EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

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NEWS RELEASE   
For information contact:   
Kevin B. Habicht   
Chief Financial Officer   
(407) 265-7348    FOR IMMEDIATE RELEASE
   August 3, 2009

SECOND QUARTER 2009 OPERATING RESULTS

ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, August 3, 2009 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter ended June 30, 2009. Highlights include:

Operating Results:

 

  •  

Revenues, net earnings and FFO available to common stockholders:

 

     Quarter Ended
June 30,		    Six Months Ended
June 30,
     2009    2008    2009    2008
     (in thousands, except per share data)

Revenues

    $ 58,681    $ 56,369    $ 116,645    $ 110,408

Net earnings available to common stockholders

    $ 25,258    $ 27,570    $ 50,365    $ 58,113

Net earnings per common share (diluted)

    $ 0.32    $ 0.38    $ 0.64    $ 0.80

FFO available to common stockholders

    $ 36,002    $ 35,032    $ 71,057    $ 71,192

FFO per common share (diluted)

    $ 0.45    $ 0.48    $ 0.90    $ 0.98

 

  •  

NNN paid cash dividends to its common shareholders of $0.375 per share during the quarter and $0.75 for the six months ended June 30, 2009.

 

  •  

Investment Portfolio occupancy was 96.7% at June 30, 2009.

Investments and Dispositions for the quarter ended June 30, 2009:

 

  •  

Investments:

 

  •  

$12.0 million of development funding in the Investment Portfolio with an aggregate 126,000 square feet of gross leasable area

 

  •  

Dispositions:

 

  •  

Three Investment properties with an aggregate 46,000 square feet of gross leasable area, with net proceeds of $5.6 million, resulting in a gain of $600,000

 

  •  

One Inventory property with net proceeds of $493,000

 

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

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

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Investments and Dispositions for the six months ended June 30, 2009:

 

  •  

Investments

 

  •  

$19.6 million of development funding in the Investment Portfolio with an aggregate 231,000 square feet of gross leasable area

 

  •  

$2.2 million of development funding in the Inventory Portfolio

 

  •  

Dispositions

 

  •  

Six Investment properties with an aggregate 107,000 square feet of gross leasable area, with net proceeds of $9.7 million, resulting in a gain of $1.6 million

 

  •  

Two Inventory properties with net proceeds of $5.4 million

Capital transactions for the quarter ended June 30, 2009:

 

  •  

Issued 737,960 shares of common stock generating $12,511,000 of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan

 

  •  

Repurchased $2.5 million of the Company’s outstanding 5.125% convertible notes due June 2028, which notes provide holders with a 2013 put option, for a discounted purchase price of $2.0 million

National Retail Properties also announced revised 2009 FFO guidance from $1.65 to $1.75 per share to $1.65 to $1.70 per share. This guidance includes non-cash interest expense of approximately 7 cents per share due to changes required in accounting for convertible debt interest beginning in 2009. This equates to net earnings before any gains or losses from the sale of investment properties of $1.13 to $1.18 per share plus $0.52 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: “Our balance sheet remains strong and our portfolio is performing well as we maintain a high occupancy level in a challenging retail environment. We are well-positioned to take advantage of the acquisition opportunities that we expect to be available in the future.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of June 30, 2009, the company owned 999 Investment properties in 44 states with a gross leasable area of approximately 11.4 million square feet. NNN is one of only four publicly traded REITs and 156 publicly traded companies in America to have increased its annual dividends for 19 or more consecutive years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on August 3, 2009 at 10:30 a.m. EDT to review these results. The call can be accessed on National Retail Properties, Inc.’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.

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 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 June 30, 2009. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

 

2

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 June 30,     Six Months Ended June 30,  
     2009     2008     2009     2008  

Income Statement Summary

         

Revenues:

         

Rental and earned income

    $ 54,592      $ 52,368      $ 108,321      $ 102,262   

Real estate expense reimbursement from tenants

      2,109        1,423        4,456        2,977   

Interest and other income from real estate transactions

      980        1,407        1,814        2,642   

Interest income on commercial mortgage residual interests

      1,000        1,171        2,054        2,527   
                                
     58,681        56,369        116,645        110,408   
                                

Disposition of real estate, Inventory Portfolio:

         

Gross proceeds

     —          —          —          4,900   

Costs

      —          —          —          (4,879 ) 
                                

Gain

      —          —          —          21   
                                

Operating expenses:

