Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 179

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 6
Chunk 179
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 periods for officers and key associates of NNN range from three to five years and generally vest annually. NNN recognizes compensation expense on a straight-line basis for awards with only service conditions.During the year ended December 31, 2024, NNN granted 275,482 Performance Shares subject to its total stockholder return after a three-year period relative to its peers. In accordance with FASB ASC Topic 718, Compensation - Stock Compensation ("ASC 718"), the fair value of these market-based Performance Shares was determined using a Monte Carlo simulation model at the grant date (for a weighted average fair value share price of $27.59). The Performance Shares were granted to certain executive officers and had a weighted average grant price of $39.98 per share. Once the respective performance criteria are met and the number of shares earned is determined, the shares vest immediately. Compensation expense is recognized over the requisite service period.

72

The following summarizes other grants made during the year ended December 31, 2024, pursuant to the 2017 Plan. 

        Number of Shares

        WeightedAverage  Share Price

        Other share grants under the 2017 Plan:

        Directors’ fees

        6,720

        $
        43.15

        Deferred directors’ fees

        29,884

        43.19

        36,604

        43.19

        Shares available under the 2017 Plan for grant, end of period

        4,520,013

      The total compensation expense for share-based payments for the years ended December 31, 2024, 2023 and 2022 totaled $11,816,000, $12,228,000 and $15,449,000, respectively. At December 31, 2024, NNN had $13,725,000 of unrecognized compensation cost related to non-vested share-based compensation arrangements under the 2017 Plan. This cost is expected to be recognized over a weighted average period of 2.04 years.

Note 8 – 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. At December 31, 2024 and 2023, the fair value of NNN's notes payable excluding unamortized discount and debt costs, were $3,894,030,000 and $3,801,367,000, respectively,