(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||
PAGE REFERENCE | ||||||||
Part I - Financial Information | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II - Other Information | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
ASSETS | (unaudited) | ||||||||||
Real estate portfolio | $ | $ | |||||||||
Real estate held for sale | |||||||||||
Cash and cash equivalents | |||||||||||
Receivables, net of allowance of $ | |||||||||||
Accrued rental income, net of allowance of $ | |||||||||||
Debt costs, net of accumulated amortization of $ | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Mortgages payable, including unamortized premium and net of unamortized debt costs | $ | $ | |||||||||
Notes payable, net of unamortized discount and unamortized debt costs | |||||||||||
Accrued interest payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Equity: | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Capital in excess of par value | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Total stockholders’ equity of NNN | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenues: | |||||||||||
Rental income | $ | $ | |||||||||
Interest and other income from real estate transactions | |||||||||||
Operating expenses: | |||||||||||
General and administrative | |||||||||||
Real estate | |||||||||||
Depreciation and amortization | |||||||||||
Leasing transaction costs | |||||||||||
Impairment losses – real estate, net of recoveries | |||||||||||
Gain on disposition of real estate | |||||||||||
Earnings from operations | |||||||||||
Other expenses (revenues): | |||||||||||
Interest and other income | ( | ( | |||||||||
Interest expense | |||||||||||
Loss on early extinguishment of debt | |||||||||||
Net earnings | |||||||||||
Loss attributable to noncontrolling interests | |||||||||||
Net earnings attributable to NNN | |||||||||||
Series F preferred stock dividends | ( | ( | |||||||||
Net earnings attributable to common stockholders | $ | $ | |||||||||
Net earnings per share of common stock: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted average number of common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Other comprehensive income: | |||||||||||
Net earnings attributable to NNN | $ | $ | |||||||||
Amortization of interest rate hedges | |||||||||||
Fair value of forward starting swaps | ( | ||||||||||
Comprehensive income attributable to NNN | |||||||||||
Comprehensive income attributable to noncontrolling interests | |||||||||||
Total comprehensive income | $ | $ |
Series F Preferred Stock | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity of NNN | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid: | |||||||||||||||||||||||||||||||||||||||||||||||
$ | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
$ | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock: | |||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
— | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock issuance costs | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Amortization of interest rate hedges | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Series F Preferred Stock | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity of NNN | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid: | |||||||||||||||||||||||||||||||||||||||||||||||
$ | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
$ | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock: | |||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
— | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Amortization of interest rate hedges | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Fair value of forward starting swaps | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | $ | |||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Impairment losses – real estate, net of recoveries | |||||||||||
Loss on early extinguishment of debt | |||||||||||
Amortization of notes payable discount | |||||||||||
Amortization of debt costs | |||||||||||
Amortization of mortgages payable premium | ( | ( | |||||||||
Amortization of interest rate hedges | |||||||||||
Settlement of forward starting swaps | ( | ||||||||||
Gain on disposition of real estate | ( | ( | |||||||||
Performance incentive plan expense | |||||||||||
Performance incentive plan payment | ( | ( | |||||||||
Change in operating assets and liabilities, net of assets acquired and liabilities assumed: | |||||||||||
Increase in receivables | ( | ( | |||||||||
Decrease (increase) in accrued rental income | ( | ||||||||||
Decrease in other assets | |||||||||||
Increase in accrued interest payable | |||||||||||
Decrease in other liabilities | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from the disposition of real estate | |||||||||||
Additions to real estate: | |||||||||||
Accounted for using the operating method | ( | ( | |||||||||
Principal payments received on mortgages and notes receivable | |||||||||||
Other | ( | ||||||||||
Net cash used in investing activities | ( | ( |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from line of credit payable | $ | $ | |||||||||
Repayment of line of credit payable | ( | ||||||||||
Repayment of mortgages payable | ( | ( | |||||||||
Proceeds from notes payable | |||||||||||
Repayment of notes payable | ( | ( | |||||||||
Payment for early extinguishment of debt | ( | ( | |||||||||
Payment of debt issuance costs | ( | ( | |||||||||
Proceeds from issuance of common stock | |||||||||||
Stock issuance costs | ( | ( | |||||||||
Payment of Series F preferred stock dividends | ( | ( | |||||||||
Payment of common stock dividends | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net increase in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period(1) | |||||||||||
Cash, cash equivalents and restricted cash at end of period(1) | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Interest paid, net of amount capitalized | $ | $ | |||||||||
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Change in other comprehensive income (loss) | $ | $ | ( | ||||||||
Work in progress accrual balance | $ | $ | |||||||||
Mortgage receivable issued in connection with real estate disposition | $ | $ | |||||||||
March 31, 2021 | |||||
Property Portfolio: | |||||
Total properties | |||||
Gross leasable area (square feet) | |||||
States | |||||
Weighted average remaining lease term (years) |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Basic and Diluted Earnings: | |||||||||||
Net earnings attributable to NNN | $ | $ | |||||||||
Less: Series F preferred stock dividends | ( | ( | |||||||||
Net earnings available to NNN’s common stockholders | |||||||||||
Less: Earnings allocated to unvested restricted shares | ( | ( | |||||||||
Net earnings used in basic and diluted earnings per share | $ | $ | |||||||||
Basic and Diluted Weighted Average Shares Outstanding: | |||||||||||
Weighted average number of shares outstanding | |||||||||||
Less: Unvested restricted shares | ( | ( | |||||||||
Less: Unvested contingent restricted shares | ( | ( | |||||||||
Weighted average number of shares outstanding used in basic earnings per share | |||||||||||
Other dilutive securities | |||||||||||
Weighted average number of shares outstanding used in diluted earnings per share |
Gain (Loss) on Cash Flow Hedges (1) | ||||||||
Beginning balance, December 31, 2020 | $ | ( | ||||||
Reclassifications from accumulated other comprehensive income to net earnings | (2) | |||||||
Net other comprehensive income (loss) | ||||||||
Ending balance, March 31, 2021 | $ | ( |
March 31, 2021 | December 31, 2020 | ||||||||||
Land and improvements(1) | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Leasehold interests | |||||||||||
Less accumulated depreciation and amortization | ( | ( | |||||||||
Work in progress for buildings and improvements | |||||||||||
Accounted for using the operating method | |||||||||||
Accounted for using the direct financing method | |||||||||||
$ | $ |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Rental income from operating leases | $ | $ | |||||||||
Earned income from direct financing leases | |||||||||||
Percentage rent | |||||||||||
Real estate expense reimbursement from tenants | |||||||||||
$ | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||
Intangible lease assets (included in other assets): | ||||||||||||||
Above-market in-place leases | $ | $ | ||||||||||||
Less: accumulated amortization | ( | ( | ||||||||||||
Above-market in-place leases, net | $ | $ | ||||||||||||
In-place leases | $ | $ | ||||||||||||
Less: accumulated amortization | ( | ( | ||||||||||||
In-place leases, net | $ | $ | ||||||||||||
Intangible lease liabilities (included in other liabilities): | ||||||||||||||
Below-market in-place leases | $ | $ | ||||||||||||
Less: accumulated amortization | ( | ( | ||||||||||||
Below-market in-place leases, net | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Land and improvements | $ | $ | |||||||||
Building and improvements | |||||||||||
Less accumulated depreciation and amortization | ( | ( | |||||||||
Less impairment | ( | ( | |||||||||
$ | $ |
Quarter Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
# of Sold Properties | Net Gain | # of Sold Properties | Net Gain | ||||||||||||||||||||
Gain on disposition of real estate | $ | $ |
Total commitment(1) | $ | ||||
Less amount funded | |||||
Remaining commitment | $ | ||||
(1)Includes land, construction costs, tenant improvements, lease costs and capitalized interest. |
