Better Buy: Realty Income vs. National Retail Properties
Net lease real estate investment trusts (REITs) like Realty Income (NYSE: O) and National Retail Properties (NYSE: NNN) tend to be fairly stable income investments. However, there are important differences between these two industry bellwethers that you need to understand before buying either of them. There's also one similarity that is a little problematic for both.
Both Realty Income and National Retail Properties focus on assets in which a single tenant leases a property and is responsible for most of that property's costs. That includes things like maintenance and taxes, leaving these net lease REITs to simply collect rent. This is a simplification of the relationship, but it provides a pretty good idea of the underpinnings of the sector.
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Source Fool.com
