NATIONAL RETAIL PROPERTIES, INC. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - February 13, 2018

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8-K - FORM 8-K - NATIONAL RETAIL PROPERTIES, INC.nnn8-k20171231.htm
Exhibit 99.2





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ANNUAL SUPPLEMENTAL DATA


As of December 31, 2017



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TABLE OF CONTENTS
 
PAGE REFERENCE
Financial Summary
 
Income Statement Summary
Funds From Operations (FFO)
Core Funds From Operation
Adjusted Funds From Operations (AFFO)
Other Information
Balance Sheet
Debt Summary
Credit Metrics
Credit Facility and Note Covenants
Long-Term Dividend History
Transaction Summary
 
Property Acquisitions
Property Dispositions
Property Portfolio
 
Lease Expirations
Top 20 Lines of Trade
Top 10 States
Portfolio By Region
Top Tenants
Same Store Rental Income
Leasing Data
Other Property Portfolio Data
Earnings Guidance

Statements in this supplemental that are not strictly historical are “forward-looking” statements. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated," or other similar words or expressions. 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 the company's tenants, the availability of capital, risks related to the company's 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 these forward-looking statements is contained from time to time in the company’s Securities and Exchange Commission (the “Commission”) 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 Commission. 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, Inc. 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.



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INCOME STATEMENT SUMMARY
(in thousands, except per share data)
(unaudited)
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
 
Rental and earned income
 
$
145,187

 
$
135,947

 
$
568,083

 
$
515,954

Real estate expense reimbursement from tenants
 
4,338

 
4,732

 
15,512

 
14,984

Interest and other income from real estate transactions
 
356

 
128

 
724

 
1,032

Interest income on commercial mortgage residual interests
 
366

 
392

 
614

 
1,677

 
 
150,247

 
141,199

 
584,933

 
533,647

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
General and administrative
 
8,712

 
9,408

 
33,805

 
36,508

Real estate
 
6,465

 
6,555

 
23,105

 
20,852

Depreciation and amortization
 
43,843

 
38,987

 
173,720

 
149,101

Impairment – commercial mortgage residual interests valuation
 
—

 
—

 
—

 
6,830

Impairment losses – real estate and other charges, net of recoveries
 
7,708

 
338

 
8,955

 
11,287

Retirement severance costs
 
192

 
—

 
7,845

 
—

 
 
66,920

 
55,288

 
247,430

 
224,578

 
 
 
 
 
 
 
 
 
Other expenses (revenues):
 
 
 
 
 
 
 
 
Interest and other income
 
(83
)
 
(62
)
 
(322
)
 
(170
)
Interest expense
 
27,016

 
24,429

 
109,109

 
96,352

Real estate acquisition costs
 
—

 
42

 
—

 
563

 
 
26,933

 
24,409

 
108,787

 
96,745

 
 
 
 
 
 
 
 
 
Earnings before gain on disposition of real estate
 
56,394

 
61,502

 
228,716

 
212,324

 
 
 
 
 
 
 
 
 
Gain on disposition of real estate
 
15,791

 
4,624

 
36,655

 
27,182

Net earnings
 
72,185

 
66,126

 
265,371

 
239,506

 
 
 
 
 
 
 
 
 
Earnings from continuing operations attributable to noncontrolling interests:
 
(17
)
 
(34
)
 
(398
)
 
(6
)
Net earnings attributable to NNN
 
$
72,168

 
$
66,092

 
$
264,973

 
$
239,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1

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INCOME STATEMENT SUMMARY
(in thousands, except per share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Net earnings attributable to NNN
 
$
72,168

 
$
66,092

 
$
264,973

 
$
239,500

Series D preferred stock dividends
 
—

 
(4,762
)
 
(3,598
)
 
(19,047
)
Series E preferred stock dividends
 
(4,097
)
 
(4,097
)
 
(16,387
)
 
(16,387
)
Series F preferred stock dividends
 
(4,485
)
 
(3,189
)
 
(17,940
)
 
(3,189
)
Excess of redemption value over carrying value of Series D preferred shares redeemed
 
—

 
—

 
(9,855
)
 
—

Net earnings available to common stockholders
 
$
63,586

 
$
54,044

 
$
217,193

 
$
200,877

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
151,791

 
146,266

 
149,111

 
144,176

Diluted
 
152,148

 
146,763

 
149,433

 
144,661

 
 