2020 ATM | 2018 ATM | |||||||
Established date | August 2020 | February 2018 | ||||||
Termination date | August 2023 | August 2020 | ||||||
Total allowable shares | ||||||||
Total shares issued as of March 31, 2021 |
2021 | |||||
Shares of common stock | |||||
Average price per share (net) | $ | ||||
Net proceeds | $ | ||||
Stock issuance costs(1) | $ | ||||
(1) Stock issuance costs consist primarily of underwriters' fees and commissions, and legal and accounting fees. |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Shares of common stock | |||||||||||
Net proceeds | $ | $ |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Series F preferred stock(1): | |||||||||||
Dividends | $ | $ | |||||||||
Per depositary share | |||||||||||
Common stock: | |||||||||||
Dividends | |||||||||||
Per share |
Notes Payable | Terminated | Description | Aggregate Notional Amount | Liability (Asset) Fair Value When Terminated | Fair Value Deferred In Other Comprehensive Income (1) | ||||||||||||
2024 | May 2014 | $ | $ | $ | |||||||||||||
2025 | October 2015 | ||||||||||||||||
2026 | December 2016 | ( | ( | ||||||||||||||
2027 | September 2017 | ||||||||||||||||
2028 | September 2018 | ( | ( | ||||||||||||||
2030 | March 2020 |
% of Total Annual Base Rent(1) | % of Rent Collected (2) | ||||||||||||||||
1. | Convenience stores | 18.0 | % | 99.9 | % | ||||||||||||
2. | Automotive service | 10.7 | % | 98.7 | % | ||||||||||||
3. | Restaurants - full service | 10.2 | % | 91.5 | % | ||||||||||||
4. | Restaurants – limited service | 9.5 | % | 99.9 | % | ||||||||||||
5. | Family entertainment centers | 6.0 | % | 99.6 | % | ||||||||||||
6. | Health and fitness | 5.2 | % | 94.2 | % | ||||||||||||
7. | Theaters | 4.4 | % | 75.8 | % | ||||||||||||
8. | Recreational vehicle dealers, parts and accessories | 3.5 | % | 100.0 | % | ||||||||||||
9. | Equipment rental | 3.1 | % | 100.0 | % | ||||||||||||
10. | Automotive parts | 3.1 | % | 99.7 | % | ||||||||||||
11. | Home improvement | 2.6 | % | 99.1 | % | ||||||||||||
12. | Wholesale clubs | 2.5 | % | 100.0 | % | ||||||||||||
13. | Medical service providers | 2.1 | % | 99.6 | % | ||||||||||||
14. | General merchandise | 1.7 | % | 99.1 | % | ||||||||||||
15. | Furniture | 1.7 | % | 99.2 | % | ||||||||||||
16. | Home furnishings | 1.6 | % | 99.9 | % | ||||||||||||
17. | Travel plazas | 1.5 | % | 100.0 | % | ||||||||||||
18. | Consumer electronics | 1.5 | % | 100.0 | % | ||||||||||||
19. | Drug stores | 1.4 | % | 100.0 | % | ||||||||||||
20. | Bank | 1.3 | % | 100.0 | % | ||||||||||||
Other | 8.4 | % | 99.7 | % | |||||||||||||
Total | 100.0 | % | 97.5 | % | |||||||||||||
(1) Based on annualized base rent for all leases in place as of March 31, 2021. | |||||||||||||||||
(2) As of April 28, 2021, NNN has collected approximately 98% of rent originally due in April 2021. |
March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||
Properties Owned: | |||||||||||||||||
Number | 3,161 | 3,143 | 3,125 | ||||||||||||||
Total gross leasable area (square feet) | 32,717,000 | 32,461,000 | 32,500,000 | ||||||||||||||
Properties: | |||||||||||||||||
Leased and unimproved land | 3,106 | 3,096 | 3,088 | ||||||||||||||
Percent of Properties – leased and unimproved land | 98 | % | 99 | % | 99 | % | |||||||||||
Weighted average remaining lease term (years) | 10.6 | 10.7 | 11.1 | ||||||||||||||
Total gross leasable area (square feet) – leased | 31,910,000 | 31,631,000 | 31,910,000 |
% of Annual Base Rent (1) | ||||||||||||||||||||||||||
Lines of Trade | March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||
1. | Convenience stores | 18.0 | % | 18.2 | % | 18.1 | % | |||||||||||||||||||
2. | Automotive service | 10.7 | % | 10.3 | % | 9.9 | % | |||||||||||||||||||
3. | Restaurants – full service | 10.2 | % | 10.5 | % | 11.0 | % | |||||||||||||||||||
4. | Restaurants – limited service | 9.5 | % | 9.7 | % | 8.7 | % | |||||||||||||||||||
5. | Family entertainment centers | 6.0 | % | 5.9 | % | 6.7 | % | |||||||||||||||||||
6. | Health and fitness | 5.2 | % | 5.3 | % | 5.2 | % | |||||||||||||||||||
7. | Theaters | 4.4 | % | 4.4 | % | 4.7 | % | |||||||||||||||||||
8. | Recreational vehicle dealers, parts and accessories | 3.5 | % | 3.5 | % | 3.4 | % | |||||||||||||||||||
9. | Equipment rental | 3.1 | % | 2.6 | % | 2.6 | % | |||||||||||||||||||
10. | Automotive parts | 3.1 | % | 3.1 | % | 3.1 | % | |||||||||||||||||||
11. | Home improvement | 2.6 | % | 2.6 | % | 2.6 | % | |||||||||||||||||||
12. | Wholesale clubs | 2.5 | % | 2.6 | % | 2.5 | % | |||||||||||||||||||
13. | Medical service providers | 2.1 | % | 2.2 | % | 2.1 | % | |||||||||||||||||||
14. | General merchandise | 1.7 | % | 1.7 | % | 1.7 | % | |||||||||||||||||||
15. | Furniture | 1.7 | % | 1.7 | % | 1.7 | % | |||||||||||||||||||
16. | Home furnishings | 1.6 | % | 1.6 | % | 1.6 | % | |||||||||||||||||||
17. | Travel plazas | 1.5 | % | 1.5 | % | 1.5 | % | |||||||||||||||||||
18. | Consumer electronics | 1.5 | % | 1.5 | % | 1.5 | % | |||||||||||||||||||
19. | Drug stores | 1.4 | % | 1.5 | % | 1.5 | % | |||||||||||||||||||
20. | Bank | 1.3 | % | 1.3 | % | 1.3 | % | |||||||||||||||||||
Other | 8.4 | % | 8.3 | % | 8.6 | % | ||||||||||||||||||||
100.0 | % | 100.0 | % | 100.0 | % |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Acquisitions: | |||||||||||
Number of Properties | 29 | 21 | |||||||||
Gross leasable area (square feet)(1) | 355,000 | 217,000 | |||||||||
Initial cash yield | 6.4 | % | 6.9 | % | |||||||
Total dollars invested(2) | $ | 105,626 | $ | 67,197 |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Number of properties | 11 | 14 | |||||||||
Gross leasable area (square feet) | 96,000 | 176,000 | |||||||||
Net sales proceeds | $ | 17,575 | $ | 36,266 | |||||||
Net gain | $ | 4,281 | $ | 12,770 |
Quarter Ended March 31, | |||||||||||||||||
Percent Increase (Decrease) | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Rental Revenues(1) | $ | 173,845 | $ | 169,300 | 2.7% | ||||||||||||
Real estate expense reimbursement from tenants | 5,353 | 5,247 | 2.0% | ||||||||||||||
Rental income | 179,198 | 174,547 | 2.7% | ||||||||||||||
Interest and other income from real estate transactions | 580 | 516 | 12.4% | ||||||||||||||
Total revenues | $ | 179,778 | $ | 175,063 | 2.7% |
Quarter Ended March 31, | |||||||||||||||||
Percent Increase (Decrease) | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
General and administrative | $ | 11,748 | $ | 10,100 | 16.3% | ||||||||||||
Real estate | 7,725 | 7,635 | 1.2% | ||||||||||||||
Depreciation and amortization | 49,980 | 49,188 | 1.6% | ||||||||||||||
Leasing transaction costs | 38 | 36 | 5.6% | ||||||||||||||
Impairment losses – real estate, net of recoveries | 2,131 | 5,513 | (61.3)% | ||||||||||||||
Total operating expenses | $ | 71,622 | $ | 72,472 | (1.2)% | ||||||||||||
Interest and other income | $ | (65) | $ | (164) | (60.4)% | ||||||||||||
Interest expense | 34,587 | 33,670 | 2.7% | ||||||||||||||
Loss on early extinguishment of debt | 21,328 | 16,679 | 27.9% | ||||||||||||||
Total other expenses | $ | 55,850 | $ | 50,185 | 11.3% |
As a percentage of total revenues: | |||||||||||||||||
General and administrative | 6.5 | % | 5.8 | % | |||||||||||||
Real estate | 4.3 | % | 4.4 | % |
Transaction | Effective Date | Principal | Stated Interest Rate | Original Maturity | ||||||||||||||||||||||
Issuance 2030 Notes | March 2020 | $ | 400,000 | 2.500 | % | April 2030 | ||||||||||||||||||||
Issuance 2050 Notes | March 2020 | 300,000 | 3.100 | % | April 2050 | |||||||||||||||||||||
Redemption 2022 Notes | March 2020 | (325,000) | 3.800 | % | October 2022 | |||||||||||||||||||||
Issuance 2051 Notes | March 2021 | 450,000 | 3.500 | % | April 2051 | |||||||||||||||||||||
Redemption 2023 Notes | March 2021 | (350,000) | 3.300 | % | April 2023 |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash and cash equivalents: | |||||||||||
Provided by operating activities | $ | 161,170 | $ | 128,084 | |||||||
Used in investing activities | (88,512) | (30,654) | |||||||||
Provided by (used in) financing activities | (28,663) | 118,841 | |||||||||
Increase | 43,995 | 216,271 | |||||||||
Net cash at beginning of period | 267,236 | 1,112 | |||||||||
Net cash at end of period | $ | 311,231 | $ | 217,383 |
Expected Maturity Date (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Total | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | |||||||||||||||||||||||||||||||||||
Long-term debt(1) | $ | 3,361,085 | $ | 474 | $ | 664 | $ | 9,947 | $ | 350,000 | $ | 400,000 | $ | 2,600,000 | |||||||||||||||||||||||||||
Long-term debt – interest(2) | 1,642,562 | 92,610 | 123,447 | 123,201 | 115,506 | 107,250 | 1,080,548 | ||||||||||||||||||||||||||||||||||
Headquarters office lease(3) | 3,266 | 594 | 804 | 821 | 837 | 210 | — | ||||||||||||||||||||||||||||||||||
Ground leases(4) | 7,741 | 432 | 582 | 582 | 601 | 639 | 4,905 | ||||||||||||||||||||||||||||||||||
Total contractual cash obligations | $ | 5,014,654 | $ | 94,110 | $ | 125,497 | $ | 134,551 | $ | 466,944 | $ | 508,099 | $ | 3,685,453 |
Total commitment(1) | $ | 12,077 | ||||||
Less amount funded | 6,637 | |||||||
Remaining commitment | $ | 5,440 | ||||||
(1) Includes land, construction costs, tenant improvements, lease costs and capitalized interest. |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Series F Preferred Stock(1): | |||||||||||
Dividends | $ | 4,485 | $ | 4,485 | |||||||
