XML 27 R19.htm IDEA: XBRL DOCUMENT

Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2025

Accounting Policies [Abstract]

Summary of NNN's Investment Portfolio

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


		September 30, 2025
Property Portfolio:
Total Properties		3,697
Gross leasable area (square feet)		39,209,000
States		50
Weighted average remaining lease term (years)		10.1

Summary of tenants classified as cash basis

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


		2025				2024
Number of tenants			13				11
Cash basis tenants as a percent of:
Total Properties			1.9	%			4.3	%
% of Annualized Base Rent ("ABR")(1)			4.4	%	(2)		5.6	%	(3)
% of gross leasable area			7.0	%			6.5	%


(1)	ABR represents the monthly cash base rent for all leases in place as of the end of the period multiplied by 12. Based on ABR of:
	(2)	$912,218,000 as of September 30, 2025.
	(3)	$850,976,000 as of September 30, 2024.

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,
		2025				2024				2025				2024
Basic and Diluted Earnings:
Net earnings		$	96,839			$	97,904			$	293,826			$	298,941
Less: Earnings allocated to unvested restricted shares			(191	)			(185	)			(538	)			(511	)
Net earnings used in basic and diluted earnings per share		$	96,648			$	97,719			$	293,288			$	298,430

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average shares outstanding			188,926,954				185,094,982				188,225,188				183,780,842
Less: Unvested restricted shares			(318,662	)			(318,796	)			(305,442	)			(298,973	)
Less: Unvested contingent restricted shares			(769,581	)			(769,010	)			(719,653	)			(724,772	)
Weighted average shares outstanding used in basic earnings per share			187,838,711				184,007,176				187,200,093				182,757,097
Other dilutive securities			494,078				554,255				486,238				544,473
Weighted average shares outstanding used in diluted earnings per share			188,332,789				184,561,431				187,686,331				183,301,570

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, 2025 (dollars in thousands):


		Gain (Loss) on Cash Flow Hedges(1)
Beginning balance, December 31, 2024		$	(7,959	)
Other comprehensive income (loss)			(409	)
Reclassifications from accumulated other comprehensive income to net earnings			1,409		(2)
Ending balance, September 30, 2025		$	(6,959	)

            (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.