EX-99.1 2 exhibit991-8xkx20130930.htm EXHIBIT 99.1 Exhibit 99.1 - 8-K - 2013.09.30

    

NEWS RELEASE
For information contact:
Kevin B. Habicht
Chief Financial Officer
(407) 265-7348    FOR IMMEDIATE RELEASE
November 5, 2013


THIRD QUARTER 2013 OPERATING RESULTS AND 2014 FFO GUIDANCE ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, November 5, 2013 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and nine months ended September 30, 2013. Highlights include:

Operating Results:
•
Revenues and net earnings, FFO, Recurring FFO and AFFO available to common stockholders and diluted per share amounts:
 
Quarter Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
 
(in thousands, except per share data)
Revenues
$
100,621

 
$
84,391

 
$
289,100

 
$
243,073

 
 
 
 
 
 
 
 
Net earnings available to common stockholders
$
34,810

 
$
33,253

 
$
96,839

 
$
85,588

Net earnings per common share
$
0.29

 
$
0.30

 
$
0.81

 
$
0.79

 
 
 
 
 
 
 
 
FFO available to common stockholders
$
59,946

 
$
57,044

 
$
168,828

 
$
142,595

FFO per common share
$
0.49

 
$
0.52

 
$
1.41

 
$
1.32

 
 
 
 
 
 
 
 
Recurring FFO available to common stockholders
$
59,465

 
$
47,409

 
$
169,106

 
$
138,578

Recurring FFO per common share
$
0.49

 
$
0.43

 
$
1.42

 
$
1.28

 
 
 
 
 
 
 
 
AFFO available to common stockholders
$
60,898

 
$
51,365

 
$
175,269

 
$
146,582

AFFO per common share
$
0.50

 
$
0.47

 
$
1.47

 
$
1.36


•
Portfolio occupancy was 98.1% at September 30, 2013, as compared to 97.9% at December 31, 2012, and 97.9% at September 30, 2012

Investments and Dispositions for the quarter ended September 30, 2013:
•
Investments:
◦
$90.0 million in property investments, including the acquisition of 35 properties with an aggregate 243,000 square feet of gross leasable area
•
Dispositions:
◦
22 properties with net proceeds of $36.0 million producing $811,000 of gains on sales, net of income tax




Investments and Dispositions for the nine months ended September 30, 2013:
•
Investments:
◦
$570.3 million in property investments, including the acquisition of 261 properties with an aggregate 1,468,000 square feet of gross leasable area
•
Dispositions:
◦
31 properties with net proceeds of $52.6 million producing $3,467,000 of gains on sales, net of income tax and noncontrolling interest

Capital transactions for the quarter ended September 30, 2013:
•
Raised $5.2 million in net proceeds from the issuance of 158,280 common shares
•
Settled $223.0 million principal amount of 5.125% convertible senior notes due 2028

Capital transactions for the nine months ended September 30, 2013:
•
Raised $881.7 million of new long term capital at attractive pricing:
◦
Raised $259.8 million in net proceeds from the issuance of 7,591,138 common shares
◦
Raised $277.6 million in net proceeds from the issuance of 5.70% Series E preferred stock
◦
Raised $344.3 million in net proceeds from the issuance of 3.30% senior unsecured notes due 2023
•
Settled $223.0 million principal amount of 5.125% convertible senior notes due 2028

National Retail Properties announced an increase in 2013 FFO guidance from a range of $1.86 to $1.90 to a range of $1.88 to $1.90 per share before any impairment expense. 2013 AFFO is estimated to be $1.96 to $1.98 per share. The FFO guidance equates to net earnings before any gains or losses from the sale of real estate of $1.06 to $1.08 per share, plus $0.82 per share of expected real estate depreciation, amortization and impairments. The guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Securities and Exchange Commission.

