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 (Date of earliest event reported): September 15, 2010
Cole Credit Property Trust III, Inc.
(Exact Name of Registrant as Specified in Its Charter)
         
Maryland
(State or other jurisdiction of incorporation
or organization)
  000-53960
(Commission File Number)
  26-1846406
(I.R.S. Employer
Identification No.)
2555 East Camelback Road, Suite 400, Phoenix, Arizona 85016
(Address of principal executive offices)
(Zip Code)
(602) 778-8700
(Registrant’s telephone number, including area code)
None
(Former name or former address, if changed since last report)
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:
     
o
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
   
o
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
   
o
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
   
o
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 8.01   Other Events
This Current Report on Form 8-K is being filed by Cole Credit Property Trust III, Inc. (which may be referred to as the “Registrant,” the “Company,” “we,” “our,” and “us”) to present information about the prior performance of programs sponsored by Cole Real Estate Investments, the Company’s sponsor. This prior performance information is being filed on Form 8-K in order to be incorporated by reference into the Company’s Registration Statement on Form S-11 (File No. 333-164884), as amended.

2


 

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 thereunto duly authorized.
         
Dated: September 15, 2010   COLE CREDIT PROPERTY TRUST III, INC.
 
       
 
  By:   /s/ D. Kirk McAllaster, Jr.
 
       
 
  Name:   D. Kirk McAllaster, Jr.
 
  Title:   Executive Vice President, Chief Financial Officer,
Treasurer and Secretary

3


 

 
PRIOR PERFORMANCE TABLES
 
The prior performance tables that follow present certain information regarding the real estate programs previously sponsored by related entities. The Company has presented all prior programs that have similar investment objectives to this offering. In determining which prior programs have similar investment objectives as this offering, the Company considered factors such as the type of real estate acquired by the program, the extent to which the program was designed to provide current income through the payment of cash distributions or to protect and preserve capital contributions, and the extent to which the program seeks to increase the value of the investments made in the program. Six related partnerships formed from January 1, 2000 to December 31, 2009 have or had similar investment objectives to ours and purchased an aggregate of three retail centers, with an aggregate of approximately 815,000 rentable square feet, one data center building with an aggregate of approximately 135,000 rentable square feet, one single-tenant commercial property with an aggregate of approximately 33,000 square feet and 22 single-tenant retail properties with an aggregate of approximately 509,000 rentable square feet. One partnership purchased two land parcels for development with an aggregate of approximately 452,000 square feet. The prior performance tables also include the activity of CCPT I, CCPT II, Cole Collateralized Senior Notes, LLC, Cole Collateralized Senior Notes II, LLC, Cole Collateralized Senior Notes III, LLC, Cole Collateralized Senior Notes IV and the various offerings related to Cole Capital Partners’ Tenants-in-Common and Delaware Statutory Trust (DST) programs.
 
As of December 31, 2009, CCPT I had raised approximately $100.3 million and had acquired 42 single-tenant commercial properties, with an aggregate of approximately 1.0 million square feet. We consider CCPT I to have investment objectives similar to this offering, as CCPT I’s objectives were to provide income to investors through the payment of cash dividends, to preserve and return investor capital contributions, and to realize growth in the value of properties upon their ultimate sale.
 
As of December 31, 2009, CCPT II had raised approximately $2.1 billion from 41,459 investors and had acquired 397 single-tenant retail properties, 275 single-tenant commercial properties, and 21 multi-tenant retail properties in 45 states and the U.S. Virgin Islands, for an aggregate acquisition cost of approximately $3.1 billion. CCPT II also acquired an indirect interest in one multi-tenant retail property through a joint venture, for approximately $53.7 million. CCPT II also acquired an indirect interest in a ten-property storage portfolio through a joint venture, for approximately $70.7 million. We consider CCPT II to have investment objectives similar to this offering, as CCPT II’s objectives were to provide income to investors through the payment of cash dividends, to preserve and return investor capital contributions, and to realize growth in the value of properties upon their ultimate sale.
 
As of December 31, 2009, affiliates of our advisor had issued an aggregate of approximately $114.2 million in collateralized senior notes through four debt offerings and had acquired an aggregate of 123 single-tenant retail properties, 39 single-tenant commercial properties and three multi-tenant retail properties in 37 states for an aggregate acquisition cost of approximately $1.0 billion. As of December 31, 2009, 161 of the properties had been sold, of which 26 were sold as part of Cole Capital Partners’ tenant-in-common program, 52 were sold as part of Cole Capital Partners’ Delaware Statutory Trust Program, eight were sold to CCPT I, 17 were sold to CCPT II and six were sold to CCPT III. On April 28, 2006, an affiliate of our advisor redeemed at par all of the approximately $28.0 million in collateralized senior notes issued under the first debt offering. On April 6, 2009, an affiliate of our advisor redeemed at par all of the approximately $28.8 million in collateralized senior notes issued under the second debt offering. We consider the debt offerings to have investment objectives similar to this offering, as each of the debt offerings was organized to raise capital for investment in real estate, and Cole Real Estate Investments acted as a fiduciary for the investors in each program with a goal of delivering a stated return to such investors.
 
In addition, Cole Real Estate Investments offered properties to Section 1031 exchange investors in the form of the sale of tenant-in-common ownership interests in such properties. As of December 31, 2009, aggregate ownership interests of $171.4 million had been sold in 26 private offerings of properties located in 15 states. In addition, Cole Real Estate Investments offered properties through the DST Program whereby beneficial interests
 
 
Past performance is not necessarily indicative of future results.