Per depositary share | 0.3250 | 0.3250 | |||||||||
Common stock: | |||||||||||
Dividends | 90,848 | 88,148 | |||||||||
Per share | 0.5200 | 0.5150 | |||||||||
(1) The Series F Preferred Stock has no maturity date and will remain outstanding unless redeemed by NNN. The earliest redemption date for the Series F Preferred Stock is October 2021. |
March 31, 2021 | Percentage of Total | December 31, 2020 | Percentage of Total | ||||||||||||||||||||
Mortgages payable | $ | 11,222 | 0.3 | % | $ | 11,395 | 0.4 | % | |||||||||||||||
Notes payable | 3,298,302 | 99.7 | % | 3,209,527 | 99.6 | % | |||||||||||||||||
Total outstanding debt | $ | 3,309,524 | 100.0 | % | $ | 3,220,922 | 100.0 | % |
2020 ATM | 2018 ATM | |||||||
Established date | August 2020 | February 2018 | ||||||
Termination date | August 2023 | August 2020 | ||||||
Total allowable shares | 17,500,000 | 12,000,000 | ||||||
Total shares issued as of March 31, 2021 | 1,599,304 | 11,272,034 |
2021 | |||||
Shares of common stock | 30,000 | ||||
Average price per share (net) | $ | 38.59 | |||
Net proceeds | $ | 1,158 | |||
Stock issuance costs(1) | $ | 75 | |||
(1) Stock issuance costs consist primarily of underwriters' fees and commissions, and legal and accounting fees. |
Quarter Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Shares of common stock | 15,769 | 12,528 | |||||||||
Net proceeds | $ | 569 | $ | 696 |
Debt Obligations (dollars in thousands) | ||||||||||||||||||||||||||
Fixed Rate Debt | ||||||||||||||||||||||||||
Mortgages(1) | Unsecured Debt(2) | |||||||||||||||||||||||||
Debt Obligation | Weighted Average Effective Interest Rate | Debt Obligation | Effective Interest Rate | |||||||||||||||||||||||
2021 | $ | 539 | 5.23% | $ | — | — | ||||||||||||||||||||
2022 | 750 | 5.23% | — | — | ||||||||||||||||||||||
2023 | 9,968 | 5.23% | — | — | ||||||||||||||||||||||
2024 | — | — | 349,744 | 3.92% | ||||||||||||||||||||||
2025 | — | — | 399,509 | 4.03% | ||||||||||||||||||||||
Thereafter | — | — | 2,574,684 | 3.67% | (3) | |||||||||||||||||||||
Total | $ | 11,257 | 5.23% | 3,323,937 | 3.74% | |||||||||||||||||||||
Fair Value: | ||||||||||||||||||||||||||
March 31, 2021 | $ | 11,257 | $ | 3,502,237 | ||||||||||||||||||||||
December 31, 2020 | $ | 11,434 | $ | 3,532,908 |
3. | Articles of Incorporation and Bylaws | |||||||||||||
3.1 | Third Amended and Restated Bylaws of the Registrant, as amended through the Fourth Amendment to Bylaws, dated February 17, 2021 (filed as Exhibit 3.1 to Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 19, 2021, and incorporated herein by reference). | |||||||||||||
4. | Instruments Defining the Rights of Security Holders, Including Indentures | |||||||||||||
4.1 | Form of Nineteenth Supplemental Indenture between National Retail Properties, Inc. and U.S. Bank National Association relating to 3.500% Notes due 2051 (filed as Exhibit 4.1 to Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 10, 2021, and incorporated herein by reference). | |||||||||||||
4.2 | ||||||||||||||
31. | Section 302 Certifications(1) | |||||||||||||
31.1 | ||||||||||||||
31.2 | ||||||||||||||
32. | Section 906 Certifications(1) | |||||||||||||
32.1 | ||||||||||||||
32.2 | ||||||||||||||
101. | Interactive Data File | |||||||||||||
101.1 | The following materials from National Retail Properties, Inc. Quarterly Report on Form 10-Q for the period ended March 31, 2021, are formatted in Extensible Business Reporting Language: (i) condensed consolidated balance sheets, (ii) condensed consolidated statements of income and comprehensive income, (iii) condensed consolidated statements of cash flows, and (iv) notes to condensed consolidated financial statements. | |||||||||||||
104.1 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||||||||
(1) In accordance with item 601((b)(32) of regulation S-K, this exhibit is not deemed "filed" for purposes of section 18 of the exchange act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the securities act or the exchange act, except to the extent that the registrant specifically incorporates it by reference. |
NATIONAL RETAIL PROPERTIES, INC. | ||||||||
By: | /s/ Julian E. Whitehurst | |||||||
Julian E. Whitehurst | ||||||||
Chief Executive Officer, President and Director | ||||||||
By: | /s/ Kevin B. Habicht | |||||||
Kevin B. Habicht | ||||||||
Chief Financial Officer, Executive Vice President and Director |
May 4, 2021 | /s/ Julian E. Whitehurst | |||||||||||||
Date | Name: | Julian E. Whitehurst | ||||||||||||
Title: | Chief Executive Officer and President |
May 4, 2021 | /s/ Kevin B. Habicht | |||||||||||||
Date | Name: | Kevin B. Habicht | ||||||||||||
Title: | Chief Financial Officer |
May 4, 2021 | /s/ Julian E. Whitehurst | |||||||||||||
Date | Name: | Julian E. Whitehurst | ||||||||||||
Title: | Chief Executive Officer and President |
May 4, 2021 | /s/ Kevin B. Habicht | |||||||||||||
Date | Name: | Kevin B. Habicht | ||||||||||||
Title: | Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Receivables allowance | $ 846 | $ 835 |
Accrued rental income allowance | 6,030 | 6,947 |
Debt costs accumulated amortization | $ 17,764 | $ 17,294 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 375,000,000 | 375,000,000 |
Common stock, shares issued (in shares) | 175,579,683 | 175,232,971 |
Common stock, shares outstanding (in shares) | 175,579,683 | 175,232,971 |
Series F Preferred Stock | ||
Dividend rate | 5.20% | |
Preferred stock, shares issued (in shares) | 138,000 | 138,000 |
Preferred stock, shares outstanding (in shares) | 138,000 | 138,000 |
Preferred stock, stated liquidation value per share (in dollars per share) | $ 2,500 | $ 2,500 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands |
Total |
Series F Preferred Stock |
Total Stockholders’ Equity of NNN |
Total Stockholders’ Equity of NNN
Series F Preferred Stock
|
Preferred Stock
Series F Preferred Stock
|
Common Stock |
Capital in Excess of Par Value |
Accumulated Deficit |
Accumulated Deficit
Series F Preferred Stock
|
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interests |
---|---|---|---|---|---|---|---|---|---|---|---|
Balances at Dec. 31, 2019 | $ 4,331,682 | $ 4,331,675 | $ 345,000 | $ 1,718 | $ 4,495,314 | $ (499,229) | $ (11,128) | $ 7 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings | 65,176 | 65,178 | 65,178 | (2) | |||||||
Dividends declared and paid: | |||||||||||
Preferred stock dividends declared and paid | $ (4,485) | $ (4,485) | $ (4,485) | ||||||||
Common stock dividends declared and paid | (87,528) | (87,528) | 620 | (88,148) | |||||||
Issuance of common stock: | |||||||||||
Director compensation | 298 | 298 | 298 | ||||||||
Stock purchase plan | 76 | 76 | 76 | ||||||||
Restricted shares, net of forfeitures | 0 | 0 | 3 | (3) | |||||||
Amortization of deferred compensation | 2,950 | 2,950 | 2,950 | ||||||||
Amortization of interest rate hedges | 383 | 383 | 383 | ||||||||
Fair value of forward starting swaps | (7,617) | (7,617) | (7,617) | ||||||||
Balances at Mar. 31, 2020 | 4,300,935 | 4,300,930 | 345,000 | 1,721 | 4,499,255 | (526,684) | (18,362) | 5 | |||
Balances at Dec. 31, 2020 | 4,319,304 | 4,319,300 | 345,000 | 1,753 | 4,633,771 | (644,779) | (16,445) | 4 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings | 56,587 | 56,587 | 56,587 | ||||||||
Dividends declared and paid: | |||||||||||
Preferred stock dividends declared and paid | $ (4,485) | $ (4,485) | $ (4,485) | ||||||||
Common stock dividends declared and paid | (90,270) | (90,270) | 578 | (90,848) | |||||||
Issuance of common stock: | |||||||||||
Director compensation | 267 | 267 | 267 | ||||||||
Stock purchase plan | 70 | 70 | 70 | ||||||||
ATM equity program | 1,234 | 1,234 | 1 | 1,233 | |||||||
Restricted shares, net of forfeitures | 0 | 0 | 3 | (3) | |||||||
Stock issuance costs | (156) | (156) | (156) | ||||||||
Amortization of deferred compensation | 3,920 | 3,920 | 3,920 | ||||||||
Amortization of interest rate hedges | 1,368 | 1,368 | 1,368 | ||||||||
Fair value of forward starting swaps | 0 | ||||||||||
Balances at Mar. 31, 2021 | $ 4,287,839 | $ 4,287,835 | $ 345,000 | $ 1,757 | $ 4,639,680 | $ (683,525) | $ (15,077) | $ 4 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Dividends declared and paid: | ||
Common stock dividends (in dollars per share) | $ 0.5200 | $ 0.5150 |
Issuance of common stock: | ||
Director compensation (in shares) | 8,324 | 6,112 |
Stock purchase plan (in shares) | 1,715 | 1,477 |
ATM equity program (in shares) | 30,000 | |
Restricted shares, net of forfeitures (in shares) | 287,957 | 253,406 |
Common stock dividends declared and paid | $ (90,270) | $ (87,528) |
Director compensation | 267 | 298 |
Capital in Excess of Par Value | ||
Issuance of common stock: | ||
Common stock dividends declared and paid | 578 | 620 |
Director compensation | $ 267 | $ 298 |
Series F Preferred Stock | ||
Dividends declared and paid: | ||
Preferred stock dividends (in dollars per share) | $ 0.3250 | $ 0.3250 |
Organization and Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies: Organization and Nature of Business – National Retail Properties, Inc., a Maryland corporation, is a fully integrated real estate investment trust (“REIT”) formed in 1984. The terms "NNN" or the "Company" refer to National Retail Properties, Inc. and all of its consolidated subsidiaries. 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 primarily held for investment ("Properties", "Property Portfolio", or individually a "Property").
