Triple net REITs had a solid H1, with defensive characteristics of long term leases to a diversified set of tenants, strong balance sheets and attractive dividend yield providing a tailwind, Morgan Stanley said in a note Tuesday.

The report said triple net REITs are now trading at a -27% AFFO multiple discount to the broader REIT industry, broadly in-line with the 5 year average.

"We continue to see value in proven operators with growth not as highly dependent on equity issuance," the note said.

For NNN REIT (NNN), Q2 AFFO is expected to be in-line with consensus, with 2026 guide to be raised above consensus, the note said.

Morgan Stanley raised its price target on FrontView REIT (FVR) to $21 from $18, expecting Q2 AFFO to be in-line with consensus and 2026 guide to be raised in-line with market expectations.

It cut its price target on VICI Properties (VICI) to $31 from $38.

Price: 20.53, Change: -0.17, Percent Change: -0.82