Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

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").

	March 31, 2023
Property Portfolio:
Total Properties		3,449
Gross leasable area (square feet)		35,251,000
States		49
Weighted average remaining lease term (years)		10.3

NNN's operations are reported within one operating segment in the condensed consolidated financial statements and all properties are considered part of the Properties or Property Portfolio. As such, property counts and calculations involving property counts reflect all NNN Properties.

Summary of tenants classified as cash basis

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

	March 31,
	2023			2022
Number of tenants		10			9
Cash basis tenants as a percent of:
Total Properties		5.0	%		5.4	%
Total annual base rent(1)		7.1	%		7.3	%
Total gross leasable area		6.7	%		7.0	%

(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 March 31,
	2023			2022
Basic and Diluted Earnings:
Net earnings available to NNN’s common stockholders	$	90,167		$	81,372
Less: Earnings allocated to unvested restricted shares		(132	)		(156	)
Net earnings used in basic and diluted earnings per share	$	90,035		$	81,216
Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding		181,720,238			175,635,634
Less: Unvested restricted shares		(240,699	)		(294,665	)
Less: Unvested contingent restricted shares		(634,036	)		(568,726	)
Weighted average number of shares outstanding used in     basic earnings per share		180,845,503			174,772,243
Other dilutive securities		588,842			138,970
Weighted average number of shares outstanding used in     diluted earnings per share		181,434,345			174,911,213

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 quarter ended March 31, 2023 (dollars in thousands):

	Gain (Loss) on Cash Flow Hedges(1)
Beginning balance, December 31, 2022	$	(12,582	)
Reclassifications from accumulated other comprehensive income to net earnings		607		(2)
Ending balance, March 31, 2023	$	(11,975	)

(1) Additional disclosure is included in Note 5 – Notes Payable and Derivatives.

(2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.