Company: NNN
Filing Date: 2025-06-25
Form Type: 424B5
Source: 0001193125-25-146859
Chunk: 120

Company: NNN REIT, INC.
Filing Date: 2025-06-25
Form: 424B5
Chunk 120
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 the foregoing. The holder of preferred stock also must take into account any such securities (including options) which are considered to be owned
by such holder by reason of the constructive ownership rules set forth in Sections 318 and 302(c) of the Code.

If a particular taxable
U.S. stockholder of preferred stock owns (actually or constructively) none of our common stock or an insubstantial percentage of our outstanding common stock, then based upon current law, it is probable that the redemption of preferred stock from
such a holder would be considered “not essentially equivalent to a dividend.” However, whether a dividend is “not essentially equivalent to a dividend” depends on all of the facts and circumstances, and a taxable U.S. stockholder
of preferred stock intending to rely on any of these tests at the time of redemption should consult the holder’s own tax advisor to determine their application to the holder’s particular situation. If the redemption does not meet any of
the tests under Section 302 of the Code, then the redemption proceeds received from the preferred stock will be treated as a distribution on the preferred stock. If the redemption is taxed as a dividend, the taxable U.S. stockholder’s
adjusted tax basis in the preferred stock will be transferred to any other stock held by the holder. If the holder of preferred stock owns none of our other stock, under certain circumstances, such basis may be transferred to a related person, or it
may be lost entirely.

Under previously proposed Treasury regulations, if any portion of the amount received by a taxable U.S. stockholder
on a redemption of our preferred stock were treated as a distribution with respect to our stock but not as a taxable dividend, then such portion would be allocated to all shares held by the taxable U.S. stockholder just before the redemption on a
pro rata, share-by-share, basis. The amount applied to each share would first reduce the taxable U.S. stockholder’s basis in that share and any excess after the
basis is reduced to zero will result in taxable gain. If the holder had different basis in its shares, then the amount allocated could reduce some of the basis in certain shares while reducing all the basis and giving rise to taxable gain in others.
Thus the taxable U.S. stockholder could have gain even if the holder’s basis in all its shares exceeded such portion. The previously proposed Treasury regulations would permit the transfer of basis in the redeemed shares of the preferred stock
to the taxable U.S. stockholder’s remaining, unrede