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles ("GAAP"). The unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Operating results for the quarter ended March 31, 2021, may not be indicative of the results that may be expected for the year ending December 31, 2021. See "Footnote 8 – Subsequent Events." Amounts as of December 31, 2020 included in the condensed consolidated financial statements have been derived from the audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements, included herein, should be read in conjunction with the consolidated financial statements and notes thereto as well as Management's Discussion and Analysis of Financial Condition and Results of Operations in NNN's Form 10-K for the year ended December 31, 2020. COVID-19 Pandemic – During the quarter ended March 31, 2021, NNN and its tenants continue to be impacted by the COVID-19 pandemic which has resulted in the loss of revenue for certain tenants and challenged their ability to pay rent. NNN has entered into rent deferral lease amendments with certain tenants (See Note 2). Principles of Consolidation – NNN’s condensed consolidated financial statements include the accounts of each of the respective majority owned and controlled affiliates, including transactions whereby NNN has been determined to be the primary beneficiary in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codifications ("ASC") guidance included in Consolidation. All significant intercompany account balances and transactions have been eliminated. Real Estate Portfolio – NNN records the acquisition of real estate at cost, including acquisition and closing costs. The cost of Properties developed or funded by NNN includes direct and indirect costs of construction, property taxes, interest and other miscellaneous costs incurred during the development period until the project is substantially complete and available for occupancy. NNN recorded $63,000 and $466,000 in capitalized interest during the development period for the quarters ended March 31, 2021 and 2020, respectively. Purchase Accounting for Acquisition of Real Estate Subject to a Lease – In accordance with the FASB guidance on business combinations, consideration for the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and, if applicable, to identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases, as applicable, based on their respective fair values. The fair value estimate is sensitive to significant assumptions, such as establishing a range of relevant market assumptions for land, building and rent and where the acquired property falls within that range. These market assumptions for land, building and rent use the most relevant comparable properties for an acquisition. The final range relies upon ranking comparable properties' attributes from most similar to least similar. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land, building and tenant improvements based on the determination of their fair values. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease and the applicable option terms if it is probable that the tenant will exercise options. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the Company believes that it is likely that the tenant will renew the lease for an option term whereby the Company amortizes the value attributable to the renewal over the renewal period. The aggregate value of other acquired intangible assets, consisting of in-place leases, is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates over (ii) the estimated fair value of the property as-if-vacant, determined as set forth above. The value of in-place leases exclusive of the value of above-market and below-market in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off in that period. The value of tenant relationships is reviewed on individual transactions to determine if future value was derived from the acquisition. Lease Accounting – In accordance with FASB Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," ("ASC 842"), NNN recorded Right-Of-Use ("ROU") assets and operating lease liabilities as lessee under operating leases. In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of COVID-19. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and instead, treat the concession as if it was a part of the existing contract. This guidance is only applicable to COVID-19 related lease concessions that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. NNN elected to make this policy election for COVID-19 lease concessions, including the rent deferral lease amendments effective during the year ended December 31, 2020 and the quarter ended March 31, 2021. In accordance with ASC 842, NNN reviews the collectability of its lease payments on an ongoing basis. NNN considers collectability indicators when analyzing accounts receivable (and accrued rent) and historical bad debt levels, tenant credit-worthiness and current economic trends, all of which assists in evaluating the probability of outstanding and future lease payment collections. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected recovery of pre-petition and post-petition bankruptcy claims. At the point NNN deems the collection of lease payments not probable, previously recognized rental revenue and any related accrued rent is reversed and, subsequently, any lease revenue is only recognized when cash receipts are received. As a result of the review of lease payments collectability, no outstanding receivables and related accrued rent were written off during the quarter ended March 31, 2021 and no tenants were reclassified as cash basis for accounting purposes. NNN includes an allowance for doubtful accounts in rental income on the Consolidated Statements of Income and Comprehensive Income. As of March 31, 2021, approximately six percent of total Properties, and approximately eight percent of aggregate gross leasable area held in the Property Portfolio, was leased to 12 tenants that NNN has determined to recognize revenue on a cash basis. During the quarters ended March 31, 2021 and 2020, NNN recognized $11,314,000 and $203,000, respectively, of rental income from certain tenants for periods following their classification to cash basis for accounting. Impairment – Real Estate – Based upon certain events or changes in circumstances, management periodically assesses its Properties for possible impairment whenever the carrying value of the asset, including accrued rental income, may not be recoverable through operations. Events or circumstances that may occur include changes in real estate market conditions, the ability of NNN to re-lease properties that are currently vacant or become vacant and the ability to sell properties at a price that exceeds NNN's carrying value. Management evaluates whether an impairment in carrying value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), and the residual value of the real estate, with the carrying value of the individual asset. The future undiscounted cash flows are primarily driven by estimated future market rents. Future cash flow estimates are sensitive to the assumptions made by management regarding future market rents, which are affected by expectations about future market and economic conditions. If an impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its estimated fair value. NNN's Properties are leased primarily to retail tenants under long-term net leases and primarily held for investment. Generally, NNN’s Property leases provide for initial terms of 10 to 20 years, which provide for cash flows over this term. NNN generally intends to hold these assets for the long-term, therefore, a temporary change in cash flows due to COVID-19 alone would not be an indicator of impairment. Credit Losses on Financial Instruments – FASB ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326),” (“ASC 326”) requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings. The guidance requires a lifetime credit loss expected at inception and requires pooling of assets, which share similar risk characteristics. NNN is required to evaluate current economic conditions, as well as, make future expectations of economic conditions. In addition, the measurement of the expected credit loss is over the asset’s contractual term. As of March 31, 2021 and December 31, 2020, NNN had mortgages receivable of $2,395,000 and $2,482,000, respectively, included in other assets on the Condensed Consolidated Balance Sheets, net of $153,000 and $158,000 allowance for credit loss, respectively. NNN measures the allowance for credit loss based on the fair value of the collateral and the historical collectability trend analysis over 15 years. Debt Costs – Notes Payable – Debt costs incurred in connection with the issuance of NNN’s notes payable have been deferred and are being amortized to interest expense over the term of the respective debt obligation using the effective interest method. These costs of $33,177,000 and $31,140,000, as of March 31, 2021 and December 31, 2020, respectively, are included in notes payable on the Condensed Consolidated Balance Sheets net of accumulated amortization of $7,543,000 and $9,317,000, respectively. Earnings Per Share – Earnings per share have been computed pursuant to the FASB guidance included in Earnings Per Share. The guidance requires classification of the Company’s unvested restricted share units, which carry rights to receive nonforfeitable dividends, as participating securities requiring the two-class method of computing earnings per share. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period. The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per common share using the two-class method (dollars in thousands):
Fair Value Measurement – NNN’s estimates of fair value of financial and non-financial assets and liabilities are based on the framework established in the fair value accounting guidance. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. The guidance describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels: •Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities. •Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques. Accumulated Other Comprehensive Income (Loss) – The following table outlines the changes in accumulated other comprehensive income (loss) for the quarter ended March 31, 2021, (dollars in thousands):
(1) Additional disclosure is included in Note 6 – Derivatives. (2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income. Use of Estimates – Additional critical accounting policies of NNN include management’s estimates and assumptions relating to the reporting of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities and are required to prepare the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Significant accounting policies include management’s estimates of the useful lives used in calculating depreciation expense relating to real estate asset purchase accounting for acquisition of real estate subject to a lease, the recoverability of the carrying value of long-lived assets and management's evaluation of the probability of outstanding and future lease payment collections. Actual results could differ from those estimates.
