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8-K - 8-K - NATIONAL RETAIL PROPERTIES, INC.nnn8-k20131231.htm


NEWS RELEASE
For information contact:
Kevin B. Habicht
Chief Financial Officer
(407) 265-7348    FOR IMMEDIATE RELEASE
February 11, 2014


2013 OPERATING RESULTS ANNOUNCED
BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, February 11, 2014 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2013. Highlights include:

Operating Results:
Revenues and net earnings, FFO, Recurring FFO and AFFO available to common stockholders and diluted per share amounts:
 
Quarter Ended
 
Year Ended
 
December 31,
 
December 31,
 
2013
 
2012
 
2013
 
2012
 
(in thousands, except per share data)
Revenues
$
103,648

 
$
89,059

 
$
392,327

 
$
331,536

 
 
 
 
 
 
 
 
Net earnings available to common stockholders
$
35,382

 
$
35,901

 
$
132,222

 
$
121,489

Net earnings per common share
$
0.29

 
$
0.32

 
$
1.10

 
$
1.11

 
 
 
 
 
 
 
 
FFO available to common stockholders
$
60,646

 
$
51,012

 
$
229,518

 
$
193,682

FFO per common share
$
0.50

 
$
0.46

 
$
1.91

 
$
1.77

 
 
 
 
 
 
 
 
Recurring FFO available to common stockholders
$
61,815

 
$
51,106

 
$
230,965

 
$
189,759

Recurring FFO per common share
$
0.51

 
$
0.46

 
$
1.93

 
$
1.74

 
 
 
 
 
 
 
 
AFFO available to common stockholders
$
63,603

 
$
54,182

 
$
238,917

 
$
200,839

AFFO per common share
$
0.52

 
$
0.48

 
$
1.99

 
$
1.84


Portfolio occupancy was 98.2% at December 31, 2013, as compared to 98.1% at September 30, 2013, and 97.9% at December 31, 2012

2013 Highlights:
Increased annual Recurring FFO per share 10.9%
Dividend yield at December 31, 2013 of 5.3%
Dividends per share increased to $1.60 marking the 24th consecutive year of annual dividend increases - one of only four equity REITs and one of only 102 public companies with 24 or more consecutive annual dividend increases
Maintained high occupancy levels at 98.2% with weighted average remaining lease term of 12 years
Invested $629.9 million in 275 properties with an aggregate 1,652,000 square feet of gross leasable area at an initial cash yield of 7.8%
Sold 35 properties for $61.0 million producing $5.4 million of gains on sale, net of income tax and noncontrolling interest at a cap rate of 7.5%




2013 Highlights (continued):
Raised $886.0 million of new long term capital at attractive pricing
Raised $264.1 million in net proceeds from the issuance of 7,721,883 common shares
Raised $277.6 million in net proceeds from the issuance of 5.70% Series E preferred stock
Raised $344.3 million in net proceeds from the issuance of 3.30% senior unsecured notes due 2023
Settled $223.0 million principal amount of 5.125% convertible senior notes due 2028
Over 99% of properties are not encumbered with secured mortgage debt
In January 2013, Fitch Ratings upgraded NNN’s unsecured debt rating to BBB+
In November 2013, Moody’s Investors Service upgraded NNN’s unsecured debt rating to Baa1


Investments and Dispositions for the quarter ended December 31, 2013:
Investments:
$59.6 million in property investments, including the acquisition of 14 properties with an aggregate 183,000 square feet of gross leasable area
Dispositions:
4 properties with net proceeds of $8.4 million producing $2.0 million of gains on sales, net of income tax

Craig Macnab, Chief Executive Officer, commented: "Growing FFO and AFFO per share results 8% in 2013 while deleveraging an already strong balance sheet is the continuation of a trend during recent years.  Over the past three years, we have been able to grow FFO and AFFO per share results more than 25% while funding 80% of our $2.1 billion of acquisitions with permanent capital consisting of equity and asset disposition proceeds. We are well positioned to deliver solid per share growth in 2014 and we are optimistic this will be our 25th consecutive year of increased dividends per share. We will continue to build value by allocating capital to the disciplined acquisition of well underwritten retail properties, focusing on increasing per share results as opposed to asset size goals and maintaining a conservative and flexible balance sheet." 

