23 nnn typically funds property acquisitions either through borrowings under nnn 's unsecured revolving credit facility ( the `` credit facility `` ) or by issuing its debt or equity securities in the capital markets . property dispositions . the following table summarizes the properties sold by nnn for each of the years ended december 31 ( dollars in thousands ) : replace_table_token_12_th nnn typically uses the proceeds from a property disposition to either pay down the credit facility or reinvest in real estate . analysis of revenue general . during the year ended december 31 , 2017 , nnn 's rental income increased primarily due to the increase in rental income from property acquisitions ( see `` results of operations – property analysis – property acquisitions `` ) . nnn anticipates increases in rental income will continue to come from additional property acquisitions and increases in rents pursuant to existing lease terms . the following summarizes nnn 's revenues ( dollars in thousands ) : replace_table_token_13_th ( 1 ) includes rental income from operating leases , earned income from direct financing leases and percentage rent ( `` rental income `` ) . comparison of revenues – 2017 versus 2016 rental income . rental income increased in amount and as a percent of the total revenues for the year ended december 31 , 2017 as compared to the same period in 2016. the increase for the year ended december 31 , 2017 is primarily due to a partial year of rental income received as a result of the acquisition of 276 properties with aggregate gross leasable area of approximately 2,243,000 during 2017 and a full year of rental income received as a result of the acquisition of 313 properties with a gross leasable area of approximately 2,734,000 square feet in 2016. comparison of revenues – 2016 versus 2015 rental income . rental income increased in amount and as a percent of the total revenues for the year ended december 31 , 2016 as compared to the same period in 2015. the increase for the year ended december 31 , 2016 is primarily due to a partial year of rental income received as a result of the acquisition of 313 properties with aggregate gross leasable area of approximately 2,734,000 during 2016 and a full year of rental income received as a result of the acquisition of 221 properties with a gross leasable area of approximately 2,706,000 square feet in 2015 . 24 analysis of expenses general . operating expenses increased primarily due to an increase in depreciation expense during the year ended december 31 , 2017 , as compared to the same period in 2016. the following summarizes nnn 's expenses for the year ended december 31 ( dollars in thousands ) : replace_table_token_14_th replace_table_token_15_th ( 1 ) not calculable ( `` n/c `` ) comparison of expenses – 2017 versus 2016 general and administrative expenses . general and administrative expenses decreased in amount for the year ended december 31 , 2017 , as compared to the same period in 2016 , as well as a percentage of total operating expenses and as a percentage of revenues . the decrease in general and administrative expenses for the year ended december 31 , 2017 , is primarily attributable to a decrease in compensation costs . real estate . real estate expenses increased for the year ended december 31 , 2017 , as compared to the same period in 2016 , but remained flat as a percentage of total operating expenses and as a percentage of revenues . the increase is primarily due to increases in reimbursable and non-reimbursable expenses from certain properties acquired during the year 25 ended december 31 , 2017 , and from certain properties acquired during the year ended december 31 , 2016 , as well as expenses on vacant properties . depreciation and amortization . depreciation and amortization expenses increased in amount , as a percentage of total operating expenses and as a percentage of revenues for the year ended december 31 , 2017 , as compared to the year ended december 31 , 2016. the increase in expenses is primarily due to the acquisition of 276 properties with an aggregate gross leasable area of approximately 2,243,000 square feet in 2017 and 313 properties with an aggregate gross leasable area of approximately 2,734,000 square feet during 2016. impairment losses – real estate and other charges , net of recoveries . nnn reviews long-lived assets for impairment whenever certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable . events or circumstances that may occur include changes in real estate market conditions , the ability of nnn to re-lease properties that are currently vacant or become vacant , and the ability to sell properties at a price that exceeds nnn 's carrying value . management evaluates whether an impairment in value has occurred by comparing the estimated future cash flows ( undiscounted and without interest charges ) , and the residual value of the real estate , with the carrying cost of the individual asset . if an impairment is indicated , a loss will be recorded for the amount by which the carrying value of the asset exceeds its fair value . during the years ended december 31 , 2017 and 2016 , nnn recorded $ 