Real Estate (Tables)

6 Months Ended

Jun. 30, 2016

Classification of Investment Property Leases

The following outlines key information for NNN’s leases:



	June 30, 2016
Lease classification:
Operating	2,485
Direct financing	10
Building portion – direct financing/land portion – operating	2
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, 2016			December 31, 2015
Land and improvements	$	2,041,642		$	1,921,657
Buildings and improvements	4,237,019			3,888,656
Leasehold interests	4,565			1,290
	6,283,226			5,811,603
Less accumulated depreciation and amortization	(677,671		)	(619,446		)
	5,605,555			5,192,157
Work in progress	24,562			61,354
	$	5,630,117		$	5,253,511

Disclosure of Long Lived Assets Held-for-sale

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



	June 30, 2016			December 31, 2015
Land and improvements	$	1,597		$	10,342
Building and improvements	2,583			30,464
	4,180			40,806
Less accumulated depreciation and amortization	(778		)	(5,161		)
Less impairment	(340		)	(216		)
	$	3,062		$	35,429

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,
	2016			2015			2016			2015
	# of Sold Properties	Gain		# of Sold Properties	Gain		# of Sold Properties	Gain		# of Sold Properties	Gain
Gain on disposition of real estate	7	$	1,178	3	$	30	17	$	18,053	9	$	7,260
Income tax expense		—			—			—			(30		)
		$	1,178		$	30		$	18,053		$	7,230

Real Estate Funding Commitments

These construction commitments, as of June 30, 2016, are outlined in the table below (dollars in thousands):



Number of properties	21
Total commitment⁽¹⁾	$	80,825
Amount funded	$	44,205
Remaining commitment	$	36,620

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