Earnings from Discontinued Operations

6 Months Ended

Jun. 30, 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 June 30, 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 June 30,					Six Months Ended June 30,
	2014		2013			2014			2013
Revenues:
Rental income from operating leases	$	—	$	327		$	—		$	930
Earned income from direct financing leases	—		58			—			116
Real estate expense reimbursement from tenants	6		25			11			77
Interest and other income from real estate transactions	22		30			22			34
	28		440			33			1,157
Operating expenses:
General and administrative	—		212			—			213
Real estate	13		73			—			93
Depreciation and amortization	—		68			—			157
Impairment charges	—		904			63			904
	13		1,257			63			1,367
Other expenses:
Interest expense	—		11			—			41
	—		11			—			41
Earnings (loss) before gain on disposition of real estate and income tax expense	15		(828		)	(30		)	(251		)
Gain on disposition of real estate	3		2,669			12			3,174
Income tax expense	—		(335		)	—			(386		)
Earnings (loss) from discontinued operations attributable to NNN including noncontrolling interests	18		1,506			(18		)	2,537
Earnings attributable to noncontrolling interests	—		(158		)	—			(163		)
Earnings (loss) from discontinued operations attributable to NNN	$	18	$	1,348		$	(18	)	$	2,374