Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 95

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1B
Chunk 95
---
 )

        (1,863,451
        )

        8,660,954

        8,384,177

        Work in progress and improvements

        82,411

        144,068

        Accounted for using the operating method

        8,743,365

        8,528,245

        Accounted for using the direct financing method

        2,520

        3,033

        Classified as held for sale(2)

        283

        4,573

        $
        8,746,168

        $
        8,535,851

       (1)Includes $34,356 and $96,464 in land for Properties under construction as of December 31, 2024 and 2023, respectively.(2)As of December 31, 2024, two Properties were classified as held for sale. The property classified as held for sale as of December 31, 2023 was sold during the year ended December 31, 2024. NNN recognized the following revenues in rental income for the years ended December 31 (dollars in thousands): 

        2024

        2023

        2022

        Rental income from operating leases
         
        $
        846,653

        $
        805,136

        $
        751,680

        Earned income from direct financing leases

        468

        560

        595

        Percentage rent

        1,536

        1,631

        1,541

        Rental revenues

        848,657

        807,327

        753,816

        Real estate expense reimbursement from tenants

        18,811

        18,763

        17,802

        $
        867,468

        $
        826,090

        $
        771,618

       Some leases provide for a free rent period or scheduled rent increases throughout the lease term. Such amounts are recognized on a straight-line basis over the terms of the leases. For the years ended December 31, 2024, 2023 and 2022, NNN recognized $294,000, $7,453,000 and ($3,559,000), respectively, of net-straight-line accrued rental income, net of reserves. During the year ended December 31, 2023, one