 
 
 
 
 
 
 
Net earnings per share available to common stockholders:
 
 
 
 
 
 
 
 
Basic
 
$
0.42

 
$
0.37

 
$
1.45

 
$
1.39

Diluted
 
$
0.42

 
$
0.37

 
$
1.45

 
$
1.38



2

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FUNDS FROM OPERATIONS (FFO)
(in thousands, except per share data)
(unaudited)
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Net earnings available to common stockholders
 
$
63,586

 
$
54,044

 
$
217,193

 
$
200,877

Real estate depreciation and amortization:
 
43,764

 
38,907

 
173,404

 
148,779

Gain on disposition of real estate, net of noncontrolling interests
 
(15,791
)
 
(4,579
)
 
(36,258
)
 
(27,137
)
Impairment losses – depreciable real estate, net of recoveries
 
3,708

 
345

 
4,840

 
8,025

Total FFO adjustments
 
31,681

 
34,673

 
141,986

 
129,667

FFO available to common stockholders
 
$
95,267

 
$
88,717

 
$
359,179

 
$
330,544

 
 
 
 
 
 
 
 
 
FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.63

 
$
0.61

 
$
2.41

 
$
2.29

Diluted
 
$
0.63

 
$
0.60

 
$
2.40

 
$
2.28


CORE FUNDS FROM OPERATIONS
(in thousands, except per share data)
(unaudited)
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Net earnings available to common stockholders
 
$
63,586

 
$
54,044

 
$
217,193

 
$
200,877

Total FFO adjustments
 
31,681

 
34,673

 
141,986

 
129,667

FFO available to common stockholders
 
95,267

 
88,717

 
359,179

 
330,544

 
 
 
 
 
 
 
 
 
Excess of redemption value over carrying value of preferred
share redemption
 
—

 
—

 
9,855

 
—

Impairment – commercial mortgage residual interests valuation
 
—

 
—

 
—

 
6,830

Impairment losses – non-depreciable real estate
 
—

 
—

 
112

 
—

Retirement severance costs
 
192

 
—

 
7,845

 
—

Bad debt expense – loans
 
—

 
—

 
—

 
3,269

Total Core FFO adjustments
 
192

 
—

 
17,812

 
10,099

Core FFO available to common stockholders
 
$
95,459

 
$
88,717

 
$
376,991

 
$
340,643

 
 
 
 
 
 
 
 
 
Core FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.63

 
$
0.61

 
$
2.53

 
$
2.36

Diluted
 
$
0.63

 
$
0.60

 
$
2.52

 
$
2.35



3

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ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(in thousands, except per share data)
(unaudited)
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Net earnings available to common stockholders
 
$
63,586

 
$
54,044

 
$
217,193

 
$
200,877

Total FFO adjustments
 
31,681

 
34,673

 
141,986

 
129,667

Total Core FFO adjustments
 
192

 
—

 
17,812

 
10,099

Core FFO available to common stockholders
 
95,459

 
88,717

 
376,991

 
340,643

 
 
 
 
 
 
 
 
 
Straight-line accrued rent
 
(552
)
 
(273
)
 
(1,752
)
 
(252
)
Net capital lease rent adjustment
 
223

 
309

 
884

 
1,364

Below market rent amortization
 
(659
)
 
(662
)
 
(3,355
)
 
(2,842
)
Stock based compensation expense
 
1,962

 
2,689

 
8,750

 
10,758

Capitalized interest expense
 
(741
)
 
(495
)
 
(2,435
)
 
(1,738
)
Total AFFO adjustments
 
233

 
1,568

 
2,092

 
7,290

AFFO available to common stockholders
 
$
95,692

 
$
90,285

 
$
379,083

 
$
347,933

 
 
 
 
 
 
 
 
 
AFFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.63

 
$
0.62

 
$
2.54

 
$
2.41

Diluted
 
$
0.63

 
$
0.62

 
$
2.54

 
$
2.41


OTHER INFORMATION
(in thousands)
(unaudited)
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Percentage rent
 
$
715

 
$
776

 
$
1,700

 
$
1,735

Amortization of debt costs
 
$
891

 
$
810

 
$
3,502

 
$
3,086

Scheduled debt principal amortization (excluding maturities)
 
