Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of NNN's Investment Portfolio

NNN's assets primarily include real estate assets. 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, 2022
Property Portfolio:
Total Properties		3,305
Gross leasable area (square feet)		33,758,000
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:

	June 30,
	2022			2021
Number of tenants		8			11
Cash basis tenants as a percent of:
Total Properties		5.3	%		6.0	%
Total annual base rent		7.2	%		7.1	%
Total gross leasable area		6.9	%		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 June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	74,171		$	73,023		$	155,543		$	129,610
Less: Series F preferred stock dividends		—			(4,485	)		—			(8,970	)
Net earnings available to NNN’s common stockholders		74,171			68,538			155,543			120,640
Less: Earnings allocated to unvested restricted shares		(165	)		(178	)		(319	)		(328	)
Net earnings used in basic and diluted earnings per share	$	74,006		$	68,360		$	155,224		$	120,312
Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding		175,989,323			175,590,102			175,813,456			175,491,461
Less: Unvested restricted shares		(310,844	)		(341,467	)		(300,810	)		(315,209	)
Less: Unvested contingent restricted shares		(721,623	)		(637,738	)		(645,597	)		(576,094	)
Weighted average number of shares outstanding used in     basic earnings per share		174,956,856			174,610,897			174,867,049			174,600,158
Other dilutive securities		151,058			115,915			154,822			132,918
Weighted average number of shares outstanding used in diluted     earnings per share		175,107,914			174,726,812			175,021,871			174,733,076

Changes in Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss) – The following table outlines the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 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		1,175		(2)
Ending balance, June 30, 2022	$	(13,781	)

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