EX-99.2 3 ex992-12312018.htm EXHIBIT 99.2 Exhibit
Exhibit 99.2





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ANNUAL SUPPLEMENTAL DATA


As of December 31, 2018



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TABLE OF CONTENTS
 
PAGE REFERENCE
Financial Summary
 
Income Statement Summary
Funds From Operations (FFO)
Core Funds From Operation
Adjusted Funds From Operations (AFFO)
Other Information
Balance Sheet
Debt Summary
Credit Metrics
Credit Facility and Note Covenants
Long-Term Dividend History
Transaction Summary
 
Property Acquisitions
Property Dispositions
Property Portfolio
 
Lease Expirations
Top 20 Lines of Trade
Top 10 States
Portfolio By Region
Top Tenants
Same Store Rental Income
Leasing Data
Other Property Portfolio Data
Earnings Guidance

Statements in this supplemental that are not strictly historical are “forward-looking” statements. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated," or other similar words or expressions. 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 (the “Commission”) 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 Commission. 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.



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INCOME STATEMENT SUMMARY
(in thousands, except per share data)
(unaudited)
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
Rental and earned income
 
$
153,684

 
$
145,187

 
$
604,615

 
$
568,083

Real estate expense reimbursement from tenants
 
5,143

 
4,338

 
16,784

 
15,512

Interest and other income from real estate transactions
 
149

 
722

 
1,262

 
1,338

 
 
158,976

 
150,247

 
622,661

 
584,933

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
General and administrative
 
8,267

 
8,712

 
34,248

 
33,805

Real estate
 
7,649

 
6,465

 
25,099

 
23,105

Depreciation and amortization
 
44,117

 
43,843

 
174,398

 
173,720

Impairment losses – real estate and other charges, net of recoveries
 
18,494

 
7,708

 
28,211

 
8,955

Retirement severance costs
 
270

 
192

 
1,013

 
7,845

 
 
78,797

 
66,920

 
262,969

 
247,430

 
 
 
 
 
 
 
 
 
Gain on disposition of real estate
 
8,020

 
15,791

 
65,070

 
36,655

Earnings from operations
 
88,199

 
99,118

 
424,762

 
374,158

 
 
 
 
 
 
 
 
 
Other expenses (revenues):
 
 
 
 
 
 
 
 
Interest and other income
 
(1,553
)
 
(83
)
 
(1,810
)
 
(322
)
Interest expense
 
34,940

 
27,016

 
115,847

 
109,109

Loss on early extinguishment of debt
 
18,240

 
—

 
18,240

 
—

 
 
51,627

 
26,933

 
132,277

 
108,787

 
 
 
 
 
 
 
 
 
Net earnings
 
36,572

 
72,185

 
292,485

 
265,371

Earnings attributable to noncontrolling interests
 
(10
)
 
(17
)
 
(38
)
 
(398
)
Net earnings attributable to NNN
 
$
36,562

 
$
72,168

 
$
292,447

 
$
264,973

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1

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INCOME STATEMENT SUMMARY
(in thousands, except per share data)
(unaudited)
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
Net earnings attributable to NNN
 
$
36,562

 
$
72,168

 
$
292,447

 
$
264,973

Series D preferred stock dividends
 
—

 
—

 
—

 
(3,598
)
Series E preferred stock dividends
 
(4,097
)
 
(4,097
)
 
(16,387
)
 
(16,387
)
Series F preferred stock dividends
 
(4,485
)
 
(4,485
)
 
(17,940
)
 
(17,940
)
Excess of redemption value over carrying value of Series D preferred shares redeemed
 
—

 
—

 
—

 
(9,855
)
Net earnings available to common stockholders
 
$
27,980

 
$
63,586

 
$
258,120

 
$
217,193

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
159,193

 
151,791

 
155,745

 
149,111

Diluted
 
159,772

 
152,148

 
156,296

 
149,433

 
 
 
 
 
 
 
 
 
Net earnings per share available to common stockholders:
 
 
 
 
 
 
 
 
Basic
 
$
0.17

 
$
0.42

 
$
1.65

 
$
1.45

Diluted
 
$
0.17

 
$
0.42

 
$
1.65

 
$
1.45



2

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FUNDS FROM OPERATIONS (FFO)
(in thousands, except per share data)
(unaudited)
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
Net earnings available to common stockholders
 
