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
   February 5, 2010

OPERATING RESULTS ANNOUNCED

BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, February 5, 2010 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2009. NNN reported Recurring Funds From Operations (FFO) for the fourth quarter of $29.8 million or 36 cents per share compared to $32.6 million or 42 cents per share for the same period in 2008. For the year ended December 31, 2009, Recurring FFO was $129.0 million or $1.61 per share compared to $135.3 million or $1.82 per share for the prior year. Recurring FFO is FFO excluding gain and loss on sale of real estate in our Inventory Portfolio, gain on early debt extinguishment, restructuring charges, impairments, and loss on note foreclosure. NNN reported FFO available to common stockholders for the fourth quarter of $(12.4) million or (15) cents per share compared to $36.0 million or 46 cents per share for the same period in 2008. For the year ended December 31, 2009, FFO available to common stockholders was $90.1 million or $1.13 per share compared to $142.4 million or $1.91 per share for the prior year. Highlights include:

Operating Results:

 

  •  

Revenues, net earnings, Recurring FFO and FFO available to common stockholders:

 

     Quarter Ended
December 31,		    Year Ended
December 31,
     2009     2008    2009    2008
     (in thousands, except per share data)

Revenues

    $ 57,750      $ 57,454    $ 231,799    $ 228,136

Net earnings (loss) available to common stockholders

    $ (23,087 )    $ 25,186    $ 48,025    $ 110,368

Net earnings (loss) per common share (diluted)

    $ (0.28 )    $ 0.32    $ 0.60    $ 1.48

Recurring FFO available to common stockholders

    $ 29,797      $ 32,565    $ 129,013    $ 135,258

Recurring FFO per common share (diluted)

    $ 0.36      $ 0.42    $ 1.61    $ 1.82

FFO available to common stockholders

    $ (12,394 )    $ 35,964    $ 90,087    $ 142,355

FFO per common share (diluted)

    $ (0.15 )    $ 0.46    $ 1.13    $ 1.91

 

  •  

NNN paid cash dividends to its common stockholders of $0.375 per share during the quarter and $1.50 for the year ended December 31, 2009.

 

  •  

Annual dividends per share increased from $1.48 to $1.50 marking the 20th consecutive year of dividend increases - one of only 156 public companies with a dividend increase record of 20 or more years.

 

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

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

    LOGO

  •  

Investment Portfolio occupancy was 96.4% at December 31, 2009, as compared to 96.3% at September 30, 2009, and 96.7% at December 31, 2008.

Investments and Dispositions for the quarter ended December 31, 2009:

 

  •  

Investments:

 

  •  

$7.0 million in the Investment Portfolio, including acquiring three properties with an aggregate 22,000 square feet of gross leasable area

 

  •  

Dispositions:

 

  •  

Three Investment properties with an aggregate 127,000 square feet of gross leasable area, with net proceeds of $5.9 million, resulting in a gain of $759,000

 

  •  

One Inventory property with net proceeds of $597,000

Investments and Dispositions for the year ended December 31, 2009:

 

  •  

Investments:

 

  •  

$36.3 million in the Investment Portfolio, including acquiring eight properties with an aggregate 290,000 square feet of gross leasable area

 

  •  

$2.6 million of development funding in the Inventory Portfolio

 

  •  

Dispositions:

 

  •  

Nine Investment properties with an aggregate 234,000 square feet of gross leasable area, with net proceeds of $15.6 million, resulting in a gain of $2.4 million

 

  •  

Four Inventory properties with net proceeds of $6.3 million

Capital transactions for the quarter ended December 31, 2009:

 

  •  

Issued 518,569 shares of common stock generating $10,480,000 of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan

Impairment charge summary for the quarter ended December 31, 2009:

During the quarter, NNN recorded charges totaling $42.2 million for impairments and losses primarily comprised of the following:

 

  •  

$33.4 million related to 24 properties, including five undeveloped TRS land parcels

 

