| Summary of NNN's Investment Portfolio |
NNN acquires, owns, invests in and develops high-quality properties that are leased primarily to tenants under long-term, net leases and are primarily held for investment ("Properties" or "Property Portfolio" or individually a "Property").
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June 30,
2026 |
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Property Portfolio: |
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Total Properties |
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3,774 |
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Gross leasable area (square feet) (unaudited) |
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40,440,000 |
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States |
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50 |
(1) |
Weighted average remaining lease term (years) |
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10.1 |
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(1) |
Plus the District of Columbia and Puerto Rico. |
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| Summary of tenants classified as cash basis |
The following table summarizes those tenants classified as cash basis for accounting purposes as of June 30:
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2026 |
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2025 |
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Number of tenants |
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13 |
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12 |
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Cash basis tenants as a percent of: |
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Total Properties |
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1.7 |
% |
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2.5 |
% |
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Total Annualized Base Rent ("ABR")(1) |
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|
4.0 |
% |
(2) |
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4.7 |
% |
(3) |
Total gross leasable area |
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6.6 |
% |
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7.4 |
% |
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(1) |
ABR represents the monthly cash base rent for all leases in place as of the end of the period multiplied by 12. Based on ABR of: |
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(2) |
$959,145,000 as of June 30, 2026. |
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(3) |
$893,782,000 as of June 30, 2025. |
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| Computation of Basic and Diluted Earnings Per Share |
The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per share using the two-class method (dollars in thousands):
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Quarter Ended June 30, |
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Six Months Ended June 30, |
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2026 |
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2025 |
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2026 |
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|
2025 |
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Basic and Diluted Earnings: |
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Net earnings |
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$ |
97,924 |
|
|
$ |
100,529 |
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|
$ |
191,875 |
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|
$ |
196,987 |
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Less: Earnings allocated to unvested restricted shares |
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(189 |
) |
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(190 |
) |
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(351 |
) |
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|
(357 |
) |
Net earnings used in basic and diluted earnings per share |
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$ |
97,735 |
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$ |
100,339 |
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$ |
191,524 |
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$ |
196,630 |
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Basic and Diluted Weighted Average Shares Outstanding: |
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Weighted average shares outstanding |
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190,275,779 |
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187,974,275 |
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190,148,754 |
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187,868,489 |
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Less: Unvested restricted shares |
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(314,612 |
) |
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(328,001 |
) |
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(292,630 |
) |
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(308,258 |
) |
Less: Unvested contingent restricted shares |
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(882,703 |
) |
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(769,581 |
) |
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(800,332 |
) |
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(694,276 |
) |
Weighted average shares outstanding used in basic earnings per share |
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189,078,464 |
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186,876,693 |
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189,055,792 |
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|
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186,865,955 |
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Dilutive effect of forward ATM offerings |
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23,830 |
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— |
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12,827 |
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— |
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Other dilutive securities |
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517,716 |
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193,595 |
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567,051 |
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222,205 |
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Weighted average shares outstanding used in diluted earnings per share |
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189,620,010 |
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|
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187,070,288 |
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|
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189,635,670 |
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|
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187,088,160 |
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| Changes in Accumulated Other Comprehensive Income (Loss) |
The following table outlines the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2026 (dollars in thousands):
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Gain or Loss on
Cash Flow Hedges(1) |
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Beginning balance, December 31, 2025 |
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$ |
(6,321 |
) |
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Other comprehensive income (loss) |
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5,496 |
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Reclassifications from accumulated other comprehensive income to net earnings |
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|
154 |
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(2) |
Ending balance, June 30, 2026 |
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$ |
(671 |
) |
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(1) |
Additional disclosure is included in "Note 7 – Derivatives". |
(2) |
Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income. There is no income tax expense (benefit) resulting from this reclassification. |
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