Earnings from Discontinued Operations

9 Months Ended

Sep. 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 September 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 September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Rental income from operating leases	$	—		$	642		$	—		$	1,573
Earned income from direct financing leases	—			57			—			173
Real estate expense reimbursement from tenants	6			14			17			91
Interest and other income from real estate transactions	—			—			22			33
	6			713			39			1,870
Operating expenses:
General and administrative	—			1			—			214
Real estate	4			95			4			188
Depreciation and amortization	3			174			3			331
Impairment charges	—			(436		)	63			468
	7			(166		)	70			1,201
Other expenses:
Interest expense	—			—			—			41
	—			—			—			41
Earnings (loss) before gain on disposition of real estate and income tax expense	(1		)	879			(31		)	628
Gain on disposition of real estate	143			1,228			155			4,402
Income tax expense	—			(557		)	—			(944		)
Earnings from discontinued operations attributable to NNN including noncontrolling interests	142			1,550			124			4,086
Earnings attributable to noncontrolling interests	—			—			—			(163		)
Earnings from discontinued operations attributable to NNN	$	142		$	1,550		$	124		$	3,923