National Retail Properties (NNN) 10-Q 3 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	Apr. 28, 2022
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-11290
Entity Registrant Name	NATIONAL RETAIL PROPERTIES, INC.
Entity Central Index Key	0000751364
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	56-1431377
Entity Address, Address Line One	450 South Orange Avenue, Suite 900
Entity Address, City or Town	Orlando
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32801
City Area Code	407
Local Phone Number	265-7348
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	NNN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		175,910,695

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Real estate portfolio	$ 7,591,643	$ 7,444,289
Real estate held for sale	562	5,557
Cash and cash equivalents	53,736	171,322
Receivables, net of allowance of $717 and $782, respectively	2,816	3,154
Accrued rental income, net of allowance of $4,351 and $4,587, respectively	30,727	31,942
Debt costs, net of accumulated amortization of $19,946 and $19,377, respectively	6,921	7,443
Other assets	85,408	87,347
Total assets	7,771,813	7,751,054
Liabilities:
Mortgages payable, including unamortized premium and net of unamortized debt costs	10,515	10,697
Notes payable, net of unamortized discount and unamortized debt costs	3,736,781	3,735,769
Accrued interest payable	58,022	23,923
Other liabilities	68,749	79,002
Total liabilities	3,874,067	3,849,391
Stockholders’ equity:
Common stock, $0.01 par value. Authorized 375,000,000 shares; 175,810,465 and 175,635,792 shares issued and outstanding, respectively	1,759	1,757
Capital in excess of par value	4,669,590	4,662,714
Accumulated deficit	(759,232)	(747,853)
Accumulated other comprehensive income (loss)	(14,373)	(14,956)
Total stockholders’ equity of NNN	3,897,744	3,901,662
Noncontrolling interests	2	1
Total equity	3,897,746	3,901,663
Total liabilities and equity	$ 7,771,813	$ 7,751,054

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Receivables allowance	$ 717	$ 782
Accrued rental income allowance	4,351	4,587
Debt costs accumulated amortization	$ 19,946	$ 19,377
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	175,810,465	175,635,792
Common stock, shares authorized (in shares)	375,000,000	375,000,000
Common stock, shares outstanding (in shares)	175,810,465	175,635,792

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Rental income	$ 189,763	$ 179,198
Interest and other income from real estate transactions	516	580
Total revenues	190,279	179,778
Operating expenses:
General and administrative	11,042	11,748
Real estate	7,198	7,725
Depreciation and amortization	52,680	49,980
Leasing transaction costs	88	38
Impairment losses – real estate, net of recoveries	1,632	2,131
Executive retirement costs	3,594	0
Total operating expenses	76,234	71,622
Gain on disposition of real estate	3,992	4,281
Earnings from operations	118,037	112,437
Other expenses (revenues):
Interest and other income	(35)	(65)
Interest expense	36,699	34,587
Loss on early extinguishment of debt	0	21,328
Total other expenses (revenues)	36,664	55,850
Net earnings	81,373	56,587
Earnings attributable to noncontrolling interests	(1)	0
Net earnings attributable to NNN	81,372	56,587
Series F preferred stock dividends	0	(4,485)
Net earnings attributable to common stockholders	$ 81,372	$ 52,102
Net earnings per share of common stock:
Basic (in dollars per share)	$ 0.46	$ 0.30
Diluted (in dollars per share)	$ 0.46	$ 0.30
Weighted average number of common shares outstanding:
Basic (in shares)	174,772,243	174,589,300
Diluted (in shares)	174,911,213	174,714,617
Other comprehensive income:
Net earnings attributable to NNN	$ 81,372	$ 56,587
Amortization of interest rate hedges	583	1,368
Comprehensive income attributable to NNN	81,955	57,955
Comprehensive earnings attributable to noncontrolling interests	1	0
Total comprehensive income	$ 81,956	$ 57,955

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Total	Series F Preferred Stock	Total  Stockholders’ Equity of NNN	Total  Stockholders’ Equity of NNNSeries F Preferred Stock	Preferred StockSeries F Preferred Stock	Common Stock	Capital in Excess of Par Value	Accumulated Deficit	Accumulated DeficitSeries F Preferred Stock	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Balances at Dec. 31, 2020	$ 4,319,304,000		$ 4,319,300,000		$ 345,000,000	$ 1,753,000	$ 4,633,771,000	$ (644,779,000)		$ (16,445,000)	$ 4,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	56,587,000		56,587,000					56,587,000
Dividends declared and paid:
Preferred stock dividends declared and paid		$ (4,485,000)		$ (4,485,000)					$ (4,485,000)
Common stock dividends declared and paid	(90,270,000)		(90,270,000)				578,000	(90,848,000)
Issuance of common stock:
Director compensation	267,000		267,000				267,000
Stock purchase plan	70,000		70,000				70,000
ATM equity program	1,234,000		1,234,000			1,000	1,233,000
Restricted shares, net of forfeitures						3,000	(3,000)
Stock issuance costs	(156,000)		(156,000)				(156,000)
Amortization of deferred compensation	3,920,000		3,920,000				3,920,000
Amortization of interest rate hedges	1,368,000		1,368,000							1,368,000
Balances at Mar. 31, 2021	4,287,839,000		4,287,835,000		$ 345,000,000	1,757,000	4,639,680,000	(683,525,000)		(15,077,000)	4,000
Balances at Dec. 31, 2021	3,901,663,000		3,901,662,000			1,757,000	4,662,714,000	(747,853,000)		(14,956,000)	1,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	81,373,000		81,372,000					81,372,000			1,000
Dividends declared and paid:
Common stock dividends declared and paid	(92,055,000)		(92,055,000)				696,000	(92,751,000)
Issuance of common stock:
Director compensation	305,000		305,000				305,000
Stock purchase plan	52,000		52,000				52,000
Restricted shares, net of forfeitures						2,000	(2,000)
Stock issuance costs	(65,000)		(65,000)				(65,000)
Amortization of deferred compensation	5,890,000		5,890,000				5,890,000
Amortization of interest rate hedges	583,000		583,000							583,000
Balances at Mar. 31, 2022	$ 3,897,746,000		$ 3,897,744,000			$ 1,759,000	$ 4,669,590,000	$ (759,232,000)		$ (14,373,000)	$ 2,000

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Common stock dividends declared and paid (in dollars per share)	$ 0.5300	$ 0.5200
Issuance of common stock - Director compensation (in shares)	8,429	8,324
Issuance of common stock - Stock purchase plan (in shares)	1,173	1,715
Issuance of common stock - ATM equity program (in shares)		30,000
Issuance of common stock - restricted shares, net (in shares)	153,300	287,957
Series F Preferred Stock
Preferred stock dividends declared and paid (in dollars per share)		$ 0.3250

