8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: February 4, 2008

NATIONAL RETAIL PROPERTIES, INC.

(exact name of registrant as specified in its charter)

Maryland	001-11290	56-1431377
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employment Identification No.)

450 South Orange Avenue, Suite 900, Orlando, Florida 32801

(Address of principal executive offices, including zip code)

(407) 265-7348

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On February 4, 2008, National Retail Properties, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended December 31, 2007. The press release is attached hereto as Exhibit 99.1.

The information in this Form 8-K is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of such section, nor shall such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release, dated February 4, 2008, of National Retail Properties, Inc.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	National Retail Properties, Inc.
Dated: February 4, 2008	By:	/s/ Kevin B. Habicht
		Kevin B. Habicht
		Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated February 4, 2008, of National Retail Properties, Inc.

EX-99.1

Exhibit 99.1

NEW RELEASE
For information contact:
Kevin B. Habicht
Chief Financial Officer
(407) 265-7348	FOR IMMEDIATE RELEASE
	February 4, 2008

RECORD OPERATING RESULTS

ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, February 4, 2008 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced record operating results for the year ended December 31, 2007. Annual revenues increased 32.1% and Funds From Operations (“FFO”) per share increased 12.0% compared to 2006. For the quarter ended December 31, 2007, revenues increased 34.5% and FFO per share decreased 2.2% compared to the quarter ended December 31, 2006. Highlights include:

Operating Results:

• Revenues and net earnings and FFO available to common stockholders:

	Quarter Ended December 31,				Year Ended December 31,
	2007		2006		2007		2006
	(in thousands, except per share data)
Revenues	$	52,565	$	39,087	$	186,411	$	141,156
Net earnings available to common stockholders	$	32,669	$	55,108	$	150,325	$	177,206
Net earnings per common share (diluted)	$	0.46	$	0.93	$	2.26	$	3.05
FFO available to common stockholders	$	32,150	$	27,073	$	124,113	$	97,121
FFO per common share (diluted)	$	0.45	$	0.46	$	1.87	$	1.67

• Investment Portfolio occupancy was 98.3% at December 31, 2007.

2007 Highlights:

• FFO per share increased 12.0% to a record $1.87 per share.

• Dividends paid per share increased 6.1% to a record $1.40 per share marking the 18^th consecutive year of increased dividends per share, a claim only 181 U.S. publicly traded companies can make.

• Dividend payout ratio decreased to 74.9% enhancing both the safety of the current dividend and the opportunity to increase the dividend in the future.

• Total dividends paid to common and preferred stockholders exceeded $100 million for the first time in company history.

• Total assets increased to $2.5 billion at year end from $1.9 billion the prior year as we invested $697 million in our core portfolio properties.

450 S. Orange Ave., Suite 900 | Orlando, FL 32801 (800) NNN-REIT | www.nnnreit.com

• Sold 37 properties for $146 million from our core portfolio producing $56.6 million of gains on sale (not included in FFO).

• Balance sheet remained strong as we raised $298 million of additional common equity and launched our first institutional joint venture.

Investments and Dispositions for the quarter ended December 31, 2007:

• Investments:

• $152.1 million in the Investment Portfolio, including acquiring 42 properties with an aggregate 470,000 square feet of gross leasable area

• $122.8 million in the Inventory Portfolio, including acquiring 21 properties and funding $23.8 million of development

• Dispositions:

• 10 Investment properties with an aggregate 278,000 square feet of gross leasable area, with net proceeds of $31.4 million, resulting in a gain of $9.8 million

• 5 Inventory properties with net proceeds of $12.1 million

Investments and Dispositions for the year ended December 31, 2007:

• Investments:

• $696.7 million in the Investment Portfolio, including acquiring 235 properties with an aggregate 2,205,000 square feet of gross leasable area

• $169.8 million in the Inventory Portfolio, including acquiring 26 properties and funding $61.8 million of development

• Dispositions:

• 37 Investment properties with an aggregate 997,000 square feet of gross leasable area, with net proceeds of $146.0 million, resulting in a gain of $56.6 million

• 71 Inventory properties with net proceeds of $160.2 million

Capital transactions for the quarter ended December 31, 2007:

• Issued 914,554 shares of common stock generating $22.3 million of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan

• Issued 4,000,000 shares of common stock at $25.94 per share, generating $99.1 million of net proceeds pursuant to an underwritten public offering

• Increased the company’s credit facility capacity from $300 million to $400 million