$
27,980

 
$
63,586

 
$
258,120

 
$
217,193

Real estate depreciation and amortization:
 
44,037

 
43,764

 
174,076

 
173,404

Gain on disposition of real estate, net of noncontrolling interests
 
(8,020
)
 
(15,791
)
 
(65,070
)
 
(36,258
)
Impairment losses – depreciable real estate, net of recoveries
 
18,494

 
3,708

 
28,211

 
4,840

Total FFO adjustments
 
54,511

 
31,681

 
137,217

 
141,986

FFO available to common stockholders
 
$
82,491

 
$
95,267

 
$
395,337

 
$
359,179

 
 
 
 
 
 
 
 
 
FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.52

 
$
0.63

 
$
2.54

 
$
2.41

Diluted
 
$
0.52

 
$
0.63

 
$
2.53

 
$
2.40


CORE FUNDS FROM OPERATIONS
(in thousands, except per share data)
(unaudited)
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
Net earnings available to common stockholders
 
$
27,980

 
$
63,586

 
$
258,120

 
$
217,193

Total FFO adjustments
 
54,511

 
31,681

 
137,217

 
141,986

FFO available to common stockholders
 
82,491

 
95,267

 
395,337

 
359,179

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

 
—

 
—

 
9,855

Impairment losses – non-depreciable real estate
 
—

 
—

 
—

 
112

Retirement severance costs
 
270

 
192

 
1,013

 
7,845

Loss on early extinguishment of debt
 
18,240

 
—

 
18,240

 
—

Total Core FFO adjustments
 
18,510

 
192

 
19,253

 
17,812

Core FFO available to common stockholders
 
$
101,001

 
$
95,459

 
$
414,590

 
$
376,991

 
 
 
 
 
 
 
 
 
Core FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.63

 
$
0.63

 
$
2.66

 
$
2.53

Diluted
 
$
0.63

 
$
0.63

 
$
2.65

 
$
2.52



3

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ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(in thousands, except per share data)
(unaudited)
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
Net earnings available to common stockholders
 
$
27,980

 
$
63,586

 
$
258,120

 
$
217,193

Total FFO adjustments
 
54,511

 
31,681

 
137,217

 
141,986

Total Core FFO adjustments
 
18,510

 
192

 
19,253

 
17,812

Core FFO available to common stockholders
 
101,001

 
95,459

 
414,590

 
376,991

 
 
 
 
 
 
 
 
 
Straight-line accrued rent
 
124

 
(552
)
 
(747
)
 
(1,752
)
Net capital lease rent adjustment
 
220

 
223

 
874

 
884

Below market rent amortization
 
(288
)
 
(659
)
 
(2,622
)
 
(3,355
)
Stock based compensation expense
 
2,641

 
1,962

 
9,282

 
8,750

Capitalized interest expense
 
(175
)
 
(741
)
 
(2,675
)
 
(2,435
)
Total AFFO adjustments
 
2,522

 
233

 
4,112

 
2,092

AFFO available to common stockholders
 
$
103,523

 
$
95,692

 
$
418,702

 
$
379,083

 
 
 
 
 
 
 
 
 
AFFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.65

 
$
0.63

 
$
2.69

 
$
2.54

Diluted
 
$
0.65

 
$
0.63

 
$
2.68

 
$
2.54


OTHER INFORMATION
(in thousands)
(unaudited)
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
Percentage rent
 
$
543

 
$
715

 
$
1,561

 
$
1,700

Amortization of debt costs
 
$
1,917

 
$
891

 
$
4,611

 
$
3,502

Scheduled debt principal amortization (excluding maturities)
 
$
138

 
$
130

 
$
538

 
$
510

Non-real estate depreciation expense
 
$
83

 
$
82

 
$
332

 
$
327



4

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BALANCE SHEET
(in thousands)
(unaudited)
 
 
 
December 31, 2018
 
December 31, 2017
Assets:
 
 
 
 
Real estate:
 
 
 
 
Accounted for using the operating method, net of accumulated depreciation and amortization
 