$
130

 
$
129

 
$
510

 
$
656

Non-real estate depreciation expense
 
$
82

 
$
83

 
$
327

 
$
333



4

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BALANCE SHEET
(in thousands)
(unaudited)
 
 
 
December 31, 2017
 
December 31, 2016
Assets:
 
 
 
 
Real estate:
 
 
 
 
Accounted for using the operating method, net of accumulated depreciation and amortization
 
$
6,428,928

 
$
5,879,046

Accounted for using the direct financing method
 
9,650

 
11,230

Real estate held for sale
 
4,083

 
26,084

Cash and cash equivalents
 
1,364

 
294,540

Receivables, net of allowance
 
4,317

 
3,418

Accrued rental income, net of allowance
 
25,916

 
25,101

Debt costs, net of accumulated amortization
 
5,380

 
2,715

Other assets
 
80,896

 
92,017

Total assets
 
$
6,560,534

 
$
6,334,151

 
 
 
 
 
Liabilities:
 
 
 
 
Line of credit payable
 
$
120,500

 
$
—

Mortgages payable, including unamortized premium and net of unamortized debt cost
 
13,300

 
13,878

Notes payable, net of unamortized discount and unamortized debt costs
 
2,446,407

 
2,297,811

Accrued interest payable
 
20,311

 
19,665

Other liabilities
 
119,106

 
85,869

Total liabilities
 
2,719,624

 
2,417,223

 
 
 
 
 
Stockholders’ equity of NNN
 
3,840,593

 
3,916,799

Noncontrolling interests
 
317

 
129

Total equity
 
3,840,910

 
3,916,928

 
 
 
 
 
Total liabilities and equity
 
$
6,560,534

 
$
6,334,151

 
 
 
 
 
Common shares outstanding
 
153,577

 
147,150

 
 
 
 
 
Gross leasable area, Property Portfolio (square feet)
 
29,093

 
27,204




5

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DEBT SUMMARY
(in thousands)
As of December 31, 2017
Unsecured Debt
 
Principal
 
Principal, Net of Unamortized Discount
 
Stated Rate
 
Effective Rate
 
Maturity Date
Line of credit payable
 
$
120,500

 
$
120,500

 
L + 87.5 bps
 
2.155%
 
January 2022
 
 
 
 
 
 
 
 
 
 
 
Unsecured notes payable:
 
 
 
 
 
 
 
 
 
 
2021
 
300,000

 
298,209

 
5.500%
 
5.689%
 
July 2021
2022
 
325,000

 
322,400

 
3.800%
 
3.985%
 
October 2022
2023
 
350,000

 
348,520

 
3.300%
 
3.388%
 
April 2023
2024
 
350,000

 
349,516

 
3.900%
 
3.924%
 
June 2024
2025
 
400,000

 
399,214

 
4.000%
 
4.029%
 
November 2025
2026
 
350,000

 
346,481

 
3.600%
 
3.733%
 
December 2026
2027
 
400,000

 
398,412

 
3.500%
 
3.548%
 
October 2027
Total
 
2,475,000

 
2,462,752

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total unsecured debt
 
$
2,595,500

 
$
2,583,252

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt costs
 
(22,682
)
 
 
 
 
 
 
Accumulated amortization
 
6,337

 
 
 
 
 
 
Debt costs, net of accumulated amortization
 
(16,345
)
 
 
 
 
 
 
Notes payable, net of unamortized discount and unamortized debt costs (1)
 
$
2,446,407

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Unsecured notes payable have a weighted average interest rate of 4.0% and a weighted average maturity of 6.9 years
Mortgages Payable
 
Interest Rate
 
Maturity Date
 
Principal Balance
 
Mortgage(1)
 
5.230
%
 
July 2023
 
$
13,392

 
 
 
 
 
 
 

 
Debt costs
 
 
 
 
 
(147
)
 
Accumulated amortization
 
55

 
Debt costs, net of accumulated amortization
 
(92
)
 
Mortgages payable, including unamortized premium and net of unamortized debt costs
 
$
13,300

 
 
 
 
 
 
 
 
 
(1) Includes unamortized premium
 
 
 
chart-347d2c7527fa5108937.jpg

6

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CREDIT METRICS (1)
Ratings: Moody’s Baa1; S&P BBB+; Fitch BBB+