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)		Mar. 31, 2021USD ($)
Cash flows from operating activities:
Net earnings	$ 81,373		$ 56,587
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	52,680		49,980
Impairment losses – real estate, net of recoveries	1,632		2,131
Loss on early extinguishment of debt	0		21,328
Amortization of notes payable discount	415		993
Amortization of debt costs	1,171		1,840
Amortization of mortgages payable premium	(21)		(21)
Amortization of interest rate hedges	583		1,368
Gain on disposition of real estate	(3,992)		(4,281)
Performance incentive plan expense	6,246		4,318
Performance incentive plan payment	(103)		(721)
Change in operating assets and liabilities, net of assets acquired and liabilities assumed:
Decrease (increase) in receivables	338		(273)
Decrease in accrued rental income	1,096		8,332
Decrease (increase) in other assets	(115)		1,067
Increase in accrued interest payable	34,099		25,267
Decrease in other liabilities	(11,043)		(6,438)
Other	(21)		(307)
Net cash provided by operating activities	164,338		161,170
Cash flows from investing activities:
Proceeds from the disposition of real estate	20,315		18,067
Additions to real estate accounted for using the operating method	(209,483)		(106,490)
Principal payments received on mortgages and notes receivable	102		93
Other	(577)		(182)
Net cash used in investing activities	(189,643)		(88,512)
Cash flows from financing activities:
Repayment of mortgages payable	(165)		(156)
Proceeds from Notes Payable	0		441,594
Repayments of Notes Payable	0		350,000
Payment for early extinguishment of debt	0		(21,328)
Payment of debt issuance costs	(48)		(5,145)
Proceeds from issuance of common stock	748		1,882
Stock issuance costs	(65)		(177)
Payment of common stock dividends	(92,751)		(90,848)
Net cash used in financing activities	(92,281)		(28,663)
Net increase (decrease) in cash, cash equivalents and restricted cash	(117,586)		43,995
Cash, cash equivalents and restricted cash at beginning of period	171,322	[1]	267,236	[1]
Cash, cash equivalents and restricted cash at end of period	53,736	[1]	311,231	[1]
Supplemental disclosure of cash flow information:
Interest paid, net of amount capitalized	550		5,203
Supplemental disclosure of noncash investing and financing activities:
Change in other comprehensive income	583		1,368
Work in progress accrual balance	8,914		4,739
Restricted cash and cash held in escrow	0		0
Series F Preferred Stock
Cash flows from financing activities:
Payment of Series F preferred stock dividends	$ 0		$ (4,485)
[1]	Cash, cash equivalents and restricted cash is the aggregate of cash and cash equivalents and restricted cash and cash held in escrow from the Condensed Consolidated Balance Sheets. NNN had no restricted cash and cash held in escrow at March 31, 2022 and 2021 .

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	Note 1 – 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") . March 31, 2022 Property Portfolio: Total properties 3,271 Gross leasable area (square feet) 33,545,000 States 48 Weighted average remaining lease term (years) 10.6 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. 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, 2022, may not be indicative of the results that may be expected for the year ending December 31, 2022. See "Note 8 – Subsequent Events." Amounts as of December 31, 2021, 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, 2021. COVID-19 Pandemic – During 2021 and 2020, NNN and its tenants were impacted by the novel strain of coronavirus and its variants ("COVID-19") pandemic which resulted in the loss of revenue for certain tenants and challenged their ability to pay rent. As a result, NNN 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 $ 98,000 and $ 63,000 in capitalized interest during the development period for the quarters ended March 31, 2022 and 2021, 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 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 renewal 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 – NNN records its leases on the Property Portfolio in accordance with FASB Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," ("ASC 842"). In addition, NNN recorded right-of-use assets and operating lease liabilities as lessee under operating leases in accordance with ASC 842. NNN's real estate is generally leased to tenants on a net lease basis, whereby the tenant is responsible for all operating expenses relating to the Property, including property taxes, insurance, maintenance, repairs and capital expenditures. The leases on the Property Portfolio are predominantly classified as operating leases and are accounted for as follows: Operating method – Properties with leases accounted for using the operating method are recorded at the cost of the real estate and depreciated on the straight-line method over their estimated remaining useful lives, which generally range from 20 to 40 years for buildings and improvements and 15 years for land improvements. Leasehold interests are amortized on the straight-line method over the terms of their respective leases. Revenue is recognized as rentals are earned and expenses (including depreciation) are charged to operations as incurred. When scheduled rentals vary during the lease term, income is recognized on a straight-line basis so as to produce a constant periodic rent over the term of the lease. Accrued rental income is the aggregate difference between the scheduled rents which vary during the lease term and the income recognized on a straight-line basis. 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 years ended December 31, 2021 and 2020. During 2021 and 2020, NNN entered into rent deferral lease amendments with certain tenants, for an aggregate $ 4,758,000 and $ 52,019,000 of rent originally due for the years ending December 31, 2021 and 2020, respectively. The rent deferral lease amendments require the deferred rents to be repaid at a later time during the lease term. Approximately $ 31,776,000 of deferred rent was repaid in 2021 and approximately $ 4,063,000 of deferred rent was repaid during the quarter ended March 31, 2022. An additional $ 10,463,000 is due in 2022, with substantially all remaining deferred rent coming due periodically by December 31, 2023. Collectability – In accordance with ASC 842, NNN reviews the collectability of its rental income 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 rental income 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 rental income not probable, uncollected previously recognized rental revenue and any related accrued rent are reversed and, subsequently, any rental income is only recognized when cash receipts are received. NNN includes an allowance for doubtful accounts in rental income on the Consolidated Statements of Income and Comprehensive Income. As a result of the review of rental income collectability, no outstanding receivables and related accrued rent were written off during the quarters ended March 31, 2022 and 2021, and no tenants were reclassified as cash basis for accounting purposes. The following table summarizes those tenants classified as cash basis for accounting purposes as of: March 31, 2022 2021 Number of tenants 9 12 Cash basis tenants as a percent of: Total properties 5.4 % 6.1 % Total gross leasable area 7.0 % 7.7 % During the quarters ended March 31, 2022 and 2021, NNN recognized $ 15,786,000 and $ 11,314,000 , respectively, of rental income from certain tenants previously classified as cash basis for accounting. During the quarter ended March 31, 2022, two tenants were reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors. The impact of the reclassification was immaterial. Impairment – Real Estate – NNN periodically assesses its long-lived real estate assets for possible impairment whenever certain events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. These indicators include, but are not limited to: changes in real estate market conditions, the ability of NNN to re-lease properties that are currently vacant or become vacant, properties reclassified as held for sale, persistent vacancies greater than one year, and properties leased to tenants in bankruptcy. 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, with cash flows provided over the entire term. NNN generally intends to hold these assets for the long-term, therefore, a temporary change in cash flows due to COVID-19 alone was determined not to 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. NNN had mortgages receivable of $ 1,927,000 and $ 2,023,000 included in other assets on the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 , respectively, net of $ 123,000 and $ 129,000 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 – Line of Credit Payable – Debt costs incurred in connection with NNN's $ 1,100,000,000 unsecured revolving line of credit have been deferred and are being amortized to interest expense over the term of the loan commitment using the straight-line method, which approximates the effective interest method. NNN has recorded debt costs associated with the credit facility as an asset, in debt costs on the Condensed Consolidated Balance Sheets. 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 $ 38,145,000 , as of March 31, 2022 and December 31, 2021, are included in notes payable on the Condensed Consolidated Balance Sheets net of accumulated amortization of $ 9,859,000 and $ 9,262,000 , respectively. Revenue Recognition – Rental revenues for properties under construction commence upon completion of construction of the leased asset and delivery of the leased asset to the tenant. Rental revenues for non-development real estate assets are recognized when earned in accordance with ASC 842 , based on the terms of the lease of the leased asset. Lease termination fees are recognized when collected subsequent to the related lease that is cancelled and NNN no longer has continuing involvement with the former tenant with respect to that property. The core principle of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain contracts are excluded from ASU 2014-09, including lease contracts within the scope of ASC 842. NNN determined the key revenue stream impacted by ASU 2014-09 is gain on disposition of real estate reported on the Condensed Consolidated Statements of Income and Comprehensive Income. In accordance with ASU 2014-09, NNN evaluates any separate contracts or performance obligations to determine proper timing and/or amount of revenue recognition, as well as, transaction price allocation. 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): Quarter Ended March 31, 2022 2021 Basic and Diluted Earnings: Net earnings attributable to NNN $ 81,372 $ 56,587 Less: Series F preferred stock dividends — ( 4,485 ) Net earnings available to NNN’s common stockholders 81,372 52,102 Less: Earnings allocated to unvested restricted shares ( 156 ) ( 151 ) Net earnings used in basic and diluted earnings per share $ 81,216 $ 51,951 Basic and Diluted Weighted Average Shares Outstanding: Weighted average number of shares outstanding 175,635,634 175,391,723 Less: Unvested restricted shares ( 294,665 ) ( 288,658 ) Less: Unvested contingent restricted shares ( 568,726 ) ( 513,765 ) Weighted average number of shares outstanding used in basic earnings per share 174,772,243 174,589,300 Other dilutive securities 138,970 125,317 Weighted average number of shares outstanding used in diluted earnings per share 174,911,213 174,714,617 Income Taxes – NNN has made an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, and related regulations. NNN generally will not be subject to federal income tax on income it distributed to stockholders, providing it distributes 100 percent of its REIT taxable income and meets certain other requirements for qualifying as a REIT. For the quarters ended March 31, 2022 and 2021, NNN believes it has qualified as a REIT. Notwithstanding NNN’s qualification for taxation as a REIT, NNN is subject to certain state and local income, franchise and excise taxes. 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, 2022 (dollars in thousands): Gain (Loss) on (1) Beginning balance, December 31, 2021 $ ( 14,956 ) Reclassifications from accumulated other comprehensive income to net earnings 583 (2) Ending balance, March 31, 2022 $ ( 14,373 ) (1) Additional disclosure is included in Note 6 – Derivatives. (2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income. New Accounting Pronouncements – ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”) contains practical expedients for reference rate reform-related activities, including the transition away from the London Interbank Offered Rate ("LIBOR"), that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In 2021, NNN elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. NNN continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. NNN had no derivative financial instruments outstanding as of March 31, 2022 . 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.

