Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 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").


			June 30, 2021
Property Portfolio:
Total properties			3,173
Gross leasable area (square feet)			32,664,000
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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	73,023	$	46,265	$	129,610	$	111,443

Less: Series F preferred stock dividends	(4,485)		(4,485)		(8,970)		(8,970)
Net earnings available to NNN’s common stockholders	68,538		41,780		120,640		102,473
Less: Earnings allocated to unvested restricted shares	(178)		(176)		(328)		(336)
Net earnings used in basic and diluted earnings per share	$	68,360	$	41,604	$	120,312	$	102,137

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding	175,590,102		172,301,757		175,491,461		172,064,786
Less: Unvested restricted shares	(341,467)		(342,079)		(315,209)		(326,816)
Less: Unvested contingent restricted shares	(637,738)		(570,809)		(576,094)		(524,027)
Weighted average number of shares outstanding used in basic earnings per share	174,610,897		171,388,869		174,600,158		171,213,943
Other dilutive securities	115,915		96,416		132,918		159,873
Weighted average number of shares outstanding used in diluted earnings per share	174,726,812		171,485,285		174,733,076		171,373,816

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, 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	1,929		(2)
Net other comprehensive income (loss)	1,929
Ending balance, June 30, 2021	$	(14,516)

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

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