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Real Estate (Tables)
 12 Months Ended
Dec. 31, 2024
Real Estate [Abstract]  
Summary of Real Estate Subject to Operating Leases

Real Estate Portfolio. NNN's real estate consisted of the following at December 31 (dollars in thousands):

 

 

 

2024

 

 

2023

 

Land and improvements (1)

 

$

2,919,976

 

 

$

2,878,400

 

Buildings and improvements

 

 

7,805,939

 

 

 

7,368,873

 

Leasehold interests

 

 

355

 

 

 

355

 

 

 

10,726,270

 

 

 

10,247,628

 

Less accumulated depreciation and amortization

 

 

(2,065,316

)

 

 

(1,863,451

)

 

 

8,660,954

 

 

 

8,384,177

 

Work in progress and improvements

 

 

82,411

 

 

 

144,068

 

Accounted for using the operating method

 

 

8,743,365

 

 

 

8,528,245

 

Accounted for using the direct financing method

 

 

2,520

 

 

 

3,033

 

Classified as held for sale(2)

 

 

283

 

 

 

4,573

 

 

 

$

8,746,168

 

 

$

8,535,851

 

 

(1)
Includes $34,356 and $96,464 in land for Properties under construction as of December 31, 2024 and 2023, respectively.
(2)
As of December 31, 2024, two Properties were classified as held for sale. The property classified as held for sale as of December 31, 2023 was sold during the year ended December 31, 2024.
Rental Income, Operating Leases

NNN recognized the following revenues in rental income for the years ended December 31 (dollars in thousands):

 

 

 

2024

 

 

2023

 

 

2022

 

Rental income from operating leases

 

$

846,653

 

 

$

805,136

 

 

$

751,680

 

Earned income from direct financing leases

 

 

468

 

 

 

560

 

 

 

595

 

Percentage rent

 

 

1,536

 

 

 

1,631

 

 

 

1,541

 

Rental revenues

 

 

848,657

 

 

 

807,327

 

 

 

753,816

 

Real estate expense reimbursement from tenants

 

 

18,811

 

 

 

18,763

 

 

 

17,802

 

 

$

867,468

 

 

$

826,090

 

 

$

771,618

 
Undiscounted Cash Flows to be Received on Noncancellable Operating Leases

The following is a schedule of undiscounted cash flows to be received on noncancellable operating leases as of December 31, 2024 (dollars in thousands):

2025

 

$

807,969

 

2026

 

 

773,249

 

2027

 

 

730,349

 

2028

 

 

677,780

 

2029

 

 

639,162

 

Thereafter

 

 

4,488,602

 

 

$

8,117,111

 
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 December 31 (dollars in thousands):

 

 

 

2024

 

 

2023

 

Intangible lease assets (included in other assets):

 

 

 

 

 

 

Above-market in-place leases

 

$

14,753

 

 

$

15,297

 

Less: accumulated amortization

 

 

(12,159

)

 

 

(12,080

)

Above-market in-place leases, net

 

$

2,594

 

 

$

3,217

 

 

 

 

 

 

 

In-place leases

 

$

116,549

 

 

$

122,802

 

Less: accumulated amortization

 

 

(85,741

)

 

 

(85,332

)

In-place leases, net

 

$

30,808

 

 

$

37,470

 

 

 

 

 

 

 

Intangible lease liabilities (included in other liabilities):

 

 

 

 

 

 

Below-market in-place leases

 

$

39,869

 

 

$

41,244

 

Less: accumulated amortization

 

 

(28,946

)

 

 

(29,117

)

Below-market in-place leases, net

 

$

10,923

 

 

$

12,127

 

The following is a schedule of the amortization of acquired above-market and below-market in-place lease intangibles and the amortization of the in-place lease intangibles as of December 31, 2024 (dollars in thousands):

 

 

 

Above-Market
and Below-
Market
In-Place
Lease
Intangibles(1)

 

 

In-Place Lease
Intangibles(2)

 

2025

 

$

392

 

 

$

5,293

 

2026

 

 

402

 

 

 

4,711

 

2027

 

 

460

 

 

 

3,963

 

2028

 

 

638

 

 

 

3,526

 

2029

 

 

686

 

 

 

3,100

 

Thereafter

 

 

5,751

 

 

 

10,215

 

 

$

8,329

 

 

$

30,808

 

 

 

 

 

 

 

 

Weighted average amortization period (years)

 

 

15

 

 

 

8

 

 

(1)
Recorded as a net increase to rental income over the life of the lease.
(2)
Amortized as an increase to amortization expense.
Gains on Dispositions of Properties

The following table summarizes the properties sold and the corresponding gain recognized on the disposition of properties for the years ended December 31 (dollars in thousands):

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

# of Sold
Properties

 

 

Net
Gain

 

 

# of Sold
Properties

 

 

Net
Gain

 

 

# of Sold
Properties

 

 

Net
Gain

 

Gain on disposition of real estate

 

 

41

 

 

$

42,290

 

 

 

45

 

 

$

47,485

 

 

 

33

 

 

$

17,443

 
Remaining Funding Commitments These construction commitments, at December 31, 2024, are outlined in the table below (dollars in thousands):

 

Total commitment(1)

 

$

165,550

 

Less amount funded

 

 

(116,767

)

Remaining commitment

 

$

48,783

 

 

(1)
Includes land, construction costs, tenant improvements, lease costs, capitalized interest and third-party costs.
Real Estate Impairments

As a result of NNN's review of long-lived real estate assets, including identifiable intangible assets, NNN recognized real estate impairments, net of recoveries as summarized in the table below (dollars in thousands):

 

 

2024

 

 

2023

 

 

2022

 

Total real estate impairments, net of recoveries

 

$

6,632

 

 

$

5,990

 

 

$

8,309

 

Number of Properties:

 

 

 

 

 

 

 

 

 

Vacant

 

 

4

 

 

 

11

 

 

 

9

 

Occupied

 

 

9

 

 

 

3

 

 

 

7