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Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate: Real Estate – Portfolio Leases – At March 31, 2021, NNN’s real estate portfolio had a weighted average remaining lease term of 10.6 years and consisted of 3,150 leases classified as operating leases and an additional six leases accounted for as direct financing. The following is a summary of the general structure of the leases in the Property Portfolio, although the specific terms of each lease can vary significantly. Generally, the Property leases provide for initial terms of 10 to 20 years. The Properties are generally leased under net leases, pursuant to which the tenant typically bears responsibility for substantially all property costs and expenses associated with ongoing maintenance, repair, replacement and operation of the property, including utilities, property taxes and property and liability insurance. Certain Properties are subject to leases under which NNN retains responsibility for specific costs and expenses of the Property. NNN's leases provide for annual base rental payments (generally payable in monthly installments), and generally provide for limited increases in rent as a result of (i) increases in the Consumer Price Index ("CPI"), (ii) fixed increases, or, to a lesser extent, (iii) increases in the tenant’s sales volume. Generally, NNN's leases provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions provided under the initial lease term, including rent increases. NNN’s lease term is based on the non-cancellable base term unless economic incentives make it reasonably certain that an option period to extend the lease will be exercised, in which event NNN includes the options. Some of the leases also provide that in the event NNN wishes to sell the Property subject to that lease, NNN first must offer the lessee the right to purchase the Property on the same terms and conditions as any offer which NNN intends to accept for the sale of the Property. As of March 31, 2021, NNN has entered into rent deferral lease amendments with certain tenants, for an aggregate $51,269,000 and $4,677,000 of rent originally due for the years ending December 31, 2020 and 2021, respectively. The rent deferral lease amendments require the deferred rents to be repaid at a later time during the lease term. Approximately $3,259,000 of deferred rent was repaid in 2020 and approximately $10,817,000 of deferred rent was repaid during the quarter ended March 31, 2021. An additional $21,107,000 is due in 2021, with the remaining deferred rent to be collected periodically by December 31, 2025. Historical rent collections and rent relief requests may not be indicative of collections and requests in the future. Depending on the macroeconomic conditions and the impact on tenants, deferred rents may be difficult to collect. Real Estate Portfolio – NNN's real estate consisted of the following at (dollars in thousands):
(1)Includes $2,328 and $8,421 in land for Properties under construction at March 31, 2021 and December 31, 2020, respectively. NNN recognized the following revenues in rental income (dollars in thousands):
Some leases provide for a free rent period or scheduled rent increases throughout the lease term. Such amounts are recognized on a straight-line basis over the terms of the leases. For the quarter ended March 31, 2020, NNN recognized accrued rental income, net of reserves and write-offs of ($177,000). During the quarter ended March 31, 2021, NNN recognized accrued rental income, net of reserves and write-offs of ($8,445,000), which includes ($9,385,000) of net straight-line accrued rent from rent deferral repayments related to the impacts of the rent deferral lease amendments NNN entered into as a result of the COVID-19 pandemic. At March 31, 2021 and December 31, 2020, the balance of accrued rental income was $45,450,000 and $53,958,000, respectively, net of allowance of $6,030,000 and $6,947,000, respectively. Real Estate – Intangibles In accordance with purchase accounting for the acquisition of real estate subject to a lease, NNN has recorded intangible assets and lease liabilities that consisted of the following at (dollars in thousands):
The amounts amortized as a net increase to rental income for above-market and below-market in-place leases for the quarters ended March 31, 2021 and 2020, were $162,000 and $220,000, respectively. The value of in-place leases amortized to expense for the quarters ended March 31, 2021 and 2020, were $1,800,000 and $2,395,000, 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 and 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 March 31, 2021, NNN had five of its Properties categorized as held for sale. NNN's real estate held for sale at December 31, 2020, included five Properties, four of which were sold in 2021. Real estate held for sale consisted of the following as of (dollars in thousands):
Real Estate – Dispositions The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties (dollars in thousands):
Real Estate – Commitments NNN has committed to fund construction on eight Properties. The improvements on such Properties are estimated to be completed within 12 months. These construction commitments, as of March 31, 2021, are outlined in the table below (dollars in thousands):
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 changes in real estate market conditions, the ability of NNN to re-lease properties that are currently vacant or become vacant, and the ability to sell properties at a price that exceeds NNN's carrying value. Management evaluates whether an impairment in carrying value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), and the residual value of the real estate, with the carrying value of the individual asset. The future undiscounted cash flows are primarily driven by estimated future market rents. Future cash flow estimates are sensitive to the assumptions made by management regarding future market rents, which are affected by expectations about future market and economic conditions. If an impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its estimated fair value. NNN's Properties are leased primarily to retail tenants under long-term net leases and primarily held for investment. Generally, NNN’s Property leases provide for initial terms of 10 to 20 years, which provide for cash flows over this term. NNN generally intends to hold these assets for the long-term, therefore, a temporary change in cash flows due to COVID-19 alone would not be an indicator of impairment. 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 $2,131,000 and $5,513,000 for the quarters ended March 31, 2021 and 2020, 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.
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Line of Credit Payable |
3 Months Ended |
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Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Line of Credit Payable | Line of Credit Payable:NNN's $900,000,000 unsecured revolving credit facility (the "Credit Facility") had no weighted average outstanding balance during the quarter ended March 31, 2021. The Credit Facility matures January 2022, unless the Company exercises its option to extend maturity to January 2023. The Credit Facility bears interest at LIBOR plus 87.5 basis points; however, such interest rate may change pursuant to a tiered interest rate structure based on NNN's debt rating. The Credit Facility also includes an accordion feature which permits NNN to increase the facility size up to $1,600,000,000, subject to lender approval. As of March 31, 2021, there was no outstanding balance and $900,000,000 was available for future borrowings under the Credit Facility, and NNN was in compliance with each of the financial covenants. |
Notes Payable |
3 Months Ended |
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Mar. 31, 2021 | |
Notes Payable [Abstract] | |
Notes Payable | Notes Payable: In March 2021, NNN filed a prospectus supplement to the prospectus contained in its August 2020 shelf registration statement and issued $450,000,000 aggregate principal amount of 3.500% notes due April 2051 (the “2051 Notes”). The 2051 Notes were sold at a discount with an aggregate purchase price of $441,594,000 with interest payable semi-annually commencing on October 15, 2021. The discount of $8,406,000 is being amortized to interest expense over the term of the notes using the effective interest method. The effective interest rate for the 2051 Notes after accounting for the note discount is 3.602%. The 2051 Notes are senior unsecured obligations of NNN and are subordinated to all secured debt and to the debt and other liabilities of NNN's subsidiaries. Additionally, the Notes are each redeemable at NNN's option, in whole or part anytime, for an amount equal to (i) the sum of the outstanding principal balance of the notes being redeemed plus accrued interest thereon to the redemption date, and (ii) the make-whole amount, if any, as defined in the supplemental indenture dated March 10, 2021, relating to the 2051 Notes. NNN received approximately $436,417,000 of net proceeds in connection with the issuance of the 2051 Notes, after incurring debt issuance costs consisting primarily of underwriting discounts and commissions, legal and accounting fees, rating agency fees and printing expenses, totaling $5,177,000 for the 2051 Notes. In March 2021, NNN redeemed the $350,000,000 3.300% notes payable due April 2023. The notes were redeemed at a price equal to 100% of the principal amount, plus (i) a make-whole amount of $21,328,000, and (ii) accrued and unpaid interest.