National Retail also announced increased 2008 FFO guidance of $1.95 to $2.00 per share, which represents a 4% to 7% increase over 2007 results. This equates to earnings before any gains or losses from the sale on investment properties of $1.45 to $1.50 per share plus $0.50 per share of expected real estate related depreciation and amortization. This guidance is based on current plans and assumptions and 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 were very pleased with 2007’s record results particularly following strong per share growth in 2006. Despite the current cloudy economic and capital market environment, we are optimistic we can produce solid growth in 2008. This is a market environment in which some of NNN’s attributes are better appreciated – long term leases, net leases, diversification, a strong and growing dividend and a solid balance sheet – all supporting consistent operating results.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2007, the company owned 908 Investment properties in 44 states with a gross leasable area of approximately 10.6 million square feet. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on February 4th at 2:00 p.m. EST to review these results. The call can be accessed on National Retail’s 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.

2

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 availability of capital, 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 those 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. Consequently, 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 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.

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 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) on the disposition of real estate held for investment, and the company’s share of these items from the company’s unconsolidated partnerships.

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.

The company has determined that there are earnings from discontinued operations in each of its segments, real estate held for investment and real estate held for sale. All property dispositions from the company’s held for investment segment are classified as discontinued operations. In addition, certain properties in the company’s held for sale segment that have generated revenues before disposition are classified as discontinued operations. These held for sale properties have not historically been classified as discontinued operations; prior period comparable condensed consolidated financial statements have been restated to include these properties in its earnings from discontinued operations. 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)

	Quarter Ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
Income Statement Summary	(unaudited)			(Note 1)			(unaudited)			(Note 1)
Revenues:
Rental and earned income	$	47,973		$	35,348		$	170,733		$	125,004
Real estate expense reimbursement from tenants		1,659			1,825			5,720			4,619
Interest and other income from real estate transactions		1,574			583			5,076			4,265
Interest income on commercial mortgage residual interests		1,359			1,331			4,882			7,268
		52,565			39,087			186,411			141,156
Disposition of real estate, Inventory Portfolio:
Gross proceeds		—			14,790			1,750			36,705
Costs		—			(13,906	)		(1,418	)		(28,705	)
Gain		—			884			332			8,000
Operating expenses:
General and administrative		6,046			6,034			23,542			24,009
Real estate		2,609			2,455			8,272			6,701
Depreciation and amortization		9,903			6,517			32,593			22,445
Impairment – real estate		663			—			791			—
Impairment – commercial mortgage residual interests valuation		—			—			638			8,779
Restructuring costs		—			—			—			1,580
		19,221			15,006			65,836			63,514
Other expenses (revenues):
Interest and other income		(1,633	)		(1,149	)		(4,753	)		(3,816	)
Interest expense		13,909			10,818			49,286			45,872
		12,276			9,669			44,533			42,056
Income tax benefit		1,834			2,890			8,537			11,206
Minority interest		(55	)		(304	)		190			(1,592	)
Equity in earnings of unconsolidated affiliates		49			3			49			122
Gain on disposition of equity investment		—			11,373			—			11,373
Earnings from continuing operations		22,896			29,258			85,150			64,695
Earnings from discontinued operations:
Real estate, Investment Portfolio		10,309			25,486			63,338			109,664
Real estate, Inventory Portfolio, net of income tax expense and minority interest		1,160			2,657			8,622			8,146
		11,469			28,143			71,960			117,810
Net earnings		34,365			57,401			157,110			182,505
Series A Preferred Stock dividends		—			(1,370	)		—			(4,376	)
Series B Convertible Preferred Stock dividends		—			—			—			(419	)
Series C Redeemable Preferred Stock dividends		(1,696	)		(923	)		(6,785	)		(923	)
Net earnings available to common stockholders – basic		32,669			55,108			150,325			176,787
Series B Convertible Preferred Stock dividends, if dilutive		—			—			—			419
Net earnings available to common stockholders – diluted	$	32,669		$	55,108		$	150,325		$	177,206

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 10-K for the year ended December 31, 2006 reflecting reclassifications for discontinued operations within the Investment Portfolio.

4

National Retail Properties, Inc.

