Notes Payable and Derivatives |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Notes Payable and Derivatives | Note 4 – Notes Payable and Derivatives: Additional information related to NNN's notes payable and derivatives is included in NNN's Annual Report on Form 10-K for the year ended December 31, 2024. During the quarter ended June 30, 2025, NNN terminated two forward starting swaps with an aggregate notional amount of $200,000,000, in connection with pricing a $500,000,000 senior unsecured notes offering (see "Note 8 – Subsequent Events"). The forward starting swaps were entered into to hedge the risk of changes in forecasted interest payments on a forecasted issuance of long-term debt. When terminated, the fair value of the forward starting swaps, designated as cash flow hedges, was a net liability of $409,000, which was deferred in accumulated other comprehensive income (loss) and will be amortized as an increase in interest expense over 10 years. As of June 30, 2025, $7,439,000 remained in accumulated other comprehensive income (loss) related to NNN's previously terminated interest rate hedges. During the six months ended June 30, 2025 and 2024, NNN reclassified out of accumulated other comprehensive income (loss) $929,000 and $1,242,000, respectively, of which $469,000 and $610,000 was reclassified during the quarters ended June 30, 2025 and 2024, respectively, as an increase in interest expense. Over the next 12 months, NNN estimates that an additional $915,000 will be reclassified as an increase in interest expense. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on NNN's long-term debt. NNN does not use derivatives for trading or speculative purposes. NNN had no derivative financial instruments outstanding at June 30, 2025. |