Dispositions and Impairment

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

For the years ended December 31, 2022, 2021 and 2020, the Company disposed of its interests in various properties for an aggregate gross disposition price of $196,989, $823,966 and $432,843, respectively, which resulted in gains on sales of $59,094, $367,274 and $139,039, 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, 2022, the balance of the note receivable is $1,462.

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 and 2020, the Company recognized net debt satisfaction charges relating to properties sold of $229 and $2,879, respectively.

The Company had three and eight properties classified as held for sale at December 31, 2022 and December 31, 2021, respectively. Assets and liabilities of the held for sale properties consisted of the following:


	December 31, 2022		December 31, 2021
Assets:
Real estate, at cost	$	131,557	$	170,117
Real estate, intangible assets	9,942		9,454
Accumulated depreciation and amortization	(76,205)		(99,659)


Other	1,140		2,674
Total assets held for sale	$	66,434	$	82,586
Liabilities:

Accounts payable and other liabilities	$	637	$	1,908
Deferred revenue	143		483
Prepaid rent	370		1,077
Total liabilities held for sale	$	1,150	$	3,468

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.

The Company's Fort Mill, South Carolina office properties that were held for sale as of December 31, 2021 were not sold as of December 31, 2022. It was determined that the properties were not salable in their current condition as of December 31, 2022 and were reclassified as held and used properties. The properties were reclassified to real estate assets, net at $18,625 as of December 31, 2022.

During 2022, 2021 and 2020, the Company recognized aggregate impairment charges on real estate properties of $3,037, $5,541 and $14,460, respectively. During 2022, 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.