(in thousands, except per share data)

	Quarter Ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
	(unaudited)			(Note 1)			(unaudited)			(Note 1)
Weighted average common shares outstanding:
Basic		70,929			58,936			66,152			57,428
Diluted		71,205			59,201			66,408			58,080
Net earnings per share available to common stockholders:
Basic:
Continuing operations	$	0.30		$	0.46		$	1.18		$	1.03
Discontinued operations		0.16			0.48			1.09			2.05
Net earnings	$	0.46		$	0.94		$	2.27		$	3.08
Diluted:
Continuing operations	$	0.30		$	0.46		$	1.18		$	1.02
Discontinued operations		0.16			0.47			1.08			2.03
Net earnings	$	0.46		$	0.93		$	2.26		$	3.05
Supplemental Information:
Contingent percentage rent	$	792		$	197		$	1,572		$	766
Earned income from direct financing leases	$	1,055		$	2,096		$	5,916		$	9,192
Decrease in real estate classified as direct financing leases		(1,432	)		(2,798	)		(8,046	)		(12,174	)
Net direct financing lease adjustment		(377	)		(702	)		(2,130	)		(2,982	)
Accrued rental income (straight-line)		638			840			2,689			5,819
Net lease accounting adjustments	$	261		$	138		$	559		$	2,837
Net Inventory Portfolio gain on disposition	$	1,807		$	2,435		$	11,013		$	9,666
Capitalized interest	$	1,099		$	666		$	3,718		$	2,278
Scheduled debt principal amortization (excluding maturities)	$	286		$	439		$	1,586		$	2,036

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 10-K for the year ended December 31, 2006 reflecting reclassifications for discontinued operations within the Investment Portfolio.

5

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

	Quarter Ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
Reconciliation of net earnings to FFO and FFO available to common stockholders:
Net earnings	$	34,365		$	57,401		$	157,110		$	182,505
Real estate depreciation and amortization:
Continuing operations		9,182			5,909			30,067			20,358
Discontinued operations		23			145			315			2,061
Joint venture and partnership real estate depreciation		28			45			31			463
Partnership gain on sale of asset		—			3			—			(262	)
Gain on disposition of equity investment		—			(11,373	)		—			(11,373	)
Gain on disposition of real estate Investment Portfolio		(9,752	)		(22,764	)		(56,625	)		(91,332	)
FFO		33,846			29,366			130,898			102,420
Series A Preferred Stock dividends		—			(1,370	)		—			(4,376	)
Series B Convertible Preferred Stock dividends		—			—			—			(419	)
Series C Redeemable Preferred Stock dividends		(1,696	)		(923	)		(6,785	)		(923	)
FFO available to common stockholders – basic		32,150			27,073			124,113			96,702
Series B Convertible Preferred Stock dividends – if dilutive		—			—			—			419
FFO available to common stockholders – diluted	$	32,150		$	27,073		$	124,113		$	97,121
FFO per share:
Basic	$	0.45		$	0.46		$	1.88		$	1.68
Diluted	$	0.45		$	0.46		$	1.87		$	1.67

	Quarter Ended December 31,								Year Ended December 31,
	2007				2006				2007				2006
	# of Properties	Gain			# of Properties	Gain			# of Properties	Gain			# of Properties	Gain
Real Estate Disposition Summary
Reconciliation of gain on disposition between continuing and discontinued operations:
Continuing operations	—	$	—		3	$	884		2	$	332		6	$	8,000
Discontinued operations:
Investment Portfolio	10		9,752		19		22,764		37		56,625		30		91,332
Inventory Portfolio	5		1,924		15		1,656		69		11,801		58		5,780
Minority interest, Inventory Portfolio	—		(117	)	—		(105	)	—		(1,120	)	—		(4,114	)
	15	$	11,559		37	$	25,199		108	$	67,638		94	$	100,998
Reconciliation of gain on disposition by type:
Inventory Portfolio:
Development	3	$	1,781		4	$	1,321		13	$	6,245		9	$	9,888
Exchange	2		143		14		1,219		58		5,888		55		3,892
Minority interest, Development	—		(117	)	—		(105	)	—		(1,120	)	—		(4,114	)
Total Inventory gain	5		1,807		18		2,435		71		11,013		64		9,666
Investment Portfolio	10		9,752		19		22,764		37		56,625		30		91,332
	15	$	11,559		37	$	25,199		108	$	67,638		94	$	100,998

6

National Retail Properties, Inc.

(in thousands)

Earnings from Discontinued Operations: In accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS No. 144”), the company has classified its investment assets sold and leasehold interests expired subsequent to December 31, 2001, the effective date of SFAS No. 144, as discontinued operations. In addition, the company has classified any investment asset or revenue generating inventory asset that was held for sale at December 31, 2007, as discontinued operations. The following is a summary of earnings from discontinued operations.

