National Retail Properties, Inc. (NNN), a publicly owned equity real estate investment trust, successfully closed a $450 million unsecured credit facility, with an option of increasing the facility size up to $650 million. The new credit facility replaces the company’s existing $400 million credit facility. The new facility matures in May 2015 and can also be extended till May 2016.

This expanded new facility will enable the company to attain financial flexibility and seize investment opportunities and make acquisitions, which in turn will boost top-line growth. The new credit facility will also facilitate a hike in annual dividend payout, given the company boasts a track record of dividend increases for 21 consecutive years.  As of March 31, 2011, National Retail’s cash position stood at $2.5 million.

During the first quarter of 2011, the company reported FFO (fund from operations) of $31.4 million or 38 cents per share compared with $25.3 million or 31 cents per share 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.

National Retail increased its FFO guidance based on the company’s solid property portfolio and balance sheet coupled with accretive property acquisitions. The company currently anticipates FFO in the range of $1.49 to $1.53 per share for 2011.

National Retail invests primarily in high-quality properties subject to long-term net leases. As of March 31, 2011, the company owned 1,223 Investment properties in 46 states with a gross leasable area of approximately 13.3 million square feet.

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) currently retains a Zacks #3 Rank, which translates into a short-term Hold rating

 
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