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity: In August 2020, NNN filed a shelf registration statement with the Securities and Exchange Commission (the "Commission") which permits the issuance by NNN of an indeterminate amount of debt and equity securities. At-The-Market Offerings – Under NNN's shelf registration statement, NNN has established an at-the-market equity program ("ATM") which allows NNN to sell shares of common stock from time to time. The following outlines NNN's ATM programs:
The following table outlines the common stock issuances pursuant to NNN's ATM equity programs for the quarter ended March 31, 2021 (dollars in thousands, except per share data):
There were no common stock issuances pursuant to NNN's ATM equity program for the quarter ended March 31, 2020. Dividend Reinvestment and Stock Purchase Plan – In February 2021, NNN filed a shelf registration statement with the Commission for its Dividend Reinvestment and Stock Purchase Plan ("DRIP") which permits the issuance by NNN of up to 6,000,000 shares of common stock. The following table outlines the common stock issuances pursuant to NNN's DRIP (dollars in thousands):
Dividends – The following table outlines the dividends declared and paid for each issuance of NNN's stock (dollars in thousands, except per share data):
(1)The 5.200% Series F Cumulative Redeemable Preferred Stock (the "Series F Preferred Stock") has no maturity date and will remain outstanding unless redeemed by NNN. The earliest redemption date for the Series F Preferred Stock is October 2021. In April 2021, NNN declared a dividend of $0.5200 per share, which is payable in May 2021 to its common stockholders of record as of April 30, 2021.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives: In accordance with the guidance on derivatives and hedging, NNN records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or a firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. NNN’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements or other identified risks. To accomplish this objective, NNN primarily uses treasury locks, forward starting swaps and interest rate swaps as part of its cash flow hedging strategy. Treasury locks and forward starting swaps are used to hedge forecasted debt issuances. Treasury locks designated as cash flow hedges lock in the yield/price of a treasury security. Forward starting swaps also lock the associated swap spread. Interest rate swaps designated as cash flow hedges are used to hedge the variable cash flows associated with floating rate debt and involve the receipt or payment of variable rate amounts in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying principal amount. For derivatives designated as cash flow hedges, the change in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings. NNN discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative expires or is sold, terminated or exercised, the derivative is re-designated as a hedging instrument or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued, NNN recognizes any changes in its fair value in earnings and continues to carry the derivative on the balance sheet or may choose to settle the derivative at that time with a cash payment or receipt. NNN records a cash settlement of forward starting swaps in the Condensed Consolidated Statements of Cash Flows as an operating activity. The following table outlines NNN's terminated derivatives which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt (dollars in thousands):
(1) The amount reported in accumulated other comprehensive income will be reclassified to interest expense as interest payments are made on the related notes payable. As of March 31, 2021, $15,077,000 remained in other comprehensive income related to NNN’s previously terminated interest rate hedges. During the quarters ended March 31, 2021 and 2020, NNN reclassified out of other comprehensive income $1,368,000 and $383,000, respectively, as an increase in interest expense. Over the next 12 months, NNN estimates that an additional $2,271,000 will be reclassified as an increase in interest expense from these terminated derivatives. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on NNN’s long-term debt. NNN does not use derivatives for trading or speculative purposes or currently have any derivatives that are not designated as hedges. NNN had no derivative financial instruments outstanding at March 31, 2021.
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Fair Value of Financial Instruments |
3 Months Ended |
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Mar. 31, 2021 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments:NNN believes the carrying value of its Credit Facility approximates fair value based upon its nature, terms and variable interest rate. NNN believes that the carrying value of its mortgages payable at March 31, 2021 and December 31, 2020, approximate fair value based upon current market prices of comparable instruments (Level 3). At March 31, 2021 and December 31, 2020, the fair value of NNN’s notes payable net of unamortized discount and excluding debt costs was $3,502,237,000 and $3,532,908,000, respectively, based upon quoted market prices, which is a Level 1 valuation since NNN's notes payable are publicly traded. |
Subsequent Events |
3 Months Ended |
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Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events: NNN reviewed its subsequent events and transactions that have occurred after March 31, 2021, the date of the condensed consolidated balance sheet. As of April 28, 2021, NNN had collected approximately 97% of rent originally due in the quarter ended March 31, 2021 and 98% of rent originally due in April 2021. There were no other reportable subsequent events or transactions.
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Organization and Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – NNN’s condensed consolidated financial statements include the accounts of each of the respective majority owned and controlled affiliates, including transactions whereby NNN has been determined to be the primary beneficiary in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codifications ("ASC") guidance included in Consolidation. All significant intercompany account balances and transactions have been eliminated. |
Real Estate Portfolio and Impairment | Real Estate Portfolio – NNN records the acquisition of real estate at cost, including acquisition and closing costs. The cost of Properties developed or funded by NNN includes direct and indirect costs of construction, property taxes, interest and other miscellaneous costs incurred during the development period until the project is substantially complete and available for occupancy. NNN recorded $63,000 and $466,000 in capitalized interest during the development period for the quarters ended March 31, 2021 and 2020, respectively. Purchase Accounting for Acquisition of Real Estate Subject to a Lease – In accordance with the FASB guidance on business combinations, consideration for the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and, if applicable, to identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases, as applicable, based on their respective fair values. The fair value estimate is sensitive to significant assumptions, such as establishing a range of relevant market assumptions for land, building and rent and where the acquired property falls within that range. These market assumptions for land, building and rent use the most relevant comparable properties for an acquisition. The final range relies upon ranking comparable properties' attributes from most similar to least similar. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land, building and tenant improvements based on the determination of their fair values. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease and the applicable option terms if it is probable that the tenant will exercise options. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the Company believes that it is likely that the tenant will renew the lease for an option term whereby the Company amortizes the value attributable to the renewal over the renewal period. The aggregate value of other acquired intangible assets, consisting of in-place leases, is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates over (ii) the estimated fair value of the property as-if-vacant, determined as set forth above. The value of in-place leases exclusive of the value of above-market and below-market in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off in that period. The value of tenant relationships is reviewed on individual transactions to determine if future value was derived from the acquisition. Impairment – Real Estate – Based upon certain events or changes in circumstances, management periodically assesses its Properties for possible impairment whenever the carrying value of the asset, including accrued rental income, may not be recoverable through operations. Events or circumstances that may occur include changes in real estate market conditions, the ability of NNN to re-lease properties that are currently vacant or become vacant and the ability to sell properties at a price that exceeds NNN's carrying value. Management evaluates whether an impairment in carrying value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), and the residual value of the real estate, with the carrying value of the individual asset. The future undiscounted cash flows are primarily driven by estimated future market rents. Future cash flow estimates are sensitive to the assumptions made by management regarding future market rents, which are affected by expectations about future market and economic conditions. If an impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its estimated fair value. NNN's Properties are leased primarily to retail tenants under long-term net leases and primarily held for investment. Generally, NNN’s Property leases provide for initial terms of 10 to 20 years, which provide for cash flows over this term. NNN generally intends to hold these assets for the long-term, therefore, a temporary change in cash flows due to COVID-19 alone would not be an indicator of impairment.
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Lease Accounting, Lessor | Lease Accounting – In accordance with FASB Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," ("ASC 842"), NNN recorded Right-Of-Use ("ROU") assets and operating lease liabilities as lessee under operating leases. In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of COVID-19. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and instead, treat the concession as if it was a part of the existing contract. This guidance is only applicable to COVID-19 related lease concessions that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. NNN elected to make this policy election for COVID-19 lease concessions, including the rent deferral lease amendments effective during the year ended December 31, 2020 and the quarter ended March 31, 2021. In accordance with ASC 842, NNN reviews the collectability of its lease payments on an ongoing basis. NNN considers collectability indicators when analyzing accounts receivable (and accrued rent) and historical bad debt levels, tenant credit-worthiness and current economic trends, all of which assists in evaluating the probability of outstanding and future lease payment collections. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected recovery of pre-petition and post-petition bankruptcy claims. At the point NNN deems the collection of lease payments not probable, previously recognized rental revenue and any related accrued rent is reversed and, subsequently, any lease revenue is only recognized when cash receipts are received. As a result of the review of lease payments collectability, no outstanding receivables and related accrued rent were written off during the quarter ended March 31, 2021 and no tenants were reclassified as cash basis for accounting purposes. NNN includes an allowance for doubtful accounts in rental income on the Consolidated Statements of Income and Comprehensive Income. As of March 31, 2021, approximately six percent of total Properties, and approximately eight percent of aggregate gross leasable area held in the Property Portfolio, was leased to 12 tenants that NNN has determined to recognize revenue on a cash basis. During the quarters ended March 31, 2021 and 2020, NNN recognized $11,314,000 and $203,000, respectively, of rental income from certain tenants for periods following their classification to cash basis for accounting.
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Lease Accounting, Lessee | Lease Accounting – In accordance with FASB Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," ("ASC 842"), NNN recorded Right-Of-Use ("ROU") assets and operating lease liabilities as lessee under operating leases. In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of COVID-19. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and instead, treat the concession as if it was a part of the existing contract. This guidance is only applicable to COVID-19 related lease concessions that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. NNN elected to make this policy election for COVID-19 lease concessions, including the rent deferral lease amendments effective during the year ended December 31, 2020 and the quarter ended March 31, 2021. In accordance with ASC 842, NNN reviews the collectability of its lease payments on an ongoing basis. NNN considers collectability indicators when analyzing accounts receivable (and accrued rent) and historical bad debt levels, tenant credit-worthiness and current economic trends, all of which assists in evaluating the probability of outstanding and future lease payment collections. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected recovery of pre-petition and post-petition bankruptcy claims. At the point NNN deems the collection of lease payments not probable, previously recognized rental revenue and any related accrued rent is reversed and, subsequently, any lease revenue is only recognized when cash receipts are received. As a result of the review of lease payments collectability, no outstanding receivables and related accrued rent were written off during the quarter ended March 31, 2021 and no tenants were reclassified as cash basis for accounting purposes. NNN includes an allowance for doubtful accounts in rental income on the Consolidated Statements of Income and Comprehensive Income. As of March 31, 2021, approximately six percent of total Properties, and approximately eight percent of aggregate gross leasable area held in the Property Portfolio, was leased to 12 tenants that NNN has determined to recognize revenue on a cash basis. During the quarters ended March 31, 2021 and 2020, NNN recognized $11,314,000 and $203,000, respectively, of rental income from certain tenants for periods following their classification to cash basis for accounting.