Real Estate

Real Estate	3 Months Ended
	Mar. 31, 2022
Real Estate [Abstract]
Real Estate	Note 2 – Real Estate : Real Estate – Portfolio Leases – At March 31, 2022, NNN’s real estate portfolio had a weighted average remaining lease term of 10.6 years and consisted of 3,285 leases classified as operating leases and an additional five leases accounted for as direct financing leases. 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, (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 renewal 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. Real Estate Portfolio – NNN's real estate consisted of the following at (dollars in thousands): March 31, December 31, Land and improvements (1) $ 2,556,405 $ 2,527,483 Buildings and improvements 6,536,540 6,375,583 Leasehold interests 355 355 9,093,300 8,903,421 Less accumulated depreciation and amortization ( 1,517,047 ) ( 1,470,062 ) 7,576,253 7,433,359 Work in progress for buildings and improvements 11,811 7,277 Accounted for using the operating method 7,588,064 7,440,636 Accounted for using the direct financing method 3,579 3,653 $ 7,591,643 $ 7,444,289 (1) Includes $ 8,070 and $ 8,979 in land for Properties under construction at March 31, 2022 and December 31, 2021, respectively. NNN recognized the following revenues in rental income (dollars in thousands): Quarter Ended March 31, 2022 2021 Rental income from operating leases $ 184,311 $ 173,583 Earned income from direct financing leases 151 158 Percentage rent 701 104 Real estate expense reimbursement from tenants 4,600 5,353 $ 189,763 $ 179,198 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 quarters ended March 31, 2022 and 2021 , NNN recognized ($ 1,206,000 ) and ($ 8,445,000 ), respectively, of accrued rental income, net of reserves. Included in accrued rental income are the impacts of the rent deferral lease amendments NNN entered into as a result of the COVID-19 pandemic. During the quarters ended March 31, 2022 and 2021 , NNN recorded ($ 1,780,000 ) and ($ 9,381,000 ), respectively, of net straight-line accrued rental income related to such amendments. At March 31, 2022 and December 31, 2021 , the balance of accrued rental income was $ 30,727,000 and $ 31,942,000 , respectively, net of allowance of $ 4,351,000 and $ 4,587,000 , 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): March 31, December 31, Intangible lease assets (included in other assets ): Above-market in-place leases $ 15,335 $ 15,335 Less: accumulated amortization ( 10,993 ) ( 10,821 ) Above-market in-place leases, net $ 4,342 $ 4,514 In-place leases $ 121,431 $ 122,069 Less: accumulated amortization ( 74,480 ) ( 73,345 ) In-place leases, net $ 46,951 $ 48,724 Intangible lease liabilities (included in other liabilities ): Below-market in-place leases $ 41,160 $ 41,705 Less: accumulated amortization ( 27,214 ) ( 27,447 ) Below-market in-place leases, net $ 13,946 $ 14,258 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, 2022 and 2021 , were $ 140,000 and $ 162,000 , respectively. The value of in-place leases amortized to expense for the quarters ended March 31, 2022 and 2021 , was $ 1,773,000 and $ 1,800,000 , 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. Real estate held for sale consisted of the following as of (dollars in thousands): March 31, December 31, (1) Land and improvements $ 546 $ 6,440 Building and improvements 1,192 4,313 1,738 10,753 Less accumulated depreciation and amortization ( 714 ) ( 1,331 ) Less impairment ( 462 ) ( 3,865 ) $ 562 $ 5,557 Number of Properties 2 2 (1) Both properties classified as held for sale as of December 31, 2021 were sold during the quarter ended March 31, 2022. Real Estate – Dispositions The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties (dollars in thousands): Quarter Ended March 31, 2022 2021 # of Sold Net # of Sold Net Gain on disposition of real estate 10 $ 3,992 11 $ 4,281 Real Estate – Commitments NNN has committed to fund construction on 13 Properties. The improvements on such Properties are estimated to be completed within 12 months. These construction commitments, as of March 31, 2022, are outlined in the table below (dollars in thousands): Total commitment (1) $ 38,889 Less amount funded 19,881 Remaining commitment $ 19,008 (1) Includes land, construction costs, tenant improvements, lease costs and capitalized interest. Real Estate – Impairments NNN periodically assesses its long-lived real estate assets for possible impairment whenever certain events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. These indicators include, but are not limited to: changes in real estate market conditions, the ability of NNN to re-lease properties that are currently vacant or become vacant, properties reclassified as held for sale, persistent vacancies greater than one year, and properties leased to tenants in bankruptcy. 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, with cash flows provided over the entire term. NNN generally intends to hold these assets for the long-term, therefore, a temporary change in cash flows due to the COVID-19 pandemic alone was determined not to be an indicator of impairment. As a result of NNN's review of long-lived assets, including identifiable intangible assets, NNN recognized real estate impairments, net of recoveries as summarized in the table below (dollars in thousands): Quarter Ended March 31, 2022 2021 Total real estate impairments, net of recoveries $ 1,632 $ 2,131 Number of Properties: Vacant 3 6 Occupied 2 1 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.

