Company: NNN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000950170-25-061454
Chunk: 10

Company: NNN REIT, INC.
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 10
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 and Results of Operations in NNN's Form 10-K for the year ended December 31, 2024. Principles of Consolidation. NNN's unaudited condensed consolidated financial statements include the accounts of each of the respective majority owned and controlled affiliates, including transactions whereby NNN has been determined to be the primary beneficiary in accordance with the FASB ASC guidance included in Topic 810, Consolidation. All significant intercompany account balances and transactions have been eliminated.Real Estate Portfolio. NNN records the acquisition of real estate at cost, including acquisition and closing costs. The cost of Properties developed or funded by NNN includes direct and indirect costs of construction, property taxes, interest, third-party costs and other miscellaneous costs incurred during the development period until the project is substantially complete and available for occupancy. NNN recorded $921,000 and $1,859,000 in capitalized interest during the development period for the quarters ended March 31, 2025 and 2024, respectively.Purchase Accounting for Acquisition of Real Estate. In accordance with the FASB ASC guidance on business combinations, consideration for the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and, if applicable, to identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases, as applicable, based on their respective fair values.