Investor Update 2009 - NNN REIT · Investor Update May 2015 Single Tenant Retail Property REIT with 25 Consecutive Years of Dividend Increases . ... the Company’s report on Form

Investor Update

May 2015

Single Tenant Retail Property REIT with

25 Consecutive Years of Dividend Increases

Safe Harbor

This presentation contains certain statements that are the Company’s and

Management’s hopes, intentions, beliefs, expectations, or projections of the

future and might be considered to be forward-looking statements under Federal

Securities laws. Prospective investors are cautioned that any such forward-

looking statements are not guarantees of future performance, and involve risks

and uncertainties. The company’s actual future results may differ significantly

from the matters discussed in these forward-looking statements, and we may

not release revisions to these forward-looking statements to reflect changes

after we’ve made the statements. Factors and risks that could cause actual

results to differ materially from expectations are disclosed from time to time in

greater detail in the company’s filings with the SEC including, but not limited to,

the Company’s report on Form 10-K, as well as company press releases.

2

4

NNN’s Unique Long Term Strategy

Consistent Predictable

Earnings Growth with Low Volatility

Strong Investment Grade Balance Sheet

Elite Level Long-Term Total Returns

Summary – Attributes, Advantages &

Risk Mitigation

High quality portfolio produces consistent results

High occupancy through cycle

Strong lease renewal rates with very little capital expenditure (not buying-up rent)

Long term, net leases adds stability to operating results

Quality comes from sustainable rents (market rent is barometer)

Balance sheet conservatism

In place long before 2008-09 (no dilutive equity issuances needed)

Below average leverage and strong liquidity to weather all environments

Unencumbered portfolio

No reliance on short term debt to drive per share results

Fixed rate debt focused to mitigate rising rate risks

Existing scale provides

High diversification (2,000+ properties)

Top exposure to every single-tenant retail acquisition prospect in sector

Low cost of capital relative to competitors

Indicators of competitive advantage

Equity multiple, credit spreads, dividend yield, etc.

Institutional ownership

Track record of annual dividend increases (25 years)

5

Summary – Attributes, Advantages &

Risk Mitigation

Proven, tenured management team with domain expertise

Top six executives – average NNN tenure 15 years (range 10-32 years)

Next five SVPs – average NNN tenure 16 years (range 6-23 years)

Sustainable model

Projections – no heroic assumptions (acquisitions volume, debt tenor, capital

pricing, etc.)

Managed market expectations – not promising more than delivered in the past

Market cycle tested over many years

Focused investment strategy (single-tenant retail) – no strategy drift into

multiple property types

Operating results are consistent and predictable

Balance sheet never under stress

Management manages for the long term

Above average total returns over 1-, 3-, 5-, 10-,15-, 20-, and 25-years with below

average risk profile

6

Core Competency Focus:

Single Tenant Retail Properties

Why Retail? (vs. multiple property types)

Higher lease renewal probability – better risk-adjusted returns

Retail tenants are more particular location driven than non-retail

Retail tenants are not likely to risk disrupting established

customer base to save moderate amounts of rent in new location

Particular location less meaningful to office / industrial tenants

(more commodity space, same zip code may work fine)

Higher renewal rates result in lower vacancy and lower TI =

higher and more consistent returns

Good retail locations provide deeper market for replacement tenants

Why Selective Non-Investment Grade Tenants (vs. investment grade focus)

Better pricing – higher cap rate, lower investment

Better rent growth over lease term

Durability of tenant credit can be fleeting

Opportunity for tenant credit improvement

7


Long-Term Track Record of Success

Q1 Highlights and Valuation

Low Risk Strategy Generates Consistent Growth

8

9

Focus on single-tenant net lease retail properties

Sustain high occupancy and maximize value of existing real estate assets

Maintain fully diversified portfolio

Grow through internal portfolio growth and well underwritten acquisitions

Utilize asset sales to manage risk, enhance value and partially finance

acquisitions

Preserve conservative balance sheet and financial flexibility through

access to multiple sources of capital and unsecured debt

Produce safe and growing dividends

Resulting in:

25 consecutive years of increased annual dividends

Total shareholder returns exceed REIT and general equity averages

over 1-, 5-, 10-, 15- and 20-year periods

Consistent and Simple Strategy

10

NNN’s Long-Term Retail Net Lease Strategy

Creates a Solid Foundation of Highly Predictable

Operating Income

NNN’s Disciplined Acquisition Approach

Generates Steady Earnings Growth Through

Higher Yields With Less Risk Than Development

and Other Acquisition Approaches

Strategy Generated 8+% FFO Per Share Growth in

2012, 2013 and 2014

11

Well selected retail tenants provide stronger performance through various economic

cycles than office, industrial or other tenant types.

