Doesn't lo cost basis from 1031ing into properties leave them exposed to rising capital gaines rates? Doesn't long term leases (with leasee renewal options) on NNN deals leave them exposed to rising inflation in CRE?
While technically the company can be affected by property sales or even tax law changes, in practice it is not likely. Recent sales demonstrate that this is the case. Section 1031 is not a one time use or use and lose type transaction. Any sale can be reinvested in another property and any gains can again have the tax deferred indefinitely. The company is exposed to inflation in the same manner every company is although I know at least some of their leases have built in increases. Long term leases can be your friend in a weak markets and leave money on the table in rising markets.
The long term deferred tax liability is likely to remain a long term tax liability for the long term. The biggest risk is Congress deciding to change the rules midstream. While that is always a risk, there is nothing currently proposed that I am aware of.