This Dividend Aristocrat REIT Has Never Done a Single Deal With Its Biggest Tenant
National Retail Properties (NYSE: NNN) is an old hand in the net-lease property business, with an impressive streak of 33 consecutive annual dividend increases under its belt. That makes it a Dividend Aristocrat.
Here's the thing: You don't achieve a record like that by accident, and the proof is in an odd little quirk about the real estate investment trust's (REIT's) portfolio -- it has never inked a deal with its largest tenant, 7-Eleven. Here's why you should care.
The first thing to note about National Retail Properties is that it owns single-tenant properties for which its lessees are responsible for most of the operating costs of the assets they occupy. This is what's known as a net lease. Any single property has significant risk associated with a vacancy, given that there is only one tenant. However, spread across a large portfolio, this is a very low-risk way for a REIT to operate. National Retail Properties owns nearly 3,200 properties.
Source Fool.com