$
6,853,757

 
$
6,403,638

Accounted for using the direct financing method
 
8,069

 
9,650

Real estate held for sale
 
13,606

 
29,373

Cash and cash equivalents
 
114,267

 
1,364

Receivables, net of allowance
 
3,797

 
4,317

Accrued rental income, net of allowance
 
25,387

 
25,916

Debt costs, net of accumulated amortization
 
4,081

 
5,380

Other assets
 
80,474

 
80,896

Total assets
 
$
7,103,438

 
$
6,560,534

 
 
 
 
 
Liabilities:
 
 
 
 
Line of credit payable
 
$
—

 
$
120,500

Mortgages payable, including unamortized premium and net of unamortized debt cost
 
12,694

 
13,300

Notes payable, net of unamortized discount and unamortized debt costs
 
2,838,701

 
2,446,407

Accrued interest payable
 
19,519

 
20,311

Other liabilities
 
77,919

 
119,106

Total liabilities
 
2,948,833

 
2,719,624

 
 
 
 
 
Stockholders’ equity of NNN
 
4,154,250

 
3,840,593

Noncontrolling interests
 
355

 
317

Total equity
 
4,154,605

 
3,840,910

 
 
 
 
 
Total liabilities and equity
 
$
7,103,438

 
$
6,560,534

 
 
 
 
 
Common shares outstanding
 
161,504

 
153,577

 
 
 
 
 
Gross leasable area, Property Portfolio (square feet)
 
30,487

 
29,093




5

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DEBT SUMMARY
(in thousands)
As of December 31, 2018
Unsecured Debt
 
Principal
 
Principal, Net of Unamortized Discount
 
Stated Rate
 
Effective Rate
 
Maturity Date
Line of credit payable
 
$
—

 
$
—

 
L + 87.5 bps
 
2.823%
 
January 2022
 
 
 
 
 
 
 
 
 
 
 
Unsecured notes payable:
 
 
 
 
 
 
 
 
 
 
2022
 
325,000

 
322,903

 
3.800%
 
3.985%
 
October 2022
2023
 
350,000

 
348,780

 
3.300%
 
3.388%
 
April 2023
2024
 
350,000

 
349,583

 
3.900%
 
3.924%
 
June 2024
2025
 
400,000

 
399,301

 
4.000%
 
4.029%
 
November 2025
2026
 
350,000

 
346,818

 
3.600%
 
3.733%
 
December 2026
2027
 
400,000

 
398,550

 
3.500%
 
3.548%
 
October 2027
2028
 
400,000

 
397,215

 
4.300%
 
4.388%
 
October 2028
2048
 
300,000

 
295,778

 
4.800%
 
4.890%
 
October 2048
Total
 
2,875,000

 
2,858,928

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total unsecured debt
 
$
2,875,000

 
$
2,858,928

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt costs
 
(26,932
)
 
 
 
 
 
 
Accumulated amortization
 
6,705

 
 
 
 
 
 
Debt costs, net of accumulated amortization
 
(20,227
)
 
 
 
 
 
 
Notes payable, net of unamortized discount and unamortized debt costs (1)
 
$
2,838,701

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Unsecured notes payable have a weighted average interest rate of 4.0% and a weighted average maturity of 9.3 years
Mortgages Payable
 
Interest Rate
 
Maturity Date
 
Principal Balance
Mortgage(1)
 
5.230
%
 
July 2023
 
$
12,768

 
 
 
 
 
 

Debt costs
 
 
 
 
 
(147
)
Accumulated amortization
 
73

Debt costs, net of accumulated amortization
 
(74
)
Mortgages payable, including unamortized premium and net of unamortized debt costs
 
$
12,694

 
 
 
 
 
 
 
(1) Includes unamortized premium
 
 
chart-4a2560bebff25473814.jpg

6

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CREDIT METRICS (1)
Ratings: Moody’s Baa1; S&P BBB+; Fitch BBB+
 
 
 
 
 
 
 
 
 
 
2014
 
2015
 
2016
 
2017
 
2018
Debt / Total assets (gross book)
32.6
%
 
33.2
%
 
30.2
%
 
35.3
%
 
34.6
%
Debt + preferred / Total assets (gross book)
43.3
%
 
42.9
%
 
43.9
%
 
44.0
%
 
42.6
%
Debt / EBITDA (last four quarters)
4.5

 
4.6

 
4.3

 
4.9

 
4.8

Debt + Pref Stock / EBITDA
6.0

 
5.9

 
6.2

 
6.1

 
5.9

EBITDA / Interest expense (cash)
4.4

 
4.6

 
4.8

 
4.7

 
4.8

EBITDA / Fixed charges (cash)
3.1

 
3.3

 
3.4

 
3.5

 
3.7

(1) Debt amounts used in calculation are net of cash balances.


