Real Estate (Tables)

3 Months Ended

Mar. 31, 2023

Real Estate [Abstract]

Summary of Real Estate Subject to Operating Leases

Real Estate Portfolio – NNN's real estate consisted of the following at (dollars in thousands):

	March 31, 2023			December 31, 2022
Land and improvements(1)	$	2,718,117		$	2,669,498
Buildings and improvements		7,054,296			6,985,394
Leasehold interests		355			355
		9,772,768			9,655,247
Less accumulated depreciation and amortization		(1,713,611	)		(1,660,308	)
		8,059,157			7,994,939
Work in progress and improvements		45,783			21,737
Accounted for using the operating method		8,104,940			8,016,676
Accounted for using the direct financing method		3,272			3,352
Classified as held for sale		3,410			786
	$	8,111,622		$	8,020,814

(1) Includes $54,582 and $22,356 in land for Properties under construction at March 31, 2023 and December 31, 2022, respectively.

Rental Income, Operating Leases

NNN recognized the following revenues in rental income (dollars in thousands):

	Quarter Ended March 31,
	2023		2022
Rental income from operating leases	$	198,183	$	184,311
Earned income from direct financing leases		144		151
Percentage rent		763		701
Real estate expense reimbursement from tenants		4,540		4,600
	$	203,630	$	189,763

Intangible Assets, Lease Liabilities, and Related Amortization

In accordance with purchase accounting for the acquisition of real estate subject to a lease, NNN has recorded intangible assets and lease liabilities that consisted of the following at (dollars in thousands):

	March 31, 2023			December 31, 2022
Intangible lease assets (included in other assets):
Above-market in-place leases	$	15,356		$	15,356
Less: accumulated amortization		(11,647	)		(11,477	)
Above-market in-place leases, net	$	3,709		$	3,879
In-place leases	$	124,198		$	124,198
Less: accumulated amortization		(81,435	)		(79,675	)
In-place leases, net	$	42,763		$	44,523
Intangible lease liabilities (included in other liabilities):
Below-market in-place leases	$	41,371		$	41,371
Less: accumulated amortization		(28,403	)		(28,121	)
Below-market in-place leases, net	$	12,968		$	13,250

Gains on Dispositions of Properties

The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties (dollars in thousands):

	Quarter Ended March 31,
	2023			2022
	# of Sold Properties	Net Gain		# of Sold Properties	Net Gain
Gain on disposition of real estate	6	$	6,300	10	$	3,992

Remaining Funding Commitments

These construction commitments, as of March 31, 2023, are outlined in the table below (dollars in thousands):

Total commitment(1)	$	253,106
Less amount funded		(100,365	)
Remaining commitment	$	152,741

(1) Includes land, construction costs, tenant improvements, lease costs and capitalized interest.

Real Estate Impairments

As a result of NNN's review of long-lived assets, including identifiable intangible assets, NNN recognized real estate impairments, net of recoveries as summarized in the table below (dollars in thousands):

	Quarter Ended March 31,
	2023		2022
Total real estate impairments, net of recoveries	$	2,640	$	1,632
Number of Properties:
Vacant		3		3
Occupied		1		2