Real Estate (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024			December 31, 2023
Land and improvements(1)	$	2,888,657		$	2,878,400
Buildings and improvements		7,459,462			7,368,873
Leasehold interests		355			355
		10,348,474			10,247,628
Less accumulated depreciation and amortization		(1,913,861	)		(1,863,451	)
		8,434,613			8,384,177
Work in progress and improvements		127,025			144,068
Accounted for using the operating method		8,561,638			8,528,245
Accounted for using the direct financing method		2,979			3,033
Classified as held for sale(2)		22,239			4,573
	$	8,586,856		$	8,535,851

(1) Includes $76,281 and $96,464 in land for Properties under construction at March 31, 2024 and December 31, 2023, respectively.

(2) As of March 31, 2024, five Properties were classified as held for sale. The property classified as held for sale as of December 31, 2023 was sold during the quarter ended March 31, 2024.

Rental Income, Operating Leases

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

	Quarter Ended March 31,
	2024		2023
Rental income from operating leases	$	209,084	$	198,183
Earned income from direct financing leases		119		144
Percentage rent		888		763
Rental revenues		210,091		199,090
Real estate expense reimbursement from tenants		4,734		4,540
	$	214,825	$	203,630

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, 2024			December 31, 2023
Intangible lease assets (included in other assets):
Above-market in-place leases	$	15,113		$	15,297
Less: accumulated amortization		(12,055	)		(12,080	)
Above-market in-place leases, net	$	3,058		$	3,217
In-place leases	$	121,664		$	122,802
Less: accumulated amortization		(85,841	)		(85,332	)
In-place leases, net	$	35,823		$	37,470
Intangible lease liabilities (included in other liabilities):
Below-market in-place leases	$	40,996		$	41,244
Less: accumulated amortization		(29,145	)		(29,117	)
Below-market in-place leases, net	$	11,851		$	12,127

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,
	2024			2023
	# of Sold Properties	Net Gain		# of Sold Properties	Net Gain
Gain on disposition of real estate	6	$	4,821	6	$	6,300

Remaining Funding Commitments

These construction commitments, as of March 31, 2024, are outlined in the table below (dollars in thousands):

Total commitment(1)	$	320,410
Less amount funded		(203,306	)
Remaining commitment	$	117,104

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

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,
	2024		2023
Total real estate impairments, net of recoveries	$	1,204	$	2,640
Number of Properties:
Vacant		—		3
Occupied		3		1