	Quarter Ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
	(unaudited)			(Note 1)			(unaudited)			(Note 1)
Earnings from Discontinued Operations – Investment Portfolio:
Revenues:
Rental and earned income	$	367		$	2,750		$	6,667		$	24,441
Real estate expense reimbursement from tenants		57			128			318			1,077
Interest and other income from real estate transactions		192			149			627			505
		616			3,027			7,612			26,023
Expenses:
General and administrative		—			—			(45	)		97
Real estate		36			160			294			2,848
Depreciation and amortization		23			145			315			2,071
Impairment – real estate		—			—			335			693
Interest		—			—			—			1,815
		59			305			899			7,524
Gain on disposition of real estate		9,752			22,764			56,625			91,332
Loss on extinguishment of mortgage payable		—			—			—			(167	)
Earnings from discontinued operations	$	10,309		$	25,486		$	63,338		$	109,664
Earnings from Discontinued Operations – Inventory Portfolio:
Revenues:
Rental income	$	2,078		$	2,589		$	8,616		$	9,235
Real estate expense reimbursement from tenants		419			90			1,008			311
Interest and other income from real estate transactions		83			336			224			336
		2,580			3,015			9,848			9,882
Disposition of real estate:
Gross proceeds		12,594			29,101			164,338			80,856
Costs		(10,670	)		(27,445	)		(152,537	)		(75,076	)
Gain		1,924			1,656			11,801			5,780
Expenses:
General and administrative		39			35			78			57
Real estate		471			143			1,504			389
Depreciation and amortization		23			8			68			8
Impairment – real estate		844			—			844			—
Interest		1,147			430			3,923			1,049
		2,524			616			6,417			1,503
Income tax expense		(710	)		(1,626	)		(5,276	)		(4,984	)
Minority interest		(110	)		228			(1,334	)		(1,029	)
Earnings from discontinued operations	$	1,160		$	2,657		$	8,622		$	8,146

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 10-K for the year ended December 31, 2006 reflecting reclassifications for discontinued operations within the Investment Portfolio.

7

National Retail Properties, Inc.

(in thousands)

	December 31, 2007		December 31, 2006
Balance Sheet Summary	(unaudited)		(Note 1)
Assets:
Cash and cash equivalents	$	27,499	$	1,675
Restricted cash		—		36,587
Receivables, net of allowance		3,818		7,915
Investment in and receivables from unconsolidated affiliates		4,139		—
Mortgages, notes and accrued interest receivable, net of allowance		65,964		30,945
Real estate, Investment Portfolio:
Accounted for using the operating method, net of accumulated depreciation and amortization and impairment		2,055,846		1,440,996
Accounted for using the direct financing method		37,497		71,334
Real estate, Inventory Portfolio, held for sale net of impairment		248,611		228,159
Commercial mortgage residual interests		24,340		31,512
Accrued rental income, net of allowance		24,652		26,510
Other assets		47,239		41,864
Total assets	$	2,539,605	$	1,917,497
Liabilities:
Line of credit payable	$	129,800	$	28,000
Mortgages payable		27,480		35,892
Notes payable – secured		12,000		24,500
Notes payable – convertible		172,500		172,500
Notes payable, net of unamortized discount		718,290		489,804
Financing lease obligation		—		26,041
Income tax liability		1,671		6,340
Other liabilities		68,245		36,817
Total liabilities		1,129,986		819,894
Minority interest		2,334		1,098
Stockholders’ equity		1,407,285		1,096,505
Total liabilities and equity	$	2,539,605	$	1,917,497
Common shares outstanding		72,528		59,823
Gross leasable area, Investment Portfolio (square feet)		10,610		9,341

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 10-K for the year ended December 31, 2006 reflecting reclassifications for discontinued operations within the Investment Portfolio.

8

Orange Avenue Mortgage Investments, Inc.

(in thousands)

In May 2005, the company acquired a 78.9 percent equity investment of OAMI for $9.4 million. The company’s 78.9 percent share of OAMI’s net cash flow has been over $22.6 million since May 2005. The following summary represents the balances related to OAMI included in the company’s Balance Sheet and Income Statement Summary:

	December 31, 2007		December 31, 2006
	(unaudited)		(Note 1)
Assets:
Cash and cash equivalents	$	15,541	$	823
Restricted cash		—		17,165
Receivables and other assets		1,417		5,246
Mortgage residual interests		24,340		31,512
	$	41,298	$	54,746
Liabilities:
Notes payable – secured	$	12,000	$	24,500
Income tax liability		6,768		9,480
Other liabilities		145		410
	$	18,913	$	34,390
Minority interest	$	1,895	$	1,217

