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Real Estate (Tables)
 12 Months Ended
Dec. 31, 2020
Real Estate [Abstract]  
Classification of Investment Property Leases The following outlines key information for NNN’s leases at December 31, 2020:
Lease classification:
Operating3,141 
Direct financing6 
Weighted average remaining lease term (years)10.7
Summary of Real Estate Subject to Operating Leases Real estate subject to operating leases consisted of the following at December 31 (dollars in thousands):
20202019
Land and improvements (1)
$2,489,243 $2,490,935 
Buildings and improvements6,009,797 5,916,149 
Leasehold interests355 355 
8,499,395 8,407,439 
Less accumulated depreciation and amortization(1,317,407)(1,147,795)
7,181,988 7,259,644 
Work in progress – improvements26,673 27,438 
$7,208,661 $7,287,082 
(1) Includes $8,421 and $16,930 in land for Properties under construction as of December 31, 2020 and 2019, respectively.
Rental Income, Operating Leases
NNN recognized the following revenues in rental income for the years ended December 31 (dollars in thousands):
202020192018
Rental income from operating leases$639,265 $650,112 $602,131 
Earned income from direct financing leases647 798 923 
Percentage rent842 1,310 1,561 
Real estate expense reimbursement from tenants18,039 16,789 16,784 
$658,793 $669,009 $621,399 
Rental Income, Direct Financing Leases
NNN recognized the following revenues in rental income for the years ended December 31 (dollars in thousands):
202020192018
Rental income from operating leases$639,265 $650,112 $602,131 
Earned income from direct financing leases647 798 923 
Percentage rent842 1,310 1,561 
Real estate expense reimbursement from tenants18,039 16,789 16,784 
$658,793 $669,009 $621,399 
Undiscounted Cash Flows to be Received on Noncancellable Operating Leases
The following is a schedule of undiscounted cash flows to be received on noncancellable operating leases as of December 31, 2020 (dollars in thousands):
2021$644,591 
2022590,730 
2023561,793 
2024541,901 
2025515,108 
Thereafter3,783,884 
$6,638,007 
Net Investment in Direct Financing Leases The following lists the components of net investment in direct financing leases at December 31 (dollars in thousands):
20202019
Minimum lease payments to be received$8,499 $9,356 
Estimated unguaranteed residual values1,227 1,227 
Less unearned income(5,732)(6,379)
Net investment in direct financing leases$3,994 $4,204 
Undiscounted Cash Flows to be Received on Direct Financing Leases Held for Investment
The following is a schedule of undiscounted cash flows to be received on direct financing leases held for investment as of December 31, 2020 (dollars in thousands):
2021$963 
2022897 
2023895 
2024896 
2025887 
Thereafter3,961 
$8,499 
Intangible Assets, Lease Liabilities, and Related Amortization
In accordance with purchase accounting for the acquisition of real estate subject to a lease, NNN has recorded intangible assets and lease liabilities that consisted of the following at December 31 (dollars in thousands):
20202019
Intangible lease assets (included in other assets):
Above-market in-place leases$15,474 $15,754 
Less: accumulated amortization(10,271)(9,897)
Above-market in-place leases, net$5,203 $5,857 
In-place leases$118,416 $119,846 
Less: accumulated amortization(68,695)(64,918)
In-place leases, net$49,721 $54,928 
Intangible lease liabilities (included in other liabilities):
Below-market in-place leases$41,101 $41,767 
Less: accumulated amortization(26,486)(26,135)
Below-market in-place leases, net$14,615 $15,632 
The following is a schedule of the amortization of acquired above-market and below-market in-place lease intangibles and the amortization of the in-place lease intangibles as of December 31, 2020 (dollars in thousands):
Above-Market and Below-Market In-Place Lease Intangibles(1)
In-Place Lease Intangibles(2)
2021$594 $6,903 
2022470 6,443 
2023390 5,969 
2024386 5,281 
2025373 4,563 
Thereafter7,199 20,562 
$9,412 $49,721 
Weighted average amortization period (years)18.010.0
(1)Recorded as a net increase to rental income.
(2)Amortized as an increase to amortization expense.
Real Estate Held for Sale Real estate held for sale consisted of the following as of December 31 (dollars in thousands):
20202019
Land and improvements$3,841 $7,046 
Building and improvements4,971 7,886 
8,812 14,932 
Less accumulated depreciation and amortization(2,536)(3,872)
Less impairment(605)(1,107)
$5,671 $9,953 
Gains on Dispositions of Properties
The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties for the years ended December 31 (dollars in thousands):
 202020192018
# of Sold
Properties		Gain# of Sold
Properties		Gain# of Sold
Properties		Gain
Gain on disposition of real estate
38$16,238 59$32,463 61$65,070 
Remaining Funding Commitments These construction commitments, at December 31, 2020, are outlined in the table below (dollars in thousands):
Total commitment(1)
$42,443 
Less amount funded35,094 
Remaining commitment$7,349 
(1)Includes land, construction costs, tenant improvements, lease costs and capitalized interest.