Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Summary of NNN's Investment Portfolio

NNN's assets primarily include real estate assets. NNN acquires, owns, invests in and develops high-quality properties that are leased primarily to tenants under long-term, net leases and are primarily held for investment ("Properties" or "Property Portfolio", or individually a "Property").


		March 31, 2025
Property Portfolio:
Total Properties		3,641
Gross leasable area (square feet)		37,311,000
States		50
Weighted average remaining lease term (years)		10

In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") guidance included in Topic 280, Segment Reporting,

Summary of tenants classified as cash basis

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


		2025				2024
Number of tenants			10				10
Cash basis tenants as a percent of:
Total Properties			1.5	%			3.5	%
% of Annualized Base Rent ("ABR")(1)			3.4	%	(2)		5.1	%	(3)
% of gross leasable area			3.7	%			4.9	%


(1)	ABR represents the monthly cash base rent for all leases in place as of the end of the period multiplied by 12. Based on ABR of:
	(2)	$874,301,000 as of March 31, 2025.
	(3)	$831,010,000 as of March 31, 2024.

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 share using the two-class method (dollars in thousands):


		Quarter Ended March 31,
		2025				2024
Basic and Diluted Earnings:
Net earnings		$	96,458			$	94,371
Less: Earnings allocated to unvested restricted shares			(167	)			(153	)
Net earnings used in basic and diluted earnings per share		$	96,291			$	94,218

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average shares outstanding			187,761,527				182,700,682
Less: Unvested restricted shares			(288,296	)			(270,664	)
Less: Unvested contingent restricted shares			(618,134	)			(635,810	)
Weighted average shares outstanding used in basic earnings per share			186,855,097				181,794,208
Other dilutive securities			224,987				418,689
Weighted average shares outstanding used in diluted earnings per share			187,080,084				182,212,897

Changes in Accumulated Other Comprehensive Income (Loss)

The following table outlines the changes in accumulated other comprehensive income (loss) for the quarter ended March 31, 2025 (dollars in thousands):


		Gain (Loss) on Cash Flow Hedges(1)
Beginning balance, December 31, 2024		$	(7,959	)
Other comprehensive income (loss)			(292	)
Reclassifications from accumulated other comprehensive income to net earnings			460		(2)
Ending balance, March 31, 2025		$	(7,791	)


(1)	Additional disclosure is included in "Note 4 – Notes Payable and Derivatives".


(2)	Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income. There is no income tax expense (benefit) resulting from this reclassification.