Company: NNN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000950170-25-017472
Chunk: 53

Company: NNN REIT, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1B
Chunk 53
---
 under NNN's Credit Facility (as defined in "Capital Structure – Line of Credit Payable"), by issuing its debt or equity securities in the capital markets, with undistributed funds from operations or with proceeds from the sale of Properties.

Property Dispositions. The following table summarizes the properties sold by NNN for each of the years ended December 31 (dollars in thousands):

    2024

    2023

    Number of properties

    41

    45

    Gross leasable area (square feet)

    849,000

    293,000

    Net sales proceeds
     
    $
    148,658

    $
    115,716

    Net gain on disposition of real estate
     
    $
    42,290

    $
    47,485

    Cap rate(1)

    7.3
    %

    5.9
    %

    (1)
    The cap rate is a weighted average of properties occupied at disposition, calculated as the cash annual base rent divided by the total gross proceeds received for the properties. 

NNN typically uses the disposition proceeds to either pay down the Credit Facility or reinvest in real estate.

33

Analysis of Revenues

The following summarizes NNN's revenues for each of the years ended December 31 (dollars in thousands):

    2024

    2023

    2024Versus2023

    Rental Revenues(1)
     
    $
    848,657

    $
    807,327

    5.1
    %

    Real estate expenses reimbursed from tenants

    18,811

    18,763

    0.3
    %

    Rental income

    867,468

    826,090

    5.0
    %

    Interest and other income from real estate transactions

    1,798

    2,021

    (11.0
    )%

    Total revenues
     
    $
    869,266

    $
    828,111

    5.0
    %

    (1)
    Includes rental income from operating leases, earned income from direct financing leases and percentage rent ("Rental Revenues").

Rental Income. Rental income increased for the year ended December 31, 2024, as compared to the same period in 2023. The increase is primarily due to the Rental Re