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2013, the company owned 1,860 properties in 47 states with a gross leasable area of approximately 20.4 million square feet. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on February 11, 2014, 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 preferences and financial condition of our tenants, the availability of capital, risks related to our status as a REIT 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. 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, 2013. 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 certain assets, the company’s share of these items from the company’s unconsolidated partnerships and any impairment charges on a depreciable real estate asset.

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

2


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. AFFO 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.

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 methodology for calculating AFFO 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 AFFO is included in the financial information accompanying this release.

The company has earnings from discontinued operations. The company classified the revenues and expenses related to properties which generated revenue and were sold or generated revenue and were held for sale as of December 31, 2013, 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
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2013
 
2012
 
2013
 
2012
Income Statement Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Rental and earned income
 
$
98,868

 
$
84,458

 
$
375,460

 
$
315,037

Real estate expense reimbursement from tenants
 
3,907

 
3,564

 
13,110

 
11,587

Interest and other income from real estate transactions
 
372

 
428

 
1,467

 
2,239

Interest income on commercial mortgage residual interests
 
501

 
609

 
2,290

 
2,673

 
 
103,648

 
89,059

 
392,327

 
331,536

 
 
 
 
 
 
 
 
 
Retail operations:
 
 
 
 
 
 
 
 
Revenues
 

 

 

 
19,008

Operating expenses
 

 

 

 
(18,542
)
Net
 

 

 


466

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
General and administrative
 
7,367

 
8,905

 
32,576

 
32,187

Real estate
 
5,519

 
4,661

 
18,100

 
17,041

Depreciation and amortization
 
27,172

 
20,185

 
99,246

 
73,707

Impairment – commercial mortgage residual interests valuation
 
1,169

 
94

 
1,185

 
2,812

Impairment losses and other charges, net of recoveries
 

 

 
1,972

 
3,088

 
 
41,227

 
33,845

 
153,079

 
128,835

 
 
 
 
 
 
 
 
 
Other expenses (revenues):
 
 
 
 
 
 
 
 
Interest and other income
 
(60
)
 
(318
)
 
(1,493
)
 
(2,232
)
Interest expense
 
20,074

 
20,767

 
85,283

 
83,192

 
 
20,014

 
20,449

 
83,790

 
80,960

 
 
 
 
 
 
 
 
 
Gain on disposition of real estate
 
173

 

 
173

 

Income tax benefit (expense)
 
(254
)
 
(221
)
 
(618
)
 
6,947

Equity in earnings of unconsolidated affiliate
 

 

 

 
4,074

 
 
 
 
 
 
 
 
 
Earnings from continuing operations
 
42,326

 
34,544

 
155,013

 
133,228

 
 
 
 
 
 
 
 
 
Earnings from discontinued operations, net of income tax expense
 
1,908

 
6,103

 
5,072

 
8,709

 
 
 
 
 
 
 
 
 
Earnings including noncontrolling interests
 
44,234

 
40,647

 
160,085

 
141,937

 
 
 
 
 
 
 
 
 
Loss (earnings) attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
Continuing operations
 
10

 
34

 
286

 
107

Discontinued operations
 
(3
)
 
(18
)
 
(226
)
 
(29
)
 
 
7

 
16

 
60

 
78

 
 
 
 
 
 
 
 
 
Net earnings attributable to NNN
 
44,241

 
40,663

 
160,145

 
142,015

Series C preferred stock dividends
 

 

 

 
(1,979
)
Series D preferred stock dividends
 
(4,762
)
 
(4,762
)
 
