EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

 

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

INCREASED THIRD QUARTER OPERATING RESULTS

ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, November 4, 2008 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter ended September 30, 2008, including a 25.8% increase in revenues and an 8.7% increase in Funds From Operations (“FFO”) per share compared to the same period for 2007. Additionally, the company announced a 30.3% increase in revenues and a 6.3% increase in FFO per share for the nine months ended September 30, 2008 compared to the same period for 2007. Highlights include:

Operating Results:

 

  •  

Revenues, net earnings and FFO available to common stockholders:

 

     Quarter Ended
September 30,		    Nine Months Ended
September 30,
     2008    2007    2008    2007
     (in thousands, except per share data)

Revenues

    $ 58,573    $ 46,564    $ 169,495    $ 130,122

Net earnings available to common stockholders

    $ 28,578    $ 45,690    $ 89,126    $ 117,656

Net earnings per common share (diluted)

    $ 0.39    $ 0.68    $ 1.22    $ 1.82

FFO available to common stockholders

    $ 36,707    $ 30,872    $ 110,334    $ 91,963

FFO per common share (diluted)

    $ 0.50    $ 0.46    $ 1.51    $ 1.42

 

  •  

Investment Portfolio occupancy was 96.9% at September 30, 2008.

Investments and Dispositions for the quarter ended September 30, 2008:

 

  •  

Investments:

 

  •  

$68.1 million in the Investment Portfolio, including acquiring 36 properties with an aggregate 213,000 square feet of gross leasable area

 

  •  

$4 million in the Inventory Portfolio, including acquiring two properties and funding $1.8 million of development

 

  •  

Dispositions:

 

  •  

Six Investment properties with an aggregate 172,000 square feet of gross leasable area, with net proceeds of $19.7 million, resulting in a gain of $2.6 million

 

  •  

Nine Inventory properties with net proceeds of $51.6 million

 

450 S. Orange Ave., Suite 900 | Orlando, FL 32801

(800) NNN-REIT | www.nnnreit.com

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Investments and Dispositions for the nine months ended September 30, 2008:

 

  •  

Investments:

 

  •  

$321.9 million in the Investment Portfolio, including acquiring 97 properties with an aggregate 811,000 square feet of gross leasable area

 

  •  

$28.7 million in the Inventory Portfolio, including acquiring seven properties and funding $4.9 million of development

 

  •  

Dispositions:

 

  •  

17 Investment properties with an aggregate 280,000 square feet of gross leasable area, with net proceeds of $56.5 million, resulting in a gain of $9.2 million

 

  •  

24 Inventory properties with net proceeds of $152.4 million

Capital transactions for the quarter ended September 30, 2008:

 

  •  

Issued 915,239 shares of common stock generating $20.4 million of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan.

 

  •  

Executed 3,450,000 common share offering September 26, 2008 priced at $23.05 per share generating net proceeds of $75.9 million. Proceeds received October 1, 2008 and not reflected in third quarter financial statements.

 

  •  

In October 2008, the Company exercised its option to extend the maturity date of its $400 million bank credit facility from May 2009 to May 2010.

National Retail Properties also announced revised 2008 FFO guidance of $1.97 to $1.99 per share to account for the dilution from its recent 3,450,000 share common equity offering. This new guidance approximates 6% growth over 2007’s FFO of $1.87 per share. The Company announced 2009 FFO guidance of $1.88 to $1.98 per share, before deduction of estimated additional non-cash interest expense of approximately 8 cents per share due to changes required in accounting for convertible debt interest for fiscal years beginning after December 15, 2008. This equates to net earnings before any gains or losses from the sale on investment properties of $1.35 to $1.45 per share plus $0.53 per share of expected real estate related depreciation and amortization and before deduction of estimated additional non-cash interest expense of approximately 8 cents per share due to changes required in accounting for convertible debt interest for fiscal years beginning after December 15, 2008. 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 are pleased to maintain strong operating results despite the difficulties in the capital markets, economy and retailing. Our recently completed $76 million equity offering provides us with additional capacity to take advantage of potential opportunities even though it weighs on near term per share results. We are currently maintaining a cautious posture and are more focused on capital preservation than acquisitions. Budgeting with this level of economic uncertainty is more speculative than usual and we are taking a cautious approach on our occupancy assumptions for 2009. If the business environment improves, we will all be pleasantly surprised.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2008, the company owned 990 Investment properties in 44 states with a gross leasable area of approximately 11 million square feet. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on November 4, 2008 at 2:00 p.m. EDT to review these results. The call can be accessed on National Retail Properties, Inc. 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 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

 

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materially from what is expressed or forecast in this press release. National Retail Properties 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.

