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Real Estate - Portfolio | 12 Months Ended
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Dec. 31, 2012
Real Estate Investments, Net [Abstract] |
Real Estate - Investment Portfolio | Real Estate – Portfolio: Leases – The following outlines key information for NNN’s leases at December 31, 2012:
Lease classification: |
Operating | 1,604 |
Direct financing | 13 |
Building portion – direct financing / land portion – operating | 5 |
Weighted average remaining lease term | 12 years |
The leases generally provide for limited increases in rent as a result of fixed increases, increases in the consumer price index, and/or increases in the tenant’s sales volume. Generally, the tenant is also required to pay all property taxes and assessments, substantially maintain the interior and exterior of the building and carry property and liability insurance coverage. Certain of NNN’s Properties are subject to leases under which NNN retains responsibility for specific costs and expenses of the property. Generally, the leases of the Properties provide the tenant with one or more multi-year renewal options subject to generally the same terms and conditions, including rent increases, consistent with the initial lease term. Real Estate Portfolio – Accounted for Using the Operating Method – Real estate subject to operating leases consisted of the following as of December 31 (dollars in thousands):
| 2012 |  | 2011
Land and improvements | $ | 1,461,263 |  |  | $ | 1,313,672 |
Buildings and improvements | 2,556,271 |  |  | 2,119,231 |
Leasehold interests | 1,290 |  |  | 1,290 |
| 4,018,824 |  |  | 3,434,193 |
Less accumulated depreciation and amortization | (333,238 | ) |  | (270,115 | )
| 3,685,586 |  |  | 3,164,078 |
Work in progress | 84,231 |  |  | 60,210 |
| $ | 3,769,817 |  |  | $ | 3,224,288 |
Some leases provide for scheduled rent increases throughout the lease term. Such amounts are recognized on a straight-line basis over the terms of the leases. For the years ended December 31, 2012, 2011 and 2010, NNN recognized collectively in continuing and discontinued operations, $487,000, ($222,000) and ($93,000), respectively, of such income, net of reserves. At December 31, 2012 and 2011, the balance of accrued rental income, net of allowances of $3,270,000 and $4,870,000, respectively, was $25,458,000 and $25,187,000, respectively. As of December 31, 2012, in connection with the development of Properties, NNN has the following funding commitments (dollars in thousands):
| # of Properties |  | Total Commitment(1) |  | Amount Funded |  | Remaining Commitment
Real Estate Portfolio | 54 |  |  | $ | 164,420 |  |  | $ | 127,235 |  |  | $ | 37,185 |
(1) | Includes land, construction costs and tenant improvements.
The following is a schedule of future minimum lease payments to be received on noncancellable operating leases at December 31, 2012 (dollars in thousands):
2013 | $ | 336,674 |
2014 | 329,325 |
2015 | 322,164 |
2016 | 316,470 |
2017 | 307,046 |
Thereafter | 2,639,001 |
| $ | 4,250,680 |
Since lease renewal periods are exercisable at the option of the tenant, the above table only presents future minimum lease payments due during the initial lease terms. In addition, this table does not include amounts for potential variable rent increases that are based on the CPI or future contingent rents which may be received on the leases based on a percentage of the tenant’s gross sales. Real Estate Portfolio – Accounted for Using the Direct Financing Method – The following lists the components of net investment in direct financing leases at December 31 (dollars in thousands):
| 2012 |  | 2011
Minimum lease payments to be received | $ | 27,963 |  |  | $ | 32,587 |
Estimated unguaranteed residual values | 10,142 |  |  | 11,464 |
Less unearned income | (14,888 | ) |  | (17,533 | )
Net investment in direct financing leases | $ | 23,217 |  |  | $ | 26,518 |
The following is a schedule of future minimum lease payments to be received on direct financing leases held for investment at December 31, 2012 (dollars in thousands):
2013 | $ | 3,853 |
2014 | 3,454 |
2015 | 3,160 |
2016 | 3,077 |
2017 | 2,239 |
Thereafter | 12,180 |
| $ | 27,963 |
The above table does not include future minimum lease payments for renewal periods, potential variable CPI rent increases or contingent rental payments that may become due in future periods (see Real Estate Portfolio – Accounted for Using the Operating Method).

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 23, 24 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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