EX-12 2 nnn-20171231xexhibit12.htm EXHIBIT 12
NATIONAL RETAIL PROPERTIES, INC. AND SUBSIDIARIES
EXHIBIT 12
CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES
The following table sets forth the Company's consolidated ratios of earnings to fixed charges for the periods as shown (dollars in thousands).

|  | 2017 (1) |  | 2016 |  | 2015 |  | 2014 |  | 2013
Pretax income from continuing operations before income from equity investees |  | $ | 265,371 |  |  | $ | 239,506 |  |  | $ | 208,386 |  |  | $ | 191,289 |  |  | $ | 155,631 |
Add: |  |  |  |  |  |  |  |  |  |
Fixed charges (excluding capitalized interest) |  | 108,930 |  |  | 96,168 |  |  | 89,973 |  |  | 85,514 |  |  | 85,912 |
Distributed income from equity investees |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Pretax earnings from operations, as adjusted |  | $ | 374,301 |  |  | $ | 335,674 |  |  | $ | 298,359 |  |  | $ | 276,803 |  |  | $ | 241,543 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |
Interest on indebtedness |  | $ | 101,811 |  |  | $ | 89,057 |  |  | $ | 84,080 |  |  | $ | 80,370 |  |  | $ | 79,175 |
Capitalized interest |  | 2,435 |  |  | 1,738 |  |  | 2,383 |  |  | 1,628 |  |  | 1,369 |
Amortization of net discount relating to indebtedness |  | 1,702 |  |  | 1,246 |  |  | 1,100 |  |  | 1,238 |  |  | 3,188 |
Amortization of interest rate hedges |  | 1,932 |  |  | 2,802 |  |  | 1,902 |  |  | 1,129 |  |  | 438 |
Amortization of deferred charges |  | 3,485 |  |  | 3,063 |  |  | 2,891 |  |  | 2,777 |  |  | 3,111 |
Fixed charges |  | $ | 111,365 |  |  | $ | 97,906 |  |  | $ | 92,356 |  |  | $ | 87,142 |  |  | $ | 87,281 |
Ratio of earnings to fixed charges |  | 3.36 |  |  | 3.43 |  |  | 3.23 |  |  | 3.18 |  |  | 2.77 |
Fixed charges |  | $ | 111,365 |  |  | $ | 97,906 |  |  | $ | 92,356 |  |  | $ | 87,142 |  |  | $ | 87,281 |
Preferred stock dividends |  | 37,925 |  |  | 38,623 |  |  | 35,434 |  |  | 35,434 |  |  | 27,923 |
Combined fixed charges and preferred stock dividends |  | $ | 149,290 |  |  | $ | 136,529 |  |  | $ | 127,790 |  |  | $ | 122,576 |  |  | $ | 115,204 |
Ratio of earnings to combined fixed charges and preferred stock dividends |  | 2.51 |  |  | 2.46 |  |  | 2.33 |  |  | 2.26 |  |  | 2.10 |

(1) Excluding the effect of $7,845 in retirement severance costs, ratio of earnings to fixed charges would have been 3.43x and the ratio of earnings to combined fixed charges and preferred stock dividends would have been 2.56x. Retirement severance costs relate primarily to Craig Macnab's retirement as CEO on April 28, 2017.