National Retail Confirms Guidance - Analyst Blog
December 06 2011 - 7:45AM
Zacks
National Retail Properties,
Inc. (NNN), a publicly owned equity real estate investment
trust (REIT), has recently reiterated its fiscal 2011 FFO (fund
from operations) guidance at $1.54 to $1.56 per share based on the
solid performance of its operating property portfolio, strong
balance sheet, and accretive effect from property acquisitions.
Fund from operations, a widely used
metric to gauge the performance of REITs, is obtained after adding
depreciation and amortization and other non-cash expenses to net
income. The FFO guidance equates to net earnings (before any gains
or losses from the sale of real estate) of $0.94 to $0.96 per share
plus $0.60 of expected real estate depreciation and
amortization.
For fiscal 2012, National Retail
also reaffirmed its FFO guidance of $1.62 to $1.67 per share, which
equates to net earnings (before any gains or losses from the sale
of real estate) of $1.04 to $1.09 plus $0.58 of expected real
estate related depreciation and amortization.
The FFO guidance for both fiscal
2011 and 2012 included the effect of the just-concluded secondary
offering of approximately 8.1 million shares at $25.75 each. The
company presently expects total investment for new property
acquisitions to surpass $700 million in 2011.
National Retail invests primarily
in high-quality properties subject to long-term net leases. As of
September 30, 2011, the company owned 1,298 investment properties
in 47 states with a gross leasable area of approximately 15.3
million square feet.
We maintain our long-term ‘Neutral’
recommendation on National Retail, which currently retains a Zacks
#2 Rank that translates into a short-term ‘Buy’ rating. We also
have a ‘Neutral’ recommendation and a Zacks #3 Rank (short-term
‘Hold’ rating) for DDR Corp. (DDR), one of the
competitors of National Retail.
DDR CORP (DDR): Free Stock Analysis Report
NATL RETAIL PPT (NNN): Free Stock Analysis Report
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