CREDIT FACILITY AND NOTES COVENANTS
The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2018, the company believes it is in compliance with the covenants.
Unsecured Credit Facility Key Covenants
 
Required
 
December 31, 2018
Maximum leverage ratio
 
< 0.60
 
0.34
Minimum fixed charge coverage ratio
 
> 1.50
 
3.36
Maximum secured indebtedness ratio
 
< 0.40
 
0.001
Unencumbered asset value ratio
 
> 1.67
 
3.01
Unencumbered interest ratio
 
> 1.75
 
4.36
 
 
 
 
 
Unsecured Notes Key Covenants
 
Required
 
December 31, 2018
Limitation on incurrence of total debt
 
≤ 60%
 
35.10%
Limitation on incurrence of secured debt
 
≤ 40%
 
0.16%
Debt service coverage ratio
 
≥ 1.50
 
4.60
Maintenance of total unencumbered assets
 
≥ 150%
 
285.39%


7

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LONG-TERM DIVIDEND HISTORY

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8

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PROPERTY ACQUISITIONS
(dollars in thousands)
 
 
Year Ended December 31,
 
 
2018
 
2017
Total dollars invested
 
$
715,572

 
$
754,892

Number of Properties
 
265

 
276

Gross leasable area (square feet)
 
2,167,000

 
2,243,000

Cash cap rate
 
6.8
%
 
6.9
%

PROPERTY DISPOSITIONS
(dollars in thousands)
 
Year Ended December 31,
 
2018
 
2017
 
Occupied

Vacant

 
Total

 
Occupied

Vacant

 
Total

Number of properties
37

24

(1 
) 
61

 
31

17

(2 
) 
48

Gross leasable area (square feet)
552,000

134,000

 
686,000

 
161,000

185,000

 
346,000

Acquisition costs
$
90,384

$
31,366

 
$
121,750

 
$
61,008

$
20,228

 
$
81,236

Net book value
$
71,091

$
11,660

 
$
82,751

 
$
52,571

$
7,530

 
$
60,101

Net sale proceeds
$
133,804

$
13,842

 
$
147,646

 
$
88,382

$
8,375

 
$
96,757

Cash cap rate
5.1
%
—

 
5.1
%
 
6.0
%
—

 
6.0
%
(1) Includes 13 SunTrust properties and five land parcels
(2) Includes seven leased SunTrust properties whose leases were terminated at the time of sale and one land parcel

SUNTRUST PROPERTY RECAP - UPDATE (through December 31, 2018)

Initial Investment:
 
Total
 
Per Property
 
 
Original investment (June 2013)
 
$
210,571,800

 
$
1,740,263

(121 Properties)
 
Annual rent at acquisition (June 2013)
 
15,392,802

 
127,213

(7.31% yield)
 

Resolution:
 
Properties
 
Annual Rent
 
Acq. Cost
 
Value
 
Renewed lease (12 years) - value at 6.00% cap
 
80

 
$
10,853,331

 
 
 
$
180,888,850

 
Sold to tenant at 5.65% cap (March 2017)
 
10

 
n/a

 
 
 
31,957,610

 
Vacancy to market (March 31, 2018 lease expiration)
 
 
 
 
 
 
 
 
 
Sold as of December 31, 2018
 
21

 
n/a

 
 
 
11,608,250

 
Leased as of December 31, 2018
 
2

 
312,426

 
 
 
4,463,229

 
Marketing for sale or lease
 
8

 
TBD

 
 
 
TBD

 
 
 
121

 
 
 
$
210,571,800

 
$
228,917,939

+

9

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LEASE EXPIRATIONS
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable
Area (2)
 