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Credit Losses on Financial Instruments | Credit Losses on Financial Instruments – FASB ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326),” (“ASC 326”) requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings. The guidance requires a lifetime credit loss expected at inception and requires pooling of assets, which share similar risk characteristics. NNN is required to evaluate current economic conditions, as well as, make future expectations of economic conditions. In addition, the measurement of the expected credit loss is over the asset’s contractual term.As of March 31, 2021 and December 31, 2020, NNN had mortgages receivable of $2,395,000 and $2,482,000, respectively, included in other assets on the Condensed Consolidated Balance Sheets, net of $153,000 and $158,000 allowance for credit loss, respectively. NNN measures the allowance for credit loss based on the fair value of the collateral and the historical collectability trend analysis over 15 years. |
Debt Costs | Debt Costs – Notes Payable – Debt costs incurred in connection with the issuance of NNN’s notes payable have been deferred and are being amortized to interest expense over the term of the respective debt obligation using the effective interest method. These costs of $33,177,000 and $31,140,000, as of March 31, 2021 and December 31, 2020, respectively, are included in notes payable on the Condensed Consolidated Balance Sheets net of accumulated amortization of $7,543,000 and $9,317,000, respectively. |
Earnings Per Share | Earnings Per Share – Earnings per share have been computed pursuant to the FASB guidance included in Earnings Per Share. The guidance requires classification of the Company’s unvested restricted share units, which carry rights to receive nonforfeitable dividends, as participating securities requiring the two-class method of computing earnings per share. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period. |
Fair Value Measurement | Fair Value Measurement – NNN’s estimates of fair value of financial and non-financial assets and liabilities are based on the framework established in the fair value accounting guidance. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. The guidance describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels: •Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities. •Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques.
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Use of Estimates | Use of Estimates – Additional critical accounting policies of NNN include management’s estimates and assumptions relating to the reporting of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities and are required to prepare the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Significant accounting policies include management’s estimates of the useful lives used in calculating depreciation expense relating to real estate asset purchase accounting for acquisition of real estate subject to a lease, the recoverability of the carrying value of long-lived assets and management's evaluation of the probability of outstanding and future lease payment collections. Actual results could differ from those estimates. |
Organization and Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of NNN's Investment Portfolio | NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and primarily held for investment ("Properties", "Property Portfolio", or individually a "Property").
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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 common share using the two-class method (dollars in thousands):
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Changes in Accumulated Other Comprehensive Income (Loss) | The following table outlines the changes in accumulated other comprehensive income (loss) for the quarter ended March 31, 2021, (dollars in thousands):
(1) Additional disclosure is included in Note 6 – Derivatives. (2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.
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Real Estate (Tables) |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Portfolio | NNN's real estate consisted of the following at (dollars in thousands):
(1)Includes $2,328 and $8,421 in land for Properties under construction at March 31, 2021 and December 31, 2020, respectively.
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Rental Income | NNN recognized the following revenues in rental income (dollars in thousands):
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Intangible Assets, Lease Liabilities, and Related Amortization | In accordance with purchase accounting for the acquisition of real estate subject to a lease, NNN has recorded intangible assets and lease liabilities that consisted of the following at (dollars in thousands):
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Real Estate Held for Sale | Real estate held for sale consisted of the following as of (dollars in thousands):
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Real Estate Dispositions | The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties (dollars in thousands):
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Real Estate Commitments | These construction commitments, as of March 31, 2021, are outlined in the table below (dollars in thousands):
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Stockholders' Equity (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of ATM Program | The following outlines NNN's ATM programs:
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Schedule of Common Stock Issuances Pursuant to Equity Programs | The following table outlines the common stock issuances pursuant to NNN's ATM equity programs for the quarter ended March 31, 2021 (dollars in thousands, except per share data):
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Schedule of Common Stock Issuances Pursuant to DRIP | The following table outlines the common stock issuances pursuant to NNN's DRIP (dollars in thousands):
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Schedule of Dividends Declared and Paid | The following table outlines the dividends declared and paid for each issuance of NNN's stock (dollars in thousands, except per share data):
(1)The 5.200% Series F Cumulative Redeemable Preferred Stock (the "Series F Preferred Stock") has no maturity date and will remain outstanding unless redeemed by NNN. The earliest redemption date for the Series F Preferred Stock is October 2021.
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Derivatives (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table outlines NNN's terminated derivatives which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt (dollars in thousands):
(1) The amount reported in accumulated other comprehensive income will be reclassified to interest expense as interest payments are made on the related notes payable.
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Organization and Summary of Significant Accounting Policies (Summary of NNN's Investment Portfolio) (Details) ft² in Thousands |
3 Months Ended |
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Mar. 31, 2021
ft²
property
state
| |
Property Portfolio: | |
Total properties | property | 3,161 |
Gross leasable area (square feet) | ft² | 32,717 |
States | state | 48 |
Weighted average remaining lease term | 10 years 7 months 6 days |
Organization and Summary of Significant Accounting Policies (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Basic and Diluted Earnings: | ||
Net earnings attributable to NNN | $ 56,587 | $ 65,178 |
Less: preferred stock dividends | (4,485) | (4,485) |
Net earnings attributable to common stockholders | 52,102 | 60,693 |
Less: Earnings allocated to unvested restricted shares | (151) | (160) |
Net earnings used in basic and diluted earnings per share | $ 51,951 | $ 60,533 |
Basic and Diluted Weighted Average Shares Outstanding: | ||
Weighted average number of shares outstanding (in shares) | 175,391,723 | 171,827,815 |
Less: Unvested restricted shares (in shares) | (288,658) | (311,553) |
Less: Unvested contingent restricted shares (in shares) | (513,765) | (477,245) |
Weighted average number of shares outstanding used in basic earnings per share (in shares) | 174,589,300 | 171,039,017 |
Other dilutive securities (in shares) | 125,317 | 192,811 |
Weighted average number of shares outstanding used in diluted earnings per share (in shares) | 174,714,617 | 171,231,828 |
Series F Preferred Stock | ||
Basic and Diluted Earnings: | ||
Less: preferred stock dividends | $ (4,485) | $ (4,485) |
Organization and Summary of Significant Accounting Policies (Changes in AOCI) (Details) $ in Thousands |
3 Months Ended |
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Mar. 31, 2021
USD ($)
| |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balances | $ 4,319,304 |
Balances | 4,287,839 |
AOCI, cash flow hedges | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balances | (16,445) |
Reclassifications from accumulated other comprehensive income to net earnings | 1,368 |
Net other comprehensive income (loss) | 1,368 |
Balances | $ (15,077) |
Organization and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
tenant
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Accounting Policies [Line Items] | |||
Interest costs capitalized | $ 63 | $ 466 | |
Percentage of total properties for which revenue recognized on cash basis | 6.00% | ||
Percentage of aggregate gross leasable area for which revenue recognized on cash basis | 8.00% | ||
Percentage of tenants for which revenue recognized on cash basis | tenant | 12 | ||
Revenue recognized on cash basis | $ 11,314 | $ 203 | |
Mortgage loan | |||
Accounting Policies [Line Items] | |||
Mortgage receivable | 2,395 | $ 2,482 | |
Allowance for credit loss | $ 153 | 158 | |
Collectability analysis, period used | 15 years | ||
Minimum | |||
Accounting Policies [Line Items] | |||
Initial lease term | 10 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Initial lease term | 20 years | ||
Notes Payable to Banks | |||
Accounting Policies [Line Items] | |||
Debt costs | $ 33,177 | 31,140 | |
Debt costs accumulated amortization | $ 7,543 | $ 9,317 |
Real Estate (Key Information for Leases) (Details) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2021
USD ($)
tenant
|
Dec. 31, 2020
USD ($)
|
|
Lessor, Lease, Description [Line Items] | ||
Weighted average remaining lease term | 10 years 7 months 6 days | |
Leases classified as operating leases | tenant | 3,150 | |
Leases classified as direct financing leases | tenant | 6 | |
