Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

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").


			June 30, 2020
Property Portfolio:
Total properties			3,117
Gross leasable area (square feet)			32,454,000
States			48
Weighted average remaining lease term (years)			10.9

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 June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	46,265	$	78,678	$	111,443	$	158,701
Less: Series E preferred stock dividends	—		(4,096)		—		(8,194)
Less: Series F preferred stock dividends	(4,485)		(4,485)		(8,970)		(8,970)
Net earnings available to NNN’s common stockholders	41,780		70,097		102,473		141,537
Less: Earnings allocated to unvested restricted shares	(176)		(134)		(336)		(249)
Net earnings used in basic and diluted earnings per share	$	41,604	$	69,963	$	102,137	$	141,288

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding	172,301,757		162,697,005		172,064,786		162,243,958
Less: Unvested restricted stock	(342,079)		(265,981)		(326,816)		(249,480)
Less: Unvested contingent restricted shares	(570,809)		(537,582)		(524,027)		(492,923)
Weighted average number of shares outstanding used in basic earnings per share	171,388,869		161,893,442		171,213,943		161,501,555
Other dilutive securities	96,416		458,459		159,873		493,779
Weighted average number of shares outstanding used in diluted earnings per share	171,485,285		162,351,901		171,373,816		161,995,334

Changes in Accumulated Other Comprehensive Income (Loss)

The following table outlines the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2020, (dollars in thousands):


	Gain (Loss) on Cash Flow Hedges ⁽¹⁾
Beginning balance, December 31, 2019	$	(11,128)

Other comprehensive income (loss)	(7,617)
Reclassifications from accumulated other comprehensive income to net earnings	1,021		⁽²⁾
Net other comprehensive income (loss)	(6,596)
Ending balance, June 30, 2020	$	(17,724)

⁽¹⁾Additional disclosure is included in Note 6 – Derivatives.

⁽²⁾Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.