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 6, 2009
  

THIRD QUARTER 2009 OPERATING RESULTS

ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, November 6, 2009 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter ended September 30, 2009. Highlights include:

Operating Results:

 

  •  

Revenues, net earnings and FFO available to common stockholders:

 

     Quarter Ended
September 30,		    Nine Months Ended
September 30,
     2009    2008    2009    2008
     (in thousands, except per share data)

Revenues

    $ 57,035    $ 58,496    $ 173,313    $ 169,404

Net earnings available to common stockholders

    $ 20,747    $ 27,070    $ 71,111    $ 85,182

Net earnings per common share (diluted)

    $ 0.26    $ 0.37    $ 0.89    $ 1.16

FFO available to common stockholders

    $ 31,423    $ 35,198    $ 102,480    $ 106,390

FFO per common share (diluted)

    $ 0.39    $ 0.48    $ 1.29    $ 1.45

 

  •  

NNN paid cash dividends to its common shareholders of $0.375 per share during the quarter and $1.125 for the nine months ended September 30, 2009.

 

  •  

Investment Portfolio occupancy was 96.3% at September 30, 2009.

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

 

  •  

Investments:

 

  •  

$9.7 million in the Investment Portfolio, including acquiring five properties with an aggregate 37,000 square feet of gross leasable area

 

  •  

$487,000 of development funding in the Inventory Portfolio

 

  •  

Dispositions:

 

  •  

One Inventory property with net proceeds of $315,000

Investments and Dispositions for the nine months ended September 30, 2009:

 

  •  

Investments

 

  •  

$29.3 million in the Investment Portfolio, including acquiring five properties and development funding with an aggregate 268,000 square feet of gross leasable area

 

  •  

$2.7 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

 

  •  

Three Inventory properties with net proceeds of $5.7 million

Capital transactions for the quarter ended September 30, 2009:

 

  •  

Issued 1,907,811 shares of common stock generating $35,510,000 of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan

National Retail Properties announced 2010 FFO guidance of $1.51 to $1.58 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, as well as an additional 8 cents per share for other non-cash items noted on page five of this press release. This guidance equates to net earnings before any gains or losses from the sale of investment properties of $1.00 to $1.07 per share plus $0.51 per share of expected real estate related depreciation and amortization. These projections are based on current plans, assumptions, and estimates and are 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 well positioned for 2010 with exceptional balance sheet strength and a well-leased portfolio with current occupancy at 96.3%. We believe that there will be good acquisition opportunities in 2010, including some prospects currently under evaluation. Finally, we are delighted that our $1.50 per share cash dividend in 2009 marks the 20th consecutive year of annual dividend increases.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2009, the company owned 1,004 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 20 or more consecutive years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on November 6, 2009 at 2:00 p.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 September 30, 2009. 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

 

2

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,		  
     2009     2008     2009     2008  

Income Statement Summary

         

Revenues:

         

Rental and earned income

    $ 53,015      $ 54,638      $ 160,381      $ 156,516   

Real estate expense reimbursement from tenants

      1,872        1,421        6,272        4,398   

Interest and other income from real estate transactions

      1,102        1,313        3,560        4,839   

Interest income on commercial mortgage residual interests

      1,046        1,124        3,100        3,651   
                                
     57,035        58,496        173,313        169,404   
                                

Disposition of real estate, Inventory Portfolio:

         

Gross proceeds

     353        —          353        4,900   

Costs

      (317 )      —          (317 )      (4,879 ) 
                                

Gain

      36        —          36        21   
                                

Retail operations:

         

Revenues

      7,317        —          7,317        —     

Operating expenses

      (7,550 )      —          (7,575 )      —     
                                

Net

      (233 )      —          (258 )      —     
                                

Operating expenses:

         

