Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 130

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 6
Chunk 130
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 leased asset to the tenant. Rental revenues for non-development real estate assets are recognized when earned in accordance with ASC 842, based on the terms of the lease of the leased asset. Lease termination fees are recognized when collected subsequent to the related lease that is cancelled and NNN no longer has continuing involvement with the former tenant with respect to that property.

FASB ASC Topic 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets ("ASC 610-20"), provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. An entity that transfers a nonfinancial asset in the scope of ASC 610-20 follows a two-step derecognition model to determine whether (and when) to derecognize the asset. NNN determined the key revenue stream impacted by ASC 610-20 is gain on disposition of real estate reported on the Consolidated Statements of Income and Comprehensive Income. In accordance with ASC 610-20, NNN evaluates any separate contracts or performance obligations to determine proper timing and/or amount of revenue recognition, as well as, transfer of control and transaction price allocation in determining the amount of gain or loss to record. 

30

New Accounting Pronouncements. Refer to Note 1 of the December 31, 2024, Consolidated Financial Statements for a summary and the anticipated impact of each accounting pronouncement on NNN's financial position and results of operations. 

Results of Operations

Property Analysis

General. The following table summarizes the Property Portfolio as of December 31:

    2024

    2023

    Properties Owned:

    Number

    3,568

    3,532

    Total gross leasable area (square feet)

    36,557,000

    35,966,000

    Properties:

    Leased and unimproved land

    3,514

    3,514

    Percent of Properties – leased and unimproved land

    98
    %

    99
    %

    Weighted average remaining lease term (years)

    10

    10

    Total gross leasable area (square feet) – leased

    35,826,000

    35,683,000

    Total annualized base rent
     
    $
    860,562,000

    $
    818,749,000

    (1)
    Annualized base rent is calculated by multiplying