Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

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").


			March 31, 2021
Property Portfolio:
Total properties			3,161
Gross leasable area (square feet)			32,717,000
States			48
Weighted average remaining lease term (years)			10.6

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 March 31,
	2021		2020
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	56,587	$	65,178

Less: Series F preferred stock dividends	(4,485)		(4,485)
Net earnings available to NNN’s common stockholders	52,102		60,693
Less: Earnings allocated to unvested restricted shares	(151)		(160)
Net earnings used in basic and diluted earnings per share	$	51,951	$	60,533

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding	175,391,723		171,827,815
Less: Unvested restricted shares	(288,658)		(311,553)
Less: Unvested contingent restricted shares	(513,765)		(477,245)
Weighted average number of shares outstanding used in basic earnings per share	174,589,300		171,039,017
Other dilutive securities	125,317		192,811
Weighted average number of shares outstanding used in diluted earnings per share	174,714,617		171,231,828

Changes in Accumulated Other Comprehensive Income (Loss)

The following table outlines the changes in accumulated other comprehensive income (loss) for the quarter ended March 31, 2021, (dollars in thousands):


	Gain (Loss) on Cash Flow Hedges (1)
Beginning balance, December 31, 2020	$	(16,445)


Reclassifications from accumulated other comprehensive income to net earnings	1,368		(2)
Net other comprehensive income (loss)	1,368
Ending balance, March 31, 2021	$	(15,077)

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

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