(19,047
)
 
(15,449
)
Series E preferred stock dividends
 
(4,097
)
 

 
(8,876
)
 

Excess of redemption value over carrying value of Series C preferred shares redeemed
 

 

 

 
(3,098
)
Net earnings available to common stockholders
 
$
35,382

 
$
35,901

 
$
132,222

 
$
121,489

 
 
 
 
 
 
 
 
 

4


National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
121,118

 
109,393

 
118,204

 
106,965

Diluted
 
121,309

 
112,013

 
119,865

 
109,118

 
 
 
 
 
 
 
 
 
Net earnings per share available to common stockholders:
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.27

 
$
0.27

 
$
1.07

 
$
1.05

Discontinued operations
 
0.02

 
0.06

 
0.04

 
0.08

Net earnings
 
$
0.29

 
$
0.33

 
$
1.11

 
$
1.13

 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.27

 
$
0.26

 
$
1.06

 
$
1.03

Discontinued operations
 
0.02

 
0.06

 
0.04

 
0.08

Net earnings
 
$
0.29

 
$
0.32

 
$
1.10

 
$
1.11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

5



National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2013
 
2012
 
2013
 
2012
Funds From Operations (FFO) Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
35,382

 
$
35,901

 
$
132,222

 
$
121,489

Real estate depreciation and amortization:
 
 
 
 
 
 
 
 
Continuing operations
 
27,113

 
20,128

 
99,020

 
73,586

Discontinued operations
 
23

 
224

 
371

 
1,480

Joint venture real estate depreciation
 

 

 

 
112

Joint venture gain on disposition of real estate
 

 

 

 
(2,341
)
Gain on disposition of real estate, net of tax and noncontrolling interest
 
(1,975
)
 
(6,510
)
 
(5,442
)
 
(10,956
)
Impairment losses – real estate
 
103

 
1,269

 
3,347

 
10,312

Total FFO adjustments
 
25,264

 
15,111

 
97,296

 
72,193

FFO available to common stockholders
 
$
60,646

 
$
51,012

 
$
229,518

 
$
193,682

 
 
 
 
 
 
 
 
 
FFO per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.50

 
$
0.47

 
$
1.94

 
$
1.81

Diluted
 
$
0.50

 
$
0.46

 
$
1.91

 
$
1.77

 
 
 
 
 
 
 
 
 
Recurring Funds from Operations Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
35,382

 
$
35,901

 
$
132,222

 
$
121,489

Total FFO adjustments
 
25,264

 
15,111

 
97,296

 
72,193

FFO available to common stockholders
 
60,646

 
51,012

 
229,518

 
193,682

 
 
 
 
 
 
 
 
 
Excess of redemption value over carrying value of preferred
   share redemption
 

 

 

 
3,098

Impairment – commercial mortgage residual interests valuation
 
1,169

 

 
1,185

 
2,812

Impairment losses and other charges, net of recoveries
 

 
94

 
759

 
(198
)
Income tax benefit
 

 

 

 
(7,671
)
Joint venture disposition fee and promote income
 

 

 

 
(1,964
)
Notes receivable redemption income
 

 

 
(497
)
 

Total Recurring FFO adjustments
 
1,169

 
94

 
1,447

 
(3,923
)
Recurring FFO available to common stockholders
 
$
61,815

 
$
51,106

 
$
230,965

 
$
189,759

 
 
 
 
 
 
 
 
 
Recurring FFO per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.51

 
$
0.47

 
$
1.95

 
$
1.77

Diluted
 
$
0.51

 
$
0.46

 
$
1.93

 
$
1.74

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

6


National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2013
 
2012
 
2013
 
2012
Adjusted Funds From Operations (AFFO) Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
35,382

 
$
35,901

 
$
132,222

 
$
121,489

Total FFO adjustments
 
25,264

 
15,111

 
97,296

 
72,193

Total Recurring FFO adjustments
 
1,169

 
94

 
1,447

 
(3,923
)
Recurring FFO available to common stockholders
 
61,815

 
51,106

 
230,965

 
189,759

 
 