Line of Credit Payable

Line of Credit Payable	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Line of Credit Payable	Note 3 – Line of Credit Payable : In June 2021, NNN amended and restated its credit agreement to increase the borrowing capacity under its unsecured revolving credit facility from $ 900,000,000 to $ 1,100,000,000 and amended certain other terms under the former revolving credit facility (as the context requires, the previous and new revolving credit facility, the "Credit Facility"). The Credit Facility had no weighted average outstanding balance during the quarter ended March 31, 2022 . The Credit Facility matures in June 2025, unless the Company exercises its options to extend maturity to June 2026. The Credit Facility bears interest at LIBOR plus 77.5 basis points; however, such interest rate may change pursuant to a tiered interest rate structure based on NNN's debt rating. Additionally, as part of NNN's environmental, social and governance ("ESG") initiative, pricing may be reduced if specified ESG metrics are achieved. The Credit Facility also includes an accordion feature which permits NNN to increase the facility size up to $ 2,000,000,000 , subject to lender approval. In connection with the Credit Facility, loan costs are classified as debt costs on the Condensed Consolidated Balance Sheets. As of March 31, 2022, there was no outstanding balance and $ 1,100,000,000 was available for future borrowings under the Credit Facility, and NNN was in compliance with each of the financial covenants.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2022
Notes Payable [Abstract]
Notes Payable	Note 4 – Notes Payable : In 2021, NNN filed prospectus supplements 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”) and $ 450,000,000 aggregate principal amount of 3.000 % notes due April 2052 (the "2052 Notes" and, together with the 2051 Notes, the "Notes" ). Each note issuance is summarized in the table below (dollar in thousands): Notes Issue Date Principal Discount (1) Net Price Stated Rate Effective Rate (2) Maturity Date 2051 Notes March 2021 $ 450,000 $ 8,406 $ 441,594 3.500 % 3.602 % April 2051 2052 Notes (3) September 2021 450,000 10,422 439,578 3.000 % 3.118 % April 2052 (1) The note discounts are amortized to interest expense over the respective term of each debt obligation using the effective interest method. (2) Includes the effects of the discount at issuance. (3) NNN entered into forward swaps which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt. Upon the issuance of the 2052 Notes, NNN terminated such derivatives, and the resulting fair value was deferred in accumulated other comprehensive income (loss) and is being amortized over the term of the respective notes using the effective interest method. Additional disclosure is included in Note 6 – Derivatives. Each series of Notes is a senior unsecured obligation of NNN and is subordinated to all secured debt of NNN and to the debt and other liabilities of NNN's subsidiaries. Each series of Notes is redeemable at NNN's option, at any time, in whole or in part, at a redemption price equal to (i) the sum of the outstanding principal amount of the notes being redeemed plus accrued interest thereon, up to but not including the redemption date, and (ii) the make-whole amount, if any, as defined in the applicable supplemental indenture related to the notes. In connection with the Notes, NNN incurred debt issuance costs totaling $ 10,144,000 consisting primarily of underwriting discounts and commissions, legal and accounting fees, rating agency fees and printing expenses. Debt issuance costs for all note issuances have been deferred and presented as a reduction to notes payable and are being amortized over the term of the respective notes using the effective interest method. In March 2021, NNN redeemed the $ 350,000,000 3.300 % notes payable that were due in 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 which is included in loss on early extinguishment of debt on the Condensed Consolidated Statement of Income and Comprehensive Income, and (ii) accrued and unpaid interest.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Stockholders' Equity	Note 5 – Stockholders' Equity : Universal Shelf Registration Statement – In August 2020, NNN filed a shelf registration statement with the Securities and Exchange Commission (the "Commission") which was automatically effective and permits the issuance by NNN of an indeterminate amount of debt and equity securities. Preferred Stock – In October 2021, NNN redeemed all outstanding depositary shares ( 13,800,000 ) representing interests in its 5.200 % Series F preferred stock. The Series F preferred stock was redeemed at $ 25.00 per depositary share, plus all accrued and unpaid dividends through, but not including, the redemption date, for an aggregate redemption price of $ 25.111944 per depositary share. The excess carrying amount of the Series F preferred stock redeemed over the cash paid to redeem the Series F preferred stock was $ 10,897,000 , representing issuance costs which is reflected as a reduction to earnings attributable to common stockholders. 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 program: 2020 ATM Established date August 2020 Termination date August 2023 Total allowable shares 17,500,000 Total shares issued as of March 31, 2022 1,599,304 The following table outlines the common stock issuances pursuant to NNN's ATM equity program for the quarter ended March 31, 2021 (dollars in thousands, except per share data): 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. There were no common stock issuances pursuant to NNN's ATM equity program for the quarter ended March 31, 2022. Dividend Reinvestment and Stock Purchase Plan – In February 2021, NNN filed a shelf registration statement that was automatically effective with the Commission for its Dividend Reinvestment and Stock Purchase Plan ("DRIP"), which permits NNN to issue 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): Quarter Ended March 31, 2022 2021 Shares of common stock 17,571 15,769 Net proceeds $ 748 $ 569 Dividends – The following table outlines the dividends declared and paid for each issuance of NNN's stock (dollars in thousands, except per share data): Quarter Ended March 31, 2022 2021 Series F preferred stock (1) : Dividends $ — $ 4,485 Per depositary share — 0.3250 Common stock: Dividends 92,751 90,848 Per share 0.5300 0.5200 (1) The Series F preferred stock was redeemed in October 2021. In April 2022, NNN declared a dividend of $ 0.5300 per share, which is payable in May 2022 to its common stockholders of record as of April 29, 2022 .

Derivatives

Derivatives	3 Months Ended
	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Note 6 – 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 (loss) (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): Notes Payable Terminated Description Aggregate Liability Fair Value (1) 2024 May 2014 Three forward starting swaps $ 225,000 $ 6,312 $ 6,312 2025 October 2015 Four forward starting swaps 300,000 13,369 13,369 2026 December 2016 Two forward starting swaps 180,000 ( 13,352 ) ( 13,345 ) 2027 September 2017 Two forward starting swaps 250,000 7,690 7,688 2028 September 2018 Two forward starting swaps 250,000 ( 4,080 ) ( 4,080 ) 2030 March 2020 Three forward starting swaps 200,000 13,141 13,141 2052 September 2021 Two forward starting swaps 120,000 1,584 1,584 (1) The amount reported in accumulated other comprehensive income (loss) will be reclassified to interest expense as interest payments are made on the related notes payable. As of March 31, 2022 , $ 14,373,000 remained in other comprehensive income (loss) related to NNN’s previously terminated interest rate hedges. During the quarters ended March 31, 2022 and 2021, NNN reclassified out of other comprehensive income (loss) $ 583,000 and $ 1,368,000 , respectively, as an increase in interest expense. Over the next 12 months, NNN estimates that an additional $ 2,398,000 will be reclassified as an increase in interest expense from these terminated derivatives. Amounts reported in accumulated other comprehensive income (loss) 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, 2022 .

