Business description of NNN-REIT-INC from last 10-k form

2010

       Investment    
Assets
        Inventory    
Assets
        Eliminations    
(Intercompany)
        Consolidated    
Totals
 

External revenues

   $ 223,870      $ (40   $ -      $ 223,830   

Intersegment revenues

     671        534        (1,205     -   

Interest revenue

     3,231        48        -        3,279   

Interest revenue on Residuals

     3,460        -        -        3,460   

Gain on the disposition of real estate, Inventory Portfolio

     -        426        215        641   

Retail operations, net

     1,311        -        -        1,311   

Interest expense

     67,834        (1,450     (1,205     65,179   

Depreciation and amortization

     48,320        8        -        48,328   

Operating expenses

     31,983        4,329        -        36,312   

Impairment losses and other charges

     7,458        260        (260     7,458   

Impairment – commercial mortgage residual interests valuation adjustment

     3,995        -        -        3,995   

Equity in earnings of unconsolidated affiliate

     (372     -        800        428   

Income tax benefit (expense)

     (1,434     959        -        (475
                                

Earnings (loss) from continuing operations

     71,147        (1,220     1,275        71,202   

Earnings from discontinued operations, net of income tax expense

     1,859        292        -        2,151   
                                

Earnings (loss) including noncontrolling interests

     73,006        (928     1,275        73,353   

Earnings attributable to noncontrolling interests from continuing operations

     (9     (358     -        (367

Earnings attributable to noncontrolling interests from discontinued operations

     -        11        -        11   
                                

Net earnings (loss) attributable to NNN

   $ 72,997      $ (1,275   $ 1,275      $ 72,997   
                                

Assets

   $         2,846,036      $         38,997      $             (171,458   $           2,713,575   
                                

Additions to long-lived assets:

        

Real estate

   $ 230,928      $ 478      $ -      $ 231,406   
                                

2008

       Investment    
Assets
        Inventory    
Assets
        Eliminations    
(Intercompany)
        Consolidated    
Totals
 

External revenues

   $ 217,682      $ 204      $ -      $ 217,886   

Intersegment revenues

     12,727        606        (13,333     -   

Interest revenue

     8,190        -        -        8,190   

Interest revenue on Residuals

     4,636        -        -        4,636   

Gain on the disposition of real estate, Inventory Portfolio

     -        (308     329        21   

Interest expense

     69,763        7,442        (13,241     63,964   

Depreciation and amortization

     43,626        42        -        43,668   

Operating expenses

     25,489        9,538        -        35,027   

Impairment losses and other charges

     1,234        -        -        1,234   

Impairments – commercial mortgage residual interests valuation adjustment

     758        -        -        758   

Equity in earnings of unconsolidated affiliates

     (2,785     -        3,149        364   

Loss on derivative instrument

     (804     -        -        (804

Gain on extinguishment of debt

     4,961        -        -        4,961   

Income tax benefit

     1,329        5,926        -        7,255   
                                

Earnings (loss) from continuing operations

     105,066        (10,594     3,386        97,858   

Earnings from discontinued operations, net of income tax expense

     12,914        9,199        -        22,113   
                                

Earnings including noncontrolling interests

     117,980        (1,395     3,386        119,971   

Loss (earnings) attributable to noncontrolling interests from continuing operations

     (827     731        -        (96

Earnings attributable to noncontrolling interests from discontinued operations

     -        (2,722     -        (2,722
                                

Net earnings (loss) attributable to NNN

   $ 117,153      $ (3,386   $ 3,386      $ 117,153   
                                

Assets

   $         2,650,040      $         128,916      $             (129,485   $           2,649,471   
                                

Additions to long-lived assets:

        

Real estate

   $ 352,618      $ 33,745      $ -      $ 386,363   
                                
NATIONAL RETAIL PROPERTIES, INC.

By:

     /s/ Craig Macnab
    Craig Macnab
    Chairman of the Board and Chief Executive Officer