 
 
 
 
 
 
 
 
 
 
2013
 
2014
 
2015
 
2016
 
2017
Debt / Total assets (gross book)
32.9
%
 
32.6
%
 
33.2
%
 
30.2
%
 
35.3
%
Debt + preferred / Total assets (gross book)
44.9
%
 
43.3
%
 
42.9
%
 
43.9
%
 
44.0
%
Debt / EBITDA (last four quarters)
4.5

 
4.5

 
4.6

 
4.3

 
4.9

Debt + Pref Stock / EBITDA
6.1

 
6.0

 
5.9

 
6.2

 
6.1

EBITDA / Interest expense (cash)
4.1

 
4.4

 
4.6

 
4.8

 
4.7

EBITDA / Fixed charges (cash)
3.1

 
3.1

 
3.3

 
3.4

 
3.5

(1) Debt amounts used in calculation are net of cash balances.


CREDIT FACILITY AND NOTES COVENANTS
The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2017, the company believes it is in compliance with the covenants.
Unsecured Credit Facility Key Covenants
 
Required
 
December 31, 2017
Maximum leverage ratio
 
< 0.60
 
0.34
Minimum fixed charge coverage ratio
 
> 1.50
 
3.64
Maximum secured indebtedness ratio
 
< 0.40
 
0.002
Unencumbered asset value ratio
 
> 1.67
 
3.06
Unencumbered interest ratio
 
> 1.75
 
5.16
 
 
 
 
 
Unsecured Notes Key Covenants
 
Required
 
December 31, 2017
Limitation on incurrence of total debt
 
≤ 60%
 
34.7%
Limitation on incurrence of secured debt
 
≤ 40%
 
0.2%
Debt service coverage ratio
 
≥ 1.50
 
4.63
Maintenance of total unencumbered assets
 
≥ 150%
 
289.1%


7

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LONG-TERM DIVIDEND HISTORY
chart-5b45121789f7595fa28.jpg



8

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PROPERTY ACQUISITIONS
(dollars in thousands)
 
 
Year Ended December 31,
 
 
2017
 
2016
Total dollars invested
 
$
754,892

 
$
846,906

Number of Properties
 
276

 
313

Gross leasable area (square feet)
 
2,243,000

 
2,734,000

Cash cap rate
 
6.9
%
 
6.9
%

PROPERTY DISPOSITIONS
(dollars in thousands)

 
Year Ended December 31,
 
2017
 
2016
 
Occupied

Vacant

 
Total

 
Occupied

Vacant

 
Total

Number of properties
31

17

(1 
) 
48

 
33

5

(2 
) 
38

Gross leasable area (square feet)
161,000

185,000

 
346,000

 
419,000

71,000

 
490,000

Acquisition costs
$
61,008

$
20,228

 
$
81,236

 
$
91,203

$
7,787

 
$
98,990

Net book value
$
52,571

$
7,530

 
$
60,101

 
$
73,041

$
2,992

 
$
76,033

Net sale proceeds
$
88,382

$
8,375

 
$
96,757

 
$
99,954

$
3,261

 
$
103,215

Cash cap rate
6.0
%
—

 
6.0
%
 
6.8
%
—

 
6.8
%
(1) Includes seven leased SunTrust properties whose leases were terminated at the time of sale
(2) Includes two excess land parcels


9

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LEASE EXPIRATIONS
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable
Area (2)
 
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable Area (2)
2018
 
2.0
%
 
61

 
787,000

 
2024
 
2.2
%
 
50

 
833,000

2019
 
2.7
%
 
75

 
1,081,000

 
2025
 
4.7
%
 
128

 
1,123,000

2020
 
3.5
%
 
127

 
1,559,000

 
2026
 
5.6
%
 
184

 
1,854,000

2021
 
4.1
%
 
121

 
1,320,000

 
2027
 
8.7
%
 
197

 
2,766,000

2022
 
6.4
%
 
125

 
1,697,000

 
2028
 
5.5
%
 
171

 
1,326,000

2023
 
2.6
%
 
99

 
1,143,000

 
Thereafter
 
52.0
%
 
1,395

 
13,214,000

(1) 
Based on the annual base rent of $585,304,000, which is the annualized base rent for all leases in place as of December 31, 2017.
(2) 
Square feet.

chart-8956b84987915460a9e.jpg


10

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TOP 20 LINES OF TRADE
 
 
 
 
As of December 31, 2017
 
As of December 31, 2016
 
 
Line of Trade
 
% of Total(1)
 
Properties
 
% of Total(2)
 
Properties
1.
 
