National Retail Properties, Inc.

National Retail Properties, Inc. (NNN) is a real estate investment trust (REIT). The company focuses on “triple-net” leases in which the tenant pays all real estate taxes, building insurance, and maintenance (the three "Nets") in addition to normal fees such as rent and utilities, etc. This form of lease is most frequently used for commercial freestanding buildings, such as those owned by NNN.

NNN is one of only 104 publicly-traded companies to have increased dividends for 23 or more consecutive years.  NNN acquires and owns single-tenant net lease retail properties nationwide. Additionally, they offer real estate financing programs and occasionally sell properties. NNN owns a diversified portfolio of 1,530 investment properties in 47 states. These properties are leased to more than 300 tenants in 36 industry classifications. Current occupancy is 97.9%.

The number of consecutive-year dividend-raising public companies decreased dramatically during the Great Recession.  NNN is one of only four REITs among the list of 104 companies that have increased dividends for at least 23 consecutive years. They were able to maintain this record because of the conservative nature of the triple net lease and because they were not heavily leveraged with debt.

NNN most recently increased its quarterly dividend in July, 2012, from $.385 to $.395, for a current annual dividend rate of $1.58.  At a closing price of $31.26 on December 24, 2012, this is a yield of 5.1%.

Diluted earnings per share (EPS) for the third quarter of 2012 were $.29 before extraordinary items, compared with $.23 during the third quarter of 2011.  Funds from operations (FFO) were $.52 per share, compared with $.39 per share in the third quarter of 2011.

At the end of Q3 2012, total liabilities were $1.656 billion and total assets were $3.935 billion, leaving shareholder equity of $2.278 billion.  Total shares outstanding as of September 30, 2012 were 109,422,000.  Book value was $20.82 per share.

I own shares of NNN and I would consider buying more at $29.81 or less.  I would consider selling some of the shares at $35.91.  I think it's a company worth investigating for inclusion in a dividend portfolio. As always, this is not a recommendation to buy, but a suggestion for a stock to study. Price is an important consideration. Use your own judgment.