4,953,000 and $ 8,025,000 , respectively , of real estate impairments . nnn also recorded a $ 4,000,000 contract dispute settlement charge during the year ended december 31 , 2017 and a $ 3,269,000 loss on mortgages receivable for the year ended december 31 , 2016. retirement severance costs . story_separator_special_tag financing strategy . nnn 's financing objective is to manage its capital structure effectively in order to provide sufficient capital to execute its operating strategy while servicing its debt requirements , maintaining its investment grade credit rating , staggering debt maturities and providing value to nnn 's stockholders . nnn generally utilizes debt and equity security offerings , bank borrowings , proceeds from the disposition of certain properties , and to a lesser extent , internally generated funds to meet its capital needs . nnn typically funds its short-term liquidity requirements , including investments in additional properties , with cash from its credit facility . as of december 31 , 2017 , there was $ 120,500,000 outstanding balance and $ 779,500,000 was available for future borrowings under the credit facility , excluding undrawn letters of credit totaling $ 230,000 . as of december 31 , 2017 , nnn 's ratio of total debt to total gross assets ( before accumulated depreciation and amortization ) was approximately 35 percent and the ratio of secured indebtedness to total gross assets was less than one percent . the ratio of total debt to total market capitalization was approximately 27 percent . certain financial agreements to which nnn is a party contain covenants that limit nnn 's ability to incur additional debt under certain circumstances . the organizational documents of nnn do not limit the absolute amount or percentage of indebtedness that nnn may incur . additionally , nnn may change its financing strategy . contractual obligations and commercial commitments . the information in the following table summarizes nnn 's contractual obligations and commercial commitments outstanding as of december 31 , 2017 . the table presents principal cash flows by year-end of the expected maturity for debt obligations and commercial commitments outstanding as of december 31 , 2017 . replace_table_token_17_th ( 1 ) includes only principal amounts outstanding under mortgages payable and notes payable and excludes unamortized mortgage premiums , note discounts and note costs . ( 2 ) interest calculation based on stated rate of the principal amount . 29 in addition to the contractual obligations outlined above , nnn has committed to fund construction commitments on 27 properties . the improvements on such properties are estimated to be completed within 12 months on such properties . these construction commitments , at december 31 , 2017 , are outlined in the table below ( dollars in thousands ) : total commitment ( 1 ) $ 129,925 amount funded 67,719 remaining commitment 62,206 ( 1 ) includes land , construction costs , tenant improvements , lease costs and capitalized interest as of december 31 , 2017 , nnn did not have any other material contractual cash obligations , such as purchase obligations , financing lease obligations or other long-term liabilities other than those reflected in the table . in addition to items reflected in the table , nnn has issued preferred stock with cumulative preferential cash distributions , as described below under “ dividends . ” management anticipates satisfying these obligations with a combination of nnn 's cash provided from operations , current capital resources on hand , its credit facility , debt or equity financings and asset dispositions . generally the properties are leased under long-term net leases , which require the tenant to pay all property taxes and assessments , to maintain the interior and exterior of the property , and to carry property and liability insurance coverage . therefore , management anticipates that capital demands to meet obligations with respect to these properties will be modest for the foreseeable future and can be met with funds from operations and working capital . certain properties are subject to leases under which nnn retains responsibility for specific costs and expenses associated with the property . management anticipates the costs associated with these properties , nnn 's vacant properties or those properties that become vacant will also be met with funds from operations and working capital . nnn may be required to borrow under its credit facility or use other sources of capital in the event of significant capital expenditures or major repairs . the lost revenues and increased property expenses resulting from vacant properties or uncollectibility of lease revenues could have a material adverse effect on the liquidity and results of operations if nnn is unable to re-lease the properties at comparable rental rates and in a timely manner . as of december 31 , 2017 , nnn owned 24 vacant , un-leased properties which accounted for approximately one percent of total properties held in the property portfolio . additionally , as of january 31 , 2018 , less than one percent of total properties held in the property