Organization and Summary of Significant Accounting Policies (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Accounting Policies [Abstract] |
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| Summary of NNN's Investment Portfolio |
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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December 31, 2025 |
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Property Portfolio: |
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Total Properties |
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3,692 |
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Gross leasable area (square feet) (unaudited) |
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39,578,000 |
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States |
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50 |
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Weighted average remaining lease term (years) |
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10.2 |
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| Summary of tenants classified as cash basis |
The following table summarizes those tenants classified as cash basis for accounting purposes as of December 31:
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2025 |
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2024 |
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2023 |
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Number of tenants |
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14 |
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12 |
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9 |
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Cash basis tenants as a percent of: |
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Total Properties |
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1.8 |
% |
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2.5 |
% |
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3.5 |
% |
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Total Annualized Base Rent ("ABR")(1) |
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4.4 |
% |
(2) |
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4.3 |
% |
(3) |
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5.0 |
% |
(4) |
Total gross leasable area |
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7.1 |
% |
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4.5 |
% |
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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) |
$928,081,000 as of December 31, 2025. |
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(3) |
$860,562,000 as of December 31, 2024. |
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(4) |
$818,749,000 as of December 31, 2023. |
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| Computation of Basic and Diluted Earnings Per Share |
The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per share using the two-class method for the years ended December 31 (dollars in thousands):
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2025 |
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2024 |
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2023 |
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Basic and Diluted Earnings: |
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Net earnings |
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$ |
389,777 |
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$ |
396,835 |
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$ |
392,340 |
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Less: Earnings allocated to unvested restricted shares |
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(728 |
) |
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(686 |
) |
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(609 |
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Net earnings used in basic and diluted earnings per share |
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$ |
389,049 |
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$ |
396,149 |
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$ |
391,731 |
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Basic and Diluted Weighted Average Shares Outstanding: |
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Weighted average shares outstanding |
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188,651,928 |
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184,723,988 |
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182,184,038 |
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Less: Unvested restricted shares |
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(308,239 |
) |
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(299,534 |
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(273,077 |
) |
Less: Unvested contingent restricted shares |
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(732,238 |
) |
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(735,892 |
) |
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(710,921 |
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Weighted average shares outstanding used in basic earnings per share |
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187,611,451 |
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183,688,562 |
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181,200,040 |
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Other dilutive securities |
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375,347 |
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355,279 |
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489,683 |
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Weighted average shares outstanding used in diluted earnings per share |
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187,986,798 |
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184,043,841 |
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181,689,723 |
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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 years ended December 31, 2025 and 2024 (dollars in thousands):
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Gain or Loss on
Cash Flow
Hedges(1) |
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Beginning balance, December 31, 2023 |
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$ |
(10,111 |
) |
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Reclassifications from accumulated other comprehensive income to net earnings |
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2,152 |
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(2) |
Ending balance, December 31, 2024 |
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(7,959 |
) |
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Other comprehensive income (loss) |
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(52 |
) |
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Reclassifications from accumulated other comprehensive income to net earnings |
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1,690 |
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(2) |
Ending balance, December 31, 2025 |
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$ |
(6,321 |
) |
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(1) |
Additional disclosure is included in "Note 8 – Derivatives." |
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(2) |
Recorded in interest expense on the Consolidated Statements of Income and Comprehensive Income. There is no income tax expense (benefit) resulting from this reclassification. |
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