At this time last year, net lease REITs were going through an existential crisis. Analysts questioned the viability of the business model built on accretive acquisition-fueled growth.

Just as "rates up, REITs down" punished the sector in early 2018, net lease REITs have bounced back sharply as rates - and inflation expectations - have receded.

Since last February, the sector has surged roughly 50%, led by the upper echelon of the sector, the "Power 3" net lease REITs: Realty Income, National Retail, and Store Capital.

These three REITs acquired more than $4 billion of assets in 2018, a staggering figure considering the pressure from Wall Street analysts last year to scale back external growth targets.

The Power 3 weathered the storm in 2018 and now command the most favorable cost of capital in years, potentially reigniting AFFO growth if macroeconomic conditions can finally cooperate.