         

General and administrative

      5,784        6,041        11,090        13,601   

Real estate

      3,241        2,247        6,828        4,627   

Depreciation and amortization

      12,146        10,787        23,965        20,770   

Impairment – real estate

      1,064        —          1,064        —     

Impairment – commercial mortgage residual interests valuation

      —          —          —          758   

Restructuring charges

      —          —          731        —     
                                
     22,235        19,075        43,678        39,756   
                                

Other expenses (revenues):

         

Interest and other income

      (416 )      (1,008 )      (763 )      (2,229 ) 

Interest expense

      15,436        16,281        30,866        32,467   

Loss on interest rate hedge

      —          —          —          804   
                                
     15,020        15,273        30,103        31,042   
                                

Income tax benefit

      546        1,767        1,082        4,418   

Equity in earnings of unconsolidated affiliate

      107        101        210        180   

Gain on note receivable foreclosure

      1,048        —          1,048        —     

Gain on extinguishment of debt

      1,014        —          3,432        —     
                                

Earnings from continuing operations

      24,141        23,889        48,636        44,229   

Earnings from discontinued operations:

         

Real estate, Investment Portfolio

      2,762        4,178        4,809        10,120   

Real estate, Inventory Portfolio, net of income tax expense

      226        1,044        458        9,666   
                                

Net earnings including noncontrolling interests

      27,129        29,111        53,903        64,015   

Loss (earnings) attributable to noncontrolling interests:

         

Continuing operations

      (171 )      (252 )      (351 )      759   

Discontinued operations

      (4 )      407        205        (3,269 ) 
                                
     (175 )      155        (146 )      (2,510 ) 
                                

Net earnings attributable to National Retail Properties, Inc.

      26,954        29,266        53,757        61,505   

Series C preferred stock dividends

      (1,696 )      (1,696 )      (3,392 )      (3,392 ) 
                                

Net earnings available to common stockholders – basic and diluted

    $ 25,258      $ 27,570      $ 50,365      $ 58,113   
                                

 

4

National Retail Properties, Inc.

(In thousands, except per share data)

(unaudited)

 

     Quarter Ended June 30,     Six Months Ended June 30,  
     2009     2008     2009     2008  

Weighted average common shares outstanding:

         

Basic

      79,163,140        73,070,034        78,667,255        72,692,410   
                                

Diluted

      79,265,374        73,169,102        78,762,897        72,790,565   
                                

Net earnings per share available to common stockholders:

         

Basic:

         

Continuing operations

    $ 0.28      $ 0.30      $ 0.57      $ 0.57   

Discontinued operations

      0.04        0.08        0.07        0.23   
                                

Net earnings

    $ 0.32      $ 0.38      $ 0.64      $ 0.80   
                                

Diluted:

         

Continuing operations

    $ 0.28      $ 0.30      $ 0.57      $ 0.57   

Discontinued operations

      0.04        0.08        0.07        0.23   
                                

Net earnings

    $ 0.32      $ 0.38      $ 0.64      $ 0.80   
                                

Supplemental Information:

         

Selected Non-Cash Income Statement Items:

         

Straight-line rent

    $ (979 )    $ (550 )    $ (888 )    $ (1,129 ) 
                                

Net capital lease rent adjustment

    $ 338      $ 290      $ 668      $ 604   
                                

Above (below) market rent amortization

    $ (735 )    $ (151 )    $ (888 )    $ (302 ) 
                                

Stock based compensation expense

    $ 1,017      $ 817      $ 2,136      $ 1,471   
                                

Impairment – real estate

    $ 1,064      $ 153      $ 1,064      $ 167   
                                

Impairment – mortgage residual interests

    $ —        $ —        $ —        $ 758   
                                

Amortization of debt costs

    $ 751      $ 767      $ 1,588      $ 1,396   
                                

Capitalized interest expense

    $ (399 )    $ (440 )    $ (917 )    $ (971 ) 
                                

Convertible debt interest expense (FSP APB 14-1)

    $ 1,434      $ 1,615      $ 2,882      $ 2,435   
                                

Non-real estate depreciation expense

    $ 76      $ 67      $ 154      $ 135   
                                

Other Information:

         

Percentage rent

    $ 119      $ 303      $ 266      $ 361   
                                

Net Inventory Portfolio gain on dispositions (TRS)

    $ 12      $ 917      $ 558      $ 6,550   
                                

Scheduled debt principal amortization (excluding maturities)

    $ 245      $ 293      $ 493      $ 584   
                                

 

5

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

 

     Quarter Ended June 30,     Six Months Ended June 30,  
     2009     2008     2009     2008  

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

         

Net earnings attributable to National Retail Properties, Inc.

