Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 21

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1
Chunk 21
---
 as of December 31, 2024. 

The following table summarizes NNN's Property Portfolio as of December 31, 2024 (in thousands):

    Size(1)

    Total Dollars Invested(2)

    High

    Low

    Average

    High

    Low

    Average

    Land

    3,733

    5

    102

    $
    10,571

    $
    5

    $
    829

    Building

    313

    1

    10

    45,286

    30

    2,240

    (1)
    Approximate square feet.

    (2)
    Costs vary depending upon size, improvements, local market conditions and other factors.

6

Leases

The following is a summary of the typical structure of the leases in the Property Portfolio, although the specific terms of each lease can vary significantly. Typically, the Property leases provide for initial terms of 10 to 20 years. As of December 31, 2024, the weighted average remaining lease term of the Property Portfolio was approximately 10 years. The Properties are generally leased under triple-net leases, which require the tenant to pay all utilities and real estate taxes and assessments, to maintain the interior and exterior of the Property, and to carry property and liability insurance coverage. NNN's leases provide for annual base rental payments (generally payable in monthly installments) ranging from $7,000 to $4,085,000 (average of $245,000), and generally provide for limited increases in rent as a result of increases in the Consumer Price Index or fixed increases.

Generally, NNN's leases provide the tenant with one or more multi-year renewal options subject to generally the same terms and conditions provided under the initial lease term. Some of the leases also provide that in the event NNN wishes to sell the Property subject to that lease, NNN first must offer the lessee the right to purchase the Property on the same terms and conditions as any offer which NNN intends to accept for the sale of the Property. See "Results of Operations – Property Analysis."

Governmental Regulations Affecting Properties

Property Environmental Considerations

Subject to a determination of the level of risk and potential cost of remediation, NNN may acquire a property with some level of environmental contamination. Investments in real property create a potential for substantial environmental liability for the owner of such property from the presence or discharge of hazardous materials on the