The Company also announced 2014 FFO guidance of $1.94 to $1.99 per share and estimated 2014 AFFO to be $2.00 to $2.05
per share. This FFO guidance equates to net earnings before any gains or losses from the sale of real estate and impairment
charges of $1.08 to $1.13 per share plus $0.86 per share of expected real estate related depreciation and amortization. The
guidance is based on current plans, assumptions, and estimates and is subject to the risks and uncertainties more fully described
in this press release and the company's reports filed with the Securities and Exchange Commission.

Craig Macnab, Chief Executive Officer, commented: "We remain focused on making investments that drive per share accretion allowing us to increase our annual dividend for the 24th consecutive year in the third quarter.  We are on track to produce 8% - 9% of FFO per share growth for 2013 while simultaneously reducing leverage.  Our very strong balance sheet positions us attractively for continued per share growth in 2014. Our capital costs remain among the lowest in the sector and at the lowest levels they have been for most of the past two decades. With 1,850 properties, our portfolio is more than fully diversified and by continuing to focus on traditional real estate metrics we are finding attractive risk-adjusted opportunities."

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2013, the company owned 1,850 properties in 47 states with a gross leasable area of approximately 20.3 million square feet. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on November 5, 2013, at 10:30 a.m. ET to review these results. The call can be accessed on the National Retail Properties web site live at http://www.nnnreit.com. For those unable to listen to the live broadcast, a replay will be available on the company’s web site. In addition, a summary of any earnings guidance given on the call will be posted to the company’s web site.

Statements in this press release that are not strictly historical are “forward-looking” statements. Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the company's tenants, the availability of capital, risks related to the company's status as a REIT and the profitability of the company’s taxable subsidiary. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the company’s Securities and Exchange Commission (“SEC”) filings, including, but not limited to, the company’s Annual Report on Form 10-K. Copies of each filing may be obtained from the company or the SEC. Such forward-looking statements should be regarded solely as reflections of the company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. National Retail Properties, Inc. undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

2


The reported results are preliminary and not final and there can be no assurance that the results will not vary from the final information filed on Form 10-Q with the SEC for the quarter ended September 30, 2013. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

Funds From Operations, commonly referred to as FFO, is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and is used by the company as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses), any applicable taxes and noncontrolling interests on the disposition of certain assets, the company’s share of these items from the company’s unconsolidated partnerships and any impairment charges on a depreciable real estate asset.

FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the company’s performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. The company’s computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to FFO, as defined by NAREIT, is included in the financial information accompanying this release.

Adjusted Funds From Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. AFFO should not be considered an alternative to net earnings, as an indication of the company's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the company’s performance. The company’s computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to AFFO is included in the financial information accompanying this release.

The company has earnings from discontinued operations. The company classified the revenues and expenses related to properties which generated revenue and were sold or generated revenue and were held for sale as of September 30, 2013, as discontinued operations. The results of operations for prior periods for these properties now classified as discontinued operations have been restated to reflect the results in earnings from discontinued operations for comparability purposes. These adjustments resulted in a decrease in the company's reported total revenues and total and per share earnings from continuing operations and an increase in the company's earnings from discontinued operations. However, the company's total and per share FFO and net earnings available to common stockholders are not affected.




3

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2013
 
2012
 
2013
 
2012
Income Statement Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Rental and earned income
 
$
96,573

 
$
80,628

 
$
277,013

 
$
231,003

Real estate expense reimbursement from tenants
 
3,113

 
2,658

 
9,203

 
8,024

Interest and other income from real estate transactions
 
341

 
512

 
1,095

 
1,982

Interest income on commercial mortgage residual interests
 
594

 
593

 
1,789

 
2,064

 
 
100,621

 
84,391

 
289,100

 
243,073

 
 
 
 
 
 
 
 
 
Retail operations:
 
 
 
 
 
 
 
 
Revenues
 
—

 
—

 
—

 
19,008

Operating expenses
 
—

 
—

 
—

 
(18,543
)
Net
 
—

 
—

 
—

 
465

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
General and administrative
 
7,534

 
8,653

 
25,209

 
23,282

Real estate
 
4,420

 
3,842

 
12,580

 
12,376

Depreciation and amortization
 
25,856

 
17,242

 
72,126

 
53,574

Impairment – commercial mortgage residual interests valuation
 
16

 
—

 
16

 
2,718

Impairment losses and other charges, net of recoveries
 
—

 
3,223

 
1,972

 
3,258

 
 