General and administrative

      4,937        5,242        16,027        18,842   

Real estate

      3,494        2,326        10,208        6,952   

Depreciation and amortization

      11,350        11,443        34,374        32,096   

Impairment – real estate

      —          —          1,064        —     

Impairment – commercial mortgage residual interests valuation adjustment

      —          —          —          758   

Restructuring costs

      —          —          731        —     
                                
     19,781        19,011        62,404        58,648   
                                

Other expenses (revenues):

         

Interest and other income

      (262 )      (818 )      (1,025 )      (3,047 ) 

Interest expense

      15,618        16,329        46,484        48,796   

Loss on interest rate hedge

      —          —          —          804   
                                
     15,356        15,511        45,459        46,553   
                                

Income tax benefit

      504        1,653        1,586        6,002   

Equity in earnings of unconsolidated affiliate

      105        100        315        280   

Gain on note receivable foreclosure

      —          —          1,048        —     

Gain on extinguishment of debt

      —          —          3,432        —     
                                

Earnings from continuing operations

      22,310        25,727        71,609        70,506   

Earnings from discontinued operations:

         

Real estate, Investment Portfolio

      (70 )      2,962        4,076        12,820   

Real estate, Inventory Portfolio, net of income tax expense

      556        202        1,014        9,580   
                                

Earnings including noncontrolling interests

      22,796        28,891        76,699        92,906   

Loss (earnings) attributable to noncontrolling interests:

         

Continuing operations

      (152 )      (117 )      (502 )      465   

Discontinued operations

      (201 )      (8 )      3        (3,100 ) 
                                
     (353 )      (125 )      (499 )      (2,635 ) 
                                

Net earnings attributable to National Retail Properties, Inc.

      22,443        28,766        76,200        90,271   

Series C preferred stock dividends

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

Net earnings available to common stockholders – basic and diluted

    $ 20,747      $ 27,070      $ 71,111      $ 85,182   
                                

 

4

National Retail Properties, Inc.

(In thousands, except per share data)

(unaudited)

 

     Quarter Ended
September 30,		     Nine Months Ended
September 30,		  
     2009     2008     2009     2008  

Weighted average common shares outstanding:

         

Basic

      80,344        73,717        79,232        73,041   
                                

Diluted

      80,455        73,818        79,335        73,141   
                                

Net earnings per share available to common stockholders:

         

Basic:

         

Continuing operations

    $ 0.25      $ 0.33      $ 0.83      $ 0.90   

Discontinued operations

      0.01        0.04        0.06        0.26   
                                

Net earnings

    $ 0.26      $ 0.37      $ 0.89      $ 1.16   
                                

Diluted:

         

Continuing operations

    $ 0.25      $ 0.33      $ 0.83      $ 0.90   

Discontinued operations

      0.01        0.04        0.06        0.26   
                                

Net earnings

    $ 0.26      $ 0.37      $ 0.89      $ 1.16   
                                

Supplemental Information:

         

Selected Non-Cash Income Statement Items:

         

Straight-line rent

    $ (640 )    $ 151      $ (1,528 )    $ (978 ) 
                                

Net capital lease rent adjustment

    $ 350      $ 296      $ 1,018      $ 899   
                                

Above (below) market rent amortization

    $ (93 )    $ (245 )    $ (981 )    $ (547 ) 
                                

Stock based compensation expense

    $ 1,016      $ 916      $ 3,152      $ 2,388   
                                

Impairment – real estate

    $ —        $ 3,930      $ 1,064      $ 4,097   
                                

Impairment – mortgage residual interests

    $ —        $ —        $ —        $ 758   
                                

Amortization of debt costs

    $ 668      $ 768      $ 2,256      $ 2,164   
                                

Capitalized interest expense

    $ (163 )    $ (436 )    $ (1,080 )    $ (1,408 ) 
                                

Convertible debt interest expense

    $ 1,451      $ 1,538      $ 4,333      $ 3,973   
                                

Non-real estate depreciation expense

    $ 74      $ 65      $ 227      $ 200   
                                

Other Information:

         

Percentage rent

    $ 317      $ 202      $ 583      $ 563   
                                

Net Inventory Portfolio gain on dispositions (TRS)

    $ 22      $ 2,807      $ 580      $ 9,358   
                                

Scheduled debt principal amortization (excluding maturities)

    $ 249      $ 298      $ 742      $ 882   
                                

 

5

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

 

     Quarter Ended
September 30,		     Nine Months Ended
September 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.

