Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NATIONAL RETAIL PROPERTIES, INC. | d8k.htm |
Exhibit 99.1
NEWS RELEASE
For information contact:
Kevin B. Habicht
Chief Financial Officer
| (407) 265-7348 | FOR IMMEDIATE RELEASE August 4, 2011 |
SECOND QUARTER 2011 OPERATING RESULTS
ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.
Orlando, Florida, August 4, 2011 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and six months ended June 30, 2011. Highlights include:
Operating Results:
| • | Revenues, net earnings, FFO and AFFO available to common stockholders: |
| Quarter Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Revenues |
$ | 62,516 | $ | 56,412 | $ | 124,469 | $ | 112,906 | ||||||||
| Net earnings available to common stockholders |
$ | 19,607 | $ | 19,510 | $ | 38,731 | $ | 34,179 | ||||||||
| Net earnings per common share (diluted) |
$ | 0.23 | $ | 0.23 | $ | 0.46 | $ | 0.41 | ||||||||
| FFO available to common stockholders |
$ | 32,180 | $ | 29,444 | $ | 63,573 | $ | 54,704 | ||||||||
| FFO per common share (diluted) |
$ | 0.38 | $ | 0.36 | $ | 0.75 | $ | 0.66 | ||||||||
| AFFO available to common stockholders |
$ | 35,598 | $ | 32,830 | $ | 70,115 | $ | 64,273 | ||||||||
| AFFO per common share (diluted) |
$ | 0.42 | $ | 0.40 | $ | 0.83 | $ | 0.78 | ||||||||
| • | NNN paid cash dividends to its common stockholders of $0.38 per share during the quarter and $0.76 for the six months ended June 30, 2011. |
| • | Investment Portfolio occupancy was 96.9% at June 30, 2011, as compared to 96.9% at December 31, 2010, and 97.3% at June 30, 2010. |
Investments for the quarter ended June 30, 2011:
| • | Investments: |
| • | $54.2 million in the Investment Portfolio, including acquiring 25 properties with an aggregate 303,000 square feet of gross leasable area |
| 450 S. Orange Ave., Suite 900 | Orlando, FL 32801 (800) NNN-REIT | www.nnnreit.com |
|
Investments and Dispositions for the six months ended June 30, 2011:
| • | Investments: |
| • | $109.3 million in the Investment Portfolio, including acquiring 54 properties with an aggregate 657,000 square feet of gross leasable area |
| • | Dispositions: |
| • | Two properties with net proceeds of $1.8 million |
Capital markets activity for the quarter ended June 30, 2011:
| • | May 2011 – Amended and restated unsecured revolving credit facility increasing borrowing capacity to $450.0 million, extending maturity to May 2015 and reducing interest rate to LIBOR + 150 bps |
| • | June 2011 - Standard & Poor’s Ratings Services upgraded its corporate credit rating and unsecured debt rating to “BBB” from “BBB-” |
| • | Offered $300.0 million principal amount of 5.50% senior unsecured notes due 2021 generating net proceeds of $293.8 million received on July 6, 2011 |
| • | Issued 1,466,179 shares of common stock generating $36,366,000 of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan |
National Retail Properties also announced increased 2011 FFO guidance of $1.50 to $1.53 per share before any impairment expense and estimated AFFO to be $1.64 to $1.67 per share. The change in guidance is primarily related to projected volume and timing of property acquisitions. This guidance equates to net earnings before any gains or losses from the sale of real estate of $0.91 to $0.94 per share plus $0.59 per share of expected real estate depreciation and amortization. The 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.
Craig Macnab, Chief Executive Officer, commented: “Operating results and acquisition activity have been encouraging in the first half of 2011 and visibility for the second half looks solid. We were pleased to complete capital markets transactions during the second quarter that will provide additional capacity to fund acquisitions and reduce our debt costs. More recently, we were very glad to announce an increase in our third quarter dividend which will pave the way for 2011 to be the 22nd consecutive year in which the annual dividend per share has increased.”
National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of June 30, 2011, the company owned 1,248 Investment Properties in 46 states with a gross leasable area of approximately 13.6 million square feet. For more information on the company, visit www.nnnreit.com.
Management will hold a conference call on August 4, 2011, at 10:30 a.m. ET to review these results. The call can be accessed on the National Retail Properties web site live at http://www.nnnreit.com. For those unable to listen to the live broadcast, a replay will be available on the company’s web site. In addition, a summary of any earnings guidance given on the call will be posted to the company’s web site.