37,826

 
32,960

 
111,903

 
95,208

 
 
 
 
 
 
 
 
 
Other expenses (revenues):
 
 
 
 
 
 
 
 
Interest and other income
 
(722
)
 
(1,194
)
 
(1,433
)
 
(1,913
)
Interest expense
 
19,989

 
23,039

 
65,210

 
62,425

 
 
19,267

 
21,845

 
63,777

 
60,512

 
 
 
 
 
 
 
 
 
Income tax benefit (expense)
 
(365
)
 
7,438

 
(363
)
 
7,167

Equity in earnings of unconsolidated affiliate
 
—

 
3,769

 
—

 
4,074

 
 
 
 
 
 
 
 
 
Earnings from continuing operations
 
43,163

 
40,793

 
113,057

 
99,059

 
 
 
 
 
 
 
 
 
Earnings (loss) from discontinued operations, net of income tax expense
 
1,179

 
(2,803
)
 
2,794

 
2,231

 
 
 
 
 
 
 
 
 
Earnings including noncontrolling interests
 
44,342

 
37,990

 
115,851

 
101,290

 
 
 
 
 
 
 
 
 
Loss (earnings) attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
Continuing operations
 
17

 
27

 
276

 
73

Discontinued operations
 
(7
)
 
(2
)
 
(223
)
 
(10
)
 
 
10

 
25

 
53

 
63

 
 
 
 
 
 
 
 
 
Net earnings attributable to NNN
 
44,352

 
38,015

 
115,904

 
101,353

Series C preferred stock dividends
 
—

 
—

 
—

 
(1,979
)
Series D preferred stock dividends
 
(4,762
)
 
(4,762
)
 
(14,285
)
 
(10,688
)
Series E preferred stock dividends
 
(4,780
)
 
—

 
(4,780
)
 
—

Excess of redemption value over carrying value of Series C
   preferred shares redeemed
 
—

 
—

 
—

 
(3,098
)
Net earnings available to common stockholders
 
$
34,810

 
$
33,253

 
$
96,839

 
$
85,588

 
 
 
 
 
 
 
 
 

4

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
120,288

 
107,488

 
117,222

 
106,140

Diluted
 
121,230

 
110,340

 
119,356

 
108,092

 
 
 
 
 
 
 
 
 
Net earnings per share available to common stockholders:
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.28

 
$
0.33

 
$
0.80

 
$
0.78

Discontinued operations
 
0.01

 
(0.02
)
 
0.02

 
0.02

Net earnings
 
$
0.29

 
$
0.31

 
$
0.82

 
$
0.80

 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.28

 
$
0.32

 
$
0.79

 
$
0.77

Discontinued operations
 
0.01

 
(0.02
)
 
0.02

 
0.02

Net earnings
 
$
0.29

 
$
0.30

 
$
0.81

 
$
0.79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


5

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2013
 
2012
 
2013
 
2012
Funds From Operations (FFO) Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
34,810

 
$
33,253

 
$
96,839

 
$
85,588

Real estate depreciation and amortization:
 
 
 
 
 
 
 
 
Continuing operations
 
25,939

 
18,852

 
72,100

 
53,475

Discontinued operations
 
9

 
288

 
112

 
1,164

Joint venture real estate depreciation
 
—

 
23

 
—

 
112

Joint venture gain on disposition of real estate
 
—

 
(2,341
)
 
—

 
(2,341
)
Gain on disposition of real estate, net of tax and noncontrolling interest
 
(811
)
 
(1,694
)
 
(3,467
)
 
(4,446
)
Impairment losses (recoveries) - real estate
 
(1
)
 
