8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report: August 4, 2010

NATIONAL RETAIL PROPERTIES, INC.

(exact name of registrant as specified in its charter)

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

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

(Address of principal executive offices, including zip code)

(407) 265-7348

(Registrant’s telephone number, including area code)

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

On August 4, 2010, National Retail Properties, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended June 30, 2010. The press release is attached hereto as Exhibit 99.1.

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

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release, dated August 4, 2010, of National Retail Properties, Inc.

Signature

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

	National Retail Properties, Inc.
Dated: August 4, 2010	By:	/s/ Kevin B. Habicht
		Kevin B. Habicht
		Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated August 4, 2010, of National Retail Properties, Inc.

EX-99.1

Exhibit 99.1

NEWS RELEASE

For information contact:
Kevin B. Habicht
Chief Financial Officer
(407) 265-7348	FOR IMMEDIATE RELEASE
	August 4, 2010

SECOND QUARTER 2010 OPERATING RESULTS

ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, August 4, 2010 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and six months ended June 30, 2010. Highlights include:

Operating Results:

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

	Quarter Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
	(in thousands, except per share data)
Revenues	$	56,496	$	58,185	$	113,076	$	116,328
Net earnings available to common stockholders	$	19,510	$	16,394	$	34,179	$	41,501
Net earnings per common share (diluted)	$	0.23	$	0.20	$	0.41	$	0.52
FFO available to common stockholders	$	29,444	$	27,126	$	54,704	$	61,636
FFO per common share (diluted)	$	0.36	$	0.34	$	0.66	$	0.78
AFFO available to common stockholders	$	32,830	$	36,682	$	64,273	$	73,509
AFFO per common share (diluted)	$	0.40	$	0.46	$	0.78	$	0.93

• NNN paid cash dividends to its common stockholders of $0.375 per share during the quarter and $0.75 for the six months ended June 30, 2010.

• Investment Portfolio occupancy was 97.3% at June 30, 2010, as compared to 96.4% at December 31, 2009, and 96.7% at June 30, 2009.

Investments and Dispositions for the quarter ended June 30, 2010:

• Investments:

• $26.2 million in the Investment Portfolio, including acquiring six properties with an aggregate 33,000 square feet of gross leasable area

• Dispositions:

• Six Investment properties with an aggregate 57,000 square feet of gross leasable area, with net proceeds of $4.6 million, resulting in a gain of $355,000

• Three Inventory properties with net proceeds of $42.0 million

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

Investments and Dispositions for the six months ended June 30, 2010:

• Investments:

• $38.6 million in the Investment Portfolio, including acquiring 10 properties with an aggregate 97,000 square feet of gross leasable area

• Dispositions:

• 11 Investment properties with an aggregate 71,000 square feet of gross leasable area, with net proceeds of $11.4 million, resulting in a gain of $377,000

• Four Inventory properties with net proceeds of $42.8 million

Capital transactions for the quarter ended June 30, 2010:

• Issued 58,215 shares of common stock generating $1,310,000 of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan

National Retail Properties also announced revised 2010 FFO guidance of $1.42 to $1.47 per share before any impairment expense and estimated AFFO to be $1.56 to $1.61 per share. The change in guidance is primarily related to projected timing of property acquisitions. This guidance equates to net earnings before any gains or losses from the sale of real estate of $0.92 to $0.97 per share plus $0.50 per share of expected real estate depreciation and amortization. The guidance is based on current plans and assumptions and subject to 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: “Second quarter results were in line with our expectations and do not include the high level of lease termination fee income and gains from debt repurchases reported in 2009, which totaled $5.0 million for the second quarter of 2009 and $11.1 million for the first half of 2009. The portfolio and balance sheet remain in good shape and we were pleased to recently announce an increase in our common dividend which puts us on track for 21 consecutive years of increases in our annual dividend. While the acquisition pace for 2010 started slower than originally anticipated, the visibility has improved for the remainder of the year which will have modest impact on 2010’s operating results, but will position us well for 2011 FFO per share growth.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of June 30, 2010, the company owned 1,014 Investment Properties in 43 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 August 4, 2010, at 10:30 a.m. ET to review these results. The call can be accessed on the National Retail Properties 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 for the quarter ended June 30, 2010. 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.