1


 

were offered in trusts that acquire real property. As of December 31, 2009, aggregate ownership interests of approximately $176.1 had been sold in 27 private offerings of properties located in 21 states.
 
Cole Partnerships, Inc., an entity affiliated with the officers of Cole Capital Advisors, has raised $5 million in a debt offering for general corporate purposes, including investments in joint ventures with affiliates, which has been repaid. This program is not considered to have similar investment objectives to this offering.
 
The investment objectives of previous private real estate programs formed from 1979 through 1992 are not similar to the investment objectives of the above programs due to the fact that those properties have been held for capital appreciation in the value of the underlying property.
 
These tables contain information that may aid a potential investor in evaluating the program presented. However, the information contained in these tables does not relate to the properties held or to be held by us, and the purchase of shares will not create any ownership interest in the programs included in these tables.
 
These tables are presented on a tax basis rather than on a GAAP basis except where noted. Tax basis accounting does not take certain income or expense accruals into consideration at the end of each fiscal year. Income may be understated in the tables, as GAAP accounting would require certain amortization or leveling of rental revenue, the amount of which is undetermined at this time. Expenses may be understated by monthly operating expenses, which typically are paid in arrears.
 
 
Past performance is not necessarily indicative of future results.


2


 

TABLE I
 
EXPERIENCE IN RAISING AND INVESTING FUNDS (UNAUDITED)
 
This table provides a summary of the experience of the sponsors of Prior Real Estate Programs for which offerings have been closed since January 1, 2007. Information is provided with regard to the manner in which the proceeds of the offerings have been applied. Also set forth below is information pertaining to the timing and length of these offerings and the time period over which the proceeds have been invested in the properties. All figures are as of December 31, 2009.
 
                 
          Home Depot in
 
    Cole Credit Property
    Bellingham, WA
 
    Trust II, Inc.(3)     (5)(6)  
 
Dollar amount offered
  $ 2,270,000,000     $ 24,706,000  
Dollar amount raised
  $ 2,101,415,627     $ 24,706,000  
Percentage amount raised
    100.0 %     100.0 %
Less offering expenses:
               
Selling commissions and discounts retained by affiliates
    6.5 %     6.0 %
Organizational expenses(1)
    2.5 %     1.0 %
Other
           
Reserves
    1.4 %     0.5 %
Percent available for investment
    91.0 %     93.0 %
Acquisition costs:
               
Prepaid items and fees related to purchase of property
    1.2 %     2.1 %
Cash down payment
    86.7 %     90.9 %
Acquisition fees(2)
    3.1 %      
Other
           
                 
Total acquisition cost
    91.0 %     93.0 %
Percent leverage
    48 %     0 %
Date offering began
    6/27/05       4/12/06  
Length of offering (in months)
    Ongoing       9  
Months to invest 90% of amount available for investment
    40       7  
 
 
 
Past performance is not necessarily indicative of future results.


3


 

 
TABLE I
 
EXPERIENCE IN RAISING AND INVESTING FUNDS (UNAUDITED) — (Continued)
 
                         
    Cole Net Lease
    Barrywoods Crossing
    Centerpointe of
 
    Portfolio III
    in Kansas City, MO
    Woodridge, IL
 
    (5)(6)     (4)(5)     (4)(5)  
 
Dollar amount offered
  $ 15,449,000     $ 20,400,000     $ 22,100,000  
Dollar amount raised
  $ 15,449,000     $ 20,400,000     $ 22,100,000  
Percentage amount raised
    100.0 %     100.0 %     100.0 %
Less offering expenses:
                       
Selling commissions and discounts retained by affiliates
    6.0 %     7.0 %     6.0 %
Organizational expenses(1)
    1.0 %     1.0 %     1.0 %
Other
                 
Reserves
    0.4 %     1.3 %     2.7 %
Percent available for investment
    93.0 %     92.0 %     93.0 %
Acquisition costs:
                       
Prepaid items and fees related to purchase of property
    1.2 %     2.5 %     3.4 %
Cash down payment
    89.2 %     88.1 %     88.3 %
Acquisition fees(2)
                 
Other
    1.5 %     1.4 %     1.3 %
                         
Total acquisition cost
    91.9 %     92.0 %     93.0 %
Percent leverage
    60 %     58 %     57 %
Date offering began
    11/7/06       7/19/06       2/8/07  
Length of offering (in months)
    4       6       10  
Months to invest 90% of amount available for investment
    3       6       8  
 
 
 
Past performance is not necessarily indicative of future results.

4


 

 
TABLE I
 
EXPERIENCE IN RAISING AND INVESTING FUNDS (UNAUDITED) — (Continued)
 
                         
    Cole Net Lease
    Cole Net Lease
    Cole Net Lease
 
    Portfolio IV
    Portfolio V
    Portfolio VI
 
    (5)(6)     (5)(6)     (5)(6)  
 
Dollar amount offered
  $ 6,003,000     $ 21,957,000     $ 25,640,000  
Dollar amount raised
  $ 6,003,000     $ 21,957,000     $ 25,640,000  
Percentage amount raised
    100.0 %     100.0 %     100.0 %
Less offering expenses:
                       
Selling commissions and discounts retained by affiliates
    6.0 %     6.0 %     5.5 %
Organizational expenses(1)
    1.0 %     1.0 %     1.0 %
Other
                 
Reserves
    0.3 %     0.8 %     0.9 %
Percent available for investment
    93.0 %     93.0 %     93.5 %
Acquisition costs:
                       
Prepaid items and fees related to purchase of property
    3.0 %     0.8 %     0.7 %
Cash down payment
    88.3 %     91.0 %     92.8 %
Acquisition fees(2)
                 
Other
    1.1 %     1.2 %      
                         
Total acquisition cost
    92.4 %     93.0 %     93.5 %
Percent leverage
    52 %     54 %     54 %
Date offering began
    3/7/07       6/11/07       9/10/07  
Length of offering (in months)
    5       4       5  
Months to invest 90% of amount available for investment
    4       3       3  
 
 
(1) Organizational expenses include legal, accounting, printing, escrow, filing, recording and other related expenses associated with the formation and original organization of the Program and also includes fees paid to the sponsor and to affiliates.
 