8,663

 
3,244

 
9,043

Total FFO adjustments
 
25,136

 
23,791

 
71,989

 
57,007

FFO available to common stockholders
 
$
59,946

 
$
57,044

 
$
168,828

 
$
142,595

 
 
 
 
 
 
 
 
 
FFO per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.50

 
$
0.53

 
$
1.44

 
$
1.34

Diluted
 
$
0.49

 
$
0.52

 
$
1.41

 
$
1.32

 
 
 
 
 
 
 
 
 
Recurring Funds from Operations Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common shareholders
 
$
34,810

 
$
33,253

 
$
96,839

 
$
85,588

Total FFO adjustments
 
25,136

 
23,791

 
71,989

 
57,007

FFO available to common shareholders
 
59,946

 
57,044

 
168,828

 
142,595

 
 
 
 
 
 
 
 
 
Excess of redemption value over carrying value of preferred
   share redemption
 
—

 
—

 
—

 
3,098

Impairment losses and other charges, net of recoveries
 
16

 
—

 
775

 
2,520

Income tax benefit
 
—

 
(7,671
)
 
—

 
(7,671
)
Joint venture disposition fee and promote income
 
—

 
(1,964
)
 
—

 
(1,964
)
Notes receivable redemption income
 
(497
)
 
—

 
(497
)
 
—

Total Recurring FFO adjustments
 
(481
)
 
(9,635
)
 
278

 
(4,017
)
Recurring FFO available to common shareholders
 
$
59,465

 
$
47,409

 
$
169,106

 
$
138,578

 
 
 
 
 
 
 
 
 
Recurring FFO per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.49

 
$
0.44

 
$
1.44

 
$
1.31

Diluted
 
$
0.49

 
$
0.43

 
$
1.42

 
$
1.28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

6

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2013
 
2012
 
2013

 
2012

Adjusted Funds From Operations (AFFO) Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common shareholders
 
$
34,810

 
$
33,253

 
$
96,839

 
$
85,588

Total FFO adjustments
 
25,136

 
23,791

 
71,989

 
57,007

Total Recurring FFO adjustments
 
(481
)
 
(9,635
)
 
278

 
(4,017
)
Recurring FFO available to common stockholders
 
59,465

 
47,409

 
169,106

 
138,578

 
 
 
 
 
 
 
 
 
Straight line accrued rent
 
(346
)
 
(528
)
 
(318
)
 
(1,058
)
Net capital lease rent adjustment
 
420

 
414

 
1,230

 
1,222

Below market rent amortization
 
(585
)
 
(628
)
 
(1,833
)
 
(1,865
)
Stock based compensation expense
 
1,917

 
1,988

 
5,525

 
5,756

Capitalized interest expense
 
(470
)
 
(336
)
 
(1,010
)
 
(1,204
)
Convertible debt interest expense
 
—

 
1,082

 
2,072

 
3,189

Joint venture disposition fee and promote income
 
—

 
1,964

 
—

 
1,964

Notes receivable redemption income
 
497

 
—

 
497

 
—

Total AFFO adjustments
 
1,433

 
3,956

 
6,163

 
8,004

AFFO available to common stockholders
 
$
60,898

 
$
51,365

 
$
175,269

 
$
146,582

 
 
 
 
 
 
 
 
 
AFFO per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.51

 
$
0.48

 
$
1.50

 
$
1.38

Diluted
 
$
0.50

 
$
0.47

 
$
1.47

 
$
1.36

 
 
 
 
 
 
 
 
 
Other Information:
 
 
 
 
 
 
 
 
Percentage rent
 
$
267

 
$
242

 
$
801

 
$
572

Amortization of debt costs
 
$
654

 
$
850

 
$
2,460

 
$
2,506

Scheduled debt principal amortization (excluding maturities)
 
$
270

 
$
252

 
$
795

 
$
931

Non-real estate depreciation expense
 
$
62

 
$
40

 
$
185

 
$
80

Real estate acquisition costs (included in general and administrative expense)
 
$
55

 
$
40

 
$
1,659

 
$
345


7

National Retail Properties, Inc.
(in thousands)
(unaudited)