 
 
 
 
 
 
 
Straight-line accrued rent
 
483

 
160

 
165

 
(897
)
Net capital lease rent adjustment
 
343

 
402

 
1,573

 
1,623

Below market rent amortization
 
(613
)
 
(627
)
 
(2,445
)
 
(2,492
)
Stock based compensation expense
 
1,934

 
2,375

 
7,459

 
8,131

Capitalized interest expense
 
(359
)
 
(336
)
 
(1,369
)
 
(1,540
)
Convertible debt interest expense (non-cash portion)
 

 
1,102

 
2,072

 
4,291

Joint venture disposition fee and promote income
 

 

 

 
1,964

Notes receivable redemption income
 

 

 
497

 

Total AFFO adjustments
 
1,788

 
3,076

 
7,952

 
11,080

AFFO available to common stockholders
 
$
63,603

 
$
54,182

 
$
238,917

 
$
200,839

 
 
 
 
 
 
 
 
 
AFFO per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.53

 
$
0.50

 
$
2.02

 
$
1.88

Diluted
 
$
0.52

 
$
0.48

 
$
1.99

 
$
1.84

 
 
 
 
 
 
 
 
 
Other Information:
 
 
 
 
 
 
 
 
Percentage rent
 
$
757

 
$
620

 
$
1,558

 
$
1,192

Amortization of debt costs
 
$
658

 
$
78

 
$
3,118

 
$
2,584

Scheduled debt principal amortization (excluding maturities)
 
$
275

 
$
256

 
$
1,070

 
$
1,187

Non-real estate depreciation expense
 
$
63

 
$
62

 
$
248

 
$
143

Real estate acquisition costs (included in general and administrative expenses)
 
$
35

 
$
30

 
$
1,694

 
$
375


7


National Retail Properties, Inc.
(in thousands)
(unaudited)

Earnings from Discontinued Operations:  NNN classified the revenues and expenses related to properties which were sold or were held for sale as of December 31, 2013 and generated revenue, as discontinued operations. The following is a summary of the earnings from discontinued operations.
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Rental and earned income
 
$
363

 
$
1,354

 
$
2,822

 
$
7,693

Real estate expense reimbursement from tenants
 
97

 
60

 
327

 
383

Interest and other income from real estate transactions
 
1

 
5

 
37

 
17

 
 
461

 
1,419

 
3,186

 
8,093

 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
General and administrative
 
2

 
13

 
219

 
20

Real estate
 
122

 
184

 
600

 
1,026

Depreciation and amortization
 
23

 
224

 
371

 
1,480

Impairment losses and other charges
 
103

 
1,269

 
2,149

 
7,026

Interest
 
135

 
180

 
580

 
732

 
 
385

 
1,870

 
3,919

 
10,284

 
 
 
 
 
 
 
 
 
Gain on disposition of real estate
 
1,870

 
6,510

 
6,272

 
10,956

Income tax benefit (expense)
 
(38
)
 
44

 
(467
)
 
(56
)
 
 
 
 
 
 
 
 
 
Earnings from discontinued operations including noncontrolling interests
 
1,908

 
6,103

 
5,072

 
8,709

Loss attributable to noncontrolling interests
 
(3
)
 
(18
)
 
(226
)
 
(29
)
Earnings from discontinued operations attributable to NNN
 
$
1,905

 
$
6,085

 
$
4,846

 
$
8,680





8



National Retail Properties, Inc.
(in thousands)
(unaudited)

 
 
December 31, 2013
 
December 31, 2012
Balance Sheet Summary
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
Cash and cash equivalents
 
$
1,485

 
$
2,076

Receivables, net of allowance
 
4,107

 
3,112

Mortgages, notes and accrued interest receivable
 
17,119

 
27,770

Real estate:
 