Main street locations provide strong market for replacement tenants and rent

growth

Lower earnings volatility from higher occupancy (12 year low of 96.4%)

Retail properties more likely to renew lease at end of initial term

15-20-year terms, 11.5-year weighted average remaining lease term

Only 5.6% of leases expire through YE 2017

Tenants responsible for operating expenses, taxes and capital expenditures – no CAM

leakage

No anchor or co-tenancy issues for tenants to leverage into reduced rent

High Quality, Well-Diversified Portfolio

$5.6 billion total assets (gross book basis)

2,104 properties (23.1 million SF) in 47 states

400+ national and regional retail tenants

Top 25 tenants (60% of rent) average 1,612 stores each

Retail Net Lease Strategy Generates

a Reliable Income Stream with Low Volatility

NNN’s Strategy Results in

Higher Occupancy and Less Volatility

12

From 2003 – Q1 2015, NNN’s occupancy never fell below 96.4% while the REIT industry

average never rose above 94.0%.

Source: SNL Financial

85%

90%

95%

100%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015

NNN

REIT Industry (Ex Hotels & Health Care)

92.8%

90.8%

98.3%

97.4%

97.0%

92.1%

96.7%

92.0%

96.4%

90.5%

96.9%

90.1%

98.2%

93.5%

97.9%

90.7%

93.0% 93.5%

97.4%

98.3% 98.2%

92.0%

98.6%

92.0%

98.8%

*92.0%

*REIT Industry Average as of Q4 2014

NNN’s Acquisition Approach is Unique

Because It’s More Difficult

Acquisition quality over quantity requires selectivity, discipline and patience:

Small transactions in areas of historical expertise (retail) rather than

large portfolio transactions provides higher risk adjusted returns

Retail – NNN’s historical expertise generates higher and more

consistent operating results vs. other net lease and non-net lease

sectors

Approximately 25 relationships with managements of strong growing

retail concepts

Underwriting focuses on alternative uses upon future rollover and

current tenant strength

Multiple credit upgrades after NNN’s acquisition – 7-Eleven,

Sunoco, Bloomin’ Brands, Lowes, Susser, Wanda Group (AMC),

Advance Auto

Lease terms and conditions negotiated based on unique aspects of

location and tenant’s business and credit. Tenant “self selection”-

unlikely to sign a long-term lease on questionable store

13

NNN’s Unique Acquisition Approach

Generates Strong FFO Growth

Retail Net Lease market is very large yet has less buyer competition

than other property types because properties are smaller

NNN’s more focused relationship based acquisition approach is more

difficult and time consuming further resulting in less buyer competition

Less buyer competition results in higher initial cap rates and built in rent

growth (see page 15)

Careful targeting and underwriting of management and the future

prospects of our retail tenants is supported by:

Consistently high portfolio occupancy; and

Multiple credit upgrades realized by relationship tenants

Consistently high portfolio occupancy results in less earnings volatility

All of the above generate greater per share accretion from lower

acquisition volumes and allows NNN to continue to acquire accretively,

despite cap rate compression and increased interest rates

14

15

2010 – 2014 Acquisitions Volume

in $ Millions by Source

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

$650

$700

$750

$800

$850

2010 2011 2012 2013 2014

Relationship @ 8.4% Average Cap Rate ($1,908 million = 64%)

Market / Auction @ 7.6% Average Cap Rate ($1,057 million = 36%)

Acquisition Source:

$238

$221

$17

$772

$552

$220

$707

$513

$194

$630

$293

$337

$333

$285

$618

Historical Acquisition Volume at Weighted Average Initial Cap Rates*

NNN Has Consistently Generated Strong Acquisition

Volumes at Significantly Higher Cap Rates

than Other REIT Property Types

* Plus approximately 1.5 % annual rent growth

$0

$100

$200

$300

$400

$500

$600

$700

$800

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(Mil

lio

ns

) [Gu

ida

nc

e]