portfolio was leased to two tenants that each filed a voluntary petition for bankruptcy under chapter 11 of the u.s. bankruptcy code . as a result , these tenants have the right to reject or affirm their leases with nnn . dividends . nnn has made an election to be taxed as a reit under sections 856 through 860 of the code , as amended , and related regulations and intends to continue to operate so as to remain qualified as a reit for federal income tax purposes . nnn generally will not be subject to federal income tax on income that it distributes to its stockholders , provided that it distributes 100 percent of its reit taxable income and meets certain other requirements for qualifying as a reit . if nnn fails to qualify as a reit in any taxable year , it will be subject to federal income tax on its taxable income at regular corporate rates and will not be permitted to qualify for treatment as a reit for federal income tax purposes for the four years following the year during which qualification is lost . such an event could materially adversely affect nnn 's income and ability to pay dividends . nnn believes it has been structured as , and

debt the following is a summary of nnn 's total outstanding debt as of december 31 ( dollars in thousands ) : replace_table_token_20_th indebtedness . nnn expects to use indebtedness primarily for property acquisitions and development of single-tenant retail properties , either directly or through investment interests . additionally , indebtedness may be used to refinance existing indebtedness . 32 line of credit payable . in october 2017 , nnn amended its credit agreement to increase the borrowing capacity under its unsecured revolving credit facility from $ 650,000,000 to $ 900,000,000 and amend certain other terms under the former revolving credit facility ( as the context requires , the previous and new revolving credit facility , the `` credit facility '' ) . the credit facility had a weighted average outstanding balance of $ 98,277,000 and a weighted average interest rate of 2.2 % for the year ended december 31 , 2017 . the credit facility matures january 2022 , unless the company exercises its option to extend maturity to january 2023 . as of december 31 , 2017 , the credit facility bears interest at libor plus 87.5 basis points ; however , such interest rate may change pursuant to a tiered interest rate structure based on nnn 's debt rating . the credit facility also includes an accordion feature for nnn to increase the facility size up to $ 1,600,000,000 , subject to lender approval . as of december 31 , 2017 , there was a balance of $ 120,500,000 and $ 779,500,000 was available for future borrowings under the credit facility , excluding undrawn letters of credit totaling $ 230,000 . in accordance with the terms of the credit facility , nnn is required to meet certain restrictive financial covenants , which , among other things , require nnn to maintain certain ( i ) leverage ratios , ( ii ) debt service coverage , ( iii ) cash flow coverage , and ( iv ) investment limitations . at december 31 , 2017 , nnn was in compliance with those covenants .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```debt the following is a summary of nnn 's total outstanding debt as of december 31 ( dollars in thousands ) : replace_table_token_20_th indebtedness . nnn expects to use indebtedness primarily for property acquisitions and development of single-tenant retail properties , either directly or through investment interests . additionally , indebtedness may be used to refinance existing indebtedness . 32 line of credit payable . in october 2017 , nnn amended its credit agreement to increase the borrowing capacity under its unsecured revolving credit facility from $ 650,000,000 to $ 900,000,000 and amend certain other terms under the former revolving credit facility ( as the context requires , the previous and new revolving credit facility , the `` credit facility '' ) . the credit facility had a weighted average outstanding balance of $ 98,277,000 and a weighted average interest rate of 2.2 % for the year ended december 31 , 2017 . the credit facility matures january 2022 , unless the company exercises its option to extend maturity to january 2023 . as of december 31 , 2017 , the credit facility bears interest at libor plus 87.5 basis points ; however , such interest rate may change pursuant to a tiered interest rate structure based on nnn 's debt rating . the credit facility also includes an accordion feature for nnn to increase the facility size up to $ 1,600,000,000 , subject to lender approval . as of december 31 , 2017 , there was a balance of $ 120,500,000 and $ 779,500,000 was available for future borrowings under the credit facility , excluding undrawn letters of credit totaling $ 230,000 . in accordance with the terms of the credit facility , nnn is required to meet certain restrictive financial covenants , which , among other things , require nnn to maintain certain ( i ) leverage ratios , ( ii ) debt service coverage , ( iii ) cash flow coverage , and ( iv ) investment limitations . at december 31 , 2017 , nnn was in compliance with those covenants .