(2) Acquisition fees include fees paid to the sponsor or affiliates based upon the terms of the memorandum.
 
(3) These amounts include Cole Credit Property Trust II, Inc.’s initial, follow-on and distribution reinvestment plan offerings. Cole Credit Property Trust II, Inc. began its initial offering on June 27, 2005 and closed its initial offering on May 22, 2007. The total dollar amount registered and available to be offered in the initial offering was $552.8 million. The total dollar amount raised in the initial offering was $547.4 million. Cole Credit Property Trust II, Inc. began its follow-on offering on May 23, 2007 and closed its follow-on offering on January 2, 2009. The total dollar amount registered and available to be offered in the follow-on offering was $1.5 billion. The total dollar amount raised in the follow-on offering was $1.5 billion. It took Cole Credit Property Trust II, Inc. 40 months to invest 90% of the amount available for investment in its initial and follow-on offerings. Cole Credit Property Trust II, Inc. began its distribution reinvestment plan offering on September 18, 2008 and was currently offering shares under this distribution reinvestment plan offering as of December 31, 2009. The total initial dollar amount registered and available to be offered in the distribution reinvestment plan offering is $285.0 million. The total dollar amount raised in the distribution reinvestment plan offering was $83.2 million as of December 31, 2009.
 
(4) The Offering is a Tenant-in-Common Program sponsored by Cole Capital Partners which consists of the sale of tenant-in-common interests in properties owned by subsidiaries of Cole Collateralized Senior Notes, LLC, Cole Collateralized Senior Notes II, LLC, Cole Collateralized Senior Notes III, LLC or Cole Collateralized Senior Notes IV, LLC.
 
(5) Acquisition cost amounts represent the costs paid by the tenant-in-common or Delaware statutory trust investors to acquire interest in the properties.
 
(6) The Offering is a Delaware Statutory Trust Program sponsored by Cole Capital Partners which consists of the sale of Delaware statutory trust interests in properties owned by subsidiaries of Cole Collateralized Senior Notes, LLC, Cole Collateralized Senior Notes II, LLC, Cole Collateralized Senior Notes III, LLC or Cole Collateralized Senior Notes IV, LLC.
 
 
Past performance is not necessarily indicative of future results.

5


 

 
TABLE II
 
COMPENSATION TO SPONSOR AND AFFILIATES (UNAUDITED)
 
This table sets forth the compensation paid to the sponsor and its affiliates, including compensation paid out of the offering proceeds and compensation paid in connection with the ongoing operations of Prior Real Estate Programs. Prior Real Estate programs whose offerings have closed since January 1, 2007 are shown separately and all other programs have been aggregated. Each of the Prior Real Estate Programs for which information is presented below has similar or identical investment objectives to this program. All amounts are as of December 31, 2009.
 
                 
    Cole Credit Property
  Home Depot in
    Trust II, Inc.   Bellingham, WA
 
Date offering commenced
    6/27/2005       4/12/2006  
Dollar amount raised
  $ 2,101,415,627     $ 24,706,000  
Amount paid to sponsor from proceeds of offering:
               
Underwriting fees
    25,743,062       247,060  
Acquisition fees and real estate commissions(1)
    65,861,597        
Advisory fees
           
Other(2)
    18,799,387        
Amount of cash generated from operations before deducting payments to sponsor
    275,426,693       5,207,218  
Amount paid to sponsor from operations:
               
Property management fees
    9,853,876        
Partnership management fees(3)
    17,452,366       75,313  
Reimbursements
    1,617,223        
Leasing commissions
    546,695        
Other(4)
    95,869        
Amount of property sales and refinancing before deducting payments to sponsor
               
Cash(5)
           
Notes
           
Amount paid to sponsor from property sales and refinancing
               
Incentive fees
           
Real estate commissions
           
Other
           
 
 
 
Past performance is not necessarily indicative of future results.


6


 

 
TABLE II
 
COMPENSATION TO SPONSOR AND AFFILIATES (UNAUDITED) — (Continued)
 
                         
            Centerpointe
    Barrywoods Crossing
  Cole Net Lease
  Shopping Center —
    in Kansas City, MO   Portfolio III   Woodridge, IL
 
Date offering commenced
    7/19/2006       11/7/2006       2/8/2007  
Dollar amount raised
  $ 20,400,000     $ 15,449,000     $ 22,100,000  
Amount paid to sponsor from proceeds of offering:
                       
Underwriting fees
    204,000       154,490       221,000  
Acquisition fees and real estate commissions(1)
                 
Advisory fees
                 
Other(2)
    282,750       233,650       294,130  
Amount of cash generated from operations before deducting payments to sponsor
    4,045,079       3,367,313       4,157,312  
Amount paid to sponsor from operations:
                       
Property management fees
    316,610             226,103  
Partnership management fees(3)
    195,750       273,978       235,738  
Reimbursements
                 
Leasing commissions
                 
Other(4)
                 
Amount of property sales and refinancing before deducting payments to sponsor
                       
Cash(5)
                 
Notes
                 
Amount paid to sponsor from property sales and refinancing
                       
Incentive fees
                 
Real estate commissions
                 
Other
                 
 
 
 
Past performance is not necessarily indicative of future results.

