Notes Payable - Convertible (Tables)

12 Months Ended

Dec. 31, 2013

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			2028 Notes
Issue Date	September 2006			March 2008
Net Proceeds	$	168,650		$	228,576
Stated Interest Rate	3.950		%	5.125		%
Effective Interest Rate	5.840		%	7.192		%
Debt Issuance Costs	$	3,850		$	5,459
Original Principal	$	172,500		$	234,035
Repurchases	(33,800		)	(11,000		)
Settled	(138,700		)	(223,035		)
Outstanding principal balance at December 31, 2013	$	—		$	—

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,
							2013		2012
December 2001 (2)	$	623	9.00%	April 2014	$	438	$	27	$	95
December 2001 (2)	698		9.00%	April 2019	968		263		299
December 2001 (2)	485		9.00%	April 2019	936		136		155
February 2004 (2)	6,952		6.90%	January 2017	10,797		2,257		2,892
March 2005 (2)	1,015		8.14%	September 2016	1,264		335		439
June 2012 (2)(4)	6,850		5.75%	April 2016	8,717		6,457		6,722
					$	23,120	$	9,475	$	10,602

⁽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, 2013.

⁽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):

	2013		2012
Carrying value of equity component	$	—	$	(22,193	)
Principal amount of convertible debt	—		238,572
Remaining unamortized debt discount	—		(2,072		)
Net carrying value of convertible debt	$	—	$	214,307

Debt Interest Expense

NNN recorded the following in interest expense relating to the 2028 Notes and the 2026 Notes for the years ended December 31 (dollars in thousands):

	2013		2012		2011
Noncash interest charges	$	2,072	$	4,291	$	5,837
Contractual interest expense	5,400		15,744		16,909
Amortization of debt costs	566		1,149		1,583
	$	8,038	$	21,184	$	24,329