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 Suspicious Activity Report : 23 nnn typically funds property acquisitions either through borrowings under nnn 's unsecured revolving credit facility ( the `` credit facility `` ) or by issuing its debt or equity securities in the capital markets . property dispositions . the following table summarizes the properties sold by nnn for each of the years ended december 31 ( dollars in thousands ) : replace_table_token_12_th nnn typically uses the proceeds from a property disposition to either pay down the credit facility or reinvest in real estate . analysis of revenue general . during the year ended december 31 , 2017 , nnn 's rental income increased primarily due to the increase in rental income from property acquisitions ( see `` results of operations – property analysis – property acquisitions `` ) . nnn anticipates increases in rental income will continue to come from additional property acquisitions and increases in rents pursuant to existing lease terms . the following summarizes nnn 's revenues ( dollars in thousands ) : replace_table_token_13_th ( 1 ) includes rental income from operating leases , earned income from direct financing leases and percentage rent ( `` rental income `` ) . comparison of revenues – 2017 versus 2016 rental income . rental income increased in amount and as a percent of the total revenues for the year ended december 31 , 2017 as compared to the same period in 2016. the increase for the year ended december 31 , 2017 is primarily due to a partial year of rental income received as a result of the acquisition of 276 properties with aggregate gross leasable area of approximately 2,243,000 during 2017 and a full year of rental income received as a result of the acquisition of 313 properties with a gross leasable area of approximately 2,734,000 square feet in 2016. comparison of revenues – 2016 versus 2015 rental income . rental income increased in amount and as a percent of the total revenues for the year ended december 31 , 2016 as compared to the same period in 2015. the increase for the year ended december 31 , 2016 is primarily due to a partial year of rental income received as a result of the acquisition of 313 properties with aggregate gross leasable area of approximately 2,734,000 during 2016 and a full year of rental income received as a result of the acquisition of 221 properties with a gross leasable area of approximately 2,706,000 square feet in 2015 . 24 analysis of expenses general . operating expenses increased primarily due to an increase in depreciation expense during the year ended december 31 , 2017 , as compared to the same period in 2016. the following summarizes nnn 's expenses for the year ended december 31 ( dollars in thousands ) : replace_table_token_14_th replace_table_token_15_th ( 1 ) not calculable ( `` n/c `` ) comparison of expenses – 2017 versus 2016 general and administrative expenses . general and administrative expenses decreased in amount for the year ended december 31 , 2017 , as compared to the same period in 2016 , as well as a percentage of total operating expenses and as a percentage of revenues . the decrease in general and administrative expenses for the year ended december 31 , 2017 , is primarily attributable to a decrease in compensation costs . real estate . real estate expenses increased for the year ended december 31 , 2017 , as compared to the same period in 2016 , but remained flat as a percentage of total operating expenses and as a percentage of revenues . the increase is primarily due to increases in reimbursable and non-reimbursable expenses from certain properties acquired during the year 25 ended december 31 , 2017 , and from certain properties acquired during the year ended december 31 , 2016 , as well as expenses on vacant properties . depreciation and amortization . depreciation and amortization expenses increased in amount , as a percentage of total operating expenses and as a percentage of revenues for the year ended december 31 , 2017 , as compared to the year ended december 31 , 2016. the increase in expenses is primarily due to the acquisition of 276 properties with an aggregate gross leasable area of approximately 2,243,000 square feet in 2017 and 313 properties with an aggregate gross leasable area of approximately 2,734,000 square feet during 2016. impairment losses – real estate and other charges , net of recoveries . nnn reviews long-lived assets for impairment whenever certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable . events or circumstances that may occur include changes in real estate market conditions , the ability of nnn to re-lease properties that are currently vacant or become vacant , and the ability to sell properties at a price that exceeds nnn 's carrying value . management evaluates whether an impairment in value has occurred by comparing the estimated future cash flows ( undiscounted and without interest charges ) , and the residual value of the real estate , with the carrying cost of the individual asset . if an impairment is indicated , a loss will be recorded for the amount by which the carrying value of the asset exceeds its fair value . during the years ended december 31 , 2017 and 2016 , nnn recorded $ 4,953,000 and $ 8,025,000 , respectively , of real estate impairments . nnn also recorded a $ 4,000,000 contract dispute settlement charge during the year ended december 31 , 2017 and a $ 3,269,000 loss on mortgages receivable for the year ended december 31 , 2016. retirement severance costs . story_separator_special_tag financing strategy . nnn 's financing objective is to manage its capital structure effectively in order to provide sufficient capital to execute its operating strategy while servicing its debt requirements , maintaining