Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 171

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 6
Chunk 171
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        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 tenant was reclassified to accrual basis for accounting purposes due to their improved qualitative and/or quantitative credit factors, which resulted in an increase of accrued rental income in the amount of $5,573,000.

65

The following is a schedule of undiscounted cash flows to be received on noncancellable operating leases as of December 31, 2024 (dollars in thousands):

        2025
         
        $
        807,969

        2026

        773,249

        2027

        730,349

        2028

        677,780

        2029

        639,162

        Thereafter

        4,488,602

        $
        8,117,111

      Since lease renewal periods are exercisable at the option of the tenant, the above table only presents undiscounted cash flows due during the current lease terms. In addition, this table does not include amounts for potential variable rent increases that are based on the CPI or future contingent rents which may be received on the leases based on a percentage of the tenant's sales volume.Real Estate – IntangiblesIn accordance with purchase accounting for the acquisition of real estate subject to a lease, NNN has recorded intangible assets and lease liabilities that consisted of the following at December 31 (dollars in thousands): 

        2024

        2023

        Intangible lease assets (included in other assets):

        Above-market in-place leases
         
        $
        14,753

        $
        15,297

        Less: accumulated amortization

        (12,159
        )

        (