NNN Issues Public Offering - Analyst Blog

National Retail Properties, Inc. (NNN) recently issued a public offering of 8 million shares at an average price of $26.07 per share. As a part of the offering, the underwriters have an option of purchasing additional 1.2 million shares within a time period of 30 days.

Consistent with its investment objectives and strategies, National Retail intends to utilize the proceeds generated from the offering to acquire additional assets and repay debts under its credit facility and for other general corporate purposes.

This public offering will enable the company to attain financial flexibility and seize investment opportunities and acquisitions, which go a long way in enhancing top-line growth.

National Retail reported second quarter 2011 FFO (fund from operations) of $32.1 million or 38 cents per share compared with $29.4 million or 36 cents in the year-earlier quarter. 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 company increased its FFO guidance from the range of $1.50- $1.53 to $1.52 to $1.55 per share for 2011.

National Retail also expects its acquisition volume to increase from the prior range of $200 million-$250 million to $400 million-$500 million for fiscal 2011.

National Retail is a publicly owned equity real estate investment trust that acquires, owns, manages, and develops retail properties in the United States. National Retail currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Developers Diversified Realty Corp. (DDR) also holds a Zacks #3 Rank.

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