Earnings from Discontinued Operations:  NNN classified the revenues and expenses related to properties which were sold or were held for sale as of September 30, 2013 and generated revenue, as discontinued operations. The following is a summary of the earnings (loss) from discontinued operations.
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Rental and earned income
 
$
803

 
$
1,643

 
$
2,037

 
$
5,917

Real estate expense reimbursement from tenants
 
63

 
124

 
231

 
323

Interest and other income from real estate transactions
 
1

 
4

 
37

 
38

 
 
867

 
1,771

 
2,305

 
6,278

 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
General and administrative
 
3

 
2

 
218

 
7

Real estate
 
219

 
305

 
479

 
846

Depreciation and amortization
 
148

 
301

 
297

 
1,204

Impairment losses and other charges, net of recoveries
 
(1
)
 
5,440

 
2,046

 
5,785

Interest
 
136

 
183

 
444

 
552

 
 
505

 
6,231

 
3,484

 
8,394

 
 
 
 
 
 
 
 
 
Gain on disposition of real estate
 
1,228

 
1,694

 
4,402

 
4,446

Income tax expense
 
(411
)
 
(37
)
 
(429
)
 
(99
)
 
 
 
 
 
 
 
 
 
Earnings (loss) from discontinued operations attributable to
  NNN
 
1,179

 
(2,803
)
 
2,794

 
2,231

Earnings (loss) attributable to noncontrolling interests
 
(7
)
 
(2
)
 
(223
)
 
(10
)
Earnings (loss) from discontinued operations attributable to
  NNN
 
$
1,172

 
$
(2,805
)
 
$
2,571

 
$
2,221












8


National Retail Properties, Inc.
(in thousands)
(unaudited)

 
 
September 30, 2013
 
December 31, 2012
Balance Sheet Summary
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
Cash and cash equivalents
 
$
6,530

 
$
2,076

Receivables, net of allowance
 
2,736

 
3,112

Mortgages, notes and accrued interest receivable
 
16,693

 
27,770

Real estate portfolio:
 
 
 
 
Accounted for using the operating method, net of accumulated depreciation and amortization
 
4,221,892

 
3,793,416

Accounted for using the direct financing method
 
21,523

 
22,692

Real estate held for sale
 
16,792

 
18,699

Commercial mortgage residual interests
 
14,755

 
13,096

Accrued rental income, net of allowance
 
25,411

 
25,458

Debt costs, net of accumulated amortization
 
13,535

 
12,781

Other assets
 
96,993

 
68,926

Total assets
 
$
4,436,860

 
$
3,988,026

 
 
 
 
 
Liabilities:
 
 
 
 
Line of credit payable
 
$
—

 
$
174,200

Mortgages payable, including unamortized premium
 
9,764

 
10,602

Notes payable - convertible, net of unamortized discount
 
—

 
236,500

Notes payable, net of unamortized discount
 
1,513,884

 
1,165,662

Accrued interest payable
 
27,913

 
17,527

Other liabilities
 
97,369

 
85,950

Total liabilities
 
1,648,930

 
1,690,441

 
 
 
 
 
Stockholders’ equity of NNN
 
2,786,683

 
2,296,285

Noncontrolling interests
 
1,247

 
1,300

Total equity
 
2,787,930

 
2,297,585

 
 
 
 
 
Total liabilities and equity
 
$
4,436,860

 
$
3,988,026

 
 
 
 
 
Common shares outstanding
 
121,857

 
111,555

 
 
 
 
 
Gross leasable area, Property Portfolio (square feet)
 
20,292

 
19,168

 
 
 
 
 





9

National Retail Properties, Inc.
Property Portfolio

Top 20 Lines of Trade
 
 
 
 
As of September 30,
 
 
Line of Trade
 
2013(1)
 
2012 (2)
1.
 
Convenience stores
 
19.9%
 
21.6%
2.
 
Restaurants - full service
 
9.8%
 
11.3%
3.
 
