Company: NNN
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0000950170-25-042337
Chunk: 37

Company: NNN REIT, INC.
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 37
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 vests, if at all, at the end of three years on January 1, 2027, subject to the achievement of applicable performance goals. Vesting for TSR performance-based restricted stock is tied to our TSR relative to other companies in the NAREIT All Equity REIT Index for the three-year period ending December 31, 2026. The Committee chose this comparator group to allow for performance assessments within our applicable industry group, recognizing that we compete for investor capital with REITs across various property sectors. TSR includes stock price appreciation plus dividends over the three-year measurement period, with calculations for the Company and comparators based on ten-day average closing stock prices leading up to the start and end of the measurement period. Performance levels and corresponding award funding levels for 2024 performance-based restricted stock grants are summarized in the following table.

|                 | 3-Year Relative TSR      
 and Positioning          | % of Target Award Funded |
| Below Threshold | Below 25th  Percentile   | 0%                       |
| Threshold       | 25th Percentile          | 25%                      |
| Target          | 50th Percentile          | 100%                     |
| Maximum         | 75th Percentile or Above | 200%                     |

For performance-based restricted share grants, 25% of the corresponding target award opportunity is earned for threshold performance, 100% for target performance, and 200% for maximum performance. No performance-based shares are earned for results below the threshold level. Straight-line interpolation is used to determine awards for results in between performance levels.

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The number of shares of service-based restricted stock and performance-based restricted stock granted was based on the average closing share price of our Common Stock for ten days prior to the grant date ($40.243 per share). Accordingly, the Committee approved grants of service-based restricted stock and target grants of performance-based restricted stock to Messrs. Horn (34,478 service-based and 80,449 performance-based shares), Habicht (13,838 service-based and 32,288 performance-based shares), and Adamo (3,494 service-based and 8,154 performance-based shares), Mses. Steffens (3,960 service-based and 9,241 performance-based shares), and Miller (3,261 service-based and 7,610 performance-based shares) as shown in the Grants of Plan-Based Awards table.

Executive officers are entitled to receive dividends on unvested shares of service-based restricted