7


 

 
TABLE II
 
COMPENSATION TO SPONSOR AND AFFILIATES (UNAUDITED) — (Continued)
 
                         
    Cole Net Lease
    Cole Net Lease
    Cole Net Lease
 
    Portfolio IV     Portfolio V     Portfolio VI  
 
Date offering commenced
    3/7/2007       6/11/2007       9/10/2007  
Dollar amount raised
  $ 6,003,000     $ 21,957,000     $ 25,639,300  
Amount paid to sponsor from proceeds of offering:
                       
Underwriting fees
    60,030       219,570       256,401  
Acquisition fees and real estate commissions(1)
                 
Advisory fees
                 
Other(2)
    64,880       254,430        
Amount of cash generated from operations before deducting payments to sponsor
    1,104,917       3,887,561       3,670,349  
Amount paid to sponsor from operations:
                       
Property management fees
                 
Partnership management fees(3)
    75,652       167,722       51,197  
Reimbursements
                 
Leasing commissions
                 
Other(4)
                 
Amount of property sales and refinancing before deducting payments to sponsor
                       
Cash(5)
                 
Notes
                 
Amount paid to sponsor from property sales and refinancing
                       
Incentive fees
                 
Real estate commissions
                 
Other
                 
 
 
 
Past performance is not necessarily indicative of future results.

8


 

 
TABLE II
 
COMPENSATION TO SPONSOR AND AFFILIATES (UNAUDITED) — (Continued)
 
         
    54 Other Programs
 
    (6)  
 
Date offering commenced
    N/A  
Dollar amount raised
  $  
Amount paid to sponsor from proceeds of offering:
       
Underwriting fees
     
Acquisition fees and real estate commissions(1)
    4,535,070  
Advisory fees
     
Other(2)
    31,275  
Amount of cash generated from operations before deducting payments to sponsor
    63,885,987  
Amount paid to sponsor from operations:
       
Property management fees
    2,329,144  
Partnership management fees(3)
    3,075,892  
Reimbursements
     
Leasing commissions
    10,500  
Other(4)
     
Amount of property sales and refinancing before deducting payments to sponsor
       
Cash(5)
    257,799,802  
Notes
     
Amount paid to sponsor from property sales and refinancing
       
Incentive fees
     
Real estate commissions
     
Other
     
 
 
(1) Properties are acquired with a combination of funds from offering proceeds and debt. The acquisition and real estate commissions reported in this table include the total amount of fees paid to the sponsor or its affiliates regardless of the funding source for these costs.
 
(2) Amounts primarily relate to loan coordination fees, a development fee and reimbursement of certain offering costs paid by the sponsor.
 
(3) Amounts primarily relate to advisory fees.
 
(4) Amounts primarily relate to construction management fees.
 
(5) Amounts herein include initial investments of capital raised and properties acquired through reinvested amounts.
 
(6) 54 of the offerings of the prior programs aggregated herein were not closed within the past three years and therefore are not shown separately. The programs have similar investment objectives to this program.
 
 
Past performance is not necessarily indicative of future results.

9


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED)
 
The following sets forth the unaudited operating results of Prior Real Estate Programs sponsored by the sponsor of this program, the offerings of which have been closed since January 1, 2005. The information relates only to programs with investment objectives similar to this program. All amounts are as of December 31 of the year indicated, expect as noted.
 
                                         
    Cole Collateralized Senior Notes II, LLC
 
    February 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 3,323,748     $ 2,957,169     $ 2,318,406     $ 702,375     $ 101,926  
Profit (loss) on sale of properties
    1,433,092       186,386       164,115       21,320        
Less:
                                       
Operating expenses(1)
    363,221       121,582       372,512       245,099       33,502  
Interest expense
    4,407,598       3,613,049       3,492,661       2,847,030       766,667  
Depreciation and amortization(2)
    954,362       718,486       765,308       263,600       25,673  
                                         
Net income (loss) — Tax basis(3)
  $ (968,341 )   $ (1,309,562 )   $ (2,147,960 )   $ (2,632,034 )   $ (723,916 )
                                         
Taxable income
                                       
— from operations
  $ (2,401,433 )   $ (1,495,948 )   $ (2,312,075 )   $ (2,653,354 )   $ (723,916 )
— from gain on sale
    1,433,092       186,386       164,115       21,320        
Cash generated
                                       
— from operations(4)
    (1,447,071 )     (777,462 )     (1,546,767 )     (2,389,754 )     (698,243 )
— from sales
    56,276,976       52,753,392       26,893,932       502,807        
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    54,829,905       51,975,930       25,347,165       (1,886,947 )     (698,243 )
Less: Cash distributions to investors
                                       
— from operating cash flow
                            (5)
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    54,829,905       51,975,930       25,347,165       (1,886,947 )     (698,243 )
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 54,829,905     $ 51,975,930     $ 25,347,165     $ (1,886,947 )   $ (698,243 )
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $     $     $     $     $ (5)
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
                            (5)
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
                             
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    0 %
 
 
 
Past performance is not necessarily indicative of future results.


