NREF vs. NNN

Last updated Jun 4, 2026

NREF (NexPoint Real Estate Finance, Inc.) and NNN (National Retail Properties, Inc.) are both stocks. Both are in the Real Estate sector — NREF in REIT - Mortgage, NNN in REIT - Retail. Over the past 5 years, NREF returned 6.73%/yr vs 3.52%/yr for NNN. At a 0.32 correlation, their price movements are largely independent.

Performance

NREF vs. NNN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NexPoint Real Estate Finance, Inc. (NREF) and National Retail Properties, Inc. (NNN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with NREF having a 14.18% return and NNN slightly higher at 14.71%.

NREF

• 1D: -1.65%
• 1M: 4.44%
• YTD: 14.18%
• 6M: 12.45%
• 1Y: 18.29%
• 3Y*: 18.35%
• 5Y*: 6.73%
• 10Y*: —

NNN

• 1D: 0.84%
• 1M: 0.30%
• YTD: 14.71%
• 6M: 10.58%
• 1Y: 12.62%
• 3Y*: 6.64%
• 5Y*: 3.52%
• 10Y*: 4.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

NREF vs. NNN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
NREF NexPoint Real Estate Finance, Inc.	14.18%	2.28%	13.51%	17.36%	-8.90%	27.81%	-2.81%
NNN National Retail Properties, Inc.	14.71%	2.81%	-0.06%	-0.60%	-0.01%	23.08%	-24.57%

Correlation

The correlation between NREF and NNN is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (All Time) Calculated using the full available price history since Feb 10, 2020	0.32

Fundamentals

Market Cap NREF : $798.08M NNN : $8.37B
EPS NREF : $2.26 NNN : $2.05
PE Ratio NREF : 6.87 NNN : 21.51
PEG Ratio NREF : 0.06 NNN : 2.44
PS Ratio NREF : 4.58 NNN : 8.90
PB Ratio NREF : 2.05 NNN : 1.90
Total Revenue (TTM) NREF : $155.54M NNN : $935.78M
Gross Profit (TTM) NREF : $132.51M NNN : $761.54M
EBITDA (TTM) NREF : $152.30M NNN : $870.06M

Return for Risk

NREF vs. NNN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NREF

NREF Risk / Return Rank: 62
NREF Sharpe Ratio Rank: 64
NREF Sortino Ratio Rank: 55
NREF Omega Ratio Rank: 55
NREF Calmar Ratio Rank: 67
NREF Martin Ratio Rank: 66

NNN

NNN Risk / Return Rank: 62
NNN Sharpe Ratio Rank: 65
NNN Sortino Ratio Rank: 57
NNN Omega Ratio Rank: 55
NNN Calmar Ratio Rank: 67
NNN Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NREF vs. NNN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NexPoint Real Estate Finance, Inc. (NREF) and National Retail Properties, Inc. (NNN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	NREF	NNN	Difference
Sharpe ratio Return per unit of total volatility	0.71	0.78	-0.06
Sortino ratio Return per unit of downside risk	1.08	1.17	-0.09
Omega ratio Gain probability vs. loss probability	1.14	1.14	0.00
Calmar ratio Return relative to maximum drawdown	1.42	1.44	-0.01
Martin ratio Return relative to average drawdown	3.01	3.31	-0.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NREF vs. NNN - Sharpe Ratio Comparison

The current NREF Sharpe Ratio is 0.71, which is comparable to the NNN Sharpe Ratio of 0.78. The chart below compares the historical Sharpe Ratios of NREF and NNN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NREF	NNN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.71	0.78	-0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.18	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.16	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.40	-0.20

Drawdowns

NREF vs. NNN - Drawdown Comparison

The maximum NREF drawdown since its inception was -66.09%, which is greater than NNN's maximum drawdown of -56.17%. Use the drawdown chart below to compare losses from any high point for NREF and NNN.

Drawdown Indicators

	NREF	NNN	Difference
Max Drawdown Largest peak-to-trough decline	-66.09%	-56.17%	-9.92%
Max Drawdown (1Y) Largest decline over 1 year	-12.92%	-8.83%	-4.09%
Max Drawdown (3Y) Largest decline over 3 years	-24.00%	-22.03%	-1.97%
Max Drawdown (5Y) Largest decline over 5 years	-44.78%	-25.22%	-19.56%
Max Drawdown (10Y) Largest decline over 10 years	—	-54.99%	—
Current Drawdown Current decline from peak	-3.00%	-2.45%	-0.55%
Average Drawdown Average peak-to-trough decline	-16.86%	-9.82%	-7.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.08%	3.82%	+2.26%

Volatility

NREF vs. NNN - Volatility Comparison

NexPoint Real Estate Finance, Inc. (NREF) has a higher volatility of 7.63% compared to National Retail Properties, Inc. (NNN) at 4.61%. This indicates that NREF's price experiences larger fluctuations and is considered to be riskier than NNN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NREF	NNN	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.63%	4.61%	+3.02%
Volatility (6M) Calculated over the trailing 6-month period	16.81%	11.44%	+5.37%
Volatility (1Y) Calculated over the trailing 1-year period	25.93%	16.32%	+9.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.22%	19.66%	+13.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	45.77%	28.08%	+17.69%

Dividends

NREF vs. NNN - Dividend Comparison

NREF's dividend yield for the trailing twelve months is around 12.89%, more than NNN's 5.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NNN National Retail Properties, Inc.	5.43%	5.96%	5.61%	5.17%	4.72%	4.37%	5.06%	3.79%	4.02%	4.31%	4.03%	4.27%
NREF NexPoint Real Estate Finance, Inc.	12.89%	14.20%	12.75%	17.40%	12.59%	9.87%	8.59%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

NREF vs. NNN - Profitability Comparison

The chart below illustrates the profitability comparison between NexPoint Real Estate Finance, Inc. and National Retail Properties, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

NREF - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, NexPoint Real Estate Finance, Inc. reported a gross profit of 41.79M and revenue of 41.79M. Therefore, the gross margin over that period was 100.0%.

NNN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, National Retail Properties, Inc. reported a gross profit of 230.63M and revenue of 240.42M. Therefore, the gross margin over that period was 95.9%.

NREF - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, NexPoint Real Estate Finance, Inc. reported an operating income of 31.79M and revenue of 41.79M, resulting in an operating margin of 76.1%.

NNN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, National Retail Properties, Inc. reported an operating income of 146.65M and revenue of 240.42M, resulting in an operating margin of 61.0%.

NREF - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, NexPoint Real Estate Finance, Inc. reported a net income of 20.27M and revenue of 41.79M, resulting in a net margin of 48.5%.

NNN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, National Retail Properties, Inc. reported a net income of 93.95M and revenue of 240.42M, resulting in a net margin of 39.1%.

Frequently Asked Questions

Can I hold both NREF and NNN in my portfolio?

NREF and NNN have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NREF or NNN?

NREF has higher volatility (7.63%) compared to NNN (4.61%). In terms of maximum drawdown, NREF dropped -66.09% vs NNN's -56.17%.

Which has better risk-adjusted returns?

NNN currently has the higher Sharpe Ratio (0.78 vs 0.71), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.