2

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.

Adjusted Funds From Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO further adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. Management considers AFFO a useful supplemental measure of the company’s performance. The company’s computation of AFFO may differ from the calculation used by other equity REITs and therefore may not be comparable to such other REITs. A reconciliation of net earnings to AFFO is included in 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 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,
	2010			2009			2010			2009
Income Statement Summary
Revenues:
Rental and earned income	$	53,062		$	53,799		$	105,871		$	107,414
Real estate expense reimbursement from tenants		1,598			2,061			3,370			4,403
Interest and other income from real estate transactions		978			1,325			1,928			2,458
Interest income on commercial mortgage residual interests		858			1,000			1,907			2,053
		56,496			58,185			113,076			116,328
Disposition of real estate, Inventory Portfolio:
Gross proceeds		5,600			—			5,600			—
Costs		(4,959	)		—			(4,959	)		—
Gain		641			—			641			—
Retail operations:
Revenues		8,696			—			15,233			—
Operating expenses		(8,265	)		(25	)		(14,935	)		(25	)
Net		431			(25	)		298			(25	)
Operating expenses:
General and administrative		5,775			5,784			11,386			11,090
Real estate		3,156			3,082			6,701			6,590
Depreciation and amortization		11,961			11,169			23,803			22,860
Impairment - real state		—			1,064			—			1,064
Impairment - commercial mortgage residual interests valuation adjustment		165			—			3,848			—
Restructuring charges		—			—			—			731
		21,057			21,099			45,738			42,335
Other expenses (revenues):
Interest and other income		(586	)		(416	)		(838	)		(763	)
Interest expense		16,034			15,436			32,024			30,866
		15,448			15,020			31,186			30,103
Income tax (expense) benefit		(231	)		424			(326	)		848
Equity in earnings of unconsolidated affiliate		108			107			214			209
Gain (loss) on note receivable and property foreclosure		51			(7,816	)		67			(7,816	)
Gain on extinguishment of debt		—			1,014			—			3,432
Earnings from continuing operations		20,991			15,770			37,046			40,538
Earnings from discontinued operations:
Real estate, Investment Portfolio, net of income tax expense		530			2,473			642			4,428
Real estate, Inventory Portfolio, net of income tax expense		129			22			260			73
		659			2,495			902			4,501
Earnings including noncontrolling interests		21,650			18,265			37,948			45,039
Loss (earnings) attributable to noncontrolling interests:
Continuing operations		(468	)		(171	)		(349	)		(350	)
Discontinued operations		24			(4	)		(28	)		204
		(444	)		(175	)		(377	)		(146	)
Net earnings attributable to NNN		21,206			18,090			37,571			44,893
Series C preferred stock dividends		(1,696	)		(1,696	)		(3,392	)		(3,392	)
Net earnings available to common stockholders	$	19,510		$	16,394		$	34,179		$	41,501

4

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

	Quarter Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
Weighted average common shares outstanding:
Basic		82,695		79,163		82,590		78,667
Diluted		82,825		79,265		82,718		78,763
Net earnings per share available to common stockholders:
Basic:
Continuing operations	$	0.22	$	0.17	$	0.40	$	0.46
Discontinued operations		0.01		0.03		0.01		0.06
Net earnings	$	0.23	$	0.20	$	0.41	$	0.52
Diluted:
Continuing operations	$	0.22	$	0.17	$	0.40	$	0.46
Discontinued operations		0.01		0.03		0.01		0.06
Net earnings	$	0.23	$	0.20	$	0.41	$	0.52