  •  

$8.2 million of goodwill previously recognized related to California auto service business valuation/note foreclosure

 

  •  

$0.5 million related to impairment of commercial mortgage residual interests

Craig Macnab, Chief Executive Officer, commented: “NNN remains well positioned and our previously issued 2010 guidance is not impacted by the non-cash impairments taken this quarter. Our high quality net leased retail portfolio is 96.4% occupied and has remained at least 96% leased for the last seven years. Our balance sheet is extremely strong which will allow us to take advantage of acquisition opportunities as they become available. While the acquisition volume has not been robust, we are encouraged with the quality of the opportunities that we are seeing.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2009, the company owned 1,015 Investment Properties in 44 states with a gross leasable area of approximately 11.4 million square feet. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on February 5, 2010 at 10:30 a.m. EST 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 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 preliminary and not final and there can be no assurance that the results will not vary from the final information filed on Form 10-K with the SEC for the year ended December 31, 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 (“NAREIT”) 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. A reconciliation of net earnings (computed in accordance with GAAP) to FFO, as defined by NAREIT, is included in the financial information accompanying this release.

For information purposes, we also provide FFO adjusted for certain non-recurring items such as gain and loss on sale of real estate in our Inventory Portfolio, gain on early debt extinguishment, restructuring charges, impairments, loss on note foreclosure and impairment charges which management defines as Recurring FFO. Although our calculation of Recurring FFO differs from FFO as defined by NAREIT and may not be comparable to that of other REITs, we believe it provides a meaningful supplemental measure of our operating performance. A reconciliation of FFO, as defined by NAREIT, to Recurring FFO is included in the financial information accompanying this release.

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, Recurring FFO and net earnings available to common stockholders are not affected.

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

 

     Quarter Ended
December 31,		     Year Ended
December 31,		  
     2009     2008     2009     2008  

Income Statement Summary

         

Revenues:

         

Rental and earned income

    $ 53,518      $ 52,886      $ 214,625      $ 210,684   

Real estate expense reimbursement from tenants

      2,104        2,613        8,387        7,012   

Interest and other income from real estate transactions

      975        970        4,535        5,804   

Interest income on commercial mortgage residual interests

      1,153        985        4,252        4,636   
                                
     57,750        57,454        231,799        228,136   
                                

Disposition of real estate, Inventory Portfolio:

         

Gross proceeds

     600        —          953        4,900   

Costs

      (599 )      —          (916 )      (4,879 ) 
                                

Gain

      1        —          37        21   
                                

Retail operations:

         

Revenues

     8,277        —          15,595        —     

Operating expenses

      (7,601 )      —          (15,176 )      —     
                                

Net

      676        —          419        —     
                                

Operating expenses:

         

General and administrative

      5,746        6,025        21,776        24,878   

Real estate

      3,760        3,307        13,684        10,007   

Depreciation and amortization

      12,569        12,270        46,769        44,181   

Impairment - real estate

      27,050        —          28,114        1,234   

Impairment - commercial mortgage residual interests valuation

      498        —          498        758   

Restructuring costs

      —          —          731        —     
                                
     49,623        21,602        111,572        81,058   
                                

Other expenses (revenues):

         

Interest and other income

      (350 )      (701 )      (1,375 )      (3,748 ) 

Interest expense

      15,728        15,167        62,151        63,964   

Loss on interest rate hedge

      —          —          —          804   
                                
     15,378        14,466        60,776        61,020   
                                

Income tax benefit (expense)

      (80 )      1,301        1,126        7,178   

Equity in earnings of unconsolidated affiliate

      107        83        421        364   

Loss on note receivable foreclosure/goodwill adjustment

      (8,244 )      —          (7,196 )      —     

Gain on extinguishment of debt

      —          4,961        3,432        4,961   
                                

Earnings (loss) from continuing operations

      (14,791 )      27,731        57,690        98,582   

Earnings (loss) from discontinued operations:

         

Real estate, Investment Portfolio

      (3,565 )      (568 )      260        12,112   

Real estate, Inventory Portfolio, net of income tax expense

      (1,945 )      (98 )      (1,551 )      9,277   
                                

Earnings (loss) including noncontrolling interests

      (20,301 )      27,065        56,399        119,971   

Loss (earnings) attributable to noncontrolling interests:

         

Continuing operations

      (1,040 )      (355 )      (1,542 )      109   

Discontinued operations

      (50 )      172        (47 )      (2,927 ) 
                                
     (1,090 )      (183 )      (1,589 )      (2,818 ) 
                                

Net earnings (loss) attributable to National Retail Properties, Inc.