Convenience stores
 
18.1
%
 
576

 
16.9
%
 
502

2.
 
Restaurants - full service
 
12.1
%
 
455

 
11.8
%
 
414

3.
 
Restaurants - limited service
 
7.6
%
 
394

 
7.5
%
 
347

4.
 
Automotive service
 
6.9
%
 
220

 
6.6
%
 
201

5.
 
Family entertainment centers
 
6.4
%
 
95

 
5.8
%
 
88

6.
 
Health and fitness
 
5.6
%
 
36

 
5.7
%
 
35

7.
 
Theaters
 
4.8
%
 
33

 
4.9
%
 
30

8.
 
Automotive parts
 
3.6
%
 
180

 
3.9
%
 
182

9.
 
Recreational vehicle dealers, parts and accessories
 
3.4
%
 
34

 
3.4
%
 
32

10.
 
Banks
 
2.5
%
 
104

 
3.1
%
 
124

11.
 
Medical service providers
 
2.4
%
 
86

 
2.4
%
 
76

12.
 
Wholesale clubs
 
2.2
%
 
8

 
2.4
%
 
8

13.
 
Equipment Rental
 
2.0
%
 
58

 
0.7
%
 
16

14.
 
Drug stores
 
1.9
%
 
39

 
2.1
%
 
39

15.
 
Furniture
 
1.9
%
 
43

 
1.9
%
 
42

16.
 
General Merchandise
 
1.8
%
 
62

 
1.8
%
 
58

17.
 
Home Improvement
 
1.8
%
 
25

 
1.8
%
 
23

18.
 
Consumer Electronics
 
1.8
%
 
19

 
2.0
%
 
20

19.
 
Travel Plazas
 
1.8
%
 
27

 
1.9
%
 
28

20.
 
Home furnishings
 
1.6
%
 
18

 
1.7
%
 
18

 
 
Other
 
9.8
%
 
252

 
11.7
%
 
252

 
 
Total
 
100.0
%
 
2,764

 
100.0
%
 
2,535

(1) Based on the annualized base rent for all leases in place as of December 31, 2017.
(2) Based on the annualized base rent for all leases in place as of December 31, 2016.

TOP 10 STATES
 
State
 
% of Total(1)
 
Properties
 
 
State
 
% of Total(1)
 
Properties
1.
Texas
 
18.2
%
 
457

 
6.
Georgia
 
4.3
%
 
127

2.
Florida
 
8.7
%
 
211

 
7.
Tennessee
 
4.0
%
 
131

3.
Illinois
 
5.4
%
 
132

 
8.
Virginia
 
3.9
%
 
119

4.
Ohio
 
5.3
%
 
168

 
9.
Indiana
 
3.9
%
 
123

5.
North Carolina
 
5.1
%
 
154

 
10.
Alabama
 
3.1
%
 
128

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Based on the annualized base rent for all leases in place as of December 31, 2017.
 
 



11

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PORTFOLIO BY REGION
As a percentage of annual base rent - December 31, 2017
chart-1e56433cd5fd5fb4995.jpg
TOP TENANTS
Creditworthy Retailers
▪
19% of annual base rent is from tenants with investment grade rated debt
▪
68% of annual base rent is from tenants that are publicly traded and/or have rated debt
▪
Top 25 tenants (59% of annual base rent) operate an average of over 1,100 stores each

Top Tenants (>2.0%)
 
Properties
 
% of Total (1)
Sunoco
 
124

 
5.1
%
Camping World
 
46

 
4.2
%
Mister Car Wash
 
96

 
4.1
%
LA Fitness
 
30

 
3.8
%
AMC Theatres
 
20

 
3.4
%
Couche-Tard (Pantry)
 
86

 
3.2
%
7-Eleven
 
77

 
3.1
%
GPM Investments (Convenience Stores)
 
103

 
2.8
%
Bell American (Taco Bell)
 
115

 
2.6
%
Chuck E. Cheese's
 
53

 
2.3
%
Suntrust
 
101

 
2.3
%
BJ's Wholesale Club
 
8

 
2.2
%
Frisch's Restaurant
 
74

 
2.0
%
 
Rent Coverage (With Corp. Overhead)
 
Fixed Charge Coverage
Range
1.8x - 6.3x
 
1.4x - 4.3x
Average
3.4x
 
2.2x
Weighted average
3.6x
 
2.3x
 
 
 
 
(1) Based on the annual base rent of $585,304,000, which is the annualized base rent for all leases in place as of December 31, 2017.