9.5%

9.5% 8.8%

9.0%

8.4%

9.4%

8.4%

8.3%

16

7.8% 7.5%

7.0%

Triple Net vs. Gross Lease Return Profile

NNN produces higher initial return with lower volatility than typical gross

lease investments

17

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Cap

Rate

(R

etu

rn)

Year

Net Lease Retail (1.5% NOI Growth) Gross Lease (2.7% NOI Growth) Flat Net Lease

Excludes volatility and lower

return from vacancy and tenant

improvements





18

Strong Investment Grade Balance Sheet –

Risk Management is a Core Competency

Investment-grade debt rating (BBB+ / Baa1 / BBB+) supported by industry

leading leverage ratios

99% of assets unencumbered - only $25.9 million of secured debt

Well-laddered debt maturities

$650 million unsecured bank credit line (accordion to $1.0 billion)

Outstanding balance of $41.9 million as of 3/31/15

Matures January 2019, plus one-year extension at NNN’s option

Priced at LIBOR + 92.5 bps

Raised $48.7 million of common equity in Q1 2015

Raised $350 million of common equity in 2014

19

Conservative Balance Sheet Management

(As of March 31, 2015- total gross book assets)

20

Secured debt - $25.9 million

Unsecured debt - $1,756.9 million

Preferred equity - $575.0 million

Common equity - $3,097.1 million

Total Capitalization: $5,454.9 million (gross book)

Interest coverage ratio: 4.6x

Fixed-Charge coverage ratio: 3.3x

Unsecured Debt

32.2%

Secured Debt 0.5%

Preferred Equity 10.5% Common

Equity 56.8%

Credit Metrics Summary

21

2010 2011 2012 2013 2014

March

2015

Total debt / Total assets (gross book) 39.2% 37.0% 37.5% 32.9% 32.6% 32.7%

Total debt + preferred / Total assets (gross book) 42.3% 39.5% 44.3% 44.9% 43.3% 43.2%

Market Cap Leverage 33.9% 33.3% 31.0% 28.2% 24.2% 23.9%

Debt / EBITDA (last quarter annualized) 5.5 5.3 5.1 4.3 4.2 4.3

Debt / EBITDA (last four quarters) 5.6 5.9 5.3 4.5 4.5 4.5

EBITDA / Interest expense (cash) 3.2 3.2 3.7 4.1 4.4 4.60

EBITDA / Fixed charges (cash) 2.9 2.9 3.0 3.1 3.1 3.30

Unencumbered assets / Total assets (gross book) 98% 99% 99% 99% 99% 99%

Bank line usage (millions) 161$ 66$ 174$ 46$ -$ 42$

Bank line availability (millions) 239$ 384$ 326$ 454$ 650$ 608$

Capital Raised:

Common equity (millions), net 18$ 521$ 183$ 264$ 350$ 49$

Preferred equity (millions), net -$ -$ 278$ 278$ -$ -$

Unsecured notes (millions), gross -$ 300$ 325$ 350$ 350$ -$

Secured debt (millions), gross 5$ -$ 7$ -$ 17$ -$

Property dispositions net proceeds 59$ 13$ 81$ 61$ 55$ 23$

Acquisition Funding (2011 – 2014)

22

Asset Sales $0.2

Acquisitions $2.7

Common Equity $1.3

Preferred Equity $0.6

Long-Term Debt, net $0.6

$-

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

Sources Acquisitions

in b

illio

ns

Over past four years, 76% of acquisitions funded with permanent capital while growing AFFO per share 33% (7.4% per year)

76% of

acquisitions

funded with

permanent

capital

Debt / TTM EBITDA

Source: Citi Investment Research

23

NNN’s Lower Risk Operating Strategy is Complemented by it’s Low

Leverage Balance Sheet Strategy

0

2

4

6

8

10

12

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(March 31, 2015)

24

Well-Laddered Debt Maturities(a)

