Earnings from Discontinued Operations

3 Months Ended

Mar. 31, 2014

Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract]

Earnings from Discontinued Operations

Earnings from Discontinued Operations:

Effective January 1, 2014, NNN has early adopted ASU 2014-08. Under ASU 2014-08, only disposals representing a strategic shift in operations are to be presented as discontinued operations. This requires the Company to continue to classify any property disposal or property classified as held for sale as of December 31, 2013 as discontinued operations prospectively. Therefore, the revenues and expenses related to these properties are presented as discontinued operations as of March 31, 2014. The Company did not classify any additional properties as discontinued operations subsequent to December 31, 2013.

The following is a summary of the earnings (loss) from discontinued operations (dollars in thousands):

	Quarter Ended March 31,
	2014			2013
Revenues:
Rental income from operating leases	$	—		$	604
Earned income from direct financing leases	—			58
Real estate expense reimbursement from tenants	5			51
Interest and other income from real estate transactions	—			4
	5			717
Operating expenses:
General and administrative	—			2
Real estate	(13		)	20
Depreciation and amortization	—			89
Impairment charges	63			—
	50			111
Other expenses:
Interest expense	—			31
	—			31
Earnings (loss) before gain on disposition of real estate and income tax expense	(45		)	575
Gain on disposition of real estate	9			505
Income tax expense	—			(50		)
Earnings (loss) from discontinued operations attributable to NNN including noncontrolling interests	(36		)	1,030
Earnings attributable to noncontrolling interests	—			(4		)
Earnings (loss) from discontinued operations attributable to NNN	$	(36	)	$	1,026