10


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Cole Collateralized Senior Notes III, LLC
 
    January 2005  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 1,810,021     $ 3,300,297     $ 2,385,403     $ 1,061,451     $ 673,508  
Profit (loss) on sale of properties
    289,643       3,124,045       805,309              
Less:
                                       
Operating expenses(1)
    120,231       169,907       241,105       182,531       164,941  
Interest expense
    2,568,620       3,606,300       3,156,418       2,503,359       2,364,326  
Depreciation and amortization(2)
    410,037       1,693,225       465,163       605,536       678,998  
                                         
Net income (loss) — Tax basis(3)
  $ (999,224 )   $ 954,910     $ (671,974 )   $ (2,229,975 )   $ (2,534,757 )
                                         
Taxable income
                                       
— from operations
  $ (1,288,867 )   $ (2,169,135 )   $ (1,477,283 )   $ (2,229,975 )   $ (2,534,757 )
— from gain on sale
    289,643       3,124,045       805,309              
Cash generated
                                       
— from operations(4)
    (878,830 )     (475,910 )     (1,012,120 )     (1,624,439 )     (1,855,759 )
— from sales
    19,914,849       22,363,682       64,531,601       1,703,695        
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    19,036,019       21,887,772       63,519,481       79,256       (1,855,759 )
Less: Cash distributions to investors
                                       
— from operating cash flow
                            (5)
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    19,036,019       21,887,772       63,519,481       79,256       (1,855,759 )
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 19,036,019     $ 21,887,772     $ 63,519,481     $ 79,256     $ (1,855,759 )
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $     $     $     $     $ (5)
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
                            (5)
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
                             
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    10 %
 
 
 
Past performance is not necessarily indicative of future results.

11


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Cole Collateralized Senior Notes IV, LLC
 
    May 2005  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 91,908     $ 2,070,894     $ 1,520,899     $ 1,419,521     $ 683,412  
Profit (loss) on sale of properties
                121,341              
Less:
                                       
Operating expenses(1)
    88,074       1,131,745       85,088       146,340       138,335  
Interest expense
    538,378       2,908,292       2,713,627       2,560,921       2,418,220  
Depreciation and amortization(2)
    79,634       426,629       460,010       540,056       611,779  
                                         
Net income (loss) — Tax basis(3)
  $ (614,178 )   $ (2,395,772 )   $ (1,616,485 )   $ (1,827,796 )   $ (2,484,922 )
                                         
Taxable income
                                       
— from operations
  $ (614,178 )   $ (2,395,772 )   $ (1,737,826 )   $ (1,827,796 )   $ (2,484,922 )
— from gain on sale
                121,341              
Cash generated
                                       
— from operations(4)
    (534,544 )     (1,969,143 )     (1,277,816 )     (1,287,740 )     (1,873,143 )
— from sales
    212,472       28,358,859       7,870,622       1,222,901        
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    (322,072 )     26,389,716       6,592,806       (64,839 )     (1,873,143 )
Less: Cash distributions to investors
                                       
— from operating cash flow
                            (5)
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    (322,072 )     26,389,716       6,592,806       (64,839 )     (1,873,143 )
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ (322,072 )   $ 26,389,716     $ 6,592,806     $ (64,839 )   $ (1,873,143 )
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $     $     $     $     $ (5)
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
                            (5)
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
                             
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    2 %
 
 
 
Past performance is not necessarily indicative of future results.

12


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Cole Credit Property Trust, Inc.
 
    April 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 10,987,553     $ 16,149,526     $ 16,191,240     $ 16,257,828     $ 16,343,281  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    1,357,842       2,030,411       1,945,834       2,246,994       1,699,057  
Interest expense
    4,664,223       7,698,059       7,217,023       7,307,278       7,310,026  
Depreciation and amortization(2)
    3,638,794       5,394,072       5,479,673       5,485,757       5,486,613  
                                         
Net income (loss) — GAAP basis(6)
  $ 1,326,694     $ 1,026,984     $ 1,548,710     $ 1,217,799     $ 1,847,585  
                                         
Taxable income
                                       
— from operations
  $ 2,177,125     $ 2,200,160     $ 2,741,163     $ 2,782,879     $ 3,220,743  
— from gain on sale
                44,506              
Cash generated
                                       
— from operations(4)
    5,881,043       6,678,636       6,884,891       7,164,678       7,285,250  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    5,881,043       6,678,636       6,884,891       7,164,678       7,285,250  
Less: Cash distributions to investors
                                       
— from operating cash flow
    4,751,612       6,678,636       6,884,891       7,062,418       7,063,510  
— from sales and refinancing
                             
— from other(7)
          391,754       181,061              
                                         
Cash generated (deficiency) after cash distributions
    1,129,431       (391,754 )     (181,061 )     102,260       221,740  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 1,129,431     $ (391,754 )   $ (181,061 )   $ 102,260     $ 221,740  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 21.56     $ 21.79     $ 27.16     $ 27.58     $ 31.92  
— from recapture
                             
Capital gain (loss)
                .44              
Cash distributions to investors
                                       
Source (on a GAAP basis)
                                       
— investment income
    33.88       22.00       28.00       30.00       30.00  
— return of capital
    35.27       48.00       42.00       40.00       40.00  
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    69.15       66.12       68.21       70.00       70.00  
— other(7)
          3.88       1.79              
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
 
Past performance is not necessarily indicative of future results.

13


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Cole Credit Property Trust II, Inc.
 