    $ 22,443      $ 28,766      $ 76,200      $ 90,271   

Real estate depreciation and amortization:

         

Continuing operations

      10,608        10,610        31,892        29,704   

Discontinued operations

      24        118        977        602   

Joint venture real estate depreciation

      44        44        133        132   

Gain on disposition of real estate Investment Portfolio

      —          (2,644 )      (1,633 )      (9,230 ) 
                                

FFO

      33,119        36,894        107,569        111,479   

Series C preferred stock dividends

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

FFO available to common stockholders – basic and diluted

    $ 31,423      $ 35,198      $ 102,480      $ 106,390   
                                

FFO per share:

         

Basic

    $ 0.39      $ 0.48      $ 1.29      $ 1.46   
                                

Diluted

    $ 0.39      $ 0.48      $ 1.29      $ 1.45   
                                

Real Estate Disposition Summary

 

     Quarter Ended September 30,    Nine Months Ended September 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    $ 36      —      $ —      1    $ 36      1    $ 21   

Discontinued operations:

                      

Investment Portfolio

    —        —        6      2,644    6      1,633      17      9,230   

Inventory Portfolio

    —        —        9      2,807    2      558      23      12,643   

Noncontrolling interest, Inventory Portfolio

    —        (14 )    —        —      —        (14 )    —        (3,306 ) 
                                                   
   1    $ 22      15    $ 5,451    9    $ 2,213      41    $ 18,588   
                                                   

Reconciliation of gain on disposition by type:

                      

Inventory Portfolio:

                      

Development

    1    $ 36      1    $ 192    2    $ 582      5    $ 8,056   

Exchange

    —        —        8      2,615    1      12      19      4,608   

Noncontrolling interest, Development

    —        (14 )    —        —      —        (14 )    —        (3,306 ) 
                                                   

Total Inventory gain (TRS)

    1      22      9      2,807    3      580      24      9,358   

Investment Portfolio

    —        —        6      2,644    6      1,633      17      9,230   
                                                   
   1    $ 22      15    $ 5,451    9    $ 2,213      41    $ 18,588   
                                                   

 

6

National Retail Properties, Inc.

(in thousands)

(unaudited)

Earnings from Discontinued Operations: The company has classified its investment assets sold and leasehold interests expired 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, 2009, as discontinued operations. The following is a summary of earnings from discontinued operations.

 

     Quarter Ended
September 30,		     Nine Months Ended
September 30,		  
     2009     2008     2009     2008  

Earnings from Discontinued Operations – Investment Portfolio:

         

Revenues:

         

Rental and earned income

    $ 32      $ 527      $ 3,572      $ 3,776   

Real estate expense reimbursement from tenants

      2        42        103        109   

Interest and other income from real estate transactions

      3        —          5        421   
                                
     37        569        3,680        4,306   
                                

Expenses:

         

General and administrative

      —          —          —          (79 ) 

Real estate

      83        133        260        26   

Depreciation and amortization

      24        118        977        602   

Impairment – real estate

      —          —          —          167   
                                
     107        251        1,237        716   
                                

Gain on disposition of real estate

      —          2,644        1,633        9,230   
                                

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

    $ (70 )    $ 2,962      $ 4,076      $ 12,820   
                                

Earnings from Discontinued Operations – Inventory Portfolio:

         

Revenues:

         

Rental income

    $ 1,851      $ 2,648      $ 4,722      $ 8,882   

Real estate expense reimbursement from tenants

      201        301        1,335        857   

Interest and other income from real estate transactions

      47        109        104        540   
                                
     2,099        3,058        6,161        10,279   
                                

Disposition of real estate:

