Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 96

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1B
Chunk 96
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 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
        )

        (12,080
        )

        Above-market in-place leases, net
         
        $
        2,594

        $
        3,217

        In-place leases
         
        $
        116,549

        $
        122,802

        Less: accumulated amortization

        (85,741
        )

        (85,332
        )

        In-place leases, net
         
        $
        30,808

        $
        37,470

        Intangible lease liabilities (included in other liabilities):

        Below-market in-place leases
         
        $
        39,869

        $
        41,244

        Less: accumulated amortization

        (28,946
        )

        (29,117
        )

        Below-market in