Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Summary of NNN's Investment Portfolio

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, 2022
Property Portfolio:
Total properties		3,271
Gross leasable area (square feet)		33,545,000
States		48
Weighted average remaining lease term (years)		10.6

Summary of tenants classified as cash basis

The following table summarizes those tenants classified as cash basis for accounting purposes as of:

	March 31,
	2022			2021
Number of tenants		9			12
Cash basis tenants as a percent of:
Total properties		5.4	%		6.1	%
Total gross leasable area		7.0	%		7.7	%

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,
	2022			2021
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	81,372		$	56,587
Less: Series F preferred stock dividends		—			(4,485	)
Net earnings available to NNN’s common stockholders		81,372			52,102
Less: Earnings allocated to unvested restricted shares		(156	)		(151	)
Net earnings used in basic and diluted earnings per share	$	81,216		$	51,951
Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding		175,635,634			175,391,723
Less: Unvested restricted shares		(294,665	)		(288,658	)
Less: Unvested contingent restricted shares		(568,726	)		(513,765	)
Weighted average number of shares outstanding used in basic earnings per share		174,772,243			174,589,300
Other dilutive securities		138,970			125,317
Weighted average number of shares outstanding used in diluted earnings per share		174,911,213			174,714,617

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, 2022 (dollars in thousands):

	Gain (Loss) on Cash Flow Hedges(1)
Beginning balance, December 31, 2021	$	(14,956	)
Reclassifications from accumulated other comprehensive income to net earnings		583		(2)
Ending balance, March 31, 2022	$	(14,373	)

(1)	Additional disclosure is included in Note 6 – Derivatives.
(2)	Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.