Statements in this press release that are not strictly historical are “forward-looking” statements. Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of our tenants, the availability of capital, risks related to our status as a REIT, and the profitability of the company’s taxable subsidiary. Additional information concerning these and other factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company’s Securities and Exchange Commission (“SEC”) filings, including, but not limited to, the company’s Annual Report on Form 10-K. Copies of each filing may be obtained from the company or the SEC. Such forward-looking statements should be regarded solely as reflections of the company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. National Retail Properties undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.
The reported results are preliminary and not final and there can be no assurance that the results will not vary from the final information filed with the SEC on Form 10-Q for the quarter ended June 30, 2011. In the opinion of management, all adjustments considered necessary for a fair presentation of these
2
reported results have been made.
Funds From Operations, commonly referred to as FFO, is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and is used by the company as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses) on the disposition of certain assets, and the company’s share of these items from the company’s unconsolidated partnerships.
FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the company’s performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. The company’s computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to FFO, as defined by NAREIT, is included in the financial information accompanying this release.
Adjusted Funds From Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO further adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. Management considers AFFO a useful supplemental measure of the company’s performance. The company’s computation of AFFO may differ from the calculation used by other equity REITs and therefore may not be comparable to such other REITs. A reconciliation of net earnings to AFFO is included in this release.
The company has determined that there are earnings from discontinued operations in each of its segments, real estate held for investment and real estate held for sale. All property dispositions from the company’s held for investment segment are classified as discontinued operations. In addition, certain properties in the company’s held for sale segment that have generated revenues before disposition are classified as discontinued operations. The results of operations for prior periods for these properties now classified as discontinued operations have been restated to reflect the results in earnings from discontinued operations for comparability purposes. These adjustments resulted in a decrease in the company’s reported total revenues and total and per share earnings from continuing operations and an increase in the company’s earnings from discontinued operations. However, the company’s total and per share FFO and net earnings available to common stockholders are not affected.
3
National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Income Statement Summary |
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| Revenues: |
||||||||||||||||
| Rental and earned income |
$ | 58,999 | $ | 52,990 | $ | 117,212 | $ | 105,728 | ||||||||
| Real estate expense reimbursement from tenants |
2,197 | 1,591 | 4,532 | 3,349 | ||||||||||||
| Interest and other income from real estate transactions |
543 | 973 | 1,181 | 1,922 | ||||||||||||
| Interest income on commercial mortgage residual interests |
777 | 858 | 1,544 | 1,907 | ||||||||||||
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| 62,516 | 56,412 | 124,469 | 112,906 | |||||||||||||
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| Disposition of real estate, Inventory Portfolio: |
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| Gross proceeds |
— | 5,600 | — | 5,600 | ||||||||||||
| Costs |
— | (4,959 | ) | — | (4,959 | ) | ||||||||||
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| Gain |
— | 641 | — | 641 | ||||||||||||
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| Retail operations: |
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| Revenues |
12,450 | 8,696 | 21,300 | 15,233 | ||||||||||||
| Operating expenses |
(11,760 | ) | (8,265 | ) | (20,612 | ) | (14,935 | ) | ||||||||
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| Net |
690 | 431 | 688 | 298 | ||||||||||||
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| Operating expenses: |
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| General and administrative |
6,568 | 5,775 | 13,226 | 11,372 | ||||||||||||
| Real estate |
4,026 | 3,143 | 7,748 | 6,615 | ||||||||||||
| Depreciation and amortization |
13,871 | 11,926 | 27,395 | 23,732 | ||||||||||||
| Impairment - commercial mortgage residual interests valuation |
267 | 165 | 396 | 3,848 | ||||||||||||
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| 24,732 | 21,009 | 48,765 | 45,567 | |||||||||||||
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| Other expenses (revenues): |
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| Interest and other income |
