Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 166

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 6
Chunk 166
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 Net earnings used in basic and diluted earnings per share
           
          $
          396,149

          $
          391,731

          $
          334,112

          Basic and Diluted Weighted Average Shares Outstanding:

          Weighted average shares outstanding

          184,723,988

          182,184,038

          177,332,094

          Less: Unvested restricted shares

          (299,534
          )

          (273,077
          )

          (237,918
          )

          Less: Unvested contingent restricted shares

          (735,892
          )

          (710,921
          )

          (690,520
          )

          Weighted average shares outstanding used in basic earnings per share

          183,688,562

          181,200,040

          176,403,656

          Other dilutive securities

          355,279

          489,683

          664,209

          Weighted average shares outstanding used in diluted earnings per share

          184,043,841

          181,689,723

          177,067,865

61

Income Taxes. NNN has made an election to be taxed as a REIT under Sections 856 through 860 of the Code, and related regulations. NNN generally will not be subject to federal income taxes on taxable income it distributes to stockholders, provided it meets certain other requirements for qualifying as a REIT. For each of the years in the three-year period ended December 31, 2024, NNN believes it has qualified as a REIT. Notwithstanding NNN's qualification for taxation as a REIT, NNN is subject to certain state and local income, franchise and excise taxes.NNN may elect to treat certain subsidiaries as TRS pursuant to the provisions of the REIT Modernization Act. A TRS is able to engage in activities resulting in income that previously would have been disqualified from being eligible REIT income under the federal income tax regulations. As a result, certain activities of NNN which occur within its TRS entities are subject to federal and state or local income taxes. All provisions for federal income taxes in the accompanying consolidated financial statements are attributable to NNN's former TRS. The deferred tax asset consists only of net operating loss carryforwards of $3,804,000 from the former TRS that begin to expire in 2026. Management believes it is unlikely that