    June 2005  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 741,669     $ 19,519,507     $ 92,100,308     $ 202,282,667     $ 276,026,961  
Equity in income of unconsolidated joint ventures
                      470,978       612,432  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    195,020       3,306,511       12,662,270       32,191,062       50,986,169  
Interest expense
    439,829       8,397,634       39,075,748       78,063,338       98,996,703  
Depreciation and amortization(2)
    221,411       6,469,366       30,482,273       63,858,422       90,750,170  
Impairment of real estate assets
                5,400,000       3,550,000       13,500,000  
                                         
Net income (loss) — GAAP basis(6)
  $ (114,591 )   $ 1,345,996     $ 4,480,017     $ 25,090,823     $ 22,406,351  
                                         
Taxable income
                                       
— from operations
  $ (79,293 )   $ 3,104,068     $ 15,703,828     $ 42,432,587     $ 53,168,771  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    397,741       7,861,475       43,366,041       96,073,918       116,871,698  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    397,741       7,861,475       43,366,041       96,073,918       116,871,698  
Less: Cash distributions to investors
                                       
— from operating cash flow
          7,075,329       37,727,364       96,051,343       116,871,698  
— from sales and refinancing
                             
— from other(8)
                            18,111,554  
                                         
Cash generated (deficiency) after cash distributions
    397,741       786,146       5,638,677       22,575       (18,111,554 )
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 397,741     $ 786,146     $ 5,638,677     $ 22,575     $ (18,111,554 )
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ (2.80 )   $ 10.13     $ 16.80     $ 21.02     $ 27.24  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a GAAP basis)
                                       
— investment income
          26.40       25.00       30.00       26.00  
— return of capital
          36.46       37.00       36.00       41.00  
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
          62.86       62.00       66.00       58.01  
— other(8)
                            8.99  
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
 
Past performance is not necessarily indicative of future results.

14


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Edgewood, NM
 
    September 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 275,640     $ 276,137     $ 276,538     $ 275,854     $ 298,614  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    14,191       13,699       14,229       14,347       14,648  
Interest expense
    118,666       118,666       118,666       118,991       128,744  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 142,783     $ 143,772     $ 143,643     $ 142,516     $ 155,222  
                                         
Taxable income
                                       
— from operations
  $ 142,783     $ 143,772     $ 143,643     $ 142,516     $ 155,222  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    142,783       143,772       143,643       142,516       155,222  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    142,783       143,772       143,643       142,516       155,222  
Less: Cash distributions to investors
                                       
— from operating cash flow
    144,070       144,072       144,072       144,072       144,070  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    (1,287 )     (300 )     (429 )     (1,556 )     11,152  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ (1,287 )   $ (300 )   $ (429 )   $ (1,556 )   $ 11,152  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 66.91     $ 67.37     $ 67.31     $ 66.78     $ 72.74  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    67.51       67.51       67.51       67.51       67.51  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    67.51       67.51       67.51       67.51       67.51  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
Past performance is not necessarily indicative of future results.

15


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Slidell, LA
 
    October 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 243,899     $ 275,516     $ 275,767     $ 275,244     $ 297,922  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    11,336       12,445       12,884       13,323       13,047  
Interest expense
    98,704       118,901       118,901       119,227       128,999  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 133,859     $ 144,170     $ 143,982     $ 142,694     $ 155,876  
                                         
Taxable income
                                       
— from operations
  $ 133,859     $ 144,170     $ 143,982     $ 142,694     $ 155,876  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    133,859       144,170       143,982       142,694       155,876  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    133,859       144,170       143,982       142,694       155,876  
Less: Cash distributions to investors
                                       
— from operating cash flow
    114,918       143,772       143,772       143,772       143,772  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    18,941       398       210       (1,078 )     12,104  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 18,941     $ 398     $ 210     $ (1,078 )   $ 12,104  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 60.51     $ 65.18     $ 65.09     $ 64.51     $ 70.47  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    51.95       65.00       65.00       65.00       65.00  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    51.95       65.00       65.00       65.00       65.00  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
Past performance is not necessarily indicative of future results.


16


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Westheimer, TX
 
    October 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 495,000     $ 495,990     $ 496,394     $ 495,437     $ 536,265  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    21,003       21,476       22,316       22,748       22,350  
Interest expense
    214,710       220,752       220,752       221,357       239,501  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 259,287     $ 253,762     $ 253,326     $ 251,332     $ 274,414  
                                         
Taxable income
                                       
— from operations
  $ 259,287     $ 253,762     $ 253,326     $ 251,332     $ 274,414  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    259,287       253,762       253,326       251,332       274,414  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    259,287       253,762       253,326       251,332       274,414  
Less: Cash distributions to investors
                                       
— from operating cash flow
    240,014       253,500       253,513       253,513       253,501  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    19,273       262       (187 )     (2,181 )     20,913  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 19,273     $ 262     $ (187 )   $ (2,181 )   $ 20,913  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 66.48     $ 65.07     $ 64.96     $ 64.44     $ 70.36  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    61.54       65.00       65.00       65.00       65.00  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    61.54       65.00       65.00       65.00       65.00  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
Past performance is not necessarily indicative of future results.


17


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Richmond Heights, OH
 
    October 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 423,387     $ 420,807     $ 421,153     $ 420,367     $ 455,015  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    18,416       17,830       18,194       18,710       18,149  
Interest expense
    173,029       182,004       182,004       182,503       197,462  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 231,942     $ 220,973     $ 220,955     $ 219,154     $ 239,404  
                                         
Taxable income
                                       
— from operations
  $ 231,942     $ 220,973     $ 220,955     $ 219,154     $ 239,404  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    231,942       220,973       220,955       219,154       239,404  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    231,942       220,973       220,955       219,154       239,404  
Less: Cash distributions to investors
                                       
— from operating cash flow
    203,676       220,220       220,229       220,221       220,220  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    28,266       753       726       (1,067 )     19,184  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 28,266     $ 753     $ 726     $ (1,067 )   $ 19,184  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 68.46     $ 65.22     $ 65.22     $ 64.69     $ 70.66  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    60.12       65.00       65.00       65.00       65.00  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    60.12       65.00       65.00       65.00       65.00  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
Past performance is not necessarily indicative of future results.