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2022
Financial Instruments, Owned, at Fair Value [Abstract]
Fair Value of Financial Instruments	Note 7 – 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, 2022 and December 31, 2021, approximate fair value based upon current market prices of comparable instruments (Level 3). At March 31, 2022 and December 31, 2021, the fair value of NNN’s notes payable excluding unamortized discount and debt costs was $ 3,624,822,000 and $ 4,032,757,000 , respectively, based upon quoted market prices as of the close of the period, which is a Level 1 valuation since NNN's notes payable are publicly traded.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 8 – Subsequent Events : NNN reviewed its subsequent events and transactions that have occurred after March 31, 2022, the date of the interim condensed consolidated balance sheet. There were no reportable subsequent events or transactions.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
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 $ 98,000 and $ 63,000 in capitalized interest during the development period for the quarters ended March 31, 2022 and 2021, 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 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 renewal 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 – NNN periodically assesses its long-lived real estate assets for possible impairment whenever certain events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. These indicators include, but are not limited to: changes in real estate market conditions, the ability of NNN to re-lease properties that are currently vacant or become vacant, properties reclassified as held for sale, persistent vacancies greater than one year, and properties leased to tenants in bankruptcy. 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, with cash flows provided over the entire term. NNN generally intends to hold these assets for the long-term, therefore, a temporary change in cash flows due to COVID-19 alone was determined not to be an indicator of impairment.
Lease Accounting, Lessee	Lease Accounting – NNN records its leases on the Property Portfolio in accordance with FASB Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," ("ASC 842"). In addition, NNN recorded right-of-use assets and operating lease liabilities as lessee under operating leases in accordance with ASC 842. NNN's real estate is generally leased to tenants on a net lease basis, whereby the tenant is responsible for all operating expenses relating to the Property, including property taxes, insurance, maintenance, repairs and capital expenditures. The leases on the Property Portfolio are predominantly classified as operating leases and are accounted for as follows: Operating method – Properties with leases accounted for using the operating method are recorded at the cost of the real estate and depreciated on the straight-line method over their estimated remaining useful lives, which generally range from 20 to 40 years for buildings and improvements and 15 years for land improvements. Leasehold interests are amortized on the straight-line method over the terms of their respective leases. Revenue is recognized as rentals are earned and expenses (including depreciation) are charged to operations as incurred. When scheduled rentals vary during the lease term, income is recognized on a straight-line basis so as to produce a constant periodic rent over the term of the lease. Accrued rental income is the aggregate difference between the scheduled rents which vary during the lease term and the income recognized on a straight-line basis. 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 years ended December 31, 2021 and 2020. During 2021 and 2020, NNN entered into rent deferral lease amendments with certain tenants, for an aggregate $ 4,758,000 and $ 52,019,000 of rent originally due for the years ending December 31, 2021 and 2020, respectively. The rent deferral lease amendments require the deferred rents to be repaid at a later time during the lease term. Approximately $ 31,776,000 of deferred rent was repaid in 2021 and approximately $ 4,063,000 of deferred rent was repaid during the quarter ended March 31, 2022. An additional $ 10,463,000 is due in 2022, with substantially all remaining deferred rent coming due periodically by December 31, 2023. Collectability – In accordance with ASC 842, NNN reviews the collectability of its rental income 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 rental income 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 rental income not probable, uncollected previously recognized rental revenue and any related accrued rent are reversed and, subsequently, any rental income is only recognized when cash receipts are received. NNN includes an allowance for doubtful accounts in rental income on the Consolidated Statements of Income and Comprehensive Income. As a result of the review of rental income collectability, no outstanding receivables and related accrued rent were written off during the quarters ended March 31, 2022 and 2021, and no tenants were reclassified as cash basis for accounting purposes. The following table summarizes those tenants classified as cash basis for accounting purposes as of: March 31, 2022 2021 Number of tenants 9 12 Cash basis tenants as a percent of: Total properties 5.4 % 6.1 % Total gross leasable area 7.0 % 7.7 % During the quarters ended March 31, 2022 and 2021, NNN recognized $ 15,786,000 and $ 11,314,000 , respectively, of rental income from certain tenants previously classified as cash basis for accounting. During the quarter ended March 31, 2022, two tenants were reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors. The impact of the reclassification was immaterial.
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. NNN had mortgages receivable of $ 1,927,000 and $ 2,023,000 included in other assets on the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 , respectively, net of $ 123,000 and $ 129,000 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 – Line of Credit Payable – Debt costs incurred in connection with NNN's $ 1,100,000,000 unsecured revolving line of credit have been deferred and are being amortized to interest expense over the term of the loan commitment using the straight-line method, which approximates the effective interest method. NNN has recorded debt costs associated with the credit facility as an asset, in debt costs on the Condensed Consolidated Balance Sheets. 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 $ 38,145,000 , as of March 31, 2022 and December 31, 2021, are included in notes payable on the Condensed Consolidated Balance Sheets net of accumulated amortization of $ 9,859,000 and $ 9,262,000 , respectively. Revenue Recognition – Rental revenues for properties under construction commence upon completion of construction of the leased asset and delivery of the leased asset to the tenant. Rental revenues for non-development real estate assets are recognized when earned in accordance with ASC 842 , based on the terms of the lease of the leased asset. Lease termination fees are recognized when collected subsequent to the related lease that is cancelled and NNN no longer has continuing involvement with the former tenant with respect to that property. The core principle of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain contracts are excluded from ASU 2014-09, including lease contracts within the scope of ASC 842. NNN determined the key revenue stream impacted by ASU 2014-09 is gain on disposition of real estate reported on the Condensed Consolidated Statements of Income and Comprehensive Income. In accordance with ASU 2014-09, NNN evaluates any separate contracts or performance obligations to determine proper timing and/or amount of revenue recognition, as well as, transaction price allocation.
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. 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): Quarter Ended March 31, 2022 2021 Basic and Diluted Earnings: Net earnings attributable to NNN $ 81,372 $ 56,587 Less: Series F preferred stock dividends — ( 4,485 ) Net earnings available to NNN’s common stockholders 81,372 52,102 Less: Earnings allocated to unvested restricted shares ( 156 ) ( 151 ) Net earnings used in basic and diluted earnings per share $ 81,216 $ 51,951 Basic and Diluted Weighted Average Shares Outstanding: Weighted average number of shares outstanding 175,635,634 175,391,723 Less: Unvested restricted shares ( 294,665 ) ( 288,658 ) Less: Unvested contingent restricted shares ( 568,726 ) ( 513,765 ) Weighted average number of shares outstanding used in basic earnings per share 174,772,243 174,589,300 Other dilutive securities 138,970 125,317 Weighted average number of shares outstanding used in diluted earnings per share 174,911,213 174,714,617
Income Taxes	Income Taxes – NNN has made an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, and related regulations. NNN generally will not be subject to federal income tax on income it distributed to stockholders, providing it distributes 100 percent of its REIT taxable income and meets certain other requirements for qualifying as a REIT. For the quarters ended March 31, 2022 and 2021, NNN believes it has qualified as a REIT. Notwithstanding NNN’s qualification for taxation as a REIT, NNN is subject to certain state and local income, franchise and excise taxes.
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.
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) – The following table outlines the changes in accumulated other comprehensive income (loss) for the quarter ended March 31, 2022 (dollars in thousands): Gain (Loss) on (1) Beginning balance, December 31, 2021 $ ( 14,956 ) Reclassifications from accumulated other comprehensive income to net earnings 583 (2) Ending balance, March 31, 2022 $ ( 14,373 ) (1) Additional disclosure is included in Note 6 – Derivatives. (2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.
New Accounting Pronouncements	New Accounting Pronouncements – ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”) contains practical expedients for reference rate reform-related activities, including the transition away from the London Interbank Offered Rate ("LIBOR"), that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In 2021, NNN elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. NNN continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. NNN had no derivative financial instruments outstanding as of March 31, 2022 .
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 S_3

Organization and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2022
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") . March 31, 2022 Property Portfolio: Total properties 3,271 Gross leasable area (square feet) 33,545,000 States 48 Weighted average remaining lease term (years) 10.6
Summary of tenants classified as cash basis	The following table summarizes those tenants classified as cash basis for accounting purposes as of: March 31, 2022 2021 Number of tenants 9 12 Cash basis tenants as a percent of: Total properties 5.4 % 6.1 % Total gross leasable area 7.0 % 7.7 %
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): Quarter Ended March 31, 2022 2021 Basic and Diluted Earnings: Net earnings attributable to NNN $ 81,372 $ 56,587 Less: Series F preferred stock dividends — ( 4,485 ) Net earnings available to NNN’s common stockholders 81,372 52,102 Less: Earnings allocated to unvested restricted shares ( 156 ) ( 151 ) Net earnings used in basic and diluted earnings per share $ 81,216 $ 51,951 Basic and Diluted Weighted Average Shares Outstanding: Weighted average number of shares outstanding 175,635,634 175,391,723 Less: Unvested restricted shares ( 294,665 ) ( 288,658 ) Less: Unvested contingent restricted shares ( 568,726 ) ( 513,765 ) Weighted average number of shares outstanding used in basic earnings per share 174,772,243 174,589,300 Other dilutive securities 138,970 125,317 Weighted average number of shares outstanding used in diluted earnings per share 174,911,213 174,714,617
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, 2022 (dollars in thousands): Gain (Loss) on (1) Beginning balance, December 31, 2021 $ ( 14,956 ) Reclassifications from accumulated other comprehensive income to net earnings 583 (2) Ending balance, March 31, 2022 $ ( 14,373 ) (1) Additional disclosure is included in Note 6 – Derivatives. (2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.

