ADC vs NNN: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
ADC and NNN are similarly sized, but NNN trades noticeably cheaper on forward earnings (21.93x vs 40.29x): the market is paying up for ADC's profile and pricing NNN more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
ADC vs NNN: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ADC | NNN | What it tells you |
|---|---|---|---|
| Market cap | $9.37B | $8.86B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 40.29 | 21.93 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 41.83 | 22.74 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.47 | 0.78 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 66% of range | 65% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.54 | 1.99 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: NNN is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how ADC and NNN affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ADC and NNN share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ADC and NNN exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Agree Realty Corporation (ADC) do?
Agree Realty Corporation (NYSE: ADC) is a real estate investment trust that acquires and develops freestanding, single-tenant retail properties net-leased to national and regional chains. Under net leases, tenants cover most property costs (taxes, insurance, and maintenance), which gives the REIT predictable rent streams and thin operating overhead. As of the end of 2025 the portfolio held roughly 2,674 properties across all 50 states, totaling about 55.5 million square feet, and was effectively fully leased at 99.7% occupancy. Investment-grade retailers generated close to 67% of annualized base rent, with top tenants including Walmart, Tractor Supply, Dollar General, Best Buy, and TJX, tilting the rent roll toward defensive, needs-based retail.
What does NNN REIT (NNN) do?
NNN REIT, Inc. is a Maryland corporation formed in 1984 and headquartered in Orlando, Florida, and it operates as a fully integrated real estate investment trust focused on freestanding, single-tenant retail property leased under long-term net leases. Known as National Retail Properties before its 2023 renaming, the company owned 3,774 properties covering roughly 40.4 million square feet as of June 30, 2026, with occupancy at 99.1% and a weighted average remaining lease term of 10.1 years. Tenants sign leases where they cover taxes, insurance and maintenance, which keeps NNN's own capital expenditure minimal and makes rent close to a pass-through. Annualized base rent reached $959.1 million at the end of the second quarter, up 7.3% year over year. Exposure skews toward service and experience retail rather than goods that ship in a box: automotive service was 18.6% of annualized base rent at the end of 2025, convenience stores 16.3%, restaurants of both kinds 14.3%, entertainment 7.2% and dealerships 6.6%. Its five largest tenants, 7-Eleven, Mister Car Wash, Dave & Buster's, Camping World and Kent Distributors, together account for 17.8% of rent, and no single tenant reached 10% of rental income.
ADC vs NNN: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ADC drivers: External growth engine; Investment-grade, defensive tenant base.
- NNN drivers: A 37-year dividend increase streak with room underneath it; Acquisition spread wider than the cost of the money funding it.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Interest-rate sensitivity is the dominant risk, since higher rates lift Agree's borrowing costs and make its dividend yield less competitive versus bonds, which can pressure the share price. For NNN, interest rates sit at the center of the risk list, because a higher risk-free yield both compresses what income investors will pay for NNN's dividend and raises the borrowing cost that determines whether new acquisitions are accretive at all.
ADC or NNN: which should you pick?
ADC vs NNN: the full fundamentals
ADC. Agree trades at a premium multiple of AFFO relative to net-lease peers, roughly the high-teens on a price-to-AFFO basis, a level the market has long assigned to its balance-sheet quality and consistency. With 2026 AFFO guided around $4.56 and shares near $80, the valuation prices in reliable but unspectacular growth. Investors are largely paying for durability of income rather than a discount.
NNN. Net-lease REITs are valued on funds from operations rather than earnings, because heavy real estate depreciation makes GAAP net income understate cash generation; NNN reported trailing twelve-month diluted EPS near $2.03, which puts the trailing P/E around 23x while the price to AFFO multiple sits near 13x, and the second figure is the one the sector trades on. Second quarter 2026 results, reported August 5, showed revenue of $244.3 million (up 7.7% year over year), Core FFO of $0.89 per share (up 6.0%) and AFFO of $0.90 per share (up 5.9%), with management raising both AFFO guidance and its acquisition volume target. Compared with larger peer Realty Income, NNN trades at a similar AFFO multiple on a smaller, U.S.-only, service-retail-weighted portfolio, so the valuation debate usually comes down to whether a more concentrated tenant roster deserves the same multiple as a globally diversified one.
Headline figures (approximate, FEBRUARY 2026): ADC shows revenue (ttm) ~$715M, affo per share (2025) ~$4.32, affo per share (2026 guidance) ~$4.54 to $4.58, dividend (annualized) ~$3.20 (~4.4% yield); NNN shows revenue (ttm through june 30, 2026) ~$953 million, market capitalization ~$8.9 billion (~192 million shares near ~$46), affo per share (2026 guidance, raised august 2026) ~$3.55 to $3.59, price to affo (2026 guidance midpoint) ~13x.
The bottom line: ADC vs NNN
ADC and NNN are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ADC and NNN exposure against your real portfolio. It is not an investment adviser.
Wondering how ADC or NNN fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Agree Realty Corporation with AI
Connect the broker you already use and ask Walnut's AI how ADC fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ADC and NNN?
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Agree Realty Corporation (NYSE: ADC) is a real estate investment trust that acquires and develops freestanding, single-tenant retail properties net-leased to national and regional chains. NNN REIT, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ADC or NNN the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ADC or NNN?
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On forward P/E (as of August 2026), ADC trades at 40.29x and NNN at 21.93x, so NNN is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ADC and NNN?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ADC vs NNN?
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ADC: Interest-rate sensitivity is the dominant risk, since higher rates lift Agree's borrowing costs and make its dividend yield less competitive versus bonds, which can pressure the share price. The company's growth depends on continually raising capital and buying properties at attractive spreads, so a prolonged period of high rates or a rich stock price can slow accretive growth. Tenant concentration is a factor, with a meaningful share of rent from a handful of large retailers whose fortunes are tied to physical, discretionary, and discount retail. A premium valuation leaves less margin for error if growth disappoints or if the net-lease sector re-rates lower. Broader retail disruption, e-commerce pressure on certain categories, and any single large-tenant bankruptcy could dent occupancy and rent. NNN: Interest rates sit at the center of the risk list, because a higher risk-free yield both compresses what income investors will pay for NNN's dividend and raises the borrowing cost that determines whether new acquisitions are accretive at all. Tenant concentration is the second issue: 17.8% of annualized base rent comes from five tenants, and several of the largest exposures, including car washes, a casual dining and entertainment chain, an RV retailer and theaters at 3.7% of rent, sit in categories that have seen operator distress through prior cycles. Geographic clustering adds to it, with Texas alone at 18.4% of rent and the top five states at 40.9%. Because NNN funds growth partly through at-the-market equity issuance, a sustained share price decline makes external growth dilutive rather than accretive, which is the mechanism that stalls net-lease REITs in bad tape. One more structural point: as a REIT NNN must distribute most of its taxable income, so it cannot retain earnings the way an operating company can, and any prolonged capital markets closure would slow the acquisition engine directly.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ADC or NNN; figures are approximate and dated (as of August 2026). Verify current data before investing.