    $ 26,954      $ 29,266      $ 53,757      $ 61,505   

Real estate depreciation and amortization:

         

Continuing operations

      11,295        9,954        22,198        19,211   

Discontinued operations

      5        173        38        366   

Joint venture real estate depreciation

      44        44        88        88   

Gain on disposition of real estate Investment Portfolio

      (600 )      (2,709 )      (1,632 )      (6,586 ) 
                                

FFO

      37,698        36,728        74,449        74,584   

Series C preferred stock dividends

      (1,696 )      (1,696 )      (3,392 )      (3,392 ) 
                                

FFO available to common stockholders – basic and diluted

    $ 36,002      $ 35,032      $ 71,057      $ 71,192   
                                

FFO per share:

         

Basic

    $ 0.45      $ 0.48      $ 0.90      $ 0.98   
                                

Diluted

    $ 0.45      $ 0.48      $ 0.90      $ 0.98   
                                

Real Estate Disposition Summary

 

     Quarter Ended June 30,     Six Months Ended June 30,  
     2009    2008     2009    2008  
     # of
Properties		    Gain    # of
Properties		    Gain     # of
Properties		    Gain    # of
Properties		    Gain  

Reconciliation of gain on disposition between continuing and discontinued operations:

                       

Continuing operations

    —      $ —      —      $ —        —      $ —      1    $ 21   

Discontinued operations:

                       

Investment Portfolio

    3      600    7      2,709      6      1,632    11      6,586   

Inventory Portfolio

    1      12    7      707      2      558    14      9,835   

Noncontrolling interest, Inventory Portfolio

    —        —      —        210      —        —      —        (3,306 ) 
                                                  
   4    $ 612    14    $ 3,626      8    $ 2,190    26    $ 13,136   
                                                  

Reconciliation of gain on disposition by type:

                       

Inventory Portfolio:

                       

Development

    —      $ —      —      $ (420 )    1    $ 546    4    $ 7,864   

Exchange

    1      12    7      1,127      1      12    11      1,992   

Noncontrolling interest, Development

    —        —      —        210      —        —      —        (3,306 ) 
                                                  

Total Inventory gain (TRS)

    1      12    7      917      2      558    15      6,550   

Investment Portfolio

    3      600    7      2,709      6      1,632    11      6,586   
                                                  
   4    $ 612    14    $ 3,626      8    $ 2,190    26    $ 13,136   
                                                  

 

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 June 30, 2009, as discontinued operations. The following is a summary of earnings from discontinued operations.

 

     Quarter Ended June 30,     Six Months Ended June 30,  
     2009     2008     2009     2008  

Earnings from Discontinued Operations – Investment Portfolio:

         

Revenues:

         

Rental and earned income

    $ 1,804      $ 1,438      $ 2,586      $ 2,865   

Real estate expense reimbursement from tenants

      15        35        45        67   

Interest and other income from real estate transactions

      348        416        646        949   
                                
     2,167        1,889        3,277        3,881   
                                

Expenses:

         

General and administrative

      —          —          —          (79 ) 

Real estate

      —          94        62        (107 ) 

Depreciation and amortization

      5        173        38        366   

Impairment – real estate

      —          153        —          167   
                                
     5        420        100        347   
                                

Gain on disposition of real estate

      600        2,709        1,632        6,586   
                                

Earnings from discontinued operations attributable to National Retail Properties, Inc.

    $ 2,762      $ 4,178      $ 4,809      $ 10,120   
                                
Earnings from Discontinued Operations – Inventory Portfolio:         

Revenues:

         

Rental income

    $ 1,469      $ 2,875      $ 2,871      $ 6,234   

Real estate expense reimbursement from tenants

      184        227        1,134        556   

Interest and other income from real estate transactions

      19        332        57        786   
                                
     1,672        3,434        4,062        7,576   
                                

Disposition of real estate:

         

Gross proceeds

      502        29,726        5,402        98,914   

Costs

      (490 )      (29,019 )      (4,844 )      (89,079 ) 
                                

Gain

      12        707        558        9,835   
                                

Expenses:

         

General and administrative

      20        25        68        49   

Real estate

      346        340        1,664        895   

Depreciation and amortization

      60        67        198        111   

Interest

      896        1,778        1,826        2,776   
                                
     1,322        2,210        3,756        3,831   
                                

Income tax expense

      (136 )      (887 )      (406 )      (3,914 ) 
                                

Earnings from discontinued operations including noncontrolling interests

      226        1,044        458        9,666   

Loss (earnings) attributable to noncontrolling interests

      (4 )      407        205        (3,269 ) 
                                

Earnings from discontinued operations attributable to National Retail Properties, Inc.