         

Gross proceeds

      —          52,185        5,402        151,098   

Costs

      —          (49,378 )      (4,844 )      (138,455 ) 
                                

Gain

      —          2,807        558        12,643   
                                

Expenses:

         

General and administrative

      21        23        89        72   

Real estate

      326        403        1,989        1,299   

Depreciation and amortization

      60        53        258        164   

Impairment – real estate

      —          3,930        —          3,930   

Interest

      919        1,136        2,746        3,912   
                                
     1,326        5,545        5,082        9,377   
                                

Income tax expense

      (217 )      (118 )      (623 )      (3,965 ) 
                                

Earnings from discontinued operations including noncontrolling interests

      556        202        1,014        9,580   

Loss (earnings) attributable to noncontrolling interests

      (201 )      (8 )      3        (3,100 ) 
                                

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

    $ 355      $ 194      $ 1,017      $ 6,480   
                                

 

7

National Retail Properties, Inc.

(in thousands)

 

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

Assets:

      

Cash and cash equivalents

    $ 23,251    $ 2,626

Receivables, net of allowance

      2,221      3,612

Investment in unconsolidated affiliate

      4,732      4,927

Mortgages, notes and accrued interest receivable

      43,100      60,472

Real estate, Investment Portfolio:

      

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

      2,346,198      2,357,894

Accounted for using the direct financing method

      31,677      31,240

Real estate, Inventory Portfolio, held for sale

      98,580      101,106

Commercial mortgage residual interests

      23,722      22,000

Accrued rental income, net of allowance

      25,081      23,972

Other assets

      53,042      41,622
             

Total assets

    $ 2,651,604    $ 2,649,471
             

Liabilities:

      

Line of credit payable

    $ —      $ 26,500

Mortgages payable

      25,548      26,290

Notes payable – convertible

      341,904      356,122

Notes payable, net of unamortized discount

      618,626      618,479

Other liabilities

      54,344      53,134
             

Total liabilities

      1,040,422      1,080,525

Stockholders’ equity of National Retail Properties, Inc.

      1,608,329      1,566,860

Noncontrolling interests

      2,853      2,086
             

Total equity

      1,611,182      1,568,946

Total liabilities and equity

    $ 2,651,604    $ 2,649,471
             

Common shares outstanding

      82,010      78,415
             

Gross leasable area, Investment Portfolio (square feet)

      11,412      11,251
             

 

Note 1: Includes adjustment based on the adoption of the new Financial Accounting Standards Board guidance on convertible debt instruments that may be settled in cash upon conversion.

 

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:

 

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

Assets:

      

Cash and cash equivalents

    $ 255    $ 405

Receivables and other assets

      36      39

Commercial mortgage residual interests

      23,722      22,000
             
   $ 24,013    $ 22,444
             

Liabilities:

      

Income tax liability

    $ 4,862    $ 5,195

Other liabilities

      50      49
             
   $ 4,912    $ 5,244
             

Noncontrolling interests

    $ 1,962    $ 1,449
             

 

     Quarter Ended
September 30,		     Nine Months Ended
September 30,		  
     2009     2008     2009     2008  
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Revenues:

         

Interest income on commercial mortgage residual interests

    $ 1,046      $ 1,124      $ 3,100      $ 3,651   

Interest and other income

      —          7        44        217   
                                
     1,046        1,131        3,144        3,868   
                                

Expenses:

         

General and administrative

      79        58        213        205   

Amortization

      —          —          —          35   

Impairment – commercial mortgage residual interests valuation

      —          —          —          758   

Interest

      —          —          —          200   
                                
     79        58        213        1,198   
                                

Income tax benefit

      117        457        332        1,247   
                                

Earnings including noncontrolling interests

      1,084        1,530        3,263        3,917   

Earnings attributable to noncontrolling interests

      (114 )      (188 )      (336 )      (507 ) 
                                

Net earnings attributable to National Retail Properties, Inc.

