Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 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").

	September 30, 2022
Property Portfolio:
Total Properties		3,349
Gross leasable area (square feet)		34,265,000
States		48
Weighted average remaining lease term (years)		10.4

Summary of tenants classified as cash basis

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

	September 30,
	2022			2021
Number of tenants		8			11
Cash basis tenants as a percent of:
Total Properties		5.2	%		5.6	%
Total annual base rent(1)		7.1	%		7.1	%
Total gross leasable area		6.8	%		7.4	%

(1) Based on annualized base rent for all leases in place for each respective period.

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 September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	88,421		$	82,933		$	243,964		$	212,543
Less: Series F preferred stock dividends		—			(4,485	)		—			(13,455	)
Net earnings available to NNN’s common stockholders		88,421			78,448			243,964			199,088
Less: Earnings allocated to unvested restricted shares		(135	)		(180	)		(471	)		(509	)
Net earnings used in basic and diluted earnings per share	$	88,286		$	78,268		$	243,493		$	198,579
Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding		177,881,613			175,607,905			176,510,417			175,530,702
Less: Unvested restricted shares		(246,116	)		(340,725	)		(292,433	)		(323,808	)
Less: Unvested contingent restricted shares		(734,711	)		(637,738	)		(675,628	)		(596,868	)
Weighted average number of shares outstanding used in     basic earnings per share		176,900,786			174,629,442			175,542,356			174,610,026
Other dilutive securities		466,924			109,461			451,551			106,027
Weighted average number of shares outstanding used in     diluted earnings per share		177,367,710			174,738,903			175,993,907			174,716,053

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 nine months ended September 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		1,770		(2)
Ending balance, September 30, 2022	$	(13,186	)

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