its investment grade credit rating , staggering debt maturities and providing value to nnn 's stockholders . nnn generally utilizes debt and equity security offerings , bank borrowings , proceeds from the disposition of certain properties , and to a lesser extent , internally generated funds to meet its capital needs . nnn typically funds its short-term liquidity requirements , including investments in additional properties , with cash from its credit facility . as of december 31 , 2017 , there was $ 120,500,000 outstanding balance and $ 779,500,000 was available for future borrowings under the credit facility , excluding undrawn letters of credit totaling $ 230,000 . as of december 31 , 2017 , nnn 's ratio of total debt to total gross assets ( before accumulated depreciation and amortization ) was approximately 35 percent and the ratio of secured indebtedness to total gross assets was less than one percent . the ratio of total debt to total market capitalization was approximately 27 percent . certain financial agreements to which nnn is a party contain covenants that limit nnn 's ability to incur additional debt under certain circumstances . the organizational documents of nnn do not limit the absolute amount or percentage of indebtedness that nnn may incur . additionally , nnn may change its financing strategy . contractual obligations and commercial commitments . the information in the following table summarizes nnn 's contractual obligations and commercial commitments outstanding as of december 31 , 2017 . the table presents principal cash flows by year-end of the expected maturity for debt obligations and commercial commitments outstanding as of december 31 , 2017 . replace_table_token_17_th ( 1 ) includes only principal amounts outstanding under mortgages payable and notes payable and excludes unamortized mortgage premiums , note discounts and note costs . ( 2 ) interest calculation based on stated rate of the principal amount . 29 in addition to the contractual obligations outlined above , nnn has committed to fund construction commitments on 27 properties . the improvements on such properties are estimated to be completed within 12 months on such properties . these construction commitments , at december 31 , 2017 , are outlined in the table below ( dollars in thousands ) : total commitment ( 1 ) $ 129,925 amount funded 67,719 remaining commitment 62,206 ( 1 ) includes land , construction costs , tenant improvements , lease costs and capitalized interest as of december 31 , 2017 , nnn did not have any other material contractual cash obligations , such as purchase obligations , financing lease obligations or other long-term liabilities other than those reflected in the table . in addition to items reflected in the table , nnn has issued preferred stock with cumulative preferential cash distributions , as described below under “ dividends . ” management anticipates satisfying these obligations with a combination of nnn 's cash provided from operations , current capital resources on hand , its credit facility , debt or equity financings and asset dispositions . generally the properties are leased under long-term net leases , which require the tenant to pay all property taxes and assessments , to maintain the interior and exterior of the property , and to carry property and liability insurance coverage . therefore , management anticipates that capital demands to meet obligations with respect to these properties will be modest for the foreseeable future and can be met with funds from operations and working capital . certain properties are subject to leases under which nnn retains responsibility for specific costs and expenses associated with the property . management anticipates the costs associated with these properties , nnn 's vacant properties or those properties that become vacant will also be met with funds from operations and working capital . nnn may be required to borrow under its credit facility or use other sources of capital in the event of significant capital expenditures or major repairs . the lost revenues and increased property expenses resulting from vacant properties or uncollectibility of lease revenues could have a material adverse effect on the liquidity and results of operations if nnn is unable to re-lease the properties at comparable rental rates and in a timely manner . as of december 31 , 2017 , nnn owned 24 vacant , un-leased properties which accounted for approximately one percent of total properties held in the property portfolio . additionally , as of january 31 , 2018 , less than one percent of total properties held in the property portfolio was leased to two tenants that each filed a voluntary petition for bankruptcy under chapter 11 of the u.s. bankruptcy code . as a result , these tenants have the right to reject or affirm their leases with nnn . dividends . nnn has made an election to be taxed as a reit under sections 856 through 860 of the code , as amended , and related regulations and intends to continue to operate so as to remain qualified as a reit for federal income tax purposes . nnn generally will not be subject to federal income tax on income that it distributes to its stockholders , provided that it distributes 100 percent of its reit taxable income and meets certain other requirements for qualifying as a reit . if nnn fails to qualify as a reit in any taxable year , it will be subject to federal income tax on its taxable income at regular corporate rates and will not be permitted to qualify for treatment as a reit for federal income tax purposes for the four years following the year during which qualification is lost . such an event could materially adversely affect nnn 's income and ability to pay dividends . nnn believes it has been structured as , and