(283 | ) | (637 | ) | (625 | ) | (905 | ) | ||||||||
| Interest expense |
17,512 | 16,034 | 35,174 | 32,024 | ||||||||||||
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| 17,229 | 15,397 | 34,549 | 31,119 | |||||||||||||
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| Income tax expense |
(210 | ) | (223 | ) | (191 | ) | (327 | ) | ||||||||
| Equity in earnings of unconsolidated affiliate |
104 | 108 | 213 | 214 | ||||||||||||
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| Earnings from continuing operations |
21,139 | 20,963 | 41,865 | 37,046 | ||||||||||||
| Earnings (loss) from discontinued operations: |
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| Real estate, Investment Portfolio, net of income tax expense |
(17 | ) | 566 | (21 | ) | 641 | ||||||||||
| Real estate, Inventory Portfolio, net of income tax expense |
147 | 121 | 279 | 261 | ||||||||||||
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| 130 | 687 | 258 | 902 | |||||||||||||
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| Earnings including noncontrolling interests |
21,269 | 21,650 | 42,123 | 37,948 | ||||||||||||
| Loss (earnings) attributable to noncontrolling interests: |
||||||||||||||||
| Continuing operations |
67 | (489 | ) | 93 | (346 | ) | ||||||||||
| Discontinued operations |
(33 | ) | 45 | (93 | ) | (31 | ) | |||||||||
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| 34 | (444 | ) | — | (377 | ) | |||||||||||
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| Net earnings attributable to NNN |
21,303 | 21,206 | 42,123 | 37,571 | ||||||||||||
| Series C preferred stock dividends |
(1,696 | ) | (1,696 | ) | (3,392 | ) | (3,392 | ) | ||||||||
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| Net earnings available to common stockholders |
$ | 19,607 | $ | 19,510 | $ | 38,731 | $ | 34,179 | ||||||||
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4
National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Weighted average common shares outstanding: |
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| Basic |
84,410 | 82,695 | 83,772 | 82,590 | ||||||||||||
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| Diluted |
84,726 | 82,825 | 84,271 | 82,718 | ||||||||||||
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| Net earnings per share available to common stockholders: |
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| Basic: |
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| Continuing operations |
$ | 0.23 | $ | 0.22 | $ | 0.46 | $ | 0.40 | ||||||||
| Discontinued operations |
0.00 | 0.01 | 0.00 | 0.01 | ||||||||||||
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| Net earnings |
$ | 0.23 | $ | 0.23 | $ | 0.46 | $ | 0.41 | ||||||||
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| Diluted: |
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| Continuing operations |
$ | 0.23 | $ | 0.22 | $ | 0.46 | $ | 0.40 | ||||||||
| Discontinued operations |
0.00 | 0.01 | 0.00 | 0.01 | ||||||||||||
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| Net earnings |
$ | 0.23 | $ | 0.23 | $ | 0.46 | $ | 0.41 | ||||||||
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5
National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Funds From Operations (FFO) Reconciliation: |
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| Net earnings available to common stockholders |
$ | 19,607 | $ | 19,510 | $ | 38,731 | $ | 34,179 | ||||||||
| Real estate depreciation and amortization: |
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| Continuing operations |
12,526 | 10,719 | 24,831 | 21,252 | ||||||||||||
| Discontinued operations |
4 | 59 | 9 | 139 | ||||||||||||
| Joint venture real estate depreciation |
44 | 44 | 88 | 89 | ||||||||||||
| Gain on disposition of real estate |
(1 | ) | (888 | ) | (86 | ) | (955 | ) | ||||||||
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| Total FFO adjustments |
12,573 | 9,934 | 24,842 | 20,525 | ||||||||||||
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| FFO available to common stockholders |
$ | 32,180 | $ | 29,444 | $ | 63,573 | $ | 54,704 | ||||||||
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| FFO per share: |
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| Basic |
$ | 0.38 | $ | 0.36 | $ | 0.76 | $ | 0.66 | ||||||||
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| Diluted |
$ | 0.38 | $ | 0.36 | $ | 0.75 | $ | 0.66 | ||||||||
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| Adjusted Funds From Operations (AFFO) Reconciliation: |
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| Net earnings available to common stockholders |
$ | 19,607 | $ | 19,510 | $ | 38,731 | $ | 34,179 | ||||||||
| Total FFO adjustments |
12,573 | 9,934 | 24,842 | 20,525 | ||||||||||||
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| FFO available to common stockholders |
32,180 | 29,444 | 63,573 | 54,704 | ||||||||||||
| Straight-line accrued rent |
47 | 130 | 51 | (190 | ) | |||||||||||
| Net capital lease rent adjustment |
388 | 381 | 802 | 753 | ||||||||||||
| Below market rent amortization |
(116 | ) | (96 | ) | (213 | ) | (192 | ) | ||||||||
| Stock based compensation expense |
1,448 | 1,463 | 2,841 | 2,576 | ||||||||||||
| Capitalized interest expense |
(246 | ) | (132 | ) | (569 | ) | (185 | ) | ||||||||
| Convertible debt interest expense |