      (21,391 )      26,882        54,810        117,153   

Series C preferred stock dividends

      (1,696 )      (1,696 )      (6,785 )      (6,785 ) 
                                

Net earnings (loss) available to common stockholders - basic and diluted

    $ (23,087 )    $ 25,186      $ 48,025      $ 110,368   
                                

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

 

     Quarter Ended
December 31,		     Year Ended
December 31,
     2009     2008     2009     2008

Weighted average common shares outstanding:

         

Basic

      81,668        77,816        79,846        74,249
                              

Diluted

      81,786        77,896        79,953        74,344
                              

Net earnings (loss) per share available to common stockholders:

         

Basic:

         

Continuing operations

    $ (0.21 )    $ 0.33      $ 0.62      $ 1.23

Discontinued operations

      (0.07 )      (0.01 )      (0.02 )      0.25
                              

Net earnings

    $ (0.28 )    $ 0.32      $ 0.60      $ 1.48
                              

Diluted:

         

Continuing operations

    $ (0.21 )    $ 0.33      $ 0.61      $ 1.23

Discontinued operations

      (0.07 )      (0.01 )      (0.01 )      0.25
                              

Net earnings

    $ (0.28 )    $ 0.32      $ 0.60      $ 1.48
                              

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

 

     Quarter Ended
December 31,		     Year Ended
December 31,		  
     2009     2008     2009     2008  

Reconciliation of net earnings (loss) available to common stockholders to FFO available to common stockholders:

         

Net earnings (loss) available to common stockholders

    $ (23,087 )    $ 25,186      $ 48,025      $ 110,368   

Real estate depreciation and amortization:

         

Continuing operations

      11,350        11,330        43,067        40,850   

Discontinued operations

      58        154        1,209        940   

Joint venture real estate depreciation

      44        44        178        177   

Gain on disposition of real estate - Investment Portfolio

      (759 )      (750 )      (2,392 )      (9,980 ) 
                                

FFO available to common stockholders - basic and diluted

    $ (12,394 )    $ 35,964      $ 90,087      $ 142,355   
                                

FFO available to common stockholders - basic and diluted

    $ (12,394 )    $ 35,964      $ 90,087      $ 142,355   

Adjustments to reconcile to Recurring Funds From Operations:

         

Real estate related impairments and loss

      42,192        1,563        42,208        6,418   

Restructuring charges

      —          —          731        —     

Loss on derivative instrument

      —          —          —          804   

Gain on early debt extinguishment

      —          (4,961 )      (3,432 )      (4,961 ) 

Gain on disposition of real estate - Inventory Portfolio - net of noncontrolling interest

      (1 )      (1 )      (581 )      (9,358 ) 
                                

Recurring Funds From Operations

    $ 29,797      $ 32,565      $ 129,013      $ 135,258   
                                
Supplemental Information:         

Selected Non-Cash Income Statement Items:

         

Straight-line accrued rent

    $ (715 )    $ (107 )    $ (2,243 )    $ (1,085 ) 

Net capital lease rent adjustment

      360        305        1,378        1,204   

Above (below) market rent amortization

      (93 )      (64 )      (1,074 )      (611 ) 

Stock based compensation expense

      1,020        911        4,172        3,299   

Capitalized interest expense

      (163 )      (605 )      (1,243 )      (2,013 ) 

