFO/AFFO per share growth (2015 vs 2014) | 2 | 4 | 1 | 3 | 5 | The higher the better | |
| Total Sum | 32 | 35 | 39 | 43 | 44 | The lower the better | |
| Final Ranking | 1 | 2 | 3 | 4 | 5 | ||
- Results:
- National Retail Properties (NYSE: NNN)
- STAG Industrial (NYSE: STAG)
- EPR Properties (NYSE: EPR)
- Spirit Realty Capital’s (NYSE: SRC)
- Lexington Realty Trust (NYSE: LXP)
Written by Heli Brecailo
Disclaimer: This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy.
Disclosure: The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.
