Notes Payable - Convertible (Tables)

1 Months Ended

12 Months Ended

Jan. 31, 2013

Dec. 31, 2012

Convertible Notes Payable [Abstract]

Schedule of Debt

Each of NNN’s outstanding series of convertible notes are summarized in the table below (dollars in thousands, except conversion price):

Terms	2026 Notes(1)(2)(4)				2028 Notes(2)(5)(6)
Issue Date	September 2006				March 2008
Net Proceeds	$	168,650			$	228,576
Stated Interest Rate	3.950		%		5.125		%
Effective Interest Rate (8)	5.840		%		7.192		%
Debt Issuance Costs	$	3,850		(3)	$	5,459		(7)
Earliest Conversion Date (9)	—				June 2027
Earliest Put Option Date	—				June 2013
Maturity Date	—				June 2028
Original Principal	$	172,500			$	234,035
Repurchases	(33,800		)		(11,000		)
Converted	(123,163		)		—
Outstanding principal balance at December 31, 2012	$	15,537		(10)	$	223,035

⁽¹⁾  NNN repurchased $8,800 and $25,000 in 2009 and 2008, respectively, for a purchase price of $6,994 and $19,188, respectively, resulting in a gain of $1,565 and $4,961, respectively.

⁽²⁾  Debt issuance costs include underwriting discounts and commissions, legal and accounting fees, rating agency fees and printing expenses. These costs have been deferred and are being amortized over the period to the earliest put option date of the holders using the effective interest method.

⁽³⁾  Includes $463 of note costs which were written off in connection with the repurchase of $33,800 of the 2026 Notes.

⁽⁴⁾  The conversion rate per $1 principal amount was 42.6237 shares of NNN’s common stock, which is equivalent to a conversion price of $23.4611 per share of common stock.

⁽⁵⁾  The conversion rate per $1 principal amount was 39.4902 shares of NNN’s common stock, which is equivalent to a conversion price of $25.3228 per share of common stock.

⁽⁶⁾  NNN repurchased $11,000 in 2009 for a purchase price of $8,588 resulting in a gain of $1,867.

⁽⁷⁾  Includes $219 of note costs which were written off in connection with the repurchase of $11,000 of the 2028 Notes, respectively.

⁽⁸⁾  With the adoption of the accounting guidance on convertible debt securities in 2009, the effective interest rates for the 2026 Notes and the 2028 Notes are 5.840% and 7.192%, respectively.

⁽⁹⁾  Prior to the earliest respective conversion date, the notes are only convertible in limited circumstances pursuant to the terms of the notes.

⁽¹⁰⁾  In January 2013, NNN converted the remaining principal balance.

Schedule of Long-term Debt Instruments

The following table outlines the mortgages payable included in NNN’s consolidated financial statements (dollars in thousands):

Entered	Initial Balance		Interest Rate		Maturity (3)	Carrying Value of Encumbered Asset(s)(1)		Outstanding Principal Balance at December 31,
								2012		2011
December 2001 (2)	$	623	9.00	%	April 2014	$	543	$	95	$	158
December 2001 (2)	698		9.00	%	April 2019	1,047		299		333
December 2001 (2)	485		9.00	%	April 2019	1,013		155		172
June 2002	21,000		6.90	%	July 2012	—		—		18,488
February 2004 (2)	6,952		6.90	%	January 2017	11,039		2,892		3,485
March 2005 (2)	1,015		8.14	%	September 2016	1,283		439		535
June 2012 (2)(4)	6,850		5.75	%	April 2016	8,905		6,722		—
						$	23,830	$	10,602	$	23,171

⁽¹⁾  Each loan is secured by a first mortgage lien on certain of NNN’s properties. The carrying values of the assets are as of December 31, 2012.

⁽²⁾  Date entered represents the date that NNN acquired real estate subject to a mortgage securing a loan. The corresponding original principal balance represents the outstanding principal balance at the time of acquisition.

⁽³⁾  Monthly payments include interest and principal, if any; the balance is due at maturity.

⁽⁴⁾  Initial balance and outstanding principal balance includes unamortized premium.

The carrying amounts of the Company’s convertible debt and equity balances are summarized in the table below as of December 31 (dollars in thousands):

	2012			2011
Carrying value of equity component	$	(22,193	)	$	(33,873	)
Principal amount of convertible debt	238,572			361,735
Remaining unamortized debt discount	(2,072		)	(6,363		)
Net carrying value of convertible debt	$	214,307		$	321,499

Debt Interest Expense

NNN recorded the following relating to the 2026 Notes and the 2028 Notes as of December 31 (dollars in thousands):

	2012		2011		2010
Noncash interest charges	$	4,291	$	5,837	$	6,154
Contractual interest expense	15,744		16,909		17,046
	$	20,035	$	22,746	$	23,200