Convertible debt interest expense

      1,476        1,508        5,809        5,481   

Impairment - real estate

      33,450        1,563        34,514        5,660   

Impairment - mortgage residual interests

      498        —          498        758   

Loss on note receivable foreclosure/goodwill adjustment

      8,244        —          7,196        —     
                                

Total

    $ 44,077      $ 3,511      $ 49,007      $ 12,693   
                                

Other Information:

         

Percentage rent

    $ 757      $ 705      $ 1,340      $ 1,268   
                                

Net Inventory Portfolio gain on disposition (TRS)

    $ 1      $ 1      $ 581      $ 9,358   
                                

Amortization of debt costs

    $ 1,152      $ 860      $ 3,408      $ 3,024   
                                

Scheduled debt principal amortization (excluding maturities)

    $ 258      $ 308      $ 1,000      $ 1,190   
                                

Non-real estate depreciation expense

    $ 74      $ 79      $ 301      $ 279   
                                

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 December 31, 2009, as discontinued operations. The following is a summary of earnings from discontinued operations.

 

     Quarter Ended
December 31,		     Year Ended
December 31,		  
     2009     2008     2009     2008  

Earnings (loss) from Discontinued Operations - Investment Portfolio:

         

Revenues:

         

Rental and earned income

    $ 15      $ 518      $ 3,826      $ 4,638   

Real estate expense reimbursement from tenants

      62        61        182        176   

Interest and other income from real estate transactions

      115        8        121        434   
                                
     192        587        4,129        5,248   
                                

Expenses:

         

General and administrative

      4        4        4        (74 ) 

Real estate

      148        184        742        520   

Depreciation and amortization

      58        154        1,209        940   

Impairment - real estate

      4,306        1,563        4,306        1,730   
                                
     4,516        1,905        6,261        3,116   
                                

Gain on disposition of real estate

      759        750        2,392        9,980   
                                

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

    $ (3,565 )    $ (568 )    $ 260      $ 12,112   
                                

Earnings (loss) from Discontinued Operations - Inventory Portfolio:

         

Revenues:

         

Rental income

    $ 1,219      $ 1,528      $ 4,975      $ 8,785   

Real estate expense reimbursement from tenants

      206        17        1,513        867   

Interest and other income from real estate transactions

      37        28        141        568   
                                
     1,462        1,573        6,629        10,220   
                                

Disposition of real estate:

         

Gross proceeds

      —          615        5,402        151,713   

Costs

      —          (614 )      (4,844 )      (139,069 ) 
                                

Gain

      —          1        558        12,644   
                                

Expenses:

         

General and administrative

      30        (40 )      116        22   

Real estate

      232        227        2,169        1,468   

Depreciation and amortization

      64        61        323        226   

Impairment - real estate

      2,094        —          2,094        2,696   

Interest

      984        1,378        3,790        5,290   
                                
     3,404        1,626        8,492        9,702   
                                

Income tax expense

      3        46        246        3,885   
                                

Earnings (loss) from discontinued operations including noncontrolling interests

      (1,945 )      (98 )      (1,551 )      9,277   

Loss (earnings) attributable to noncontrolling interests

      (50 )      172        (47 )      (2,927 ) 
                                

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

    $ (1,995 )    $ 74      $ (1,598 )    $ 6,350   
                                

National Retail Properties, Inc.

(in thousands)

(unaudited)

 

 

     Quarter Ended December 31,    Year Ended December 31,  
     2009    2008    2009     2008  
     # of
Properties		    Gain    # of
Properties		    Gain    # of
Properties		    Gain     # of
Properties		    Gain  

Real Estate Disposition Summary:

                       

Reconciliation of gain on disposition between continuing and discontinued operations:

                       

Continuing operations

    1    $ 1    —      $ —      2    $ 37      1    $ 21   

Discontinued operations:

                       

Investment Portfolio

    3      759    2      750    9      2,392      19      9,980   

Inventory Portfolio

    —        —      1      1    2      558      24      12,644   

Noncontrolling interest, Inventory Portfolio

    —        —      —        —      —        (14 )    —        (3,307 ) 
                                                  