	Quarter Ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
	(unaudited)			(Note 1)			(unaudited)			(Note 1)
Revenues:
Interest income on mortgage residual interests	$	1,359		$	1,331		$	4,882		$	7,268
Interest and other income		333			478			1,722			1,659
		1,692			1,809			6,604			8,927
Expenses:
General and administrative		79			118			397			539
Amortization		52			67			218			266
Impairment – commercial mortgage residual interests valuation		—			—			638			8,779
Interest		575			672			2,382			2,768
		706			857			3,635			12,352
Income tax benefit		669			994			2,679			5,070
Minority interest		(203	)		(284	)		(689	)		353
Net earnings	$	1,452		$	1,662		$	4,959		$	1,998

Note 1: Amounts are derived from audited financial statements included in the company’s Form 10-K for the year ended December 31, 2006.

9

NNN Retail Properties Fund I, LLC

(dollars in thousands)

(unaudited)

In September 2007, the company entered into a joint venture, NNN Retail Properties Fund I, LLC, with an affiliate of Crow Holdings Realty Partners IV, L.P. The company owns a 15 percent equity interest, and the following summary represents the Balance Sheet and Income Statement Summary for the joint venture. The company’s investment in the joint venture is included in the company’s Balance Sheet Summary under “Investment in and receivables from unconsolidated affiliates.”

	December 31, 2007
Assets:
Cash and cash equivalents	$	30
Real estate		65,413
Other assets		921
	$	66,364
Liabilities:
Notes payable	$	38,600
Other liabilities		180
Total liabilities		38,780
Members’ equity		27,584
Total liabilities and equity	$	66,364

	Quarter Ended December 31, 2007		Year Ended December 31, 2007
Revenues:
Rental income	$	957	$	977
		957		977
Expenses:
General and administrative		62		62
Real estate		5		5
Depreciation and amortization		229		249
Interest		561		573
		857		889
Net earnings	$	100	$	88

10

National Retail Properties, Inc.

Investment Portfolio

Top 20 Lines of Trade

		December 31,
	Line of Trade	2007 (1)	2006 (2)
1.	Convenience stores	23.9%	16.3%
2.	Restaurants – full service	10.3%	12.1%
3.	Drug stores	5.0%	8.3%
4.	Automotive parts	4.9%	1.6%
5.	Books	4.4%	5.7%
6.	Consumer electronics	4.3%	5.6%
7.	Theaters	4.2%	—
8.	Car washes	4.0%	—
9.	Sporting goods	3.9%	7.3%
10.	Restaurants – limited service	3.7%	4.7%
11.	Furniture	3.1%	4.2%
12.	Travel plazas	3.0%	3.7%
13.	Grocery	2.9%	5.7%
14.	Office supplies	2.8%	4.1%
15.	Family entertainment centers	2.1%	—
16.	Auto dealerships	2.1%	2.1%
17.	Beer, wine and liquor	2.1%	2.1%
18.	General merchandise	1.7%	2.8%
19.	Home furnishings	1.5%	1.9%
20.	Craft, fabric and novelty	1.4%	1.5%
	Other	8.7%	10.3%
	Total	100.0%	100.0%

Top 10 States

	State	% of Total(1)		State	% of Total(1)
1.	Texas	20.2%	6.	Pennsylvania	4.7%
2.	Florida	11.3%	7.	Indiana	3.7%
3.	North Carolina	6.8%	8.	Colorado	3.4%
4.	Illinois	6.6%	9.	Ohio	3.4%
5.	Georgia	5.3%	10.	Missouri	3.0%

Lease Expirations

	% of Total(1)	# of Properties	Gross Leasable Area(3)		% of Total(1)	# of Properties	Gross Leasable Area(3)
2008	0.7%	14	258,000	2014	5.0%	31	509,000
2009	1.8%	24	458,000	2015	2.9%	20	469,000
2010	3.1%	38	401,000	2016	2.3%	16	262,000
2011	2.3%	21	336,000	2017	4.9%	27	674,000
2012	4.0%	35	563,000	2018	4.3%	33	505,000
2013	4.3%	32	687,000	Thereafter	64.4%	601	5,233,000

⁽¹⁾ Based on annual base rent of $196,739,000, which is the annualized base rent for all leases in place as of December 31, 2007.

⁽²⁾ Based on annual base rent of $149,941,000, which is the annualized base rent for all leases in place as of December 31, 2006.

⁽³⁾ Square feet.

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