 
 
 
Accounted for using the operating method, net of accumulated depreciation and amortization
 
4,253,364

 
3,794,044

Accounted for using the direct financing method
 
18,342

 
23,217

Real estate held for sale
 
15,344

 
17,546

Commercial mortgage residual interests
 
11,721

 
13,096

Accrued rental income, net of allowance
 
24,797

 
25,458

Debt costs, net of accumulated amortization
 
12,877

 
12,781

Other assets
 
95,367

 
68,926

Total assets
 
$
4,454,523

 
$
3,988,026

 
 
 
 
 
Liabilities:
 
 
 
 
Line of credit payable
 
$
46,400

 
$
174,200

Mortgages payable, net of unamortized premium
 
9,475

 
10,602

Notes payable - convertible, net of unamortized discount
 

 
236,500

Notes payable, net of unamortized discount
 
1,514,184

 
1,165,662

Accrued interest payable
 
17,142

 
17,527

Other liabilities
 
89,037

 
85,950

Total liabilities
 
1,676,238

 
1,690,441

 
 
 
 
 
Stockholders’ equity of NNN
 
2,777,045

 
2,296,285

Noncontrolling interests
 
1,240

 
1,300

Total equity
 
2,778,285

 
2,297,585

 
 
 
 
 
Total liabilities and equity
 
$
4,454,523

 
$
3,988,026

 
 
 
 
 
Common shares outstanding
 
121,992

 
111,555

 
 
 
 
 
Gross leasable area, Property Portfolio (square feet)
 
20,402

 
19,168

 
 
 
 
 




9


National Retail Properties, Inc
Debt Summary
As of December 31, 2013
(in thousands)
(unaudited)
Unsecured Debt
 
Principal
 
Principal, Net of Discount
 
Stated Rate
 
Effective Rate
 
Maturity Date
Line of credit payable
 
$
46,400

 
$
46,400

 
L + 107.5 bps
 
-
 
October 2016
 
 
 
 
 
 
 
 
 
 
 
Unsecured notes payable:
 
 
 
 
 
 
 
 
 
 
2014
 
150,000

 
149,975

 
6.25%
 
5.91%
 
June 2014
2015
 
150,000

 
149,904

 
6.15%
 
6.19%
 
December 2015
2017
 
250,000

 
249,596

 
6.88%
 
6.92%
 
October 2017
2021
 
300,000

 
296,570

 
5.50%
 
5.69%
 
July 2021
2022
 
325,000

 
320,576

 
3.80%
 
3.98%
 
October 2022
2023
 
350,000

 
347,563

 
3.30%
 
3.39%
 
April 2023
Total
 
1,525,000

 
1,514,184

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total unsecured debt
 
$
1,571,400

 
$
1,560,584

 
 
 
 
 
 




Mortgages Payable
 
Principal Balance
 
Interest Rate
 
Maturity Date
Mortgage(1)
 
$
6,457

 
5.75%
 
April 2016
Mortgage
 
2,257

 
6.90%
 
January 2017
Mortgage(2)
 
761

 
8.62%
 
April 2014 - April 2019
 
 
$
9,475

 
 
 
 
(1) Includes unamortized premium
(2) Represents the total balance of five separate mortgage loans and their weighted average interest rate


10


National Retail Properties, Inc.
Property Portfolio

Top 20 Lines of Trade
 
 
 
 
As of December 31,
 
 
Line of Trade
 
2013(1)
 
2012 (2)
1.
 
Convenience stores
 
19.7
%
 
19.8
%
2.
 
Restaurants - full service
 
9.7
%
 
10.7
%
3.
 
Automotive service
 
7.6
%
 
7.6
%
4.
 
Restaurants - limited service
 
5.5
%
 
5.2
%
5.
 
Automotive parts
 
5.1
%
 
5.6
%
6.
 
Theaters
 
4.5
%
 
4.7
%
7.
 