   4    $ 760    3    $ 751    13    $ 2,973      44    $ 19,338   
                                                  

Reconciliation of gain on disposition by type:

                       

Inventory Portfolio:

                       

Development

    1    $ 1    1    $ 1    3    $ 583      6    $ 8,058   

Exchange

    —        —      —        —      1      12      19      4,607   

Noncontrolling interest, Development

    —        —      —        —      —        (14 )    —        (3,307 ) 
                                                  

Total Inventory gain (TRS)

    1      1    1      1    4      581      25      9,358   

Investment Portfolio

    3      759    2      750    9      2,392      19      9,980   
                                                  
   4    $ 760    3    $ 751    13    $ 2,973      44    $ 19,338   
                                                  

National Retail Properties, Inc.

(in thousands)

(unaudited)

 

      December 31,
2009		    December 31,
2008

Balance Sheet Summary

      

Assets:

      

Cash and cash equivalents

    $ 15,225    $ 2,626

Receivables, net of allowance

      1,946      3,612

Investment in unconsolidated affiliate

      4,703      4,927

Mortgages, notes and accrued interest receivable

      41,976      60,472

Real estate, Investment Portfolio:

      

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

      2,329,827      2,373,878

Accounted for using the direct financing method

      31,317      31,240

Real estate, Inventory Portfolio, held for sale

      72,423      85,122

Commercial mortgage residual interests

      20,153      22,000

Accrued rental income, net of allowance

      25,745      23,972

Other assets

      47,647      41,622
             

Total assets

    $ 2,590,962    $ 2,649,471
             

Liabilities:

      

Line of credit payable

    $ —      $ 26,500

Mortgages payable

      25,290      26,290

Notes payable - convertible

      343,380      356,122

Notes payable, net of unamortized discount

      618,676      618,479

Other liabilities

      36,754      53,134
             

Total liabilities

      1,024,100      1,080,525

Stockholders’ equity of National Retail Properties, Inc.

      1,564,240      1,566,860

Noncontrolling interests

      2,622      2,086
             

Total equity

      1,566,862      1,568,946

Total liabilities and equity

    $ 2,590,962    $ 2,649,471
             

Common shares outstanding

      82,428      78,340
             

Gross leasable area, Investment Portfolio (square feet)

      11,373      11,251
             

Orange Avenue Mortgage Investments, Inc.

(in thousands)

(unaudited)

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 $28.9 million since May 2005. The following summary represents the balances related to OAMI included in the company’s Balance Sheet and Income Statement Summary:

 

     December 31,
2009		    December 31,
2008

Assets:

      

Cash and cash equivalents

    $ 1,088    $ 405

Receivables and other assets

      43      39

Commercial mortgage residual interests

      20,153      22,000
             
   $ 21,284    $ 22,444
             

Liabilities:

      

Income tax liability

    $ 4,732    $ 5,195

Other liabilities

      49      49
             
   $ 4,781    $ 5,244
             

Noncontrolling interests

    $ 1,579    $ 1,449
             

 

     Quarter Ended
December 31,		     Year Ended
December 31,		  
     2009     2008     2009     2008  

Revenues:

         

Interest income on commercial mortgage residual interests

    $ 1,153      $ 985      $ 4,252      $ 4,636   

Interest and other income

      —          1        45        218   
                                
     1,153        986        4,297        4,854   
                                

Expenses:

         

General and administrative

      58        62        270        267   

Amortization

      —          —          —          35   

Impairment - commercial mortgage residual interests valuation

      498        —          498        758   

Interest

      —          —          —          200   
                                
     556        62        768        1,260   
                                

Income tax benefit

      131        325        463        1,572   
                                

Earnings including noncontrolling interests

      728        1,249        3,992        5,166   

Earnings attributable to noncontrolling interests

      (181 )      (143 )      (517 )      (650 ) 
                                

Net earnings attributable to National Retail Properties, Inc.