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended September 30, 2008. 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 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. 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 September 30,     Nine Months Ended September 30,  
     2008     2007     2008     2007  

Income Statement Summary

         

Revenues:

         

Rental and earned income

    $ 54,966     $ 42,701     $ 157,697     $ 118,929  

Real estate expense reimbursement from tenants

      1,456       1,339       4,478       4,034  

Interest and other income from real estate transactions

      1,027       1,389       3,669       3,636  

Interest income on commercial mortgage residual interests

      1,124       1,135       3,651       3,523  
                                
     58,573       46,564       169,495       130,122  
                                

Disposition of real estate, Inventory Portfolio:

         

Gross proceeds

     —         —         4,900       825  

Costs

      —         —         (4,879 )     (493 )
                                

Gain

      —         —         21       332  
                                

Operating expenses:

         

General and administrative

      5,242       5,229       18,842       17,496  

Real estate

      2,359       1,778       6,972       5,426  

Depreciation and amortization

      11,559       8,048       32,382       22,186  

Impairment – real estate, Inventory Portfolio

      —         128       —         128  

Impairment – commercial mortgage residual interests valuation

      —         638       758       638  
                                
     19,160       15,821       58,954       45,874  
                                

Other expenses (revenues):

         

Interest and other income

      (818 )     (793 )     (3,047 )     (3,120 )

Interest expense

      14,791       11,833       44,823       35,377  

Loss on interest rate hedge

      —         —         804       —    
                                
     13,973       11,040       42,580       32,257  
                                

Income tax benefit

      1,654       1,488       6,075       6,703  

Minority interest

      (113 )     (93 )     654       244  

Equity in earnings of unconsolidated affiliate

      100       —         280       —    
                                

Earnings from continuing operations

      27,081       21,098       74,991       59,270  

Earnings from discontinued operations:

         

Real estate, Investment Portfolio

      2,997       24,377       12,626       56,013  

Real estate, Inventory Portfolio, net of income tax expense and minority interest

      196       1,911       6,598       7,462  
                                
     3,193       26,288       19,224       63,475  
                                

Net earnings

      30,274       47,386       94,215       122,745  

Series C preferred stock dividends

      (1,696 )     (1,696 )     (5,089 )     (5,089 )
                                

Net earnings available to common stockholders – basic and diluted

    $ 28,578     $ 45,690     $ 89,126     $ 117,656  
                                

 

4

National Retail Properties, Inc.

(In thousands, except per share data)

(unaudited)

 

     Quarter Ended September 30,     Nine Months Ended September 30,  
     2008     2007     2008     2007  

Weighted average common shares outstanding:

         

Basic

      73,717       66,796       73,041       64,545  
                                

Diluted

      74,022       67,029       73,311       64,768  
                                

Net earnings per share available to common stockholders:

         

Basic:

         

Continuing operations

    $ 0.35     $ 0.29     $ 0.96     $ 0.84  

Discontinued operations

      0.04       0.39       0.26       0.98  
                                

Net earnings

    $ 0.39     $ 0.68     $ 1.22     $ 1.82  
                                

Diluted:

         

Continuing operations

    $ 0.35     $ 0.29     $ 0.96     $ 0.84  

Discontinued operations

      0.04       0.39       0.26       0.98  
                                

Net earnings

    $ 0.39     $ 0.68     $ 1.22     $ 1.82  
                                

Supplemental Information:

         

Selected Non-Cash Income Statement Items:

         

Straight-line rent

    $ 151     $ (660 )   $ (978 )   $ (2,051 )
                                

Net capital lease rent adjustment

    $ 296     $ 471     $ 899     $ 1,753  
                                

Above (below) market rent amortization

    $ (245 )   $ (299 )   $ (547 )   $ (531 )
                                

