Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment ("Properties" or "Property Portfolio," or individually a "Property").


	December 31, 2022
Property Portfolio:
Total Properties		3,411
Gross leasable area (square feet)		35,010,000
States		48
Weighted average remaining lease term (years)		10.4

Summary of tenants classified as cash basis

The following table summarizes those tenants classified as cash basis for accounting purposes as of December 31:


	2022			2021			2020
Number of tenants		8			11			13
Cash basis tenants as a percent of:
Total Properties		5.0	%		5.5	%		6.4	%
Total annual base rent(1)		7.0	%		7.0	%		7.4	%
Total gross leasable area		6.6	%		7.3	%		8.0	%


(1)	Based on annualized base rent for all leases in place for each respective period.

Computation of Basic and Diluted Earnings Per Share

The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per common share using the two-class method for the years ended December 31 (dollars in thousands):


	2022			2021			2020
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	334,626		$	290,113		$	228,799
Less: Series F preferred stock dividends		—			(14,999	)		(17,940	)
Less: Excess of redemption value over carrying value of preferred shares redeemed		—			(10,897	)		—
Net earnings available to common stockholders		334,626			264,217			210,859
Less: Earnings allocated to unvested restricted shares		(514	)		(689	)		(698	)
Net earnings used in basic and diluted earnings per share	$	334,112		$	263,528		$	210,161

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding		177,332,094			175,554,961			172,994,337
Less: Unvested restricted shares		(237,918	)		(328,070	)		(337,078	)
Less: Unvested contingent restricted shares		(690,520	)		(515,970	)		(547,546	)
Weighted average number of shares outstanding used in basic earnings per share		176,403,656			174,710,921			172,109,713
Other dilutive securities		664,209			107,978			107,364
Weighted average number of shares outstanding used in diluted earnings per share		177,067,865			174,818,899			172,217,077

Changes in Accumulated Other Comprehensive Income (Loss)

The following table outlines the changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021 (dollars in thousands):


	Gain or Loss on Cash Flow Hedges(1)
Beginning balance, December 31, 2020	$	(16,445	)

Other comprehensive income (loss)		(1,584	)
Reclassifications from accumulated other comprehensive income to net earnings		3,073		(2)
Net current period other comprehensive income (loss)		1,489
Ending balance, December 31, 2021		(14,956	)

Reclassifications from accumulated other comprehensive income to net earnings		2,374		(2)
Net current period other comprehensive income (loss)		2,374
Ending balance, December 31, 2022	$	(12,582	)

(1)

Additional disclosure is included in Note 9 – Derivatives.

(2)

Reclassifications out of other comprehensive income (loss) are recorded in interest expense on the Consolidated
Statements of Income and Comprehensive Income. There is no income tax expense (benefit) resulting from this reclassification.