1,630 | 1,526 | 3,234 | 3,026 | ||||||||||||
| Impairment - commercial mortgage residual interests valuation |
267 | 165 | 396 | 3,848 | ||||||||||||
| Other |
— | (51 | ) | — | (67 | ) | ||||||||||
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| Total AFFO adjustments |
3,418 | 3,386 | 6,542 | 9,569 | ||||||||||||
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| AFFO available to common stockholders |
$ | 35,598 | $ | 32,830 | $ | 70,115 | $ | 64,273 | ||||||||
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| AFFO per share: |
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| Basic |
$ | 0.42 | $ | 0.40 | $ | 0.84 | $ | 0.78 | ||||||||
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| Diluted |
$ | 0.42 | $ | 0.40 | $ | 0.83 | $ | 0.78 | ||||||||
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| Other Information: |
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| Percentage rent |
$ | 132 | $ | 129 | $ | 245 | $ | 184 | ||||||||
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| Amortization of debt costs |
$ | 1,304 | $ | 1,146 | $ | 2,480 | $ | 2,279 | ||||||||
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| Scheduled debt principal amortization (excluding maturities) |
$ | 269 | $ | 280 | $ | 541 | $ | 533 | ||||||||
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| Non-real estate depreciation expense |
$ | 46 | $ | 66 | $ | 95 | $ | 212 | ||||||||
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6
National Retail Properties, Inc.
(in thousands)
(unaudited)
Earnings from Discontinued Operations: The company has classified its investment assets sold and leasehold interests expired as discontinued operations. In addition, the company has classified any investment or revenue generating inventory asset that was held for sale at June 30, 2011, as discontinued operations. The following is a summary of earnings from discontinued operations.
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Earnings from Discontinued Operations - Investment Portfolio: |
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| Revenues: |
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| Rental and earned income |
$ | 30 | $ | 302 | $ | 56 | $ | 487 | ||||||||
| Real estate expense reimbursement from tenants |
4 | 19 | 8 | 34 | ||||||||||||
| Interest and other income from real estate transactions |
5 | 5 | 5 | 33 | ||||||||||||
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| 39 | 326 | 69 | 554 | |||||||||||||
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| Expenses: |
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| General and administrative |
— | — | — | 14 | ||||||||||||
| Real estate |
53 | 39 | 108 | 123 | ||||||||||||
| Depreciation and amortization |
4 | 59 | 9 | 139 | ||||||||||||
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| 57 | 98 | 117 | 276 | |||||||||||||
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| Gain on disposition of real estate |
1 | 355 | 30 | 377 | ||||||||||||
| Income tax expense |
— | (17 | ) | (3 | ) | (14 | ) | |||||||||
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| Earnings (loss) from discontinued operations attributable to NNN |
$ | (17 | ) | $ | 566 | $ | (21 | ) | $ | 641 | ||||||
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| Earnings from Discontinued Operations – Inventory Portfolio: |
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| Revenues: |
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| Rental income |
$ | 666 | $ | 1,216 | $ | 1,139 | $ | 2,368 | ||||||||
| Real estate expense reimbursement from tenants |
98 | 154 | 204 | 1,141 | ||||||||||||
| Interest and other income from real estate transactions |
3 | 461 | 17 | 497 | ||||||||||||
| Interest and other income from non-real estate |
— | 2 | — | 2 | ||||||||||||
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| 767 | 1,833 | 1,360 | 4,008 | |||||||||||||
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| Disposition of real estate: |
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| Gross proceeds |
— | 36,668 | 1,100 | 37,470 | ||||||||||||
| Costs |
— | (36,455 | ) | (998 | ) | (37,170 | ) | |||||||||
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| Gain |
— | 213 | 102 | 300 | ||||||||||||
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| Expenses: |
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| General and administrative |
3 | 19 | 7 | 56 | ||||||||||||
| Real estate |
184 | 380 | 338 | 1,421 | ||||||||||||
| Depreciation and amortization |
23 | 55 | 44 | 116 | ||||||||||||
| Interest |
340 | 943 | 680 | 1,886 | ||||||||||||
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| 550 | 1,397 | 1,069 | 3,479 | |||||||||||||
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| Income tax expense |
(70 | ) | (528 | ) | (114 | ) | (568 | ) | ||||||||
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| Earnings from discontinued operations including noncontrolling interests |
147 | 121 | 279 | 261 | ||||||||||||
| Loss (earnings) attributable to noncontrolling interests |
(33 | ) | 45 | (93 | ) | (31 | ) | |||||||||
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| Earnings from discontinued operations attributable to NNN |
$ | 114 | $ | 166 | $ | 186 | $ | 230 | ||||||||
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7
National Retail Properties, Inc.
