| 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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September 30,
2026 |
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Property Portfolio: |
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Total Properties |
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3,817 |
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Gross leasable area (square feet) (unaudited) |
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40,764,000 |
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States |
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50 |
(1) |
Weighted average remaining lease term (years) |
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10.1 |
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(1) |
Plus the District of Columbia and Puerto Rico. |
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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 September 30:
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2026 |
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2025 |
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Number of tenants |
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9 |
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13 |
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Cash basis tenants as a percent of: |
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Total Properties |
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2.3 |
% |
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1.9 |
% |
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Total Annualized Base Rent ("ABR")(1) |
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4.0 |
% |
(2) |
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4.4 |
% |
(3) |
Total gross leasable area |
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6.5 |
% |
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7.0 |
% |
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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) |
$973,997,000 as of September 30, 2026. |
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(3) |
$912,218,000 as of September 30, 2025. |
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| Computation of Basic and Diluted Earnings Per Share |
The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per share using the two-class method (dollars in thousands):
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Quarter Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Basic and Diluted Earnings: |
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Net earnings |
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$ |
109,928 |
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$ |
96,839 |
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$ |
301,803 |
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$ |
293,826 |
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Less: Earnings allocated to unvested restricted shares |
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(190 |
) |
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(191 |
) |
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(542 |
) |
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(538 |
) |
Net earnings used in basic and diluted earnings per share |
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$ |
109,738 |
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$ |
96,648 |
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$ |
301,261 |
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$ |
293,288 |
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Basic and Diluted Weighted Average Shares Outstanding: |
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Weighted average shares outstanding |
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191,983,327 |
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188,926,954 |
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190,766,998 |
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188,225,188 |
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Less: Unvested restricted shares |
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(306,662 |
) |
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(318,662 |
) |
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(297,706 |
) |
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(305,442 |
) |
Less: Unvested contingent restricted shares |
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(882,703 |
) |
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(769,581 |
) |
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(828,091 |
) |
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(719,653 |
) |
Weighted average shares outstanding used in basic earnings per share |
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190,793,962 |
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187,838,711 |
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189,641,201 |
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187,200,093 |
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Dilutive effect of forward ATM offerings |
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101,064 |
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— |
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72,388 |
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— |
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Other dilutive securities |
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440,024 |
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494,078 |
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440,993 |
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486,238 |
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Weighted average shares outstanding used in diluted earnings per share |
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191,335,050 |
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188,332,789 |
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190,154,582 |
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187,686,331 |
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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 nine months ended September 30, 2026 (dollars in thousands):
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Gain or Loss on
Cash Flow Hedges(1) |
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Beginning balance, December 31, 2025 |
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$ |
(6,321 |
) |
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Other comprehensive income (loss) |
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11,613 |
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Reclassifications from accumulated other comprehensive income to net earnings |
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229 |
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(2) |
Ending balance, September 30, 2026 |
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$ |
5,521 |
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(1) |
Additional disclosure is included in "Note 7 – 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. |
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