Real Estate - Portfolio

6 Months Ended

Jun. 30, 2013

Real Estate Investments, Net [Abstract]

Real Estate - Investment Portfolio

Real Estate – Portfolio:

Leases – The following outlines key information for NNN’s leases:

	June 30, 2013
Lease classification:
Operating	1,827
Direct financing	13
Building portion – direct financing / land portion – operating	4
Weighted average remaining lease term	12 Years

The leases generally provide for periodic 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):

	June 30, 2013			December 31, 2012
Land and improvements	$	1,613,418		$	1,471,831
Buildings and improvements	2,843,906			2,563,086
Leasehold interests	1,290			1,290
	4,458,614			4,036,207
Less accumulated depreciation and amortization	(370,278		)	(331,432		)
	4,088,336			3,704,775
Work in progress	70,607			86,507
	$	4,158,943		$	3,791,282