(in thousands)
(unaudited)
| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||
| # of Properties |
Gain | # of Properties |
Gain | # of Properties |
Gain | # of Properties |
Gain | |||||||||||||||||||||||||
| Real Estate Disposition Summary |
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| Reconciliation of gain on disposition between continuing and discontinued operations: |
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| Continuing operations |
— | $ | — | 2 | $ | 641 | — | $ | — | 2 | $ | 641 | ||||||||||||||||||||
| Discontinued operations: |
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| Investment Portfolio |
— | 1 | 6 | 355 | 1 | 30 | 11 | 377 | ||||||||||||||||||||||||
| Inventory Portfolio |
— | — | 1 | 213 | 1 | 102 | 2 | 300 | ||||||||||||||||||||||||
| Noncontrolling interest, Inventory Portfolio |
— | — | — | (321 | ) | — | (46 | ) | — | (363 | ) | |||||||||||||||||||||
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| — | $ | 1 | 9 | $ | 888 | 2 | $ | 86 | 15 | $ | 955 | |||||||||||||||||||||
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8
National Retail Properties, Inc.
(in thousands)
(unaudited)
| June 30, 2011 |
December 31, 2010 |
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| Balance Sheet Summary |
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| Assets: |
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| Cash and cash equivalents |
$ | 3,588 | $ | 2,048 | ||||
| Receivables, net of allowance |
2,424 | 3,403 | ||||||
| Investment in unconsolidated affiliate |
4,423 | 4,515 | ||||||
| Mortgages, notes and accrued interest receivable |
32,402 | 30,331 | ||||||
| Real estate, Investment Portfolio: |
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| Accounted for using the operating method, net of accumulated depreciation and amortization |
2,603,827 | 2,519,950 | ||||||
| Accounted for using the direct financing method |
28,475 | 29,773 | ||||||
| Real estate, Inventory Portfolio, held for sale |
31,350 | 32,076 | ||||||
| Commercial mortgage residual interests |
16,245 | 15,915 | ||||||
| Accrued rental income, net of allowance |
25,386 | 25,535 | ||||||
| Other assets |
50,687 | 50,029 | ||||||
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| Total assets |
$ | 2,798,807 | $ | 2,713,575 | ||||
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| Liabilities: |
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| Line of credit payable |
$ | 219,200 | $ | 161,000 | ||||
| Mortgages payable |
23,728 | 24,269 | ||||||
| Notes payable - convertible, net of unamortized discount |
352,768 | 349,534 | ||||||
| Notes payable, net of unamortized discount |
598,983 | 598,882 | ||||||
| Other liabilities |
47,680 | 51,116 | ||||||
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| Total liabilities |
1,242,359 | 1,184,801 | ||||||
| Stockholders’ equity of NNN |
1,555,161 | 1,527,483 | ||||||
| Noncontrolling interests |
1,287 | 1,291 | ||||||
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| Total equity |
1,556,448 | 1,528,774 | ||||||
| Total liabilities and equity |
$ | 2,798,807 | $ | 2,713,575 | ||||
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| Common shares outstanding |
86,034 | 83,613 | ||||||
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| Gross leasable area, Investment Portfolio (square feet) |
13,623 | 12,972 | ||||||
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9
NNN Retail Properties Fund I LLC
(in thousands)
(unaudited)
In September 2007, the company entered into a joint venture, NNN Retail Properties Fund I LLC, with an affiliate of Crow Holdings Realty Partners IV, L.P. The company owns a 15 percent equity interest, and the following summary represents the Balance Sheet and Income Statement Summary for the joint venture. The company’s investment in the joint venture is included in the company’s Balance Sheet Summary under “Investment in unconsolidated affiliate.”
