Dividends:

The following presents the characterization for tax purposes of common stock dividends per share paid to stockholders for the years ended December 31:



	2011		2010		2009
Ordinary dividends	$	1.088228	$	1.072446	$	1.495182
Qualified dividends	—		0.081661		—
Capital gain	—		0.000861		0.003051
Unrecaptured Section 1250 Gain	—		0.000498		0.001767
Nontaxable distributions	0.441772		0.354534		—
	$	1.530000	$	1.510000	$	1.500000

During the years ended years ended December 31, 2011, 2010 and 2009, NNN declared and paid dividends to its common shareholders of $133,720,000, $125,391,000 and $120,256,000, respectively, or $1.53, $1.51 and $1.50 per share, respectively, of common stock.

On January 13, 2012, NNN declared a dividend of $0.385 per share, which is payable February 15, 2012 to its common stockholders of record as of January 31, 2012.

The following presents the characterization for tax purposes of preferred stock dividends per share paid to stockholders for the year ended December 31:



	2011		2010		2009
Ordinary dividends	$	1.843750	$	1.703170	$	1.837828
Qualified dividends	—		0.140580		—
Capital gain	—		—		0.003750
Unrecaptured Section 1250 Gain	—		—		0.002172
	$	1.843750	$	1.843750	$	1.843750

NNN declared and paid dividends to its Series C Preferred stockholders of $6,785,000, or $1.84375 per depository share, during each of the years ended December 31, 2011, 2010 and 2009. The Series C Preferred Stock has no maturity date and will remain outstanding unless redeemed.

In February 2012, NNN declared a dividend on its Series C Preferred Stock of 46.09375 cents per depositary share payable March 15, 2012.