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Real Estate (Tables)

3 Months Ended

Mar. 31, 2021

NNN's real estate consisted of the following at (dollars in thousands):


	March 31, 2021		December 31, 2020
Land and improvements(1)	$	2,501,471	$	2,489,243
Buildings and improvements	6,098,338		6,009,797
Leasehold interests	355		355
	8,600,164		8,499,395
Less accumulated depreciation and amortization	(1,358,764)		(1,317,407)
	7,241,400		7,181,988
Work in progress for buildings and improvements	4,309		26,673
Accounted for using the operating method	7,245,709		7,208,661
Accounted for using the direct financing method	3,904		3,994
	$	7,249,613	$	7,212,655

(1)Includes $2,328 and $8,421 in land for Properties under construction at March 31, 2021 and December 31, 2020, respectively.

Rental Income

NNN recognized the following revenues in rental income (dollars in thousands):


	Quarter Ended March 31,
	2021		2020
Rental income from operating leases	$	173,583	$	168,733
Earned income from direct financing leases	158		164
Percentage rent	104		403
Real estate expense reimbursement from tenants	5,353		5,247
	$	179,198	$	174,547

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 (dollars in thousands):


	March 31, 2021		December 31, 2020
Intangible lease assets (included in other assets):
Above-market in-place leases	$	15,408	$	15,474
Less: accumulated amortization	(10,327)		(10,271)
Above-market in-place leases, net	$	5,081	$	5,203

In-place leases	$	121,486	$	118,416
Less: accumulated amortization	(68,986)		(68,695)
In-place leases, net	$	52,500	$	49,721

Intangible lease liabilities (included in other liabilities):
Below-market in-place leases	$	41,077	$	41,101
Less: accumulated amortization	(26,559)		(26,486)
Below-market in-place leases, net	$	14,518	$	14,615

Real Estate Held for Sale

Real estate held for sale consisted of the following as of (dollars in thousands):


	March 31, 2021		December 31, 2020
Land and improvements	$	4,313	$	3,841
Building and improvements	5,480		4,971
	9,793		8,812
Less accumulated depreciation and amortization	(2,316)		(2,536)
Less impairment	(979)		(605)
	$	6,498	$	5,671

Real Estate Dispositions

The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties (dollars in thousands):


	Quarter Ended March 31,
	2021			2020
	# of Sold Properties	Net Gain		# of Sold Properties	Net Gain
Gain on disposition of real estate	11	$	4,281	14	$	12,770

Real Estate Commitments

These construction commitments, as of March 31, 2021, are outlined in the table below (dollars in thousands):



Total commitment(1)	$	12,077
Less amount funded	6,637
Remaining commitment	$	5,440
(1)Includes land, construction costs, tenant improvements, lease costs and capitalized interest.