Real Estate - Portfolio

3 Months Ended

Mar. 31, 2012

Real Estate Investments [Abstract]

Real Estate - Investment Portfolio

Real Estate – Portfolio:

Leases – The following outlines key information for NNN’s leases at March 31, 2012:

Lease classification:
Operating	1,449
Direct financing	14
Building portion – direct financing / land portion – operating	5
Weighted average remaining lease term	12 Years

The leases generally provide for limited increases in rent as a result of fixed increases, increases in the consumer price index, and/or increases in the tenant’s sales volume. Generally, the tenant is also required to pay all property taxes and assessments, substantially maintain the interior and exterior of the property and carry property and liability insurance coverage. Certain of NNN’s Properties are subject to leases under which NNN retains responsibility for specific costs and expenses of the property. Generally, the leases of the Properties provide the tenant with one or more multi-year renewal options subject to generally the same terms and conditions, including rent increases, consistent with the initial lease term.

Real Estate Portfolio – Accounted for Using the Operating Method – Real estate subject to operating leases consisted of the following as of (dollars in thousands):

	March 31, 2012			December 31, 2011
Land and improvements	$	1,368,270		$	1,314,438
Buildings and improvements	2,238,497			2,117,157
Leasehold interests	1,290			1,290
	3,608,057			3,432,885
Less accumulated depreciation and amortization	(285,560		)	(269,687		)
	3,322,497			3,163,198
Work in progress	71,409			60,106
	$	3,393,906		$	3,223,304

As of March 31, 2012, in connection with the improvements of leased Properties, NNN has the following funding commitments (dollars in thousands):

	# of Properties	Total Commitment(1)		Amount Funded		Remaining Commitment
Real Estate Portfolio	60	$	184,819	$	123,858	$	60,961

⁽¹⁾  Includes land and construction costs.