NNN REIT owns and leases single-tenant, freestanding commercial properties across the U.S. under a triple-net lease structure, meaning tenants cover all operating costs — utilities, taxes, insurance, and maintenance — leaving NNN with minimal property-level expenses and NOI margins near 98%. As of year-end 2025, NNN owned 3,692 properties with 98.3% occupancy and a weighted average remaining lease term of 10.2 years. Tenants are primarily retailers and service-oriented businesses, with convenience stores, auto services, and QSR restaurants together representing the largest share of annualized base rent. NNN grows its portfolio primarily through sale-leaseback transactions — buying real estate directly from operators who want to monetize owned property, then leasing it back to them on long-term contracts. Management estimates roughly 80% of deal flow comes from repeat tenant relationships built over decades. NNN funds acquisitions on a leverage-neutral basis using a roughly 60/40 equity-to-debt mix, targeting acquisitions at cap rates above its cost of capital to generate accretive earnings growth. Leases typically carry 10–20 year initial terms with annual rent escalators tied to CPI or fixed steps, providing predictable, growing cash flows. NNN also regularly sells non-core properties at lower cap rates and redeploys proceeds into new acquisitions at higher yields. As a REIT, NNN distributes at least 90% of taxable income to shareholders, and has raised its annual dividend for 36 consecutive years.