Automotive service
 
7.6%
 
6.4%
4.
 
Restaurants - limited service
 
5.4%
 
3.5%
5.
 
Automotive parts
 
5.1%
 
5.8%
6.
 
Theaters
 
4.4%
 
4.5%
7.
 
Banks
 
4.1%
 
0.2%
8.
 
Health and fitness
 
4.0%
 
2.8%
9.
 
Sporting goods
 
3.7%
 
4.5%
10.
 
Wholesale clubs
 
3.1%
 
3.6%
11.
 
Recreational vehicle dealers, parts and accessories
 
3.1%
 
2.9%
12.
 
Drug stores
 
2.7%
 
3.2%
13.
 
Consumer electronics
 
2.7%
 
3.2%
14.
 
Home improvement
 
2.5%
 
3.1%
15.
 
Family entertainment centers
 
2.2%
 
2.1%
16.
 
Travel plazas
 
2.0%
 
2.3%
17.
 
Home furnishings
 
1.6%
 
1.5%
18.
 
Books
 
1.6%
 
1.9%
19.
 
Grocery
 
1.5%
 
1.8%
20.
 
General merchandise
 
1.5%
 
1.3%
 
 
Other
 
11.5%
 
12.5%
 
 
Total
 
100.0%
 
100.0%

Top 10 States
 
State
 
 
% of Total(1)
 
 
State
 
 
% of Total(1)
1.
Texas
 
 
20.6%
 
6.
Virginia
 
 
4.6%
2.
Florida
 
 
10.6%
 
7.
Indiana
 
 
3.9%
3.
Illinois
 
 
5.3%
 
8.
California
 
 
3.6%
4.
Georgia
 
 
4.9%
 
9.
Pennsylvania
 
 
3.3%
5.
North Carolina
 
 
4.7%
 
10.
Ohio
 
 
3.2%

(1) 
Based on the annualized base rent for all leases in place as of September 30, 2013.
(2) 
Based on the annualized base rent for all leases in place as of September 30, 2012.


10

National Retail Properties, Inc.
Property Portfolio

Top Tenants (> 2.0%)
 
 
 
Properties
 
% of Total (1)
 
Susser Holdings
 
86

 
5.1
%
 
Mister Car Wash
 
85

 
5.0
%
 
Pantry
 
84

 
4.5
%
 
7-Eleven
 
68

 
4.2
%
 
LA Fitness
 
19

 
3.9
%
 
SunTrust
 
121

 
3.9
%
 
AMC Theatre
 
15

 
3.6
%
 
BJ's Wholesale Club
 
7

 
3.1
%
 
Camping World
 
23

 
3.1
%
 
Best Buy
 
19

 
2.7
%
 
Gander Mountain
 
9

 
2.3
%
 
Energy Transfer Partners (Sunoco)
 
38

 
2.1
%
 
Road Ranger
 
27

 
2.1
%
 
Pull-A-Part
 
20

 
2.1
%
 
Logan's Roadhouse
 
30

 
2.0
%

Lease Expirations(2) 
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable
Area (3)
 
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable Area (3)
2013
 
0.4
%
 
8

 
90,000

 
2019
 
2.6
%
 
47

 
785,000

2014
 
2.3
%
 
37

 
567,000

 
2020
 
3.1
%
 
96

 
907,000

2015
 
2.1
%
 
33

 
614,000

 
2021
 
4.6
%
 
99

 
912,000

2016
 
1.7
%
 
32

 
567,000

 
2022
 
6.8
%
 
92

 
1,060,000

2017
 
3.5
%
 
46

 
1,009,000

 
2023
 
3.3
%
 
53

 
947,000

2018
 
8.3
%
 
186

 
1,956,000

 
Thereafter
 
61.3
%
 
1,078

 
10,314,000


(1) 
Based on the annual base rent of $391,340,000, which is the annualized base rent for all leases in place as of September 30, 2013.
(2) 
As of September 30, 2013, the weighted average remaining lease term is 12 years.
(3) 
Square feet.










11