Real Estate (Tables)

Real Estate (Tables)	3 Months Ended
	Mar. 31, 2022
Real Estate [Abstract]
Summary of Real Estate Subject to Operating Leases	Real Estate Portfolio – NNN's real estate consisted of the following at (dollars in thousands): March 31, December 31, Land and improvements (1) $ 2,556,405 $ 2,527,483 Buildings and improvements 6,536,540 6,375,583 Leasehold interests 355 355 9,093,300 8,903,421 Less accumulated depreciation and amortization ( 1,517,047 ) ( 1,470,062 ) 7,576,253 7,433,359 Work in progress for buildings and improvements 11,811 7,277 Accounted for using the operating method 7,588,064 7,440,636 Accounted for using the direct financing method 3,579 3,653 $ 7,591,643 $ 7,444,289 (1) Includes $ 8,070 and $ 8,979 in land for Properties under construction at March 31, 2022 and December 31, 2021, respectively.
Rental Income, Operating Leases	NNN recognized the following revenues in rental income (dollars in thousands): Quarter Ended March 31, 2022 2021 Rental income from operating leases $ 184,311 $ 173,583 Earned income from direct financing leases 151 158 Percentage rent 701 104 Real estate expense reimbursement from tenants 4,600 5,353 $ 189,763 $ 179,198
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): March 31, December 31, Intangible lease assets (included in other assets ): Above-market in-place leases $ 15,335 $ 15,335 Less: accumulated amortization ( 10,993 ) ( 10,821 ) Above-market in-place leases, net $ 4,342 $ 4,514 In-place leases $ 121,431 $ 122,069 Less: accumulated amortization ( 74,480 ) ( 73,345 ) In-place leases, net $ 46,951 $ 48,724 Intangible lease liabilities (included in other liabilities ): Below-market in-place leases $ 41,160 $ 41,705 Less: accumulated amortization ( 27,214 ) ( 27,447 ) Below-market in-place leases, net $ 13,946 $ 14,258
Real Estate Held for Sale	Real estate held for sale consisted of the following as of (dollars in thousands): March 31, December 31, (1) Land and improvements $ 546 $ 6,440 Building and improvements 1,192 4,313 1,738 10,753 Less accumulated depreciation and amortization ( 714 ) ( 1,331 ) Less impairment ( 462 ) ( 3,865 ) $ 562 $ 5,557 Number of Properties 2 2 (1) Both properties classified as held for sale as of December 31, 2021 were sold during the quarter ended March 31, 2022.
Gains on Dispositions of Properties	The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties (dollars in thousands): Quarter Ended March 31, 2022 2021 # of Sold Net # of Sold Net Gain on disposition of real estate 10 $ 3,992 11 $ 4,281
Remaining Funding Commitments	These construction commitments, as of March 31, 2022, are outlined in the table below (dollars in thousands): Total commitment (1) $ 38,889 Less amount funded 19,881 Remaining commitment $ 19,008 (1) Includes land, construction costs, tenant improvements, lease costs and capitalized interest.
Real Estate Impairments	As a result of NNN's review of long-lived assets, including identifiable intangible assets, NNN recognized real estate impairments, net of recoveries as summarized in the table below (dollars in thousands): Quarter Ended March 31, 2022 2021 Total real estate impairments, net of recoveries $ 1,632 $ 2,131 Number of Properties: Vacant 3 6 Occupied 2 1

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2022
Notes Payable [Abstract]
Notes Payable	Each note issuance is summarized in the table below (dollar in thousands): Notes Issue Date Principal Discount (1) Net Price Stated Rate Effective Rate (2) Maturity Date 2051 Notes March 2021 $ 450,000 $ 8,406 $ 441,594 3.500 % 3.602 % April 2051 2052 Notes (3) September 2021 450,000 10,422 439,578 3.000 % 3.118 % April 2052 (1) The note discounts are amortized to interest expense over the respective term of each debt obligation using the effective interest method. (2) Includes the effects of the discount at issuance. (3) NNN entered into forward swaps which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt. Upon the issuance of the 2052 Notes, NNN terminated such derivatives, and the resulting fair value was deferred in accumulated other comprehensive income (loss) and is being amortized over the term of the respective notes using the effective interest method. Additional disclosure is included in Note 6 – Derivatives.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Schedule of ATM Program	The following outlines NNN's ATM program: 2020 ATM Established date August 2020 Termination date August 2023 Total allowable shares 17,500,000 Total shares issued as of March 31, 2022 1,599,304
Schedule of Common Stock Issuances Pursuant to Equity Programs	The following table outlines the common stock issuances pursuant to NNN's ATM equity program for the quarter ended March 31, 2021 (dollars in thousands, except per share data): 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.
Schedule of Common Stock Issuances Pursuant to DRIP	The following table outlines the common stock issuances pursuant to NNN's DRIP (dollars in thousands): Quarter Ended March 31, 2022 2021 Shares of common stock 17,571 15,769 Net proceeds $ 748 $ 569
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): Quarter Ended March 31, 2022 2021 Series F preferred stock (1) : Dividends $ — $ 4,485 Per depositary share — 0.3250 Common stock: Dividends 92,751 90,848 Per share 0.5300 0.5200 (1) The Series F preferred stock was redeemed in October 2021.

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Mar. 31, 2022
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): Notes Payable Terminated Description Aggregate Liability Fair Value (1) 2024 May 2014 Three forward starting swaps $ 225,000 $ 6,312 $ 6,312 2025 October 2015 Four forward starting swaps 300,000 13,369 13,369 2026 December 2016 Two forward starting swaps 180,000 ( 13,352 ) ( 13,345 ) 2027 September 2017 Two forward starting swaps 250,000 7,690 7,688 2028 September 2018 Two forward starting swaps 250,000 ( 4,080 ) ( 4,080 ) 2030 March 2020 Three forward starting swaps 200,000 13,141 13,141 2052 September 2021 Two forward starting swaps 120,000 1,584 1,584 (1) The amount reported in accumulated other comprehensive income (loss) will be reclassified to interest expense as interest payments are made on the related notes payable.

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies (Summary of NNN's Investment Portfolio) (Details)	3 Months Ended
	Mar. 31, 2022ft²
Property Portfolio:
Total properties	3,271
Gross leasable area (square feet)	33,545,000
States	48
Weighted average remaining lease term	10 years 7 months 6 days

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies - (Summary of tenants classified as cash basis) (Details) - Tenant	Mar. 31, 2022	Mar. 31, 2021
Accounting Policies [Abstract]
Percentage of tenants for which revenue recognized on cash basis	9	12
Cash basis tenants as a percent of:
Percentage of total properties for which revenue recognized on cash basis	5.40%	6.10%
Percentage of aggregate gross leasable area for which revenue recognized on cash basis	7.00%	7.70%

Organization and Summary of S_6

Organization and Summary of Significant Accounting Policies (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic and Diluted Earnings:
Net earnings attributable to NNN	$ 81,372	$ 56,587
Less: Series F preferred stock dividends	0	(4,485)
Net earnings attributable to common stockholders	81,372	52,102
Less: Earnings allocated to unvested restricted shares	(156)	(151)
Net earnings used in basic and diluted earnings per share	$ 81,216	$ 51,951
Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding (in shares)	175,635,634	175,391,723
Less: Unvested restricted shares (in shares)	(294,665)	(288,658)
Less: Unvested contingent restricted shares (in shares)	(568,726)	(513,765)
Weighted Average Number of Shares Outstanding, Basic, Total	174,772,243	174,589,300
Other dilutive securities (in shares)	138,970	125,317
Weighted average number of shares outstanding used in diluted earnings per share (in shares)	174,911,213	174,714,617

Organization and Summary of S_7

Organization and Summary of Significant Accounting Policies (Changes in AOCI) (Details)	3 Months Ended
	Mar. 31, 2022USD ($)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balances	$ 3,901,663,000
Balances	3,897,746,000
AOCI, cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balances	(14,956,000)	[1]
Other comprehensive income (loss)	(583,000)	[1]
Net other comprehensive income (loss)	14,373,000	[1]
Balances	$ (14,373,000)
[1]	(1) Additional disclosure is included in Note 6 – Derivatives. (2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.

