Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 202

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 8
Chunk 202
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counted cash flows. In particular, future cash flow estimates were sensitive to the assumptions made by management regarding future market rents, which are affected by expectations about future market and economic conditions. 

    How We Addressed the Matter in Our Audit
    We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s impairment of held and used real estate assets process. For example, we tested controls over management’s review of the market rent assumption.To test the Company’s impairment assessment over held and used real estate assets, our audit procedures included, among others, assessing the methodologies used by management, testing the market rent assumption used to develop the estimates of future cash flows, and testing the completeness and accuracy of the underlying data used by the Company in its analysis. We evaluated the historical accuracy of the Company’s estimates by performing a historical look back on market rent assumptions. For certain properties, we involved our real estate valuation specialists to evaluate management’s market rent assumptions by benchmarking against comparable properties.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2006.

Orlando, Florida 

February 11, 2025

48

NNN REIT, INC.and SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(dollars in thousands, except per share data)  

    ASSETS
     
    December 31,2024

    December 31,2023

    Real estate portfolio, net of accumulated depreciation and amortization
     
    $
    8,746,168

    $
    8,535,851

    Cash and cash equivalents

    8,731

    1,189

    Restricted cash and cash held in escrow

    331

    3,966

    Receivables, net of allowance of $617 and $669, respectively

    2,975

    3,649

    Accrued rental income, net of allowance of $4,156 and $4,168, respectively

    34,005

    34,611

    Debt costs, net of accumulated amortization of $27,002 and $23,952, respectively

    8,958

    3,243

    Other assets

    71,560

    79,459

    Total assets
     
    $
    8,872,728

    $
    8,661,968

    LIABILITIES