NNN’s Low Leverage Balance Sheet Strategy is Enhanced by it’s Well

Laddered Debt Maturities

5.2%

6.2%

5.9%

6.9%

5.8% 5.5%

5.7% 4.0%

3.4%

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

3.9%

(a) Excludes $650 million bank line of credit maturing January 2019 ($41.9 million at March 31, 2015)

NNN in a Rising Interest Rate Environment

NNN is better positioned to successfully execute its strategy than

its triple-net and non-triple net peers in a rising interest rate

environment

NNN’s historically higher acquisition cap rates (8.2% since 2010; 7.3% recent

acquisitions) create much more room for spread compression before

acquisitions cease being accretive

Less exposure to refinancing risk – from low leverage balance sheet

No floating rate debt - NNN bank line of credit which has zero outstanding

balance at 12/31/14

Less than $160 million of debt maturing through 2016 which can currently be

refinanced at lower interest rates ($150 million 6.25% notes due June 2014

were paid off with proceeds from $350 million 3.90% notes issued May 2014)

Well laddered debt maturities limits a particular year’s exposure to rate spikes

25





26

27

NNN Consistently Outperforms the

REIT Industry and the Major Indices

NNN Outperforms 1 Year 3 Years 5 Years 10 Years 15 Years 20 Years 25 Years

(NNN = $40.97 at 03/31/15)

National Retail Properties (NNN) 24.7% 20.2% 18.4% 14.9% 17.3% 14.4% 15.9%

Indices

* NAREIT Equity REIT Index (FNERTR) 22.7% 14.0% 15.6% 9.5% 12.8% 11.7% 11.6%

* Morgan Stanley REIT Index (RMS G) 24.2% 14.2% 15.9% 9.7% 12.7% 11.7% n/a

S&P 500 Index (SPX) 12.7% 16.0% 14.4% 8.0% 4.1% 9.4% 9.8%

Nasdaq (CCMP) 18.2% 18.2% 16.8% 10.6% 1.4% 10.2% 10.2%

* S&P 400 Index (MID) 12.1% 16.9% 15.7% 10.3% 9.1% 12.7% n/a

S&P 600 Index (SML) 8.7% 17.2% 16.2% 9.6% 9.7% 11.6% n/a

* Russell 1000 Index (RIY) 12.7% 16.4% 14.7% 8.3% 4.4% 9.6% 7.8%

* Russell 1000 Value Index (RLV) 9.3% 16.4% 13.7% 7.2% 6.5% 9.9% n/a

Russell 2000 Index (RTY) 8.2% 16.2% 14.5% 8.8% 7.2% 9.6% 8.5%

Russell 2000 Value Index (RUJ) 4.4% 14.7% 12.5% 7.5% 10.1% n/a n/a

* NNN is a member of this index (deleted from S&P 600 and added to S&P 400 in Dec. 2011; deleted from Russell 2000 and added to Russell 1000 in June 2012)

Long-Term Dividend History

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

$1.60

$1.70

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Div

ide

nd

s P

er

Sh

are

25 consecutive years of annual dividend increases –

Fourth longest of all public REITs and 98% of all public companies

28

NOTE: 2015 projected based on current dividend rate





29

30

Recurring FFO per share increased 5.9% to $0.54

Dividend yield at March 31, 2015 of 4.1%

Maintained high level of occupancy at 98.8%

Invested $155.2 million in 56 properties @ average 7.3% cap rate (initial cash yield)

Sold 6 properties for $23.3 million producing $7.1 million of gains on sale

(not included in FFO)

Generated 15.9% total return annually for the past 25 years

Increased dividend per share for 25th consecutive year

Reduced dividend payout to 76% of AFFO

Maintained significant balance sheet capacity for future acquisitions



NNN’s Multiple Does Not Reflect its Unique

Advantage of Low Risk / Consistent Growth

2015 AFFO Per Share Multiples

31

5

10

15

20

25

30

35

CBL

AR

CP

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REIT Industry Dividend Yields

NNN’s Dividend Yield does not reflect its:

25 consecutive years of annual dividend increases with a falling

payout ratio;

Superior operating risk profile and growth strategy; and

Investment-grade debt rating (BBB+ / Baa1 / BBB+)

and sector leading leverage ratios.