Organization and Summary of S_8

Organization and Summary of Significant Accounting Policies (Narrative) (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)Tenant	Mar. 31, 2021USD ($)Tenant	Dec. 31, 2022USD ($)	Dec. 31, 2021USD ($)	Jun. 30, 2021USD ($)	May 31, 2021USD ($)	Dec. 31, 2020USD ($)
Accounting Policies [Line Items]
Interest costs capitalized	$ 98,000	$ 63,000
Percentage of total properties for which revenue recognized on cash basis	5.40%	6.10%
Percentage of aggregate gross leasable area for which revenue recognized on cash basis	7.00%	7.70%
Percentage of tenants for which revenue recognized on cash basis | Tenant	9	12
Lessor Lease, Rent Deferral Lease Amendments Due To Covid-19, Deferred Rent Originally Due Current Fiscal Year				$ 4,758,000,000			$ 52,019,000,000
Lessor Lease, Rent Deferral Lease Amendments Due To Covid-19, Deferred Rent Repaid	$ 4,063,000			31,776,000,000
Revenue recognized on cash basis	15,786,000,000	$ 11,314,000
Revolving credit facility borrowing capacity	1,100,000,000,000				$ 1,100,000,000,000	$ 900,000,000,000
Debt costs	$ 10,144,000
Rent repaid			$ 10,463,000,000
Number of tenants | Tenant	2
Mortgage loan
Accounting Policies [Line Items]
Mortgage receivable	$ 1,927,000			2,023,000
Allowance for credit loss	$ 123,000			129,000
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
Line of Credit
Accounting Policies [Line Items]
Revolving credit facility borrowing capacity	$ 1,100,000,000
Loans Payable
Accounting Policies [Line Items]
Debt costs	38,145,000			38,145,000
Debt costs accumulated amortization	$ 9,859,000			$ 9,262,000

Real Estate (Key Information fo

Real Estate (Key Information for Leases) (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)Tenant	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Lessor, Lease, Description [Line Items]
Weighted average remaining lease term	10 years 7 months 6 days
Operating	3,285
Direct financing	5
Leases classified as operating leases	3,285
Straight Line Rent | $	$ (1,780,000)	$ (9,381,000)
Leases classified as direct financing leases	5
Rent deferral, year ending December 31, 2021 | $			$ 4,758,000,000	$ 52,019,000,000
Deferred rent repaid | $	$ 4,063,000		$ 31,776,000,000
Minimum
Lessor, Lease, Description [Line Items]
Initial lease term	10 years
Maximum
Lessor, Lease, Description [Line Items]
Initial lease term	20 years

Real Estate (Summary of Real Es

Real Estate (Summary of Real Estate Subject to Operating Leases) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property Subject to or Available for Operating Lease [Line Items]
Land and improvements	$ 2,556,405	$ 2,527,483
Buildings and improvements	6,536,540	6,375,583
Leasehold interests	355	355
Real estate subject to operating leases, gross	9,093,300	8,903,421
Less accumulated depreciation and amortization	(1,517,047)	(1,470,062)
Real estate subject to operating leases, net, before work in progress	7,576,253	7,433,359
Work in progress for buildings and improvements	11,811	7,277
Accounted for using the operating method	7,588,064	7,440,636
Accounted for using the direct financing method	3,579	3,653
Real estate portfolio	7,591,643	7,444,289
Asset under construction
Property Subject to or Available for Operating Lease [Line Items]
Land and improvements	$ 8,070	$ 8,979

Real Estate (Rental Income) (De

Real Estate (Rental Income) (Details)	3 Months Ended
	Mar. 31, 2022USD ($)Tenant	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Lease Income [Abstract]
Rental income from operating leases	$ 184,311,000	$ 173,583,000
Earned income from direct financing leases	151,000	158,000
Percentage rent	701,000	104,000
Real estate expense reimbursement from tenants	4,600,000	5,353,000
Total lease income	189,763,000	179,198,000
Rental income accrued during period	(1,206,000)	(8,445,000)
Balance of accrued rental income	30,727,000		$ 31,942,000
Allowances	$ 4,351,000		4,587,000
Number of tenants | Tenant	2
Straight-line accrued rent from rent deferral repayments	$ (1,780,000)	$ (9,381,000)
Accrued rental income	30,727,000		31,942,000
Accrued rental income allowance	$ 4,351,000		$ 4,587,000

Real Estate (Intangible Assets

Real Estate (Intangible Assets and Liabilities) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Intangible lease liabilities (included in other liabilities):
Below-market in-place leases	$ 41,160,000		$ 41,705,000
Less: accumulated amortization	(27,214,000)		(27,447,000)
Below-market in-place leases, net	13,946,000		14,258,000
Above-market in-place leases
Intangible lease assets (included in other assets):
Leases	15,335,000		15,335,000
Less: accumulated amortization	10,993,000		10,821,000
Leases, net	4,342,000		4,514,000
In-place leases
Intangible lease assets (included in other assets):
Leases	121,431,000		122,069,000
Less: accumulated amortization	74,480,000		73,345,000
Leases, net	46,951,000		$ 48,724,000
Intangible lease liabilities (included in other liabilities):
Amortization expense, in-place leases	1,773,000	$ 1,800,000
Above-market and below-market in-place leases
Intangible lease liabilities (included in other liabilities):
Amortization expense, above- and below-market leases	$ 1,400,000	$ 162,000

Real Estate - (Amortization of

Real Estate - (Amortization of Acquired Lease Intangibles) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Above-Market and Below-Market In-Place Lease Intangibles
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization expense, above- and below-market leases	$ 1,400,000	$ 162,000
In-Place Lease Intangibles
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization expense, in-place leases	$ 1,773,000	$ 1,800,000

Real Estate (Held For Sale) (De

Real Estate (Held For Sale) (Details) $ in Thousands	Mar. 31, 2022USD ($)Property	Dec. 31, 2021USD ($)Property
Real Estate [Abstract]
Land and improvements	$ 546	$ 6,440
Building and improvements	1,192	4,313
Real estate held-for-sale	1,738	10,753
Less accumulated depreciation and amortization	(714)	(1,331)
Less impairment	(462)	(3,865)
Real estate held for sale	$ 562	$ 5,557
Number of properties classified as held for sale | Property	2	2

Real Estate (Dispositions) (Det

Real Estate (Dispositions) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)Property	Mar. 31, 2021USD ($)Property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain | $	$ 3,992	$ 4,281
Assets Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties sold at a gain | Property	10	11