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable Area (2)
2019
 
1.7
%
 
51

 
648,000

 
2025
 
4.4
%
 
129

 
1,130,000

2020
 
3.0
%
 
116

 
1,498,000

 
2026
 
5.0
%
 
179

 
1,697,000

2021
 
3.8
%
 
121

 
1,317,000

 
2027
 
7.6
%
 
193

 
2,600,000

2022
 
5.9
%
 
124

 
1,636,000

 
2028
 
5.0
%
 
162

 
1,188,000

2023
 
2.9
%
 
113

 
1,420,000

 
2029
 
3.3
%
 
73

 
1,208,000

2024
 
3.0
%
 
75

 
1,284,000

 
Thereafter
 
54.4
%
 
1,578

 
13,813,000

(1) 
Based on the annual base rent of $626,451,000, which is the annualized base rent for all leases in place as of December 31, 2018.
(2) 
Square feet.

chart-0d467635f79b5d4e9cf.jpg


10

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TOP 20 LINES OF TRADE
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
Line of Trade
 
% of Total(1)
 
Properties
 
% of Total(2)
 
Properties
1.
 
Convenience stores
 
18.0
%
 
617

 
18.1
%
 
576

2.
 
Restaurants - full service
 
11.4
%
 
453

 
12.1
%
 
455

3.
 
Restaurants - limited service
 
8.9
%
 
498

 
7.6
%
 
394

4.
 
Automotive service
 
8.6
%
 
291

 
6.9
%
 
220

5.
 
Family entertainment centers
 
7.1
%
 
98

 
6.4
%
 
95

6.
 
Health and fitness
 
5.6
%
 
35

 
5.6
%
 
36

7.
 
Theaters
 
5.0
%
 
33

 
4.8
%
 
33

8.
 
Automotive parts
 
3.4
%
 
179

 
3.6
%
 
180

9.
 
Recreational vehicle dealers, parts and accessories
 
3.4
%
 
36

 
3.4
%
 
34

10.
 
Wholesale clubs
 
2.3
%
 
9

 
2.2
%
 
8

11.
 
Medical service providers
 
2.2
%
 
84

 
2.4
%
 
86

12.
 
Home improvement
 
2.2
%
 
38

 
1.8
%
 
25

13.
 
Equipment rental
 
1.9
%
 
59

 
2.0
%
 
58

14.
 
Drug stores
 
1.8
%
 
37

 
1.9
%
 
39

15.
 
Travel plazas
 
1.7
%
 
27

 
1.8
%
 
27

16.
 
Furniture
 
1.7
%
 
44

 
1.9
%
 
43

17.
 
Bank
 
1.6
%
 
70

 
2.5
%
 
104

18.
 
Consumer electronics
 
1.6
%
 
17

 
1.8
%
 
19

19.
 
General merchandise
 
1.6
%
 
59

 
1.8
%
 
62

20.
 
Home furnishings
 
1.5
%
 
18

 
1.6
%
 
18

 
 
Other
 
8.5
%
 
267

 
9.8
%
 
252

 
 
Total
 
100.0
%
 
2,969

 
100.0
%
 
2,764

(1) Based on the annualized base rent for all leases in place as of December 31, 2018.
(2) Based on the annualized base rent for all leases in place as of December 31, 2017.

TOP 10 STATES
 
State
 
% of Total(1)
 
Properties
 
 
State
 
% of Total(1)
 
Properties
1.
Texas
 
17.3
%
 
472

 
6.
Georgia
 
4.5
%
 
143

2.
Florida
 
8.7
%
 
219

 
7.
Tennessee
 
3.9
%
 
138

3.
Ohio
 
5.7
%
 
195

 
8.
Indiana
 
3.9
%
 
125

4.
Illinois
 
5.2
%
 
141

 
9.
Virginia
 
3.7
%
 
114

5.
North Carolina
 
4.6
%
 
148

 
10.
Alabama
 
3.1
%
 
132

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Based on the annualized base rent for all leases in place as of December 31, 2018.
 
