Real Estate (Tables)

6 Months Ended

Jun. 30, 2015

Real Estate Investments, Net [Abstract]

Classification of Investment Property Leases

The following outlines key information for NNN’s leases:

	June 30, 2015
Lease classification:
Operating	2,173
Direct financing	11
Building portion – direct financing/land portion – operating	1
Weighted average remaining lease term (years)	11.4

Summary of Real Estate Subject to Operating Leases

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

	June 30, 2015			December 31, 2014
Land and improvements	$	1,857,051		$	1,782,719
Buildings and improvements	3,602,232			3,414,653
Leasehold interests	1,290			1,290
	5,460,573			5,198,662
Less accumulated depreciation and amortization	(565,335		)	(511,664		)
	4,895,238			4,686,998
Work in progress	40,234			28,908
	$	4,935,472		$	4,715,906

Disclosure of Long Lived Assets Held-for-sale

Real estate held for sale consisted of the following as of (dollars in thousands):

	June 30, 2015			December 31, 2014
Land and improvements	$	4,538		$	5,453
Building and improvements	1,747			5,485
	6,285			10,938
Less accumulated depreciation and amortization	(39		)	(1,512		)
Less impairment	(2,493		)	(2,257		)
	$	3,753		$	7,169

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

The following table summarizes the number of Properties sold and the corresponding gain recognized on the disposition of Properties (dollars in thousands):

	Quarter Ended June 30,							Six Months Ended June 30,
	2015			2014				2015				2014
	# of Sold Properties	Gain		# of Sold Properties	Gain			# of Sold Properties	Gain			# of Sold Properties	Gain
Gain on disposition of real estate	3	$	30	10	$	3,054		9	$	7,260		12	$	5,008
Income tax expense		—			—				(30		)		(198		)
		30			3,054				7,230				4,810
Gain on disposition of real estate included in discontinued operations	—	—		—	3		(1)	—	—			2	12			(1)
		$	30		$	3,057			$	7,230			$	4,822

⁽¹⁾ Amount includes deferred gain on previously sold properties.

Real Estate Funding Commitments

These construction commitments, as of June 30, 2015, are outlined in the table below (dollars in thousands):

Number of properties	28
Total commitment(1)	$	159,954
Amount funded	$	82,330
Remaining commitment	$	77,624

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

Details of Impairment of Long-Lived Assets Held and Used by Asset

As a result of the Company's review of long lived assets, including identifiable intangible assets, NNN recognized the following real estate impairments (dollars in thousands):

	Quarter Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Continuing operations	$	2,686	$	89	$	3,714	$	485
Discontinued operations	—		—		—		63
	$	2,686	$	89	$	3,714	$	548