v3.26.1
Notes Payable and Derivatives
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 7 – Derivatives:

Additional information related to NNN's derivatives is included in NNN's Annual Report on Form 10-K for the year ended December 31, 2025.

As of June 30, 2026, NNN had the following outstanding interest rate derivatives that were designated as cash flow hedges to hedge the risk of changes in the interest-related cash outflows associated with the Term Loan (dollars in thousands):

# of Swap Agreements

 

Aggregate Notional Amount

 

 

Fixed Rate Paid(1)

 

Estimated Fair Value(2)

 

 

Effective Date

 

Maturity Date

Two(3)

 

$

200,000

 

 

3.22%

 

$

3,271

 

 

January 15, 2026

 

January 15, 2029

One(3)

 

 

100,000

 

 

3.32%

 

 

1,436

 

 

February 13, 2026

 

February 15, 2029

One(3)

 

 

100,000

 

 

3.43%

 

 

1,147

 

 

June 15, 2026

 

February 15, 2029

Total

 

$

400,000

 

 

3.30%

 

$

5,854

 

 

 

 

 

 

(1)

Fixed rate paid is average of strike price for the associated hedges.

(2)

Included in other assets and other comprehensive income on the Condensed Consolidated Balance Sheets (see "Note 8 – Fair value of Financial Instruments").

(3)

No hedge ineffectiveness was recognized during the six months ended June 30, 2026.

As of June 30, 2026, $671,000 remained in accumulated other comprehensive income (loss) related to NNN's previously terminated interest rate hedges. During the six months ended June 30, 2026 and 2025, NNN reclassified $154,000 and $929,000, respectively, out of accumulated other comprehensive income (loss) as an increase in interest expense, of which $79,000 and $469,000 was reclassified during the quarters ended June 30, 2026 and 2025, respectively. Over the next 12 months, NNN estimates that an additional $1,160,000 will be reclassified as an increase in interest expense. 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 nor does NNN currently have any derivatives which are not designated as hedges.