XML 18 R7.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Real Estate | 6 Months Ended
--- | ---
Jun. 30, 2018
Real Estate [Abstract] |
Real Estate | Real Estate: Real Estate – Portfolio Leases – The following outlines key information for NNN’s leases:
| June 30, 2018
Lease classification: |
Operating | 2,856 |
Direct financing | 7 |
Building portion – direct financing/land portion – operating | 2 |
Weighted average remaining lease term (years) | 11.5 |
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 Property and carry property and liability insurance coverage. Certain Properties are subject to leases under which NNN retains responsibility for specific costs and expenses of the Property. Generally, the leases provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions of the base term of the lease, including rent increases. Real Estate Portfolio – Accounted for Using the Operating Method – Real estate subject to operating leases consisted of the following as of (dollars in thousands):
| June 30, 2018 |  | December 31, 2017
Land and improvements(1) | $ | 2,316,395 |  |  | $ | 2,287,100 |
Buildings and improvements | 5,152,418 |  |  | 4,962,530 |
Leasehold interests | 3,971 |  |  | 5,261 |
| 7,472,784 |  |  | 7,254,891 |
Less accumulated depreciation and amortization | (945,626 | ) |  | (878,111 | )
| 6,527,158 |  |  | 6,376,780 |
Work in progress for buildings and improvements | 82,210 |  |  | 41,920 |
| $ | 6,609,368 |  |  | $ | 6,418,700 |
(1) Includes $27,203 and $25,799 in land for Properties under construction at June 30, 2018 and December 31, 2017, respectively. Real Estate – Held For Sale On a quarterly basis, the Company evaluates its Properties for held for sale classification based on specific criteria as outlined in ASC 360, Property, Plant & Equipment, including management’s intent to commit to a plan to sell the asset. NNN anticipates the disposition of Properties classified as held for sale to occur within 12 months. As of June 30, 2018, NNN had seven of its Properties categorized as held for sale. NNN's real estate held for sale at December 31, 2017, included nine Properties, two of which were sold in 2018. Real estate held for sale consisted of the following as of (dollars in thousands):
| June 30, 2018 |  | December 31, 2017
Land and improvements | $ | 4,424 |  |  | $ | 5,229 |
Building and improvements | 11,098 |  |  | 12,956 |
| 15,522 |  |  | 18,185 |
Less accumulated depreciation and amortization | (2,798 | ) |  | (3,010 | )
Less impairment | (2,261 | ) |  | (864 | )
| $ | 10,463 |  |  | $ | 14,311 |
Real Estate – Dispositions The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties (dollars in thousands):
| Quarter Ended June 30, |  | Six Months Ended June 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
# of Sold Properties |  | Gain |  | # of Sold Properties |  | Gain |  | # of Sold Properties |  | Gain |  | # of Sold Properties |  | Gain
Gain on disposition of real estate | 13 |  | $ | 4,106 |  |  | 8 |  | $ | 3,055 |  |  | 28 |  | $ | 42,702 |  | (1) | 25 |  | $ | 17,679 |
(1) Amount includes the recognition of a deferred gain related to a leasehold interest that was fully amortized in 2018.
Real Estate – Commitments NNN has committed to fund construction commitments on 17 Properties. The improvements on such Properties are estimated to be completed within 12 months. These construction commitments, as of June 30, 2018, are outlined in the table below (dollars in thousands):
Total commitment(1) | $ | 134,726 |
Less amount funded | 109,413 |
Remaining commitment | $ | 25,313 |
(1) Includes land, construction costs, tenant improvements, lease costs and capitalized interest.
Real Estate – Impairments Management periodically assesses its real estate for possible impairment whenever certain events or changes in circumstances indicate that the carrying amount of the asset, including accrued rental income, may not be recoverable through operations. Events or circumstances that may occur include significant changes in real estate market conditions and the ability of NNN to re-lease or sell properties that are vacant or become vacant in a reasonable period of time. Impairments are measured as the amount by which the current book value of the asset exceeds the estimated fair value of the asset. As a result of the Company's review of long-lived assets, including identifiable intangible assets, NNN recognized real estate impairments, net of recoveries of $6,083,000 and $1,167,000 for the six months ended June 30, 2018 and 2017, respectively, of which $3,835,000 and ($39,000) was recorded during the quarter ended June 30, 2018 and 2017, respectively. The valuation of impaired assets is determined using widely accepted valuation techniques including discounted cash flow analysis, income capitalization, analysis of recent comparable sales transactions, actual sales negotiations and bona fide purchase offers received from third parties, which are Level 3 inputs. NNN may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate.

X
- References No definition available. + Details
Name: | us-gaap_RealEstateAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration