| 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").
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June 30, 2025 |
Property Portfolio: |
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Total Properties |
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3,663 |
Gross leasable area (square feet) |
|
38,322,000 |
States |
|
50 |
Weighted average remaining lease term (years) |
|
10 |
|
| Summary of tenants classified as cash basis |
The following table summarizes those tenants classified as cash basis for accounting purposes as of June 30:
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2025 |
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2024 |
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Number of tenants |
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12 |
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11 |
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Cash basis tenants as a percent of: |
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Total Properties |
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|
2.5 |
% |
|
|
3.4 |
% |
|
% of Annualized Base Rent ("ABR")(1) |
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|
4.7 |
% |
(2) |
|
5.0 |
% |
(3) |
% of gross leasable area |
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|
7.4 |
% |
|
|
4.8 |
% |
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(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: |
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(2) |
$893,782,000 as of June 30, 2025. |
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(3) |
$837,568,000 as of June 30, 2024. |
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| 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):
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Quarter Ended June 30, |
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Six Months Ended June 30, |
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2025 |
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2024 |
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|
2025 |
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|
2024 |
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Basic and Diluted Earnings: |
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|
|
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Net earnings |
|
$ |
100,529 |
|
|
$ |
106,666 |
|
|
$ |
196,987 |
|
|
$ |
201,037 |
|
Less: Earnings allocated to unvested restricted shares |
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|
(190 |
) |
|
|
(189 |
) |
|
|
(357 |
) |
|
|
(333 |
) |
Net earnings used in basic and diluted earnings per share |
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$ |
100,339 |
|
|
$ |
106,477 |
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|
$ |
196,630 |
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|
$ |
200,704 |
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Basic and Diluted Weighted Average Shares Outstanding: |
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Weighted average shares outstanding |
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|
187,974,275 |
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|
|
183,532,421 |
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|
|
187,868,489 |
|
|
|
183,116,552 |
|
Less: Unvested restricted shares |
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|
(328,001 |
) |
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|
(324,620 |
) |
|
|
(308,258 |
) |
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(294,671 |
) |
Less: Unvested contingent restricted shares |
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|
(769,581 |
) |
|
|
(769,010 |
) |
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|
(694,276 |
) |
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|
(702,410 |
) |
Weighted average shares outstanding used in basic
earnings per share |
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|
186,876,693 |
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|
|
182,438,791 |
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|
|
186,865,955 |
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|
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182,119,471 |
|
Other dilutive securities |
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|
193,595 |
|
|
|
368,583 |
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|
|
222,205 |
|
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|
408,862 |
|
Weighted average shares outstanding used in diluted
earnings per share |
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|
187,070,288 |
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|
|
182,807,374 |
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|
|
187,088,160 |
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|
|
182,528,333 |
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| Changes in Accumulated Other Comprehensive Income (Loss) |
The following table outlines the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2025 (dollars in thousands):
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Gain (Loss) on
Cash Flow Hedges(1) |
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Beginning balance, December 31, 2024 |
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$ |
(7,959 |
) |
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Other comprehensive income (loss) |
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(409 |
) |
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Reclassifications from accumulated other comprehensive income to net earnings |
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|
929 |
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(2) |
Ending balance, June 30, 2025 |
|
$ |
(7,439 |
) |
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(1) |
Additional disclosure is included in "Note 4 – Notes Payable and Derivatives". |
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(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. |
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