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Condensed Consolidated Statements of Income and Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Revenues:        
Rental income from operating leases $ 118,218 $ 105,013 $ 342,407 $ 304,798
Earned income from direct financing leases 340 427 1,142 1,306
Percentage rent 331 177 628 489
Real estate expense reimbursement from tenants 3,469 3,323 10,307 9,783
Interest and other income from real estate transactions 345 452 721 1,786
Interest income on commercial mortgage residual interests 440 464 1,332 1,370
Total revenues 123,143 109,856 356,537 319,532
Operating expenses:        
General and administrative 8,643 8,046 25,078 24,807
Real estate 4,782 4,583 14,199 13,669
Depreciation and amortization 33,607 29,768 99,950 85,787
Impairment – commercial mortgage residual interests valuation 53 21 481 256
Impairment losses, net of recoveries (3) 77 3,711 562
Total operating expenses 47,082 42,495 143,419 125,081
Earnings from operations 76,061 67,361 213,118 194,451
Other expenses (revenues):        
Interest and other income (20) (87) (67) (245)
Interest expense 21,996 21,641 65,460 63,681
Real estate acquisition costs 199 961 894 1,188
Total other expenses (revenues) 22,175 22,515 66,287 64,624
Earnings from continuing operations before income tax expense 53,886 44,846 146,831 129,827
Income tax expense (545) (372) (491) (721)
Earnings from continuing operations 53,341 44,474 146,340 129,106
Earnings from discontinued operations, net of income tax expense 0 142 0 124
Earnings before gain on disposition of real estate, net of income tax expense 53,341 44,616 146,340 129,230
Gain on disposition of real estate, net of income tax expense 1,914 3,356 9,145 8,166
Earnings including noncontrolling interests 55,255 47,972 155,485 137,396
Earnings attributable to noncontrolling interests:        
Continuing operations (57) (32) (120) (552)
Net earnings attributable to NNN 55,198 47,940 155,365 136,844
Net earnings attributable to common stockholders $ 46,339 $ 39,081 $ 128,789 $ 110,268
Basic:        
Continuing operations (in dollars per share) $ 0.34 $ 0.31 $ 0.96 $ 0.89
Net earnings (in dollars per share) 0.34 0.31 0.96 0.89
Diluted:        
Continuing operations (in dollars per share) 0.34 0.31 0.96 0.89
Net earnings (in dollars per share) $ 0.34 $ 0.31 $ 0.96 $ 0.89
Weighted average number of common shares outstanding:        
Basic (in shares) 133,892,905 124,554,066 132,949,978 122,884,360
Diluted (in shares) 134,246,098 125,045,097 133,306,268 123,366,064
Other comprehensive income:        
Net earnings attributable to NNN $ 55,198 $ 47,940 $ 155,365 $ 136,844
Amortization of interest rate hedges 424 385 1,256 736
Fair value forward starting swaps (10,297) 0 (10,297) (6,312)
Net gain (loss) – commercial mortgage residual interests 116 (224) (268) 701
Net gain (loss) – available-for-sale securities 26 (202) (48) (111)
Comprehensive income attributable to NNN 45,467 47,899 146,008 131,858
Series D Preferred Stock        
Earnings attributable to noncontrolling interests:        
Dividends (4,762) (4,762) (14,285) [1] (14,285) [1]
Series E Preferred Stock        
Earnings attributable to noncontrolling interests:        
Dividends $ (4,097) $ (4,097) $ (12,291) [1] $ (12,291) [1]
[1] The Series D and E preferred stock have no maturity date and will remain outstanding unless redeemed.