XML 26 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Organization and Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Summary of NNN's Investment Portfolio
NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and primarily held for investment ("Properties", "Property Portfolio", or individually a "Property").
 
September 30, 2017
Property Portfolio:
 
Total properties
2,687

Gross leasable area (square feet)
28,250,000

States
48

Weighted average remaining lease term (years)
11.4

Intangible Assets and Liabilities
Intangible assets and liabilities consisted of the following as of (dollars in thousands):
 
September 30, 2017
 
December 31, 2016
Intangible lease assets (included in Other assets):
 
 
 
Value of above-market in-place leases, net
$
7,584

 
$
9,591

Value of in-place leases, net
46,805

 
55,290

Intangible lease liabilities (included in Other liabilities):
 
 
 
Value of below-market in-place leases, net
19,673

 
22,100

Computation of Basic and Diluted Earnings Per Share
The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per common share using the two-class method (dollars in thousands):
 
Quarter Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Basic and Diluted Earnings:
 
 
 
 
 
 
 
Net earnings attributable to NNN
$
61,120

 
$
50,784

 
$
192,805

 
$
173,409

Less: Series D preferred stock dividends

 
(4,762
)
 
(3,598
)
 
(14,285
)
Less: Series E preferred stock dividends
(4,097
)
 
(4,097
)
 
(12,291
)
 
(12,291
)
Less: Series F preferred stock dividends
(4,485
)
 

 
(13,455
)
 

Less: Excess of redemption value over carrying value of Series D preferred shares redeemed

 

 
(9,855
)
 

Net earnings available to NNN’s common stockholders
52,538

 
41,925

 
153,606

 
146,833

Less: Earnings allocated to unvested restricted shares
(132
)
 
(184
)
 
(399
)
 
(510
)
Net earnings used in basic and diluted earnings per share
$
52,406

 
$
41,741

 
$
153,207

 
$
146,323

 
 
 
 
 
 
 
 
Basic and Diluted Weighted Average Shares Outstanding:
 
 
 
 
 
 
 
Weighted average number of shares outstanding
150,076,348

 
146,982,759

 
148,934,825

 
144,301,606

Less: Unvested restricted stock
(277,713
)
 
(406,170
)
 
(288,238
)
 
(385,267
)
Less: Unvested contingent restricted shares
(457,610
)
 
(465,548
)
 
(423,353
)
 
(441,675
)
Weighted average number of shares outstanding used in basic earnings per share
149,341,025

 
146,111,041

 
148,223,234

 
143,474,664

Other dilutive securities
326,584

 
570,551

 
303,127

 
561,501

Weighted average number of shares outstanding used in diluted earnings per share
149,667,609

 
146,681,592

 
148,526,361

 
144,036,165

Schedule of AOCI
The following table outlines the changes in accumulated other comprehensive income (loss) (dollars in thousands):
 
Gains or (Losses) on Cash Flow Hedges (1)
 
Gains on Available-for-Sale Securities
 
Total
Beginning balance, December 31, 2016
$
(8,899
)
 
$
708

 
$
(8,191
)
 
 
 
 
 
 
Other comprehensive income (loss)
(7,688
)
 
118

 
(7,570
)
Reclassifications from accumulated other comprehensive income to net earnings
1,394

(2) 

 
1,394

Net current period other comprehensive income (loss)
(6,294
)
 
118

 
(6,176
)
Ending balance, September 30, 2017
$
(15,193
)
 
$
826

 
$
(14,367
)
(1) Additional disclosure is included in Note 6 – Derivatives.
(2) Reclassifications out of other comprehensive income (loss) are recorded in Interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.