UPDATE: Stifel Resumes Coverage on National Retail Properties with Buy Rating, $37 PT on Strong Balance Sheet

In a report published Friday, Stifel analyst Simon Yarmak resumed coverage on National Retail Properties NNN with a Buy rating and $37.00 price target. In the report, Stifel noted, “NNN's high occupancy and long-term lease structure offer cash flow and dividend stability but also mean that organic growth is very limited and acquisitions are the primary earnings driver. A large portion of the total return for NNN shareholders is its monthly dividend. The company has raised its annual dividend, albeit slightly, for 24 consecutive years. The current dividend is $1.62 with a current yield is 5.0%, 120 bps higher than RMS dividend. NNN was one of the only REITs to maintain its dividend through the 08-09 economic downturn. NNN's balance sheet remains strong, with net-debt+preferred to EV at a healthy 34.9%, and interest and fixed charge coverage ratios are both strong at 3.8x and 3.1x, respectively. NNN's next debt maturity is a $150 million bond due in June 2014. We estimate, the company has $14 million of cash and the full capacity of its $500 million credit facility.” National Retail Properties closed on Thursday at $32.12.