Rent deferral, year ending December 31, 2021 | $ 51,269 | |
Rent deferral, year ending December 31, 2020 | $ 4,677 | |
Deferred rent repaid | 10,817 | $ 3,259 |
Deferred rent to be repaid during year ended December 31, 2021 | $ 21,107 | |
Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Initial lease term | 10 years | |
Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Initial lease term | 20 years |
Real Estate (Real Estate Subject to Operating Leases) (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Property Subject to or Available for Operating Lease [Line Items] | ||
Land and improvements | $ 2,501,471 | $ 2,489,243 |
Buildings and improvements | 6,098,338 | 6,009,797 |
Leasehold interests | 355 | 355 |
Real estate subject to operating leases, gross | 8,600,164 | 8,499,395 |
Less accumulated depreciation and amortization | (1,358,764) | (1,317,407) |
Real estate subject to operating leases, net, before work in progress | 7,241,400 | 7,181,988 |
Work in progress for buildings and improvements | 4,309 | 26,673 |
Accounted for using the operating method | 7,245,709 | 7,208,661 |
Accounted for using the direct financing method | 3,904 | 3,994 |
Real estate portfolio | 7,249,613 | 7,212,655 |
Asset under construction | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Land and improvements | $ 2,328 | $ 8,421 |
Real Estate (Rental Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Lease Income [Abstract] | |||
Rental income from operating leases | $ 173,583 | $ 168,733 | |
Earned income from direct financing leases | 158 | 164 | |
Percentage rent | 104 | 403 | |
Real estate expense reimbursement from tenants | 5,353 | 5,247 | |
Total lease income | 179,198 | 174,547 | |
Rental income accrued during period | (8,445) | $ (177) | |
Straight-line accrued rent from rent deferral repayments | 9,385 | ||
Accrued rental income | 45,450 | $ 53,958 | |
Accrued rental income allowance | $ 6,030 | $ 6,947 |
Real Estate (Intangible Assets, Lease Liabilities, and Related Amortization) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Intangible lease liabilities (included in other liabilities): | |||
Below-market in-place leases | $ 41,077 | $ 41,101 | |
Less: accumulated amortization | (26,559) | (26,486) | |
Below-market in-place leases, net | 14,518 | 14,615 | |
Above-market in-place leases | |||
Intangible lease assets (included in other assets): | |||
Leases | 15,408 | 15,474 | |
Less: accumulated amortization | (10,327) | (10,271) | |
Leases, net | 5,081 | 5,203 | |
In-place leases | |||
Intangible lease assets (included in other assets): | |||
Leases | 121,486 | 118,416 | |
Less: accumulated amortization | (68,986) | (68,695) | |
Leases, net | 52,500 | $ 49,721 | |
Intangible lease liabilities (included in other liabilities): | |||
Amortization expense, in-place leases | 1,800 | $ 2,395 | |
Above-market and below-market in-place leases | |||
Intangible lease liabilities (included in other liabilities): | |||
Amortization expense, above- and below-market leases | $ 162 | $ 220 |
Real Estate (Real Estate Held for Sale) (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
property
|
Dec. 31, 2020
USD ($)
property
|
|
Real Estate [Abstract] | ||
Number of properties classified as held for sale | property | 5 | 5 |
Number of properties sold | property | 4 | |
Land and improvements | $ 4,313 | $ 3,841 |
Building and improvements | 5,480 | 4,971 |
Real estate held-for-sale | 9,793 | 8,812 |
Less accumulated depreciation and amortization | (2,316) | (2,536) |
Less impairment | (979) | (605) |
Real estate held for sale | $ 6,498 | $ 5,671 |
Real Estate (Real Estate Dispositions) (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
property
|
Mar. 31, 2020
USD ($)
property
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net gain | $ | $ 4,281 | $ 12,770 |
Assets Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of sold properties | property | 11 | 14 |
Real Estate (Real Estate Commitments) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
property
| |
Real Estate [Abstract] | |
Number of properties | property | 8 |
Period for improvements to construction commitments | 12 months |
Total commitment | $ 12,077 |
Less amount funded | 6,637 |
Remaining commitment | $ 5,440 |
Real Estate (Real Estate Impairments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Lessor, Lease, Description [Line Items] | ||
Impairment losses – real estate, net of recoveries | $ 2,131 | $ 5,513 |
Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Initial lease term | 10 years | |
Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Initial lease term | 20 years |
Line of Credit Payable (Details) - Line of Credit |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Line of Credit Facility [Line Items] | |
Revolving credit facility borrowing capacity | $ 900,000,000 |
Revolving credit facility weighted average outstanding balance | 0 |
Option to increase facility size | 1,600,000,000 |
Line of credit payable | 0 |
Line of credit facility available for future borrowings | $ 900,000,000 |
LIBOR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.875% |
Notes Payable (Details) |
1 Months Ended | 3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
instrument
|
Jun. 30, 2019
instrument
|
Sep. 30, 2018
USD ($)
|
Jun. 30, 2018
instrument
|
Dec. 31, 2017
instrument
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Oct. 31, 2015
USD ($)
instrument
|
May 31, 2014
USD ($)
instrument
|
|
Debt Instrument [Line Items] | |||||||||||
Loss deferred in other comprehensive income | $ 0 | $ 7,617,000 | |||||||||
Proceeds from notes payable | 441,594,000 | 692,646,000 | |||||||||
Payment of debt issuance costs | 5,145,000 | 6,397,000 | |||||||||
Payment of make-whole premium | 21,328,000 | $ 16,679,000 | |||||||||
Forward Swap | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of interest rate derivatives terminated | instrument | 3 | 2 | 2 | 2 | 4 | 3 | |||||
Aggregate notional amount | $ 200,000,000 | $ 250,000,000 | $ 250,000,000 | $ 180,000,000 | $ 300,000,000 | $ 225,000,000 | |||||
2030 Notes | Loans Payable | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 450,000,000 | $ 450,000,000 | |||||||||
Stated interest rate | 3.50% | 3.50% | |||||||||
Aggregate purchase price | $ 441,594,000 | $ 441,594,000 | |||||||||
Discount | $ 8,406,000 | $ 8,406,000 | |||||||||
Effective Rate | 3.602% | 3.602% | |||||||||
Proceeds from notes payable | $ 436,417,000 | ||||||||||
Payment of debt issuance costs | $ 5,177,000 | ||||||||||
2022 Notes | Loans Payable | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 3.30% | 3.30% | |||||||||
Notes payable redeemed | $ 350,000,000 | ||||||||||
Redemption price, percent of principal amount | 100.00% | ||||||||||
Payment of make-whole premium | $ 21,328,000 |
Stockholders' Equity (DRIP) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Feb. 28, 2018 |
|
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 375,000,000 | 375,000,000 | ||
Net proceeds | $ 1,882 | $ 696 | ||
DRIP | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 6,000,000 | |||
Shares of common stock (in shares) | 15,769 | 12,528 | ||
Net proceeds | $ 569 | $ 696 |
Stockholders' Equity (ATM Program) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Class of Stock [Line Items] | |||
Total allowable shares (in shares) | 375,000,000 | 375,000,000 | |
Total shares issued (in shares) | 175,579,683 | 175,232,971 | |
Net proceeds | $ 1,882 | $ 696 | |
Stock issuance costs | $ 5,145 | $ 6,397 | |
ATM equity programs | |||
Class of Stock [Line Items] | |||
Shares of common stock (in shares) | 30,000 | ||
Average price per share (net) (in dollars per share) | $ 38.59 | ||
Net proceeds | $ 1,158 | ||
Stock issuance costs | $ 75 | ||
2020 ATM | |||
Class of Stock [Line Items] | |||
Total allowable shares (in shares) | 17,500,000 | ||
Total shares issued (in shares) | 1,599,304 | ||
2018 ATM | |||
Class of Stock [Line Items] | |||
Total allowable shares (in shares) | 12,000,000 | ||
Total shares issued (in shares) | 11,272,034 |
Stockholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Apr. 30, 2021 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Class of Stock [Line Items] | |||
Preferred stock dividends | $ 4,485 | $ 4,485 | |
Common stock dividends | $ 90,848 | $ 88,148 | |
Common stock dividends per share (in dollars per share) | $ 0.5200 | $ 0.5150 | |
Common stock dividends declared (in dollars per share) | $ 0.5200 | $ 0.5150 | |
Subsequent event | |||
Class of Stock [Line Items] | |||
Common stock dividends declared (in dollars per share) | $ 0.5200 | ||
Series F Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock dividends | $ 4,485 | $ 4,485 | |
Preferred stock dividends per depositary share (in dollars per share) | $ 0.3250 | $ 0.3250 | |
Dividend rate | 5.20% | 5.20% |
Derivatives (Terminated Derivatives) (Details) - Forward Swap |
Mar. 31, 2020
USD ($)
instrument
|
Jun. 30, 2019
instrument
|
Sep. 30, 2018
USD ($)
|
Jun. 30, 2018
instrument
|
Dec. 31, 2017
instrument
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Oct. 31, 2015
USD ($)
instrument
|
May 31, 2014
USD ($)
instrument
|
---|---|---|---|---|---|---|---|---|---|
Derivative [Line Items] | |||||||||
Number of interest rate derivatives terminated | instrument | 3 | 2 | 2 | 2 | 4 | 3 | |||
Aggregate Notional Amount | $ 200,000,000 | $ 250,000,000 | $ 250,000,000 | $ 180,000,000 | $ 300,000,000 | $ 225,000,000 | |||
Liability Fair Value When Terminated | 13,141,000 | 7,690,000 | 13,369,000 | 6,312,000 | |||||
Asset Fair Value When Terminated | (4,080,000) | (13,352,000) | |||||||
Fair Value Deferred In Other Comprehensive Income | $ 13,141,000 | $ (4,080,000) | $ 7,688,000 | $ (13,345,000) | $ 13,369,000 | $ 6,312,000 |
Derivatives (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Derivative [Line Items] | ||||
Stockholders' equity | $ (4,287,839) | $ (4,300,935) | $ (4,319,304) | $ (4,331,682) |
Reclassification to interest expense | (1,368) | $ (383) | ||
Interest rate cash flow hedge gain (loss) to be reclassified over next 12 months, net | (2,271) | |||
AOCI, cash flow hedges | ||||
Derivative [Line Items] | ||||
Stockholders' equity | $ 15,077 | $ 16,445 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Financial Instruments, Owned, at Fair Value [Abstract] | ||
Fair value of notes payable | $ 3,502,237 | $ 3,532,908 |
Subsequent Events (Details) - Subsequent event |
Apr. 28, 2021 |
---|---|
Subsequent Event [Line Items] | |
Percent of rent collected for previous quarter | 97.00% |
Percent of rent collected for current month | 98.00% |
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