Notes Payable and Derivatives

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notes Payable and Derivatives

Note 5 – Notes Payable and Derivatives:

Information related to NNN's notes payable and derivatives is included in NNN's Annual Report on Form 10-K for the year ended December 31, 2022.

As of March 31, 2023, $11,975,000 remained in accumulated other comprehensive income (loss) related to NNN’s previously terminated interest rate hedges. During the quarters ended March 31, 2023 and 2022, NNN reclassified out of accumulated other comprehensive income (loss) $607,000 and $583,000, respectively, as an increase in interest expense. Over the next 12 months, NNN estimates that an additional $2,497,000 will be reclassified as an increase in interest expense from these terminated derivatives. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on NNN’s long-term debt.

NNN does not use derivatives for trading or speculative purposes. NNN had no derivative financial instruments outstanding at March 31, 2023.