Stock based compensation expense

    $ 926     $ 657     $ 2,418     $ 1,970  
                                

Impairment – real estate

    $ 3,930     $ 273     $ 4,097     $ 463  
                                

Impairment – mortgage residual interests

    $ —       $ 638     $ 758     $ 638  
                                

Amortization of debt costs

    $ 798     $ 503     $ 2,194     $ 1,486  
                                

Capitalized interest expense

    $ (436 )   $ (1,176 )   $ (1,408 )   $ (2,620 )
                                

Non-real estate depreciation expense

    $ 65     $ 113     $ 200     $ 254  
                                

Other Information:

         

Percentage rent

    $ 202     $ 181     $ 563     $ 779  
                                

Net Inventory Portfolio gain on disposition (TRS)

    $ 2,807     $ 2,822     $ 9,357     $ 9,206  
                                

Scheduled debt principal amortization (excluding maturities)

    $ 298     $ 398     $ 882     $ 1,300  
                                

 

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National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

 

     Quarter Ended September 30,     Nine Months Ended September 30,  
     2008     2007     2008     2007  

Reconciliation of net earnings to FFO and FFO available to common stockholders:

         

Net earnings

    $ 30,274     $ 47,386     $ 94,215     $ 122,745  

Real estate depreciation and amortization:

         

Continuing operations

      10,696       7,405       29,962       20,381  

Discontinued operations

      33       238       344       796  

Joint venture real estate depreciation

      44       3       132       3  

Gain on disposition of real estate Investment Portfolio

      (2,644 )     (22,464 )     (9,230 )     (46,873 )
                                

FFO

      38,403       32,568       115,423       97,052  

Series C preferred stock dividends

      (1,696 )     (1,696 )     (5,089 )     (5,089 )
                                

FFO available to common stockholders – basic and diluted

      36,707       30,872       110,334       91,963  
                                

FFO per share:

         

Basic

    $ 0.50     $ 0.46     $ 1.51     $ 1.42  
                                

Diluted

    $ 0.50     $ 0.46     $ 1.51     $ 1.42  
                                

Real Estate Disposition Summary

 

     Quarter Ended September 30,     Nine Months Ended September 30,  
     2008    2007     2008     2007  
     # of
Properties		    Gain    # of
Properties		    Gain     # of
Properties		    Gain     # of
Properties		    Gain  

Gain on disposition from continuing and discontinued operations as reported:

                      

Continuing operations

    —      $ —      1    $ —       1    $ 21     2    $ 332  

Discontinued operations:

                      

Investment Portfolio

    6      2,644    13      22,464     17      9,230     27      46,873  

Inventory Portfolio

    9      2,807    26      3,647     23      12,643     64      9,877  

Minority interest, Inventory Portfolio

    —        —      —        (825 )   —        (3,307 )   —        (1,003 )
                                                   
   15    $ 5,451    40    $ 25,286     41    $ 18,587     93    $ 56,079  
                                                   

Reconciliation of gain on disposition by type:

                      

Inventory Portfolio:

                      

Development

    1    $ 192    2    $ 1,650     5    $ 8,057     10    $ 4,464  

Exchange

    8      2,615    25      1,997     19      4,607     56      5,745  

Minority interest, Development

    —        —      —        (825 )   —        (3,307 )   —        (1,003 )
                                                   

Total Inventory gain (TRS)

    9      2,807    27      2,822     24      9,357     66      9,206  

Investment Portfolio

    6      2,644    13      22,464     17      9,230     27      46,873  
                                                   
   15    $ 5,451    40    $ 25,286     41    $ 18,587     93    $ 56,079  
                                                   

 

6

National Retail Properties, Inc.

(in thousands)

(unaudited)

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 September 30, 2008, as discontinued operations. The following is a summary of earnings from discontinued operations.

 

     Quarter Ended September 30,     Nine Months Ended September 30,  
     2008     2007     2008     2007  

Earnings from Discontinued Operations – Investment Portfolio:

         

Revenues:

         

Rental and earned income

    $ 198     $ 2,214     $ 2,595     $ 10,128  

Real estate expense reimbursement from tenants

      7       146       29       288  

Interest and other income from real estate transactions

      287       72       1,236       298  
                                
     492       2,432       3,860       10,714  
                                

Expenses:

         

General and administrative

      —         1       (79 )     (45 )

Real estate

      106       134       32       491  

Depreciation and amortization

      33       238       344       796  

Impairment – real estate

      —         146       167       335  

Interest

      —         —         —         (3 )
                                
