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Condensed Consolidated Statements of Income and Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues:        
Rental income from operating leases $ 129,944 $ 118,218 $ 378,007 $ 342,407
Earned income from direct financing leases 338 340 1,041 1,142
Percentage rent 321 331 959 628
Real estate expense reimbursement from tenants 3,413 3,469 10,251 10,307
Interest and other income from real estate transactions 141 345 905 721
Interest income on commercial mortgage residual interests 384 440 1,285 1,332
Total revenues 134,541 123,143 392,448 356,537
Operating expenses:        
General and administrative 9,116 8,643 27,100 25,078
Real estate 4,942 4,782 14,297 14,199
Depreciation and amortization 38,970 33,607 110,114 99,950
Impairment – commercial mortgage residual interests valuation 5,978 53 6,830 481
Impairment losses – real estate and other charges, net of recoveries 4,917 (3) 10,949 3,711
Total operating expenses 63,923 47,082 169,290 143,419
Earnings from operations 70,618 76,061 223,158 213,118
Other expenses (revenues):        
Interest and other income (17) (20) (108) (67)
Interest expense 24,257 21,996 71,923 65,460
Real estate acquisition costs 111 199 520 894
Total other expenses (revenues) 24,351 22,175 72,335 66,287
Earnings before income tax expense 46,267 53,886 150,823 146,831
Income tax expense 0 (545) 0 (491)
Earnings before gain on disposition of real estate, net of income tax expense 46,267 53,341 150,823 146,340
Gain on disposition of real estate, net of income tax expense 4,505 1,914 22,558 9,145
Earnings including noncontrolling interests 50,772 55,255 173,381 155,485
Loss (earnings) attributable to noncontrolling interests 12 (57) 28 (120)
Net earnings attributable to NNN 50,784 55,198 173,409 155,365
Net earnings attributable to common stockholders $ 41,925 $ 46,339 $ 146,833 $ 128,789
Net earnings per share of common stock:        
Basic (in dollars per share) $ 0.29 $ 0.34 $ 1.02 $ 0.96
Diluted (in dollars per share) $ 0.28 $ 0.34 $ 1.02 $ 0.96
Weighted average number of common shares outstanding:        
Basic (in shares) 146,111,041 133,892,905 143,474,664 132,949,978
Diluted (in shares) 146,681,592 134,246,098 144,036,165 133,306,268
Other comprehensive income:        
Net earnings attributable to NNN $ 50,784 $ 55,198 $ 173,409 $ 155,365
Amortization of interest rate hedges 720 424 2,122 1,256
Fair value forward starting swaps 701 (10,297) 1,013 (10,297)
Net gain (loss) – commercial mortgage residual interests (4,561) 116 (4,454) (268)
Net gain (loss) – available-for-sale securities 47 26 600 (48)
Comprehensive income attributable to NNN 47,691 45,467 172,690 146,008
Series D Preferred Stock        
Other expenses (revenues):        
Dividends [1] (4,762) (4,762) (14,285) (14,285)
Series E Preferred Stock        
Other expenses (revenues):        
Dividends [1] $ (4,097) $ (4,097) $ (12,291) $ (12,291)
[1] The Series D and E preferred stock have no maturity date and will remain outstanding unless redeemed by NNN. The earliest redemption date for the Series D and Series E preferred stock is February 2017 and May 2018, respectively.