Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

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 are primarily held for investment ("Properties" or "Property Portfolio", or individually a "Property").

	March 31, 2024
Property Portfolio:
Total Properties	3,546
Gross leasable area (square feet)	36,137,000
States	49
Weighted average remaining lease term (years)	10.0

Summary of tenants classified as cash basis

The following table summarizes those tenants classified as cash basis for accounting purposes as of March 31:

	2024				2023
Number of tenants		10				10
Cash basis tenants as a percent of:
Total Properties		3.5	%			5.0	%
Total annual base rent		5.1	%	(1)		7.1	%	(2)
Total gross leasable area		4.9	%			6.7	%

Based on annualized base rent for all leases in place at the end of each respective quarter.
	(1)	$831,010,000 as of March 31, 2024.
	(2)	$781,909,000 as of March 31, 2023.

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 share using the two-class method (dollars in thousands):

	Quarter Ended March 31,
	2024			2023
Basic and Diluted Earnings:
Net earnings	$	94,371		$	90,167
Less: Earnings allocated to unvested restricted shares		(153	)		(132	)
Net earnings used in basic and diluted earnings per share	$	94,218		$	90,035
Basic and Diluted Weighted Average Shares Outstanding:
Weighted average shares outstanding		182,700,682			181,720,238
Less: Unvested restricted shares		(270,664	)		(240,699	)
Less: Unvested contingent restricted shares		(635,810	)		(634,036	)
Weighted average shares outstanding used in      basic earnings per share		181,794,208			180,845,503
Other dilutive securities		418,689			588,842
Weighted average shares outstanding used in      diluted earnings per share		182,212,897			181,434,345

Changes in Accumulated Other Comprehensive Income (Loss)

The following table outlines the changes in accumulated other comprehensive income (loss) for the quarter ended March 31, 2024 (dollars in thousands):

	Gain (Loss) on Cash Flow Hedges(1)
Beginning balance, December 31, 2023	$	(10,111	)
Reclassifications from accumulated other comprehensive income to net earnings		632		(2)
Ending balance, March 31, 2024	$	(9,479	)

(1) Additional disclosure is included in "Note 4 – Notes Payable and Derivatives".

(2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income. There is no income tax expense (benefit) resulting from this reclassification.