In May 2017, NNN filed a registration statement on Form S-8 with the Commission which permits the issuance of up to 1,800,000 shares of common stock pursuant to NNN’s 2017 Performance Incentive Plan (the “2017 Plan”). The 2017 Plan allows NNN to award or grant to key employees, directors and persons performing consulting or advisory services for NNN or its affiliates, stock options, stock awards, stock appreciation rights, Phantom Stock Awards, Performance Awards and Leveraged Stock Purchase Awards, each as defined in the 2017 Plan.

Pursuant to the 2017 Plan, NNN has granted and issued shares of restricted stock to certain officers and key associates of NNN. The following summarizes the restricted stock activity for the year ended December 31, 2021:


	Number of Shares			Weighted Average Share Price
Non-vested restricted shares, January 1		896,044		$	49.54
Restricted shares granted		345,891			42.30
Restricted shares vested		(204,796	)		40.81
Restricted shares forfeited		(58,684	)		37.36
Non-vested restricted shares, December 31		978,455			49.54

Compensation expense for the restricted stock which is not contingent upon NNN’s performance goals is determined based upon the fair value at the date of grant and is recognized as the greater of the amount amortized over a straight-lined basis or the amount vested over the vesting periods. Vesting periods for officers and key associates of NNN range from three to five years and generally vest annually. NNN recognizes compensation expense on a straight-line basis for awards with only service conditions.

During the year ended December 31, 2021, NNN granted 242,555 performance-based shares subject to its total stockholder return after a three-year period relative to its peers. The fair value of these shares was determined at the grant date (for a fair value share price of $27.50). The performance-based shares were granted to certain executive officers and had a weighted average grant price of $42.30 per share. Once the respective performance criteria are met and the actual number of shares earned is determined, the shares vest immediately. Compensation expense is recognized over the requisite service period.

The following summarizes other grants made during the year ended December 31, 2021, pursuant to the 2017 Plan.


	Number of Shares		Weighted Average Share Price
Other share grants under the 2017 Plan:
Directors’ fees		13,786	$	45.21
Deferred directors’ fees		16,471		45.27
		30,257		40.28
Shares available under the 2017 Plan for grant, end of period		467,259

The total compensation expense for share-based payments for the years ended December 31, 2021, 2020 and 2019 totaled $14,296,000, $14,213,000 and $10,737,000, respectively. At December 31, 2021, NNN had $12,288,000 of unrecognized compensation cost related to non-vested share-based compensation arrangements under the 2017 Plan. This cost is expected to be recognized over a weighted average period of 2.2 years.