    $ 547      $ 1,106      $ 3,475      $ 4,516   
                                

NNN Retail Properties Fund I LLC

(in thousands)

(unaudited)

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

 

     December 31,
2009		    December 31,
2008

Assets:

      

Cash and cash equivalents

    $ 829    $ 833

Receivables

      200      202

Real estate

      73,279      74,463

Other assets

      838      1,135
             
   $ 75,146    $ 76,633
             

Liabilities:

      

Notes payable

    $ 43,600    $ 43,600

Other liabilities

      1,427      1,677
             

Total liabilities

      45,027      45,277
             

Members’ equity

      30,119      31,356
             

Total liabilities and equity

    $ 75,146    $ 76,633
             

 

     Quarter Ended
December 31,		    Year Ended
December 31,
     2009    2008    2009    2008

Revenues:

            

Rental income

    $ 1,565    $ 1,565    $ 6,261    $ 6,192
                           

Expenses:

            

General and administrative

      72      142      328      347

Real estate

      4      47      19      61

Depreciation and amortization

      369      368      1,496      1,445

Interest

      472      517      1,861      2,164
                           
     917      1,074      3,704      4,017
                           

Net earnings

    $ 648    $ 491    $ 2,557    $ 2,175
                           

National Retail Properties, Inc.

Investment Portfolio

Top 20 Lines of Trade

 

          As of December 31  
    

Line of Trade

    2009 (1)     2008 (2)  
1.    Convenience stores    26.7 %    25.7 % 
2.    Restaurants - full service    9.2 %    8.7 % 
3.    Automotive parts    6.8 %    5.1 % 
4.    Theaters    6.3 %    6.1 % 
5.    Automotive service    5.7 %    8.9 % 
6.    Books    4.1 %    4.0 % 
7.    Drug stores    4.1 %    4.0 % 
8.    Restaurants - limited service    3.5 %    3.3 % 
9.    Sporting goods    3.2 %    3.3 % 
10.    Grocery    2.9 %    2.6 % 
11.    Consumer electronics    2.7 %    3.2 % 
12.    Office supplies    2.6 %    2.5 % 
13.    Travel plazas    2.5 %    2.4 % 
14.    Furniture    2.5 %    2.5 % 
15.    Beer, wine and liquor    1.8 %    1.7 % 
16.    Health and fitness    1.6 %    0.1 % 
17.    General merchandise    1.3 %    1.3 % 
18.    Auto dealerships    1.3 %    1.3 % 
19.    Equipment rental    1.2 %    1.2 % 
20.    Financial services    1.2 %    1.2 % 
   Other    8.8 %    10.9 % 
               
   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.    Pennsylvania    4.3 % 

3.

    Illinois    7.0 %      8.    Ohio    3.8 % 

4.

    North Carolina    6.3 %      9.    Tennessee    3.1 % 

5.

    Georgia    5.5 %      10.    Arizona    2.8 % 

 

(1)

Based on annual base rent of $211,993,000, which is the annualized base rent for all leases in place as of December 31, 2009.

(2)

Based on annual base rent of $219,326,000, which is the annualized base rent for all leases in place as of December 31, 2008.

National Retail Properties, Inc.

Investment Portfolio

Top Tenants

 

     Properties    % of Total(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    3.6 % 

Pep Boys

    16    3.1 % 

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)
2010   2.3 %    36   408,000   2016   1.7 %    13   240,000
2011   2.1 %    21   389,000   2017   4.3 %    27   676,000
2012   3.3 %    34   484,000   2018   2.9 %    24   345,000
2013   4.7 %    39   849,000   2019   4.3 %    42   632,000
2014   5.0 %    44   622,000   2020   3.0 %    40   336,000
2015   3.1 %    22   539,000   Thereafter   63.3 %    636   4,988,000

 

(1)

Based on annual base rent of $211,993,000, which is the annualized base rent for all leases in place as of December 31, 2009.

(2)

Square feet.