     139       519       464       1,574  
                                

Gain on disposition of real estate

      2,644       22,464       9,230       46,873  
                                

Earnings from discontinued operations

    $ 2,997     $ 24,377     $ 12,626     $ 56,013  
                                

Earnings from Discontinued Operations – Inventory Portfolio:

         

Revenues:

         

Rental income

    $ 2,648     $ 1,479     $ 8,882     $ 6,538  

Real estate expense reimbursement from tenants

      301       129       857       590  

Interest and other income from real estate transactions

      109       95       895       140  
                                
     3,058       1,703       10,634       7,268  
                                

Disposition of real estate:

         

Gross proceeds

      52,185       51,735       151,098       151,743  

Costs

      (49,378 )     (48,088 )     (138,455 )     (141,866 )
                                

Gain

      2,807       3,647       12,643       9,877  
                                

Expenses:

         

General and administrative

      23       16       72       40  

Real estate

      395       235       1,274       1,035  

Depreciation and amortization

      53       12       164       44  

Impairment – real estate

      3,930       —         3,930       —    

Interest

      1,136       1,366       3,912       2,776  
                                
     5,537       1,629       9,352       3,895  
                                

Income tax expense

      (120 )     (1,169 )     (4,037 )     (4,566 )

Minority interest

      (12 )     (641 )     (3,290 )     (1,222 )
                                

Earnings from discontinued operations

    $ 196     $ 1,911     $ 6,598     $ 7,462  
                                

 

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National Retail Properties, Inc.

(in thousands)

 

      September 30,
2008		    December 31,
2007
     (unaudited)    (Note 1)

Balance Sheet Summary

      

Assets:

      

Cash and cash equivalents

    $ 2,514    $ 27,499

Receivables, net of allowance

      4,654      3,818

Investment in unconsolidated affiliate

      4,853      4,139

Mortgages, notes and accrued interest receivable, net of allowance

      66,646      73,162

Real estate, Investment Portfolio:

      

Accounted for using the operating method, net of accumulated depreciation and amortization

      2,313,293      2,055,846

Accounted for using the direct financing method

      31,545      37,497

Real estate, Inventory Portfolio, held for sale

      126,223      248,611

Commercial mortgage residual interests

      22,496      24,340

Accrued rental income, net of allowance

      23,933      24,652

Other assets

      41,813      40,041
             

Total assets

    $ 2,637,970    $ 2,539,605
             

Liabilities:

      

Line of credit payable

      53,000      129,800

Mortgages payable

      26,598      27,480

Notes payable – secured

      —        12,000

Notes payable – convertible

      406,535      172,500

Notes payable, net of unamortized discount

      618,432      718,290

Other liabilities

      64,721      69,916
             

Total liabilities

      1,169,286      1,129,986

Minority interest

      1,101      2,334

Stockholders’ equity

      1,467,583      1,407,285
             

Total liabilities and equity

    $ 2,637,970    $ 2,539,605
             

Common shares outstanding

      74,920      72,528
             

Gross leasable area, Investment Portfolio (square feet)

      11,144      10,610
             

 

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 10-K, as amended.

 

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 totaled over $26 million since May 2005. The following summary represents the balances related to OAMI included in the company’s Balance Sheet and Income Statement Summary:

 

     September 30,
2008		    December 31,
2007
     (unaudited)    (Note 1)

Assets:

      

Cash and cash equivalents

    $ 78    $ 15,541

Receivables and other assets

      34      1,417

Commercial mortgage residual interests

      22,496      24,340
             
   $ 22,608    $ 41,298
             

Liabilities:

      

Notes payable – secured

    $ —      $ 12,000

Income tax liability

      5,514      6,768

Other liabilities

      —        145
             
   $ 5,514    $ 18,913
             

Minority interest

    $ 514    $ 1,895
             

 

     Quarter Ended September 30,     Nine Months Ended September 30,  
     2008     2007     2008     2007  
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Revenues:

         

Interest income on commercial mortgage residual interests

    $ 1,124     $ 1,135     $ 3,651     $ 3,523  

Interest and other income

      7       257       217       1,389  
                                
     1,131       1,392       3,868       4,912  

Expenses:

         

General and administrative

      58       108       205       318  

Amortization

      —         51       35       166  

Impairment – commercial mortgage residual interests valuation

      —         638       758       638  

Interest

      —         575       200       1,807  
                                
     58       1,372       1,198       2,929  
                                

Income tax benefit

      457       551       1,247       2,010  

Minority interest

      (188 )     (2 )     (507 )     (486 )
                                

Net earnings

    $ 1,342     $ 569     $ 3,410     $ 3,507  
                                

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 10-K, as amended.