32

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Appendix

33

NNN Attributes

Triple-net long-term leases

Small properties – typically $2 to $4 million investment size

High land value per asset

Net leases reduce volatility of returns – rent growth drops to bottom line

Large universe of investment opportunities

Fragmented non-institutional competition; NNN is a clear leader

Structured sale-leaseback acquisitions at great initial cap rates

Excellent capital recycling track record

Strong balance sheet with limited near-term maturities

Solid earnings profile with lower risk

25 consecutive years of increased annual dividends while reducing

payout ratio

34

Diversification Reduces Risk

2,104 Properties

400+ Tenants

47 States

(As a percentage of base rent – March 31, 2015)

South

24.1%

Rocky

Mountain

6.3%

West

4.4%

Northeast

14.6%

Southeast

27.5%

Midwest

23.1%

35

Lease Expirations

(As a percentage of base rent – March 31, 2015)

36

0%

10%

20%

30%

40%

50%

60%

70%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

The

rea

fte

r

Weighted average remaining lease term of 11.5 years

Only 5.6% of leases expire through 2017

Acquisition Accretion

37

5.50%

6.00%

6.50%

7.00%

7.50%

8.00%

8.50%

9.00%

9.50%

- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000

Ca

p R

ate

Acquisition Volume ($000s)

Accretion Equivalents to First Half 2014 Acquisitions $186 million at 7.6% Cap Rate

(Leverage Neutral)

First Half 2014 Actual

All points on line create the same amount of

leverage neutral accretion per share

Cost of Capital

38

Driving Per Share Growth -- Cost of Capital Views

"Economic / Expected Return Cost" "Cash / Accounting Cost"

(inverse of FFO multiple driven)

Dividend yield 5.0%

Dividend per share growth 3.0 - 4.0%

FFO per share growth 4.0 - 5.0%

Weighting Cost Wtd Avg Weighting Cost Wtd Avg

Debt 33.2% 4.250% 1.41% Debt 33.2% 4.250% 1.41%

Preferred 11.3% 6.163% 0.70% Preferred 11.3% 6.163% 0.70%

Common 55.5% 8.500% 4.72% Common 55.5% 6.000% 3.33%

100.0% 6.82% 100.0% 5.44%

2007 through 2014:

87% of leases renewed – 221 leases out of 254 (97 tenants)

56% above prior rent, 29% below prior rent and 15% at prior rent

93% ($32.4 million) of prior rent ($34.9 million) – excluding 12 outliers, 98.4% of prior rent

$338k of T.I./capital expenditures – not inclined to “buy” higher rent

39

Historical Lease Renewals

23 Leases (95% of Prior) 19 Leases

(107% of Prior)

22 Leases (87% of Prior)






$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

$5,500,000

$6,000,000

$6,500,000

$7,000,000

$7,500,000

$8,000,000

$8,500,000

2007 2008 2009 2010 2011 2012 2013 2014

T.I

. / C

ap

ital E

xp

en

dit

ure

s

An

nu

al

Ren

t

Prior Rent Renewal Rent T.I. / Capital Expenditures

Top 20 Lines of Trade

(As of March 31, 2015)

40

1. Convenience stores 17.7% 445 61 24

2. Restaurants - full service 9.0% 220 77 38

3. Automotive service 7.2% 187 14 25

4. Restaurants - limited service 6.9% 264 76 32

5. Theaters 5.1% 29 8 15

6. Family entertainment centers 5.1% 73 3 23

7. Automotive parts 4.6% 184 3 37

8. Health and fitness 3.8% 25 8 12

9. Sporting goods 3.7% 22 7 13

10. Banks 3.6% 124 5 10

11. RV dealers, parts and accessories 3.3% 28 1 17

12. Wholesale clubs 2.8% 7 1 5

13. Drug stores 2.4% 38 4 16

14. Consumer electronics 2.4% 20 2 13

15. Travel plazas 2.3% 29 7 9

16. Grocery 2.1% 23 12 15

17. Medical service providers 2.0% 53 16 13

18. Home improvement 1.9% 19 10 11

19. Home furnishings 1.8% 17 6 13

20. General merchandise 1.6% 55 14 15

Other 10.7% 242 111 44

Total 100.0% 2,104

Number of

Tenants

Number of

StatesLine of Trade

Percentage

of Base Rent

Number of

Properties

Line of Trade Concentrations

(Concentrations over 10% as a percentage of base rent: 1996 – March, 31 2015)