    $ 222      $ 1,451      $ 663      $ 6,397   
                                

 

7

National Retail Properties, Inc.

(in thousands)

 

Balance Sheet Summary    June 30,
2009		    December 31,
2008
   (unaudited)    (Note 1)

Assets:

      

Cash and cash equivalents

    $ 1,573    $ 2,626

Receivables, net of allowance

      2,812      3,612

Investment in unconsolidated affiliate

      4,792      4,927

Mortgages, notes and accrued interest receivable, net of allowance

      49,774      60,472

Real estate, Investment Portfolio:

      

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

      2,348,773      2,357,894

Accounted for using the direct financing method

      30,572      31,240

Real estate, Inventory Portfolio, held for sale

      98,364      101,106

Commercial mortgage residual interests

      25,525      22,000

Accrued rental income, net of allowance

      24,487      23,972

Other assets

      51,487      41,622
             

Total assets

    $ 2,638,159    $ 2,649,471
             

Liabilities:

      

Line of credit payable

    $ 22,000    $ 26,500

Mortgages payable

      25,798      26,290

Notes payable – convertible

      340,452      356,122

Notes payable, net of unamortized discount

      618,576      618,479

Other liabilities

      44,915      53,134
             

Total liabilities

      1,051,741      1,080,525

Stockholders’ equity of National Retail Properties, Inc.

      1,583,589      1,566,860

Noncontrolling interests

      2,829      2,086
             

Total equity

      1,586,418      1,568,946

Total liabilities and equity

    $ 2,638,159    $ 2,649,471
             

Common shares outstanding

      80,075      78,415
             

Gross leasable area, Investment Portfolio (square feet)

      11,375      11,251
             

 

Note 1:    Includes adjustment based on the adoption of FSP APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement)”.

 

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 $27.3 million since May 2005. The following summary represents the balances related to OAMI included in the company’s Balance Sheet and Income Statement Summary:

 

     June 30,
2009		    December 31,
2008
     (unaudited)    (Note 1)

Assets:

      

Cash and cash equivalents

    $ 253    $ 405

Receivables and other assets

      35      39

Commercial mortgage residual interests

      25,525      22,000
             
   $ 25,813    $ 22,444
             

Liabilities:

      

Income tax liability

    $ 4,980    $ 5,195

Other liabilities

      49      49
             
   $ 5,029    $ 5,244
             

Noncontrolling interests

    $ 2,172    $ 1,449
             

 

     Quarter Ended June 30,     Six Months Ended June 30,  
     2009     2008     2009     2008  
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Revenues:

         

Interest income on commercial mortgage residual interests

    $ 1,000      $ 1,171      $ 2,054      $ 2,527   

Interest and other income

      44        19        44        210   
                                
     1,044        1,190        2,098        2,737   
                                

Expenses:

         

General and administrative

      73        69        134        147   

Amortization

      —          —          —          35   

Impairment – commercial mortgage residual interests valuation

      —          —          —          758   

Interest

      —          —          —          200   
                                
     73        69        134        1,140   
                                

Income tax benefit

      87        382        215        790   
                                

Net earnings including noncontrolling interests

      1,058        1,503        2,179        2,387   

Earnings attributable to noncontrolling interests

      (112 )      (179 )      (222 )      (319 ) 
                                

Net earnings attributable to National Retail Properties, Inc.

    $ 946      $ 1,324      $ 1,957      $ 2,068   
                                

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 8-K.

 

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.”

