Real Estate (Tables)

12 Months Ended

Dec. 31, 2013

Real Estate Investments, Net [Abstract]

Classification Of Investment Property Leases

The following outlines key information for NNN’s leases at December 31, 2013:

Lease classification:
Operating	1,888
Direct financing	12
Building portion – direct financing / land portion – operating	1
Weighted average remaining lease term	12 years

Summary Of Real Estate Subject To Operating Leases

Real estate subject to operating leases consisted of the following as of December 31 (dollars in thousands):

	2013			2012
Land and improvements	$	1,650,651		$	1,474,299
Buildings and improvements	2,957,218			2,564,104
Leasehold interests	1,290			1,290
	4,609,159			4,039,693
Less accumulated depreciation and amortization	(416,477		)	(332,156		)
	4,192,682			3,707,537
Work in progress	60,682			86,507
	$	4,253,364		$	3,794,044

Remaining Funding Commitments

December 31, 2013, are outlined in the table below (dollars in thousands):

Number of properties	48
Total commitment(1)	$	145,818
Amount funded	99,024
Remaining commitment	46,794

⁽¹⁾ Includes land, construction costs and tenant improvements.

Schedule of Future Minimum Lease Payments for Capital Leases

The following is a schedule of future minimum lease payments to be received on noncancellable operating leases at December 31, 2013 (dollars in thousands):

2014	$	384,218
2015	379,726
2016	374,064
2017	365,149
2018	338,197
Thereafter	2,782,929
	$	4,624,283

Net Investment in Direct Financing Leases

The following lists the components of net investment in direct financing leases at December 31 (dollars in thousands):

	2013			2012
Minimum lease payments to be received	$	20,469		$	27,963
Estimated unguaranteed residual values	8,274			10,142
Less unearned income	(10,401		)	(14,888		)
Net investment in direct financing leases	$	18,342		$	23,217

Schedule of Future Minimum Lease Receivables for Financing Leases

The following is a schedule of future minimum lease payments to be received on direct financing leases held for investment at December 31, 2013 (dollars in thousands):

2014	$	3,094
2015	2,956
2016	2,873
2017	2,035
2018	2,007
Thereafter	7,504
	$	20,469

The above table does not include future minimum lease payments for renewal periods, potential variable CPI rent increases or contingent rental payments that may become due in future periods (see Real Estate Portfolio – Accounted for Using the Operating Method).

Disclosure of Long Lived Assets Held-for-sale

As of December 31, 2013 and 2012, NNN classified eight Properties as held for sale. Real estate held for sale consisted of the following at December 31 (dollars in thousands):

	2013			2012
Land and improvements	$	7,403		$	7,839
Building and improvements	15,037			14,875
Work in process	37			72
	22,477			22,786
Less accumulated depreciation and amortization	(1,659		)	(1,623		)
Less impairment	(5,474		)	(3,617		)
	$	15,344		$	17,546

Disclosure of Long Lived Assets Held-for-sale, Gains Recognized

The following table summarizes the Properties sold and the corresponding gain recognized on the disposition included in continuing and discontinued operations for the years ended December 31 (dollars in thousands):

	2013				2012			2011
	# of Properties	Gain			# of Properties	Gain		# of Properties	Gain
Continuing operations	—	$	173		—	$	—	—	$	297
Discontinued operations	35	6,272			34	10,956		8	424
Noncontrolling interest	—	(152		)	—	—		—	(194		)
	35	$	6,293		34	$	10,956	8	$	527

Real Estate Impairments

Impairments are measured as the amount by which the current book value of the asset exceeds the estimated fair value of the asset. As a result of the Company’s review of long lived assets, including identifiable intangible assets, NNN recognized the following real estate impairments for the years ended December 31 (dollars in thousands):

	2013		2012		2011
Continuing operations	$	1,957	$	3,258	$	—
Discontinued operations	2,149		7,054		431
	$	4,106	$	10,312	$	431