5

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

	Quarter Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Funds From Operations (FFO) Reconciliation:
Net earnings available to common stockholders	$	19,510		$	16,394		$	34,179		$	41,501
Real estate depreciation and amortization:
Continuing operations		10,754			10,342			21,322			21,118
Discontinued operations		24			958			69			1,118
Joint venture real estate depreciation		44			44			89			89
Gain on disposition of real estate - Investment Portfolio		(355	)		(600	)		(377	)		(1,632	)
Gain on disposition of real estate - Inventory Portfolio (TRS)		(533	)		(12	)		(578	)		(558	)
Total FFO adjustments		9,934			10,732			20,525			20,135
FFO available to common stockholders	$	29,444		$	27,126		$	54,704		$	61,636
FFO per share:
Basic	$	0.36		$	0.34		$	0.66		$	0.78
Diluted	$	0.36		$	0.34		$	0.66		$	0.78
Adjusted Funds From Operations (AFFO) Reconciliation:
Net earnings available to common stockholders	$	19,510		$	16,394		$	34,179		$	41,501
Total FFO adjustments		9,934			10,732			20,525			20,135
FFO available to common stockholders		29,444			27,126			54,704			61,636
Straight-line accrued rent		130			(979	)		(190	)		(888	)
Net capital lease rent adjustment		381			338			753			668
Below market rent amortization		(96	)		(735	)		(192	)		(888	)
Stock based compensation expense		1,463			1,017			2,576			2,136
Capitalized interest expense		(132	)		(399	)		(185	)		(917	)
Convertible debt interest expense		1,526			1,434			3,026			2,882
Impairment - property and intangible		—			1,064			—			1,064
Impairment - commercial mortgage residual interests valuation adjustment		165			—			3,848			—
(Gain) loss on note receivable and property foreclosures		(51	)		7,816			(67	)		7,816
Total AFFO adjustments		3,386			9,556			9,569			11,873
AFFO available to common stockholders	$	32,830		$	36,682		$	64,273		$	73,509
AFFO per share:
Basic	$	0.40		$	0.46		$	0.78		$	0.93
Diluted	$	0.40		$	0.46		$	0.78		$	0.93
Other Information:
Percentage rent	$	129		$	119		$	184		$	266
Amortization of debt costs	$	1,146		$	751		$	2,279		$	1,588
Scheduled debt principal amortization (excluding maturities)	$	280		$	245		$	533		$	493
Non-real estate depreciation expense	$	66		$	76		$	212		$	154

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 or revenue generating inventory asset that was held for sale at June 30, 2010, as discontinued operations. The following is a summary of earnings from discontinued operations.

	Quarter Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Earnings from Discontinued Operations - Investment Portfolio:
Revenues:
Rental and earned income	$	230		$	2,931		$	343		$	4,132
Real estate expense reimbursement from tenants		12			73			13			117
Interest and other income from real estate transactions		—			—			28			—
Interest and other income from non-real estate		—			3			—			3
		242			3,007			384			4,252
Expenses:
General and administrative		—			—			—			3
Real estate		26			173			36			333
Depreciation and amortization		24			958			69			1,118
		50			1,131			105			1,454
Gain on disposition of real estate		355			600			377			1,632
Income tax expense		(17	)		(3	)		(14	)		(2	)
Earnings from discontinued operations attributable to NNN	$	530		$	2,473		$	642		$	4,428
Earnings from Discontinued Operations – Inventory Portfolio:
Revenues:
Rental income	$	1,216		$	1,136		$	2,368		$	2,232
Real estate expense reimbursement from tenants		154			175			1,141			1,116
Interest and other income from real estate transactions		461			19			496			57
Interest and other income from non-real estate		2			—			2			—
		1,833			1,330			4,007			3,405
Disposition of real estate:
Gross proceeds		36,668			502			37,470			5,402
Costs		(36,455	)		(490	)		(37,170	)		(4,844	)
Gain		213			12			300			558
Expenses:
General and administrative		19			21			56			65
Real estate		380			333			1,421			1,631
Depreciation and amortization		55			59			116			198
Interest		943			896			1,886			1,826
		1,397			1,309			3,479			3,720
Income tax expense		(520	)		(11	)		(568	)		(170	)
Earnings from discontinued operations including noncontrolling interests		129			22			260			73
Loss (earnings) attributable to noncontrolling interests		24			(4	)		(28	)		204
Earnings from discontinued operations attributable to NNN	$	153		$	18		$	232		$	277

7

National Retail Properties, Inc.

