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Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of NNN's Investment Portfolio

NNN's assets primarily include real estate assets. NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment ("Properties" or "Property Portfolio", or individually a "Property").


		September 30, 2024
Property Portfolio:
Total Properties		3,549
Gross leasable area (square feet)		36,550,000
States		49
Weighted average remaining lease term (years)		10.0

Summary of tenants classified as cash basis

The following table summarizes those tenants classified as cash basis for accounting purposes as of September 30:


		2024				2023
Number of tenants			11				8
Cash basis tenants as a percent of:
Total Properties			4.3	%			4.8	%
Total annual base rent			5.6	%	(1)		6.9	%	(2)
Total gross leasable area			6.5	%			6.4	%


Based on annualized base rent for all leases in place on each respective date.
	(1)	$850,976,000 as of September 30, 2024.
	(2)	$800,194,000 as of September 30, 2023.

Computation of Basic and Diluted Earnings Per Share

The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per share using the two-class method (dollars in thousands):


		Quarter Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Basic and Diluted Earnings:
Net earnings		$	97,904			$	106,787			$	298,941			$	295,658
Less: Earnings allocated to unvested restricted shares			(185	)			(171	)			(511	)			(448	)
Net earnings used in basic and diluted earnings per share		$	97,719			$	106,616			$	298,430			$	295,210

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average shares outstanding			185,094,982				182,424,814				183,780,842				182,092,117
Less: Unvested restricted shares			(318,796	)			(290,458	)			(298,973	)			(268,713	)
Less: Unvested contingent restricted shares			(769,010	)			(736,083	)			(724,772	)			(702,441	)
Weighted average shares outstanding used in basic earnings per share			184,007,176				181,398,273				182,757,097				181,120,963
Other dilutive securities			554,255				323,194				544,473				339,659
Weighted average shares outstanding used in diluted earnings per share			184,561,431				181,721,467				183,301,570				181,460,622

Changes in Accumulated Other Comprehensive Income (Loss)

The following table outlines the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2024 (dollars in thousands):


		Gain (Loss) on Cash Flow Hedges(1)
Beginning balance, December 31, 2023		$	(10,111	)
Reclassifications from accumulated other comprehensive income to net earnings			1,692		(2)
Ending balance, September 30, 2024		$	(8,419	)


(1)	Additional disclosure is included in "Note 4 – Notes Payable and Derivatives".


(2)	Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income. There is no income tax expense (benefit) resulting from this reclassification.