18


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Home Depot — Spokane, WA
 
    November 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 1,014,839     $ 1,323,040     $ 1,434,607     $ 1,321,467     $ 1,452,255  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    12,592       12,670       11,218       10,876       9,808  
Interest expense
    394,654       551,910       598,785       553,422       551,911  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 607,593     $ 758,460     $ 824,604     $ 757,169     $ 890,536  
                                         
Taxable income
                                       
— from operations
  $ 607,593     $ 758,460     $ 824,604     $ 757,169     $ 890,536  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    607,593       758,460       824,604       757,169       890,536  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    607,593       758,460       824,604       757,169       890,536  
Less: Cash distributions to investors
                                       
— from operating cash flow
    514,099       749,580       749,580       749,592       858,574  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    93,494       8,880       75,024       7,577       31,962  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 93,494     $ 8,880     $ 75,024     $ 7,577     $ 31,962  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 52.69     $ 65.77     $ 71.51     $ 65.66     $ 77.22  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    44.58       65.00       65.00       65.00       74.45  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    44.58       65.00       65.00       65.00       74.45  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
 
Past performance is not necessarily indicative of future results.


19


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Orlando, FL
 
    November 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 232,208     $ 300,483     $ 300,750     $ 300,195     $ 324,935  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    10,463       13,562       14,317       14,401       14,119  
Interest expense
    90,054       124,904       124,979       125,321       135,594  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 131,691     $ 162,017     $ 161,454     $ 160,473     $ 175,222  
                                         
Taxable income
                                       
— from operations
  $ 131,691     $ 162,017     $ 161,454     $ 160,473     $ 175,222  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    131,691       162,017       161,454       160,473       175,222  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    131,691       162,017       161,454       160,473       175,222  
Less: Cash distributions to investors
                                       
— from operating cash flow
    111,711       161,592       161,592       161,592       161,590  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    19,980       425       (138 )     (1,119 )     13,632  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 19,980     $ 425     $ (138 )   $ (1,119 )   $ 13,632  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 52.97     $ 65.17     $ 64.95     $ 64.55     $ 70.48  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    44.94       65.00       65.00       65.00       65.00  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    44.94       65.00       65.00       65.00       65.00  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
 
Past performance is not necessarily indicative of future results.

20


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Glen Burnie, MD
 
    November 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 312,387     $ 416,142     $ 416,327     $ 415,614     $ 415,117  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    13,428       17,695       16,995       17,483       16,893  
Interest expense
    119,319       169,158       170,790       171,258       170,790  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 179,640     $ 229,289     $ 228,542     $ 226,873     $ 227,434  
                                         
Taxable income
                                       
— from operations
  $ 179,640     $ 229,289     $ 228,542     $ 226,873     $ 227,434  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    179,640       229,289       228,542       226,873       227,434  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    179,640       229,289       228,542       226,873       227,434  
Less: Cash distributions to investors
                                       
— from operating cash flow
    151,637       226,524       226,524       226,524       226,525  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    28,003       2,765       2,018       349       909  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 28,003     $ 2,765     $ 2,018     $ 349     $ 909  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 51.55     $ 65.79     $ 65.58     $ 65.10     $ 65.26  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    43.51       65.00       65.00       65.00       65.00  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    43.51       65.00       65.00       65.00       65.00  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
 
Past performance is not necessarily indicative of future results.

21


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Covington, TN
 
    December 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 237,696     $ 261,606     $ 261,865     $ 261,262     $ 282,755  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    10,629       11,782       12,358       12,689       11,831  
Interest expense
    93,795       110,081       110,081       110,382       119,430  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 133,272     $ 139,743     $ 139,426     $ 138,191     $ 151,494  
                                         
Taxable income
                                       
— from operations
  $ 133,272     $ 139,743     $ 139,426     $ 138,191     $ 151,494  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    133,272       139,743       139,426       138,191       151,494  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    133,272       139,743       139,426       138,191       151,494  
Less: Cash distributions to investors
                                       
— from operating cash flow
    114,287       139,165       139,164       139,170       139,165  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    18,985       578       262       (979 )     12,329  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 18,985     $ 578     $ 262     $ (979 )   $ 12,329  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 62.25     $ 65.27     $ 65.12     $ 64.55     $ 70.76  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    53.38       65.00       65.00       65.00       65.00  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    53.38       65.00       65.00       65.00       65.00  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
 
Past performance is not necessarily indicative of future results.

22


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Garfield Heights, OH
 
    December 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 145,569     $ 385,036     $ 385,085     $ 384,439     $ 384,069  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    1,893       3,936       4,288       4,767       4,153  
Interest expense
    54,853       169,672       169,672       170,137       169,672  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 88,823     $ 211,428     $ 211,125     $ 209,535     $ 210,244  
                                         
Taxable income
                                       
— from operations
  $ 88,823     $ 211,428     $ 211,125     $ 209,535     $ 210,244  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    88,823       211,428       211,125       209,535       210,244  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    88,823       211,428       211,125       209,535       210,244  
Less: Cash distributions to investors
                                       
— from operating cash flow
    62,999       212,424       212,424       212,424       212,424  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    25,824       (996 )     (1,299 )     (2,889 )     (2,180 )
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 25,824     $ (996 )   $ (1,299 )   $ (2,889 )   $ (2,180 )
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 30.32     $ 72.16     $ 72.06     $ 71.51     $ 71.76  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    21.50       72.50       72.50       72.50       72.50  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    21.50       72.50       72.50       72.50       72.50  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
 
Past performance is not necessarily indicative of future results.