 

     June 30,
2009		    December 31,
2008
     (unaudited)     

Assets:

      

Cash and cash equivalents

    $ 777    $ 833

Receivables

      200      202

Real estate

      73,871      74,463

Other assets

      978      1,135
             
   $ 75,826    $ 76,633
             

Liabilities:

      

Notes payable

    $ 43,600    $ 43,600

Other liabilities

      1,477      1,677
             

Total liabilities

      45,077      45,277
             

Members’ equity

      30,749      31,356
             

Total liabilities and equity

    $ 75,826    $ 76,633
             

 

     Quarter Ended June 30,    Six Months Ended June 30,
     2009    2008    2009    2008
     (unaudited)    (unaudited)    (unaudited)    (unaudited)

Revenues:

            

Rental income

    $ 1,565    $ 1,565    $ 3,130    $ 3,062
                           

Expenses:

            

General and administrative

      76      66      180      137

Real estate

      5      5      10      10

Depreciation and amortization

      370      362      741      715

Interest

      467      522      929      1,119
                           
     918      955      1,860      1,981
                           

Net earnings

    $ 647    $ 610    $ 1,270    $ 1,081
                           

 

10

National Retail Properties, Inc.

Investment Portfolio

Top 20 Lines of Trade

 

     As of June 30,  

Line of Trade

    2009 (1)     2008 (2)  

1. Convenience stores

    26.4 %    25.7 % 

2. Restaurants - full service

    9.2 %    9.2 % 

3. Theaters

    6.3 %    6.2 % 

4. Automotive parts

    6.3 %    4.8 % 

5. Automotive service

    5.5 %    8.0 % 

6. Drug stores

    4.2 %    4.2 % 

7. Books

    4.1 %    4.0 % 

8. Restaurants - limited service

    3.5 %    3.4 % 

9. Sporting goods

    3.2 %    3.6 % 

10. Grocery

    2.9 %    2.7 % 

11. Consumer electronics

    2.7 %    3.8 % 

12. Furniture

    2.6 %    2.6 % 

13. Office supplies

    2.6 %    2.5 % 

14. Travel plazas

    2.4 %    2.8 % 

15. Beer, wine and liquor

    1.9 %    1.8 % 

16. Family entertainment centers

    1.6 %    2.0 % 

17. Health and fitness

    1.5 %    0.1 % 

18. Auto dealerships

    1.3 %    1.3 % 

19. Home furnishings

    1.3 %    1.4 % 

20. Financial services

    1.2 %    0.4 % 

Other

    9.3 %    9.5 % 
            

Total

    100.0 %    100.0 % 
            

Top 10 States

 

State

    % of Total(1)    

State

    % of Total(1)  

1. Texas

    20.1 %   

6. Indiana

    4.4 % 

2. Florida

    10.2 %   

7. Ohio

    4.2 % 

3. Illinois

    7.0 %   

8. Pennsylvania

    3.9 % 

4. North Carolina

    6.2 %   

9. Tennessee

    3.1 % 

5. Georgia

    5.6 %   

10. Arizona

    2.8 % 
 
  (1)

Based on annual base rent of $211,103,000, which is the annualized base rent for all leases in place as of June 30, 2009.

  (2)

Based on annual base rent of $216,155,000, which is the annualized base rent for all leases in place as of June 30, 2008.

 

11

National Retail Properties, Inc.

Investment Portfolio

Top Tenants

 

     Properties    % Base Rent(1)  

Pantry

    96    9.1 % 

Susser

    86    8.7 % 

Kerasotes Theatres

    16    6.3 % 

Road Ranger

    34    4.0 % 

Mister Car Wash

    40    3.7 % 

Pull-A-Part

    20    3.5 % 

Pep Boys

    14    2.8 % 

Best Buy

    7    2.6 % 

Barnes & Noble

    9    2.5 % 

Logans Roadhouse

    17    2.3 % 

CVS

    16    2.0 % 

OfficeMax

    12    2.0 % 

Lease Expirations

 

     % of
Total(1)		     # of
Properties		    Gross Leasable
Area(2)		         % of
Total(1)		     # of
Properties		    Gross Leasable
Area(2)

2009

    0.4 %    11    189,000   

2015

    2.6 %    19    463,000

2010

    2.7 %    36    388,000   

2016

    1.9 %    14    240,000

2011

    2.0 %    20    333,000   

2017

    4.6 %    26    751,000

2012

    3.4 %    34    480,000   

2018

    2.9 %    23    343,000

2013

    4.7 %    39    848,000   

2019

    4.2 %    41    628,000

2014

    5.5 %    42    670,000   

Thereafter

    65.1 %    649    5,211,000
 
  (1)

Based on annual base rent of $211,103,000, which is the annualized base rent for all leases in place as of June 30, 2009.

  (2)

Square feet.

 

12