41

26

.7%

19

.5%

18

.9%

14

.9%

14

.1%

13

.9%

11

.1%

10

.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

ConvenienceStores

Books Restaurants Drug Stores Grocery ConsumerElectronics

Sporting Goods Office Supplies

03-31-15 Maximum Minimum

Top Tenants

42

Rent Coverage

Range 1.9x -- 4.5x

Average 2.9x

Weighted Average 3.1x

Fixed Charge Coverage

Range 1.4x -- 3.6x

Average 2.2x

Weighted Average 2.3x

Properties % Base Rent

Energy Transfer Partners (Sunoco) 125 6.4%

Mister Car Wash 87 4.5%

Pantry 86 3.9%

7-Eleven 78 3.9%

LA Fitness 22 3.8%

SunTrust 121 3.5%

Camping World 28 3.3%

AMC Theatre 15 3.1%

Chuck E. Cheese's 53 3.0%

BJ's Wholesale Club 7 2.8%

Gander Mountain 11 2.4%

Best Buy 19 2.3%

NNN Acquisitions Approach

has Multiple Advantages

Acquiring properties directly from tenants produces more efficient pricing

and higher initial returns

NNN assesses discrete risks vs.

More risks/unknowns in value-add, development, or

Typical lower yielding real estate investment

Each deal is structured based on its unique characteristics:

Real estate attributes, tenant corporate credit analysis, asset (store)

level data

43

NNN Approach to Net Lease Acquisitions

Real Estate

Attributes Corporate

Credit

Competitive positioning

Management team track

record / vision

Credit analysis / leverage

profile

Pending maturities

Use of transaction

proceeds

Fixed charge and rent

coverage

Property location

Underlying land value

Area demographics

Market rent / similar

transaction comparables

Location of competitors

Alternative use

Replacement cost analysis

Local market conditions

Parking

Access

Co-tenants

Visibility

Traffic counts

Age of improvements

Historical sales and

profitability

Sales & Profit trends

Revenue drivers and margins

Rent as a % of Sales

Corp. G & A allocation

Rent coverage

Comparison with similar

stores

Remaining lease term

Newest prototype

Capital markets

environment

Current conditions in

tenants’ industry /

market(s)

Local and national

economy

NNN cost of capital

Cap rate trends

Legislative risk

Transaction

Proceeds &

Terms

Asset-Level

Performance

Market

Conditions

Due Diligence and Determination of Proceeds & Terms

The chart to the right summarizes our areas of focus, which: a) determine our interest in a transaction, and b) drive our specific negotiation of the terms, rates and proceeds for each deal

This sale-leaseback approach to acquisitions produces multiple advantages for NNN versus many of our REIT peers, and particularly our shopping center / mall REIT competitors

Our ability to assess these discrete risks in a single-tenant, sale-leaseback transaction has allowed us to execute transactions with very efficient pricing, higher initial returns and more stable cash flows versus the higher and greater unknowns associated with: a) value-add investing, b) new construction / development transactions, and / or, c) lower-yielding, core retail investment strategies

44

Highly productive proprietary www.nnn1031.com website enables property

sales at premium retail pricing, at volumes far above other triple-net

sellers:

Standardizes downloadable due diligence information and contracts

Technologically sophisticated but user friendly

Low cost to maintain

Since 2005, sold 421 properties generating net proceeds over $1.3 billion

Disposition expertise provides ability to sell properties:

That do not meet hold criteria

To better control tenant and line of trade concentrations

Making NNN a more attractive buyer

Enhances acquisitions returns via higher effective cap rate on

retained properties

45

NNN’s Proven Disposition Platform –

Strengthens Portfolio Quality and Long-Term Earning by

Reinvesting at Higher Return Rates

http://www.nnn1031.com/

National Retail Properties, Inc.

(NYSE: NNN)

800-NNN-REIT

www.nnnreit.com

Investor Update 2009 - NNN REIT · Investor Update May 2015 Single Tenant Retail Property REIT with 25 Consecutive Years of Dividend Increases . ... the Company’s report on Form

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