NNN and ADC Dividend Safety Compared: Key Differences Emerge
Two major net lease REITs—NNN (Realty Income) and ADC (Agree Realty)—both issued dividends on August 14, 2026. While both have similar AFFO payout ratios of around 70%, their financial health diverges in key areas such as tenant quality and leverage levels. NNN has maintained a 37-year consecutive dividend increase streak with an annualized rate now at $2.48 per share, supported by strong second-quarter performance including $0.90 AFFO per share (up 5.9% YoY) and solid liquidity of $1.4 billion in available funds. However, its tenant mix is largely non-investment-grade, which introduces credit risk. Agree Realty’s monthly dividend annualizes to $3.204 per share with a similar growth trajectory—7.4% AFFO increase YoY—and improved full-year guidance of $4.57–$4.59. Crucially, two-thirds of its tenants are investment-grade rated and it maintains lower leverage at 3.7x net debt/EBITDA compared to NNN’s 5.7x.