 

9

NNN Retail Properties Fund I LLC

(dollars in thousands)

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 unconsolidated affiliate.”

 

     September 30,
2008		    December 31,
2007
     (unaudited)     

Assets:

      

Cash and cash equivalents

    $ 217    $ 30

Receivables

      1      —  

Real estate

      74,759      65,413

Other assets

      1,813      921
             
   $ 76,790    $ 66,364
             

Liabilities:

      

Notes payable

    $ 43,600    $ 38,600

Other liabilities

      194      180
             

Total liabilities

      43,794      38,780
             

Members’ equity

      32,996      27,584
             

Total liabilities and equity

    $ 76,790    $ 66,364
             
     Quarter Ended
September 30, 2008		    Nine Months Ended
September 30, 2008
     (unaudited)    (unaudited)

Revenues:

      

Rental income

    $ 1,565    $ 4,627
             

Expenses:

      

General and administrative

      67      205

Real estate

      5      14

Depreciation and amortization

      362      1,077

Interest

      528      1,647
             
     962      2,943
             

Net earnings

    $ 603    $ 1,684
             

 

10

National Retail Properties, Inc.

Investment Portfolio

Top 20 Lines of Trade

 

         As of September 30,  
   

Line of Trade

    2008 (1)     2007 (2)  
1.   Convenience stores    25.5 %   23.8 %
2.   Restaurants – full service    8.8 %   10.3 %
3.   Automotive service    8.1 %   3.7 %
4.   Theaters    6.2 %   4.1 %
5.   Automotive parts    4.8 %   1.5 %
6.   Drug stores    4.0 %   5.5 %
7.   Books    4.0 %   4.7 %
8.   Consumer electronics    3.7 %   4.6 %
9.   Restaurants – limited service    3.4 %   3.9 %
10.   Sporting goods    3.2 %   4.4 %
11.   Family entertainment centers    3.0 %   2.3 %
12.   Grocery    2.7 %   3.7 %
13.   Office supplies    2.5 %   3.1 %
14.   Furniture    2.5 %   3.3 %
15.   Travel plazas    2.4 %   3.2 %
16.   Beer, wine and liquor    1.7 %   2.3 %
17.   General merchandise    1.6 %   1.9 %
18.   Home furnishings    1.4 %   1.6 %
19.   Craft, fabric and novelty    1.3 %   1.5 %
20.   Auto dealerships    1.3 %   2.3 %
  Other    7.9 %   8.3 %
              
  Total    100.0 %   100.0 %
              

Top 10 States

 

   

State

    % of Total(1)        

State

    % of Total(1)  
1.   Texas    19.9 %   6.   Georgia    5.0 %
2.   Florida    10.1 %   7.   Indiana    4.2 %
3.   Illinois    6.8 %   8.   Pennsylvania    4.2 %
4.   North Carolina    6.1 %   9.   Colorado    3.1 %
5.   California    5.1 %   10.   Arizona    3.1 %

Lease Expirations

 

     % of
Total(1)		     # of
Properties		    Gross Leasable
Area(3)		         % of
Total(1)		     # of
Properties		    Gross Leasable
Area(3)

2008

    0.2 %   3    113,000    2014    4.4 %   33    514,000

2009

    1.2 %   22    358,000    2015    2.6 %   19    463,000

2010

    2.9 %   41    411,000    2016    1.9 %   15    287,000

2011

    2.1 %   21    338,000    2017    4.4 %   26    739,000

2012

    3.6 %   35    552,000    2018    3.2 %   25    438,000

2013

    4.4 %   37    829,000    Thereafter    69.1 %   682    5,780,000

 

(1)

Based on annual base rent of $216,782,000, which is the annualized base rent for all leases in place as of September 30, 2008.

(2)

Based on annual base rent of $184,940,000, which is the annualized base rent for all leases in place as of September 30, 2007.

(3)

Square feet.

 

11