Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 30

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1A
Chunk 30
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 damaged or fail, whether due to a virus or other harmful circumstance, fraud, intentional penetration or disruption of its information technology resources by:

•a third party, 

•natural disaster, 

•a failure of hardware or software due to a design or programmatic flaw,

•a failure of hardware or software security controls, 

•telecommunications system failure, 

•service provider error or failure, 

•fraudulent transactions,

•intentional or unintentional personnel actions,

•lost connectivity to NNN's networked resources, 

•a failure of disaster recovery system,

•denial of service attacks,

•office intrusion due to office or building security failures,

•data center cooling failure,

•fire or other catastrophic damage to equipment or facilities,

•water intrusion to equipment,

•supply chain attacks, or

•zero-day attacks. 

A significant and extended disruption or other material cyber incident could damage NNN's business or reputation and cause:

•loss of revenues or tenant relationships,

•unintended and/or unauthorized public disclosure or the misappropriation of proprietary, personal identifying and confidential information, and 

•NNN to incur significant expenses to address and remediate or otherwise resolve these kinds of issues. 

The release of confidential information may also lead to litigation or other proceedings against NNN by affected individuals, business partners and/or regulators, and the outcome of such proceedings, which could include losses, penalties, fines, injunctions, expenses and charges recorded against NNN's earnings and cause NNN reputational harm, could have a material and adverse effect on NNN's business, financial position or results of operations.

In addition, the costs of maintaining adequate protection against data security threats, based on considerations of their evolution, increasing sophistication, pervasiveness and frequency and/or government-mandated standards or obligations regarding protective efforts, could be material to NNN's financial position, results of operations, cash flows, and the market price of NNN's common stock in a particular period or over various periods.

13

NNN relies upon cloud computing services to operate certain aspects of its business and any disruption could have an adverse effect on its financial condition and results of operations.

NNN's business depends upon cloud computing services provided by third-parties to provide a distributed computing infrastructure platform for certain NNN business operations, including data processing, storage capabilities, communications, disaster recovery and other services. Such third-party cloud computing services are vulnerable to damage or interruption from infrastructure changes, natural disasters, cybersecurity attacks, power outages, terrorist attacks and other events