12

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SAME STORE RENTAL INCOME
(dollars in thousands)
Same Store Rental Income – Leases (Cash Basis) (1)
 
 
Number of leases
2,127

 
Year ended December 31, 2017
$
455,499

 
Year ended December 31, 2016
$
448,805

 
Increase (in dollars)
$
6,694


Increase (percent)
1.5
%

(1) Includes all properties owned for current and prior year period excluding any vacant properties or properties under development or re-development.

Same Store Rental Income – Properties (Cash Basis) (1)
 
 
Number of properties
2,148

 
Year ended December 31, 2017
$
469,821

 
Year ended December 31, 2016
$
467,986

 
Increase (in dollars)
$
1,835

 
Increase (percent)
0.4
%
(2) 
(1) Includes all properties owned for current and prior year period excluding any properties under development or re-development.
(2) Excluding impact from Gander Mountain bankruptcy, same store rents would have increased 1.2%


LEASING DATA
(dollars in thousands)
Year Ended December 31, 2017
 
Renewals With Same Tenant(1)
 
Vacancy
Re-lease To New Tenant
 
Re-leasing Totals
 
Number of leases
 
46

 
27

 
73

 
Prior cash rents
 
$
9,677

 
$
13,805

 
$
23,482

 
New cash rents
 
$
10,010

 
$
7,000

 
$
17,010

(2) 
Re-leasing spread
 
103.4
%
 
50.7
%
(3) 
72.4
%
(3) 
 
 
 
 
 
 
 
 
Tenant improvements
 
$
40

 
$
2,151

(4) 
$
2,191

 

(1) 
Long-term renewal rate was 86.8% for 2017 and 88.0% for the period of 2010 through 2017
(2) 
Represents 2.9% of total annualized base rent as of December 31, 2017
(3) 
Excluding 12 Gander Mountain re-leases, re-leasing spread would have been 94.1% for new tenants and 101.9% for re-leasing total
(4) 
NNN has agreed to fund up to $7,803 of tenant improvements for the 12 former Gander Mountain properties re-leased to Camping World. Annual base rent will increase by 9.0% of any amounts funded. As of December 31, 2017, $396 had been funded.



13

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OTHER PROPERTY PORTFOLIO DATA
As of December 31, 2017
Tenant Financials
 
 
# of Properties
 
% of Annual Base Rent
Property Level Financial Information
 
2,255

 
79
%
Tenant Corporate Financials
 
2,103

 
78
%

Rent Increases
% of Annual Base Rent
 
Annual

 
Five Year

 
Other

 
Total

CPI – Based
33
%
 
43
%
 
2
%
 
78
%
Fixed Rate
4
%
 
11
%
 
2
%
 
17
%
No increases
—

 
—

 
5
%
 
5
%
 
37
%
 
54
%
 
9
%
 
100
%

Lease Structure
▪
92% of the company's annual base rent is from NNN leases
▪
96% of the company's annual base rent is from NNN leases and NN leases (with roof warranty)

EARNINGS GUIDANCE
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.

 
 
2018 Guidance
  Net earnings per common share excluding any gains on sale of real estate, impairment charges or retirement severance costs
 
$1.53 - $1.57 per share
  Real estate depreciation and amortization per share
 
$1.07 per share
Core FFO per share
 
$2.60 - $2.64 per share
  AFFO per share
 
$2.64 - $2.68 per share
  G&A expenses (excluding retirement severance costs)
 
$34 - $35 Million
  Real estate expenses, net of tenant reimbursements
 
$8 - $9 Million
  Acquisition volume
 
$500 - $600 Million
  Disposition volume
 
$80 - $120 Million


14

NATIONAL RETAIL PROPERTIES, INC. Reports