Real Estate (Tables)

9 Months Ended

Sep. 30, 2015

Classification of Investment Property Leases

The following outlines key information for NNN’s leases:



	September 30, 2015
Lease classification:
Operating	2,270
Direct financing	10
Building portion – direct financing/land portion – operating	2
Weighted average remaining lease term (years)	11.5

Summary of Real Estate Subject to Operating Leases

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



	September 30, 2015			December 31, 2014
Land and improvements	$	1,911,095		$	1,783,873
Buildings and improvements	3,790,352			3,413,701
Leasehold interests	1,290			1,290
	5,702,737			5,198,864
Less accumulated depreciation and amortization	(593,705		)	(511,404		)
	5,109,032			4,687,460
Work in progress	54,091			28,908
	$	5,163,123		$	4,716,368

Disclosure of Long Lived Assets Held-for-sale

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



	September 30, 2015			December 31, 2014
Land and improvements	$	2,347		$	3,867
Building and improvements	1,569			5,634
	3,916			9,501
Less accumulated depreciation and amortization	(323		)	(1,772		)
Less impairment	—			(1,022		)
	$	3,593		$	6,707

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 September 30,									Nine Months Ended September 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	5	$	1,970		10	$	3,464			14	$	9,231		22	$	8,472
Income tax expense		(56		)		(108		)			(86		)		(306		)
		1,914				3,356					9,145				8,166
Gain on disposition of real estate included in discontinued operations	—	—			—	143			⁽¹⁾	—	—			2	155			⁽¹⁾
		$	1,914			$	3,499				$	9,145			$	8,321

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

Real Estate Funding Commitments

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



Number of properties	35
Total commitment⁽¹⁾	$	165,832
Amount funded	$	93,530
Remaining commitment	$	72,302

⁽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, net of recoveries (dollars in thousands):



	Quarter Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015		2014
Continuing operations	$	(3	)	$	77	$	3,711	$	562
Discontinued operations	—			—		—		63
	$	(3	)	$	77	$	3,711	$	625