Health and fitness
 
4.3
%
 
3.7
%
8.
 
Banks
 
4.1
%
 
0.2
%
9.
 
Sporting goods
 
3.7
%
 
4.0
%
10.
 
Recreational vehicle dealers, parts and accessories
 
3.2
%
 
2.7
%
11.
 
Wholesale clubs
 
3.1
%
 
3.4
%
12.
 
Consumer electronics
 
2.7
%
 
3.0
%
13.
 
Drug stores
 
2.6
%
 
3.0
%
14.
 
Home improvement
 
2.5
%
 
3.0
%
15.
 
Family entertainment centers
 
2.3
%
 
2.1
%
16.
 
Travel plazas
 
2.1
%
 
2.2
%
17.
 
Home furnishings
 
1.6
%
 
1.6
%
18.
 
Medical service providers
 
1.6
%
 
1.1
%
19.
 
Books
 
1.6
%
 
1.8
%
20.
 
Grocery
 
1.5
%
 
1.7
%
 
 
Other
 
11.0
%
 
12.9
%
 
 
Total
 
100.0
%
 
100.0
%

Top 10 States
 
State
 
 
% of Total(1)
 
 
State
 
 
% of Total(1)
1.
Texas
 
 
20.4
%
 
6.
Virginia
 
 
4.6
%
2.
Florida
 
 
10.5
%
 
7.
Indiana
 
 
3.9
%
3.
Illinois
 
 
5.3
%
 
8.
California
 
 
3.5
%
4.
Georgia
 
 
4.8
%
 
9.
Ohio
 
 
3.4
%
5.
North Carolina
 
 
4.7
%
 
10.
Pennsylvania
 
 
3.3
%

(1) 
Based on the annualized base rent for all leases in place as of December 31, 2013.
(2) 
Based on the annualized base rent for all leases in place as of December 31, 2012.


11


National Retail Properties, Inc.
Property Portfolio

Top Tenants (>2.0%)
 
 
 
Properties
 
% of Total (1)
 
Susser Holdings
 
86
 
5.0%
 
Mister Car Wash
 
85
 
4.9%
 
Pantry
 
84
 
4.4%
 
7-Eleven
 
68
 
4.2%
 
LA Fitness
 
20
 
4.2%
 
SunTrust
 
121
 
3.9%
 
AMC Theatre
 
15
 
3.6%
 
Camping World
 
24
 
3.2%
 
BJ's Wholesale Club
 
7
 
3.1%
 
Best Buy
 
19
 
2.6%
 
Gander Mountain
 
10
 
2.3%
 
Energy Transfer Partners (Sunoco)
 
38
 
2.1%
 
Road Ranger
 
27
 
2.1%
 
Pull-A-Part
 
20
 
2.1%




Lease Expirations(2) 
 
 
% of
Total
(1)
 
# of
Properties
 
Gross Leasable
Area
(3)
 
 
 
% of
Total
(1)
 
# of
Properties
 
Gross Leasable Area (3)
2014
 
1.4%
 
32
 
434,000

 
2020
 
3.1%
 
97
 
916,000

2015
 
1.6%
 
32
 
482,000

 
2021
 
4.6%
 
99
 
918,000

2016
 
1.7%
 
32
 
567,000

 
2022
 
6.9%
 
92
 
1,150,000

2017
 
3.5%
 
46
 
1,009,000

 
2023
 
3.3%
 
54
 
962,000

2018
 
8.3%
 
186
 
1,957,000

 
2024
 
2.2%
 
33
 
504,000

2019
 
3.5%
 
57
 
1,005,000

 
Thereafter
 
59.9%
 
1,059
 
9,968,492


(1) 
Based on the annual base rent of $395,594,000, which is the annualized base rent for all leases in place as of December 31, 2013.
(2) 
As of December 31, 2013, the weighted average remaining lease term is 12 years.
(3) 
Square feet.







12