Real Estate (Commitments) (Deta

Real Estate (Commitments) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)Property
Real Estate [Abstract]
Number of properties | Property	13
Period for improvements to construction commitments	12 months
Total commitment	$ 38,889
Less amount funded	19,881
Remaining commitment	$ 19,008

Real Estate ((Impairments) (Det

Real Estate ((Impairments) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)Property	Mar. 31, 2021USD ($)Property
Lessor, Lease, Description [Line Items]
Impairment of Real Estate | $	$ 1,632	$ 2,131
Number of Properties:
Vacant	3	6
Occupied	2	1
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 Payable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Jun. 30, 2021	May 31, 2021
Line of Credit Facility [Line Items]
Revolving credit facility borrowing capacity	$ 1,100,000,000,000	$ 1,100,000,000,000	$ 900,000,000,000
Option to increase facility size	$ 2,000,000,000,000
LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	77.50%
Line of Credit
Line of Credit Facility [Line Items]
Revolving credit facility borrowing capacity	$ 1,100,000,000
Line of credit payable	$ 0

Notes Payable (Details)

Notes Payable (Details)	1 Months Ended	3 Months Ended
	Mar. 31, 2021USD ($)	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)	Sep. 30, 2021USD ($)Instrument	Mar. 31, 2020USD ($)Instrument	Sep. 30, 2018USD ($)Instrument	Sep. 30, 2017USD ($)Instrument	Dec. 31, 2016USD ($)Instrument	Oct. 31, 2015USD ($)Instrument	May 31, 2014USD ($)Instrument
Debt Instrument [Line Items]
Debt issuance costs		$ 10,144,000
Payment of debt issuance costs		48,000	$ 5,145,000
Payment of make-whole premium		0	$ 21,328,000
Forward Swap Member
Debt Instrument [Line Items]
Number of interest rate derivatives terminated | Instrument					2	3	2	2	2	4	3
Aggregate notional amount					$ 120,000,000	$ 200,000,000	$ 250,000,000	$ 250,000,000	$ 180,000,000	$ 300,000,000	$ 225,000,000
Loans Payable
Debt Instrument [Line Items]
Debt issuance costs		38,145,000		$ 38,145,000
2051 Notes
Debt Instrument [Line Items]
Principal		$ 450,000,000			$ 450,000,000
Stated Rate		3.50%			3.50%
Net Price		$ 441,594,000
Discount		$ 8,406,000
Effective Rate		3.602%
2052 Notes
Debt Instrument [Line Items]
Principal		$ 450,000,000			$ 450,000,000
Stated Rate		3.00%			3.00%
Net Price		$ 439,578,000
Discount		$ 10,422,000
Effective Rate		3.118%
2022 Notes
Debt Instrument [Line Items]
Stated Rate	3.30%		3.30%
Notes payable redeemed	$ 350,000,000,000
Redemption price percentage	100.00%
Payment of make-whole premium	$ 21,328,000,000

Stockholders' Equity (DRIP) (De

Stockholders' Equity (DRIP) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Feb. 28, 2021
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	375,000,000		375,000,000
Net proceeds	$ 748	$ 1,882
DRIP
Class of Stock [Line Items]
Common stock, shares authorized (in shares)				6,000,000
Shares of common stock (in shares)	17,571	15,769
Net proceeds	$ 748	$ 569

Stockholders' Equity (ATM Progr

Stockholders' Equity (ATM Program) (Details) - USD ($)		1 Months Ended	3 Months Ended
		Oct. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Class of Stock [Line Items]
Total allowable shares (in shares)			375,000,000		375,000,000
Total shares issued (in shares)			175,810,465		175,635,792
Net proceeds			$ 748,000	$ 1,882,000
Stock issuance costs			$ 48,000	$ 5,145,000
Series F Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares redeemed (in shares)		13,800,000
Dividend rate		5.20%
Stated liquidation value per share (in dollars per share)		$ 25
Aggregate redemption price (in dollars per share)		$ 25.111944
Excess of redemption value over carrying value of preferred shares redeemed		$ 10,897,000
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				$ 1,158,000
Stock issuance costs	[1]			$ 75,000
2020 ATM
Class of Stock [Line Items]
Total allowable shares (in shares)			17,500,000
Total shares issued (in shares)			1,599,304
[1]	Stock issuance costs consist primarily of underwriters' fees and commissions, and legal and accounting fees.

Stockholders' Equity (Dividends

Stockholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended
		Apr. 30, 2022	Oct. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Class of Stock [Line Items]
Preferred stock dividends				$ 0	$ 4,485
Common stock dividends				$ 92,751	$ 90,848
Common stock dividends per share (in dollars per share)				$ 0.5300	$ 0.5200
Common stock dividends declared (in dollars per share)				$ 0.5300	$ 0.5200
Subsequent event
Class of Stock [Line Items]
Common stock dividends declared (in dollars per share)		$ 0.5300
Series F Preferred Stock
Class of Stock [Line Items]
Preferred stock dividends	[1]				$ 4,485
Preferred stock dividends per depositary share (in dollars per share)	[1]				$ 0.3250
Dividend rate			5.20%
[1]	(1) The Series F preferred stock was redeemed in October 2021.

Derivatives (Terminated Derivat

Derivatives (Terminated Derivatives) (Details) - Forward Swap Member $ in Thousands		Sep. 30, 2021USD ($)Instrument	Mar. 31, 2020USD ($)Instrument	Sep. 30, 2018USD ($)Instrument	Sep. 30, 2017USD ($)Instrument	Dec. 31, 2016USD ($)Instrument	Oct. 31, 2015USD ($)Instrument	May 31, 2014USD ($)Instrument
Derivative [Line Items]
Number of interest rate derivatives terminated | Instrument		2	3	2	2	2	4	3
Aggregate Notional Amount		$ 120,000	$ 200,000	$ 250,000	$ 250,000	$ 180,000	$ 300,000	$ 225,000
Liability Fair Value When Terminated		1,584	13,141		7,690		13,369	6,312
Asset Fair Value When Terminated				(4,080)		(13,352)
Fair Value Deferred In Other Comprehensive Income	[1]	$ 1,584	$ 13,141	$ (4,080)	$ 7,688	$ (13,345)	$ 13,369	$ 6,312
[1]	(1) The amount reported in accumulated other comprehensive income (loss) will be reclassified to interest expense as interest payments are made on the related notes payable.

Derivatives (Narrative) (Detail

Derivatives (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021		Dec. 31, 2020
Derivative [Line Items]
Stockholders' equity	$ (3,897,746,000)	$ (4,287,839,000)	$ (3,901,663,000)		$ (4,319,304,000)
Gain (loss) reclassification to interest expense	583,000	1,368,000
Interest rate cash flow hedge gain (loss) to be reclassified over next 12 months, net	2,398,000,000
AOCI, cash flow hedges
Derivative [Line Items]
Stockholders' equity	14,373,000		14,956,000	[1]
Accumulated Other Comprehensive Income (Loss)
Derivative [Line Items]
Stockholders' equity	14,373,000	15,077,000	$ 14,956,000		$ 16,445,000
Gain (loss) reclassification to interest expense	$ 583,000	$ 1,368,000
[1]	(1) Additional disclosure is included in Note 6 – Derivatives. (2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Financial Instruments, Owned, at Fair Value [Abstract]
Fair value of notes payable	$ 3,624,822,000	$ 4,032,757,000

Subsequent Events (Details)

Subsequent Events (Details) - Series F Preferred Stock	1 Months Ended
	Oct. 31, 2021USD ($)$ / shares
Subsequent Event [Line Items]
Preferred stock redemption price including accrued dividends	$ 25.111944
Preferred stock redemption price per depository share	$ 25
Dividend rate	5.20%
Preferred stock redemption charge | $	$ 10,897,000