 



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PORTFOLIO BY REGION
As a percentage of annual base rent - December 31, 2018

chart-e59e395bc3fd5d36a29.jpg
TOP TENANTS
Creditworthy Retailers
▪
20% of annual base rent is from tenants with investment grade rated debt
▪
63% of annual base rent is from tenants that are publicly traded and/or have rated debt
▪
Top 25 tenants (59% of annual base rent) operate an average of 1,136 stores each

Top Tenants (≥2.0%)
 
Properties
 
% of Total (1)
7-Eleven
 
140

 
5.4
%
Mister Car Wash
 
106

 
4.4
%
Camping World
 
47

 
4.3
%
LA Fitness
 
30

 
4.0
%
Flynn Restaurant Group (Taco Bell/Arby's)
 
201

 
3.6
%
GPM Investments (Convenience Stores)
 
151

 
3.6
%
AMC Theatres
 
20

 
3.2
%
Couche-Tard (Pantry)
 
86

 
3.0
%
Sunoco
 
61

 
2.4
%
BJ's Wholesale Club
 
9

 
2.3
%
Chuck E. Cheese's
 
53

 
2.2
%
 
Rent Coverage (With Corp. Overhead)
 
Fixed Charge Coverage
Range
1.7x - 9.4x
 
1.3x - 4.0x
Average
3.8x
 
2.3x
Weighted average
3.6x
 
2.3x
 
 
 
 
(1) Based on the annual base rent of $626,451,000, which is the annualized base rent for all leases in place as of December 31, 2018.

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SAME STORE RENTAL INCOME
(dollars in thousands)

Same Store Rental Income – Properties (Cash Basis) (1)
 
 
Number of properties
2,668

 
Year ended December 31, 2018
$
522,064

 
Year ended December 31, 2017
$
522,733

 
Decrease (in dollars)
$
(669
)
 
Change (percent)
(0.1
)%
(2) 
(1)   Includes all properties owned for current and prior year period excluding any properties under development
      or re-development.
(2)   Excluding impact from Gander Mountain, Virginia College, Toys R Us bankruptcies and SunTrust lease
      expiration, same store rents would have increased 1.0%.

Same Store Rental Income – Leases (Cash Basis) (1)
 
 
Number of leases
2,361

 
Year ended December 31, 2018
$
508,577

 
Year ended December 31, 2017
$
501,794

 
Increase (in dollars)
$
6,783


Change (percent)
1.4
%

(1)   Includes all properties owned for current and prior year period excluding any vacant properties or properties
      under development or re-development.


LEASING DATA
(dollars in thousands)
Year Ended December 31, 2018
 
Renewals With Same Tenant(1)
 
Vacancy
Re-lease To New Tenant
 
Re-leasing Totals
 
Number of leases
 
52

 
15

 
67

 
Prior cash rents
 
$
10,820

 
$
1,935

 
$
12,755

 
New cash rents
 
$
10,414

 
$
1,676

 
$
12,090

(2) 
New rents / prior rents
 
96.3
%
 
86.7
%
 
94.8
%
 
 
 
 
 
 
 
 
 
Tenant improvements
 
$
850

 
$
3,094

 
$
3,944

 

(1) 
Long-term renewal rate for the period of 2010 through 2018 was 84.1%.
(2) 
Represents 1.9% of total annualized base rent as of December 31, 2018.




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OTHER PROPERTY PORTFOLIO DATA
As of December 31, 2018
Tenant Financials
 
 
# of Properties
 
% of Annual Base Rent
Property Level Financial Information
 
2,448

 
79
%
Tenant Corporate Financials
 
2,283

 
79
%

Rent Increases
% of Annual Base Rent
 
Annual

 
Five Year

 
Other

 
Total

CPI – Based
33
%
 
45
%
 
2
%
 
80
%
Fixed Rate
3
%
 
11
%
 
2
%
 
16
%
No increases
—

 
—

 
4
%
 
4
%
 
36
%
 
56
%
 
8
%
 
100
%

Lease Structure
▪
93% of the company's annual base rent is from NNN leases
▪
96% of the company's annual base rent is from NNN leases and NN leases (with roof warranty)

EARNINGS GUIDANCE
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.

 
 
2019 Guidance
  Net earnings per common share excluding any gains on disposition of real estate and impairment charges
 
$1.60 - $1.65 per share
  Real estate depreciation and amortization per share
 
$1.11 per share
Core FFO per share
 
$2.71 - $2.76 per share
  AFFO per share
 
$2.76 - $2.81 per share
  G&A expenses
 
$35.5 - $36.5 Million
  Real estate expenses, net of tenant reimbursements
 
$8.5 - $9.0 Million
  Acquisition volume
 
$550 - $650 Million
  Disposition volume
 
$80 - $120 Million


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