Earnings From Discontinued Operations

9 Months Ended

Sep. 30, 2011

Earnings From Discontinued Operations [Abstract]

Earnings From Discontinued Operations

Note 8 – Earnings from Discontinued Operations:

Real Estate – Investment Portfolio – NNN classified the revenues and expenses related to (i) all Investment Properties that were sold and leasehold interests which expired, and (ii) all Investment Properties that were held for sale as of September 30, 2011, as discontinued operations. The following is a summary of the earnings from discontinued operations from the Investment Portfolio (dollars in thousands):

	Quarter Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011			2010
Revenues:
Rental income from operating leases	$	861	$	731	$	1,517		$	1,899
Percentage rent		1		1		–			14
Real estate expense reimbursement from tenants		18		65		130			204
Interest and other income from real estate transactions		–		–		14			63
		880		797		1,661			2,180
Operating expenses:
General and administrative		8		15		1			21
Real estate		126		184		387			429
Depreciation and amortization		55		99		191			366
Impairment losses and other charges		431		–		431			–
		620		298		1,010			816
Earnings before gain on disposition of real estate and income tax expense		260		499		651			1,364
Gain on disposition of real estate		8		635		38			1,013
Income tax expense		–		–		(3	)		(14	)
Earnings from discontinued operations attributable to NNN	$	268	$	1,134	$	686		$	2,363

Real Estate – Inventory Portfolio – NNN has classified as discontinued operations the revenues and expenses related to (i) Inventory Properties which generated rental revenues prior to disposition, and (ii) Inventory Properties which generated rental revenues and were held for sale as of September 30, 2011. The following is a summary of the earnings from discontinued operations from the Inventory Portfolio (dollars in thousands):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Revenues:
Rental income from operating leases	$	490		$	500		$	1,629		$	2,868
Real estate expense reimbursement from tenants		126			113			330			1,254
Interest and other income from real estate transactions		4			13			21			511
		620			626			1,980			4,633
Disposition of real estate:
Gross proceeds		–			–			1,100			37,470
Costs		–			–			(998	)		(37,170	)
Gain		–			–			102			300
Operating expenses:
General and administrative		3			10			11			66
Real estate		133			197			471			1,618
Depreciation and amortization		23			22			66			137
		159			229			548			1,821
Other expenses:
Interest expense		345			385			1,025			2,271
		345			385			1,025			2,271
Earnings before income tax expense		116			12			509			841
Income tax expense		(45	)		(17	)		(159	)		(585	)
Earnings (loss) from discontinued operations including noncontrolling interests		71			(5	)		350			256
Loss (earnings) attributable to noncontrolling interests		4			33			(89	)		2
Earnings from discontinued operations attributable to NNN	$	75		$	28		$	261		$	258