(in thousands)

(unaudited)

	Quarter Ended June 30,							Six Months Ended June 30,
	2010				2009			2010				2009
	# 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	2	$	641		—	$	—	2	$	641		—	$	—
Discontinued operations:
Investment Portfolio	6		355		3		600	11		377		6		1,632
Inventory Portfolio	1		213		1		12	2		300		2		558
Noncontrolling interest, Inventory Portfolio	—		(321	)	—		—	—		(363	)	—		—
	9	$	888		4	$	612	15	$	955		8	$	2,190
Reconciliation of gain on disposition by type:
Inventory Portfolio:
Development	3	$	854		—	$	—	4	$	941		1	$	546
Exchange	—		—		1		12	—		—		1		12
Noncontrolling interest, Development	—		(321	)	—		—	—		(363	)	—		—
Total Inventory gain (TRS)	3		533		1		12	4		578		2		558
Investment Portfolio	6		355		3		600	11		377		6		1,632
	9	$	888		4	$	612	15	$	955		8	$	2,190

8

National Retail Properties, Inc.

(in thousands)

(unaudited)

	June 30, 2010		December 31, 2009
Balance Sheet Summary
Assets:
Cash and cash equivalents	$	51,832	$	15,225
Receivables, net of allowance		3,645		1,946
Investment in unconsolidated affiliate		4,612		4,703
Mortgages, notes and accrued interest receivable		42,886		41,976
Real estate, Investment Portfolio:
Accounted for using the operating method, net of accumulated depreciation and amortization		2,335,018		2,328,576
Accounted for using the direct financing method		30,564		31,317
Real estate, Inventory Portfolio, held for sale		31,933		72,423
Commercial mortgage residual interests		15,148		20,153
Accrued rental income, net of allowance		25,766		25,745
Other assets		45,994		48,898
Total assets	$	2,587,398	$	2,590,962
Liabilities:
Mortgages payable	$	30,189	$	25,290
Notes payable - convertible		346,406		343,380
Notes payable, net of unamortized discount		618,780		618,676
Other liabilities		40,309		36,754
Total liabilities		1,035,684		1,024,100
Stockholders’ equity of NNN		1,549,203		1,564,240
Noncontrolling interests		2,511		2,622
Total equity		1,551,714		1,566,862
Total liabilities and equity	$	2,587,398	$	2,590,962
Common shares outstanding		83,376		82,428
Gross leasable area, Investment Portfolio (square feet)		11,399		11,373

9

Orange Avenue Mortgage Investments, Inc.

(in thousands)

(unaudited)

The company acquired a 79.9 percent equity investment of OAMI for $9.4 million. The company’s 79.9 percent share of OAMI’s net cash flow has totaled over $30.7 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, 2010		December 31, 2009
Assets:
Cash and cash equivalents	$	1,921	$	1,088
Receivables and other assets		13		43
Commercial mortgage residual interests		15,148		20,153
	$	17,082	$	21,284
Liabilities:
Income tax liability	$	4,481	$	4,732
Other liabilities		49		49
	$	4,530	$	4,781
Noncontrolling interests	$	1,231	$	1,579

	Quarter Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Revenues:
Interest income on commercial mortgage residual interests	$	858		$	1,000		$	1,907		$	2,054
Interests and other income		—			44			—			44
		858			1,044			1,907			2,098
Expenses:
General and administrative		62			73			156			134
Impairment – commercial mortgage residual interests valuation adjustment		165			—			3,848			—
		227			73			4,004			134
Income tax benefit		157			87			251			215
Net earnings (loss) including noncontrolling interests		788			1,058			(1,846	)		2,179
Earnings attributable to noncontrolling interests		(102	)		(112	)		(9	)		(222	)
Net earnings (loss) attributable to NNN	$	686		$	946		$	(1,855	)	$	1,957

10

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.”