    $ 970      $ 1,342      $ 2,927      $ 3,410   
                                

 

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 8-K filed on June 24, 2009.

 

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,
2009		    December 31,
2008
     (unaudited)     

Assets:

      

Cash and cash equivalents

    $ 825    $ 833

Receivables

      200      202

Real estate

      73,575      74,463

Other assets

      884      1,135
             
   $ 75,484    $ 76,633
             

Liabilities:

      

Notes payable

    $ 43,600    $ 43,600

Other liabilities

      1,696      1,677
             

Total liabilities

      45,296      45,277
             

Members’ equity

      30,188      31,356
             

Total liabilities and equity

    $ 75,484    $ 76,633
             

 

     Quarter Ended
September 30,		    Nine Months Ended
September 30,
     2009    2008    2009    2008
     (unaudited)    (unaudited)    (unaudited)    (unaudited)

Revenues:

            

Rental income

    $ 1,565    $ 1,565    $ 4,695    $ 4,627
                           

Expenses:

            

General and administrative

      75      67      255      205

Real estate

      5      5      15      14

Depreciation and amortization

      386      362      1,127      1,077

Interest

      461      528      1,390      1,647
                           
     927      962      2,787      2,943
                           

Net earnings

    $ 638    $ 603    $ 1,908    $ 1,684
                           

 

10

National Retail Properties, Inc.

Investment Portfolio

Top 20 Lines of Trade

 

          As of September 30,  
    

Line of Trade

    2009 (1)     2008 (2)  

1.

   

Convenience stores

    26.3 %    25.5 % 

2.

   

Restaurants - full service

    9.0 %    8.8 % 

3.

   

Theaters

    6.3 %    6.2 % 

4.

   

Automotive parts

    6.3 %    4.8 % 

5.

   

Automotive service

    5.7 %    8.1 % 

6.

   

Drug stores

    4.1 %    4.0 % 

7.

   

Books

    4.1 %    4.0 % 

8.

   

Restaurants - limited service

    3.5 %    3.4 % 

9.

   

Sporting goods

    3.2 %    3.2 % 

10.

   

Grocery

    2.9 %    2.7 % 

11.

   

Consumer electronics

    2.7 %    3.7 % 

12.

   

Office supplies

    2.6 %    2.5 % 

13.

   

Furniture

    2.5 %    2.5 % 

14.

   

Travel plazas

    2.4 %    2.4 % 

15.

   

Beer, wine and liquor

    1.8 %    1.7 % 

16.

   

Family entertainment centers

    1.6 %    3.0 % 

17.

   

Health and fitness

    1.5 %    0.1 % 

18.

   

General merchandise

    1.3 %    1.6 % 

19.

   

Auto dealerships

    1.3 %    1.3 % 

20.

   

Financial services

    1.2 %    1.2 % 
  

Other

    9.7 %    9.3 % 
               
  

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

    10.0 %      7.   

Ohio

    4.1 % 

3.

   

Illinois

    7.0 %      8.   

Pennsylvania

    3.9 % 

4.

   

North Carolina

    6.3 %      9.   

Tennessee

    3.0 % 

5.

   

Georgia

    5.6 %      10.   

Arizona

    2.8 % 

 

(1)

Based on annual base rent of $211,601,000, which is the annualized base rent for all leases in place as of September 30, 2009.

(2)

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.

 

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

   0.3 %     8    154,000    2015     3.0 %    20    518,000

2010

   2.3 %     33    314,000    2016     1.7 %    13    240,000

2011

   2.1 %     21    391,000    2017     4.0 %    25    674,000

2012

   3.4 %     34    482,000    2018     2.9 %    23    343,000

2013

   4.7 %     39    848,000    2019     4.2 %    41    628,000

2014

   5.6 %     43    671,000    Thereafter     65.8 %    655    5,317,000

 

(1)

Based on annual base rent of $211,601,000, which is the annualized base rent for all leases in place as of September 30, 2009.

(2)

Square feet.

 

12