23


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Ponca City, OK
 
    December 2004  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 118,085     $ 312,409     $ 312,521     $ 311,964     $ 311,586  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    1,477       3,272       3,649       4,255       3,534  
Interest expense
    44,763       138,460       138,460       138,840       138,460  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 71,845     $ 170,677     $ 170,412     $ 168,869     $ 169,592  
                                         
Taxable income
                                       
— from operations
  $ 71,845     $ 170,677     $ 170,412     $ 168,869     $ 169,592  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    71,845       170,677       170,412       168,869       169,592  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    71,845       170,677       170,412       168,869       169,592  
Less: Cash distributions to investors
                                       
— from operating cash flow
    50,034       168,708       168,708       168,702       168,708  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    21,811       1,969       1,704       167       884  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 21,811     $ 1,969     $ 1,704     $ 167     $ 884  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 30.87     $ 73.35     $ 73.23     $ 72.57     $ 72.88  
— from recapture
                             
Capital gain (loss)
                             
Cash distributions to investors
                                       
Source (on a tax basis)
                                       
— investment income
    21.50       72.50       72.50       72.50       72.50  
— return of capital
                             
Source (on a cash basis)
                                       
— sales
                             
— refinancing
                             
— operations
    21.50       72.50       72.50       72.50       72.50  
— other
                             
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %
 
 
 
Past performance is not necessarily indicative of future results.

24


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                                 
    Home Depot — Tacoma, WA
 
    February 2005  
    2005     2006     2007     2008     2009        
 
Gross revenues
  $ 1,051,101     $ 1,750,475     $ 1,769,746     $ 1,912,655     $ 1,762,567          
Profit (loss) on sale of properties
                                     
Less:
                                               
Operating expenses(1)
    35,286       53,645       48,638       50,168       54,296          
Interest expense
    461,947       843,053       843,053       845,362       843,053          
Depreciation and amortization(2)
                                     
                                                 
Net income (loss) — Tax basis(3)
  $ 553,868     $ 853,777     $ 878,055     $ 1,017,125     $ 865,218          
                                                 
Taxable income
                                               
— from operations
  $ 553,868     $ 853,777     $ 878,055     $ 1,017,125     $ 865,218          
— from gain on sale
                                     
Cash generated
                                               
— from operations(4)
    553,868       853,777       878,055       1,017,125       865,218          
— from sales
                                     
— from refinancing
                                     
                                                 
Cash generated from operations, sales and refinancing
    553,868       853,777       878,055       1,017,125       865,218          
Less: Cash distributions to investors
                                               
— from operating cash flow
    426,665       821,808       852,252       852,257       852,250          
— from sales and refinancing
                                     
— from other
                                     
                                                 
Cash generated (deficiency) after cash distributions
    127,203       31,969       25,803       164,868       12,968          
Less: Special items (not including sales and refinancing)
                                     
                                                 
Cash generated (deficiency) after cash distributions and special items
  $ 127,203     $ 31,969     $ 25,803     $ 164,868     $ 12,968          
                                                 
Tax and Distribution Data Per $1,000 Invested
                                               
Federal income tax results
                                               
Ordinary income (loss)
                                               
— from operations
  $ 45.49     $ 70.13     $ 72.12     $ 83.54     $ 71.07          
— from recapture
                                     
Capital gain (loss)
                                     
Cash distributions to investors
                                               
Source (on a tax basis)
                                               
— investment income
    35.04       67.50       70.00       70.00       70.00          
— return of capital
                                     
Source (on a cash basis)
                                               
— sales
                                     
— refinancing
                                     
— operations
    35.04       67.50       70.00       70.00       70.00          
— other
                                     
Amount (in percentage terms) remaining invested in program at the end of last year reported in the table
                                    100 %        
 
 
 
Past performance is not necessarily indicative of future results.

25


 

 
TABLE III
 
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)
 
                                         
    Walgreens — Pineville, LA  
    April 2005  
    2005     2006     2007     2008     2009  
 
Gross revenues
  $ 155,136     $ 304,247     $ 304,486     $ 303,967     $ 303,588  
Profit (loss) on sale of properties
                             
Less:
                                       
Operating expenses(1)
    5,636       7,168       6,042       8,179       7,974  
Interest expense
    65,763       143,734       143,734       144,128       143,735  
Depreciation and amortization(2)
                             
                                         
Net income (loss) — Tax basis(3)
  $ 83,737     $ 153,345     $ 154,710     $ 151,660     $ 151,879  
                                         
Taxable income
                                       
— from operations
  $ 83,737     $ 153,345     $ 154,710     $ 151,660     $ 151,879  
— from gain on sale
                             
Cash generated
                                       
— from operations(4)
    83,737       153,345       154,710       151,660       151,879  
— from sales
                             
— from refinancing
                             
                                         
Cash generated from operations, sales and refinancing
    83,737       153,345       154,710       151,660       151,879  
Less: Cash distributions to investors
                                       
— from operating cash flow
    64,858       151,670       151,668       151,674       151,669  
— from sales and refinancing
                             
— from other
                             
                                         
Cash generated (deficiency) after cash distributions
    18,879       1,675       3,042       (14 )     210  
Less: Special items (not including sales and refinancing)
                             
                                         
Cash generated (deficiency) after cash distributions and special items
  $ 18,879     $ 1,675     $ 3,042     $ (14 )   $ 210  
                                         
Tax and Distribution Data Per $1,000 Invested
                                       
Federal income tax results
                                       
Ordinary income (loss)
                                       
— from operations
  $ 40.03     $ 73.30     $ 73.95     $ 72.50     $ 72.60  
— from recapture