Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment ("Properties" or "Property Portfolio," or individually a "Property").


			December 31, 2020
Property Portfolio:
Total properties			3,143
Gross leasable area (square feet)			32,461,000
States			48
Weighted average remaining lease term (years)			10.7

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 for the years ended December 31 (dollars in thousands):


	2020		2019		2018
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	228,799	$	299,180	$	292,447

Less: Series E preferred stock dividends	—		(13,201)		(16,387)
Less: Series F preferred stock dividends	(17,940)		(17,940)		(17,940)
Less: Excess of redemption value over carrying value of preferred shares redeemed	—		(9,856)		—
Net earnings available to common stockholders	210,859		258,183		258,120
Less: Earnings allocated to unvested restricted shares	(698)		(601)		(548)
Net earnings used in basic and diluted earnings per share	$	210,161	$	257,582	$	257,572

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding	172,994,337		165,499,707		156,490,901
Less: Unvested restricted shares	(337,078)		(295,773)		(280,633)
Less: Unvested contingent restricted shares	(547,546)		(515,436)		(465,667)
Weighted average number of shares outstanding used in basic earnings per share	172,109,713		164,688,498		155,744,601
Other dilutive securities	107,364		395,181		551,018
Weighted average number of shares outstanding used in diluted earnings per share	172,217,077		165,083,679		156,295,619

Changes in Accumulated Other Comprehensive Income (Loss)

The following table outlines the changes in accumulated other comprehensive income (loss) for the years ended December 31, 2020 and 2019 (dollars in thousands):


	Gain or Loss on Cash Flow Hedges(1)			Gains and Losses on Available-for-Sale Securities		Total
Beginning balance, December 31, 2018	$	(6,911)		$	1,215	$	(5,696)

Other comprehensive income (loss)	(5,524)			116		(5,408)
Reclassifications from accumulated other comprehensive income to net earnings	1,307		(2)	(1,331)		(24)
Net current period other comprehensive income (loss)	(4,217)			(1,215)		(5,432)
Ending balance, December 31, 2019	(11,128)			—		(11,128)

Other comprehensive income (loss)	(7,617)			—		(7,617)
Reclassifications from accumulated other comprehensive income to net earnings	2,300		(2)	—		2,300
Net current period other comprehensive income (loss)	(5,317)			—		(5,317)
Ending balance, December 31, 2020	$	(16,445)		$	—	$	(16,445)

(1)Additional disclosure is included in Note 12 – Derivatives.

(2)Reclassifications out of other comprehensive income (loss) are recorded in interest expense on the Consolidated Statements of Income and Comprehensive Income. There is no income tax expense (benefit) resulting from this reclassification.