| June 30, 2011 |
December 31, 2010 |
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| Assets: |
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| Cash and cash equivalents |
$ | 505 | $ | 999 | ||||
| Receivables |
200 | 200 | ||||||
| Real estate |
71,503 | 72,095 | ||||||
| Other assets |
411 | 561 | ||||||
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| $ | 72,619 | $ | 73,855 | |||||
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| Liabilities: |
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| Notes payable |
$ | 43,000 | $ | 43,600 | ||||
| Other liabilities |
482 | 995 | ||||||
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| Total liabilities |
43,482 | 44,595 | ||||||
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| Members’ equity |
29,137 | 29,260 | ||||||
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| Total liabilities and equity |
$ | 72,619 | $ | 73,855 | ||||
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| Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues: |
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| Rental income |
$ | 1,565 | $ | 1,565 | $ | 3,130 | $ | 3,130 | ||||||||
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| Expenses: |
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| General and administrative |
112 | 77 | 185 | 184 | ||||||||||||
| Real estate |
5 | 5 | 10 | 10 | ||||||||||||
| Depreciation and amortization |
369 | 369 | 737 | 737 | ||||||||||||
| Interest |
452 | 456 | 907 | 903 | ||||||||||||
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| 938 | 907 | 1,839 | 1,834 | |||||||||||||
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| Net earnings |
$ | 627 | $ | 658 | $ | 1,291 | $ | 1,296 | ||||||||
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10
National Retail Properties, Inc.
Investment Portfolio
Top 20 Lines of Trade
| As of June 30, | ||||||||||
| Line of Trade |
2011 (1) | 2010 (2) | ||||||||
| 1. | Convenience stores | 23.1 | % | 26.2 | % | |||||
| 2. | Restaurants - full service | 10.7 | % | 9.2 | % | |||||
| 3. | Automotive parts | 7.7 | % | 6.8 | % | |||||
| 4. | Theaters | 5.8 | % | 6.2 | % | |||||
| 5. | Automotive service | 5.4 | % | 5.6 | % | |||||
| 6. | Sporting goods | 4.6 | % | 3.2 | % | |||||
| 7. | Restaurants - limited service | 4.1 | % | 3.2 | % | |||||
| 8. | Drug stores | 3.8 | % | 4.4 | % | |||||
| 9. | Books | 3.0 | % | 4.0 | % | |||||
| 10. | Health and fitness | 2.9 | % | 1.6 | % | |||||
| 11. | Grocery | 2.5 | % | 2.8 | % | |||||
| 12. | Consumer electronics | 2.4 | % | 2.7 | % | |||||
| 13. | Furniture | 2.2 | % | 2.6 | % | |||||
| 14. | Travel plazas | 2.2 | % | 2.4 | % | |||||
| 15. | Office supplies | 2.2 | % | 2.5 | % | |||||
| 16. | Family entertainment centers | 2.0 | % | 1.3 | % | |||||
| 17. | General merchandise | 1.6 | % | 1.3 | % | |||||
| 18. | Recreational vehicle dealers, parts and accessories | 1.3 | % | — | ||||||
| 19. | Financial services | 1.3 | % | 1.2 | % | |||||
| 20. | Beer, wine and liquor | 1.2 | % | 1.6 | % | |||||
| Other | 10.0 | % | 11.2 | % | ||||||
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| Total | 100.0 | % | 100.0 | % | ||||||
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Top 10 States
| (1) | Based on the annualized base rent for all leases in place as of June 30, 2011. |
| (2) | Based on the annualized base rent for all leases in place as of June 30, 2010. |
11
National Retail Properties, Inc.
Investment Portfolio
Top 10 Tenants
| Properties | % of Total(1) | |||||||
| Pantry |
96 | 8.0 | % | |||||
| Susser |
86 | 7.8 | % | |||||
| AMC Theatre |
15 | 5.3 | % | |||||
| Road Ranger |
34 | 3.5 | % | |||||
| Mister Car Wash |
40 | 3.3 | % | |||||
| Pull-A-Part |
20 | 3.1 | % | |||||
| Pep Boys |
17 | 2.9 | % | |||||
| LA Fitness |
8 | 2.8 | % | |||||
| Barnes & Noble |
9 | 2.3 | % | |||||
| Best Buy |
7 | 2.3 | % | |||||
Lease Expirations
| (1) | Based on the annual base rent of $242,014,000, which is the annualized base rent for all leases in place as of June 30, 2011. |
| (2) | Square feet. |
12