Dispositions and Impairment

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

For the years ended December 31, 2021, 2020 and 2019, the Company disposed of its interests in various properties for an aggregate gross disposition price of $823,966, $432,843 and $504,118, respectively, which resulted in gains on sales of $367,274, $139,039 and $250,889, respectively, including, in 2021 the sale of 22 special purpose industrial assets to a newly-formed joint venture, NNN MFG Cold JV L.P. (“MFG Cold JV”), with an unaffiliated third-party.

Included in the 2021 dispositions are three non-industrial properties with a disposition price of $35,369, which was satisfied through (i) the redemption of 1,598,906 operating units ("OP units"), (ii) the assumption of $11,610 of third party mortgage financing that encumbered two of the properties and (iii) $1,497 of seller financing. The seller financing note receivable has a fixed interest rate of 6.0% per annum and matures on August 1, 2025. As of December 31, 2021, the balance of the note receivable is $1,489.

Included in the 2020 dispositions are three properties which were conveyed to the lenders in forgiveness of the mortgage loan encumbering each property. The balances of the non-recourse mortgage loans were in excess of the value of the property collateral, resulting in aggregate debt satisfaction gains, net of $34,450. For the years ended December 31, 2021, 2020 and 2019, the Company recognized net debt satisfaction charges relating to properties sold of $229, $2,879 and $4,415, respectively.

The Company had eight and two properties classified as held for sale at December 31, 2021 and December 31, 2020, respectively. Assets and liabilities of the held for sale properties as of December 31, 2021 and December 31, 2020 consisted of the following:


	December 31, 2021		December 31, 2020
Assets:
Real estate, at cost	$	170,117	$	32,629
Real estate, intangible assets	9,454		7,941
Accumulated depreciation and amortization	(99,659)		(24,312)
Deferred expenses, net	1,759		—

Other	915		272
	$	82,586	$	16,530
Liabilities:

Accounts payable and other liabilities	$	1,908	$	588
Deferred revenue	483		—
Prepaid rent	1,077		202
	$	3,468	$	790

The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of the asset, the potential sale or transfer of the property in the near future and changes in economic conditions. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered.

During 2021, 2020 and 2019, the Company recognized aggregate impairment charges on real estate properties of $5,541, $14,460 and $5,329, respectively. During 2021 and 2020, the aggregate impairment charges were recognized on properties that were primarily impaired due to a reduction in the anticipated holding period for those properties. During 2019, aggregate impairment charges of $2,106 were recognized on two vacant retail properties, which were sold in 2019, and a held for use impairment of $2,974 was recognized on an office property due to a reduction of the anticipated holding period and leasing prospects.