	June 30, 2010		December 31, 2009
Assets:
Cash and cash equivalents	$	916	$	829
Receivables		200		200
Real estate		72,687		73,279
Other assets		684		838
	$	74,487	$	75,146
Liabilities:
Notes payable	$	43,600	$	43,600
Other liabilities		1,331		1,427
Total liabilities		44,931		45,027
Members’ equity		29,556		30,119
Total liabilities and equity	$	74,487	$	75,146

	Quarter Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
Revenues:
Rental income	$	1,565	$	1,565	$	3,130	$	3,130
Expenses:
General and administrative		77		76		184		180
Real estate		5		5		10		10
Depreciation and amortization		369		370		737		741
Interest		456		467		903		929
		907		918		1,834		1,860
Net earnings	$	658	$	647	$	1,296	$	1,270

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National Retail Properties, Inc.

Investment Portfolio

Top 20 Lines of Trade

	Line of Trade	As of June 30,
		2010 (1)		2009 (2)
1.	Convenience stores	26.2	%	26.4	%
2.	Restaurants - full service	9.2	%	9.2	%
3.	Automotive parts	6.8	%	6.3	%
4.	Theaters	6.2	%	6.3	%
5.	Automotive service	5.6	%	5.5	%
6.	Drug stores	4.4	%	4.2	%
7.	Books	4.0	%	4.1	%
8.	Restaurants - limited service	3.2	%	3.5	%
9.	Sporting goods	3.2	%	3.2	%
10.	Grocery	2.8	%	2.9	%
11.	Consumer electronics	2.7	%	2.7	%
12.	Furniture	2.6	%	2.6	%
13.	Office supplies	2.5	%	2.6	%
14.	Travel plazas	2.4	%	2.4	%
15.	Beer, wine and liquor	1.6	%	1.9	%
16.	Health and fitness	1.6	%	1.5	%
17.	Equipment rental	1.3	%	1.2	%
18.	Family entertainment centers	1.3	%	1.6	%
19.	General merchandise	1.3	%	1.2	%
20.	Auto dealerships	1.3	%	1.3	%
	Other	9.8	%	9.4	%
	Total	100.0	%	100.0	%

Top 10 States

	State	% of  Total(1)			State	% of  Total(1)
1.	Texas	19.8	%	6.	Indiana	4.3	%
2.	Florida	9.7	%	7.	Pennsylvania	4.2	%
3.	Illinois	6.8	%	8.	Ohio	4.0	%
4.	North Carolina	6.2	%	9.	Tennessee	3.0	%
5.	Georgia	5.4	%	10.	Colorado	2.9	%

⁽¹⁾ Based on the annualized base rent for all leases in place as of June 30, 2010.

⁽²⁾ Based on the annualized base rent for all leases in place as of June 30, 2009.

12

National Retail Properties, Inc.

Investment Portfolio

Top Tenants

	Properties	% of  Total(1)
Pantry	96	8.9	%
Susser	86	8.6	%
AMC Theatre	16	6.2	%
Road Ranger	34	3.9	%
Mister Car Wash	40	3.6	%
Pull-A-Part	20	3.5	%
Pep Boys	17	3.2	%
Best Buy	7	2.6	%
Barnes & Noble	9	2.5	%
Logans Roadhouse	17	2.2	%
CVS	16	2.0	%

Lease Expirations

	% of Total(1)		# of Properties	Gross  Leasable Area(2)		% of Total(1)		# of Properties	Gross  Leasable Area(2)
2010	0.9	%	19	184,000	2016	1.9	%	15	320,000
2011	1.8	%	21	330,000	2017	4.2	%	28	682,000
2012	3.3	%	35	510,000	2018	2.8	%	24	345,000
2013	4.6	%	38	822,000	2019	4.3	%	41	618,000
2014	4.9	%	44	617,000	2020	3.5	%	43	375,000
2015	4.2	%	33	689,000	Thereafter	63.6	%	634	5,205,000

⁽¹⁾ Based on the annual base rent of $217,215,000, which is the annualized base rent for all leases in place as of June 30, 2010.

⁽²⁾ Square feet.

13