nnnlogo20190630a05.jpg    

NEWS RELEASE
For information contact:
Kevin B. Habicht
Chief Financial Officer
(407) 265-7348    FOR IMMEDIATE RELEASE
October 31, 2019

THIRD QUARTER 2019 OPERATING RESULTS AND 2020 GUIDANCE
ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, October 31, 2019 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and nine months ended September 30, 2019. Highlights include:

Operating Results:
•
Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:
 
Quarter Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in thousands, except per share data)
Revenues
$
168,607

 
$
155,331

 
$
497,111

 
$
463,683

 
 
 
 
 
 
 
 
Net earnings available to common stockholders
$
58,111

 
$
73,450

 
$
199,648

 
$
230,140

Net earnings per common share
$
0.35

 
$
0.47

 
$
1.22

 
$
1.48

 
 
 
 
 
 
 
 
FFO available to common stockholders
$
115,013

 
$
105,134

 
$
336,215

 
$
312,847

FFO per common share
$
0.70

 
$
0.67

 
$
2.06

 
$
2.02

 
 
 
 
 
 
 
 
Core FFO available to common stockholders
$
115,013

 
$
105,356

 
$
334,884

 
$
313,590

Core FFO per common share
$
0.70

 
$
0.67

 
$
2.05

 
$
2.02

 
 
 
 
 
 
 
 
AFFO available to common stockholders
$
116,870

 
$
106,997

 
$
340,119

 
$
315,180

AFFO per common share
$
0.71

 
$
0.68

 
$
2.09

 
$
2.03


Third Quarter 2019 Highlights:
•
FFO and Core FFO per common share increased 4.5% over prior year results
•
AFFO per common share increased 4.4% over prior year results
•
Portfolio occupancy was 99.1% at September 30, 2019 as compared to 98.8% on June 30, 2019 and 98.2% on March 31, 2019
•
Invested $116.8 million in property investments, including the acquisition of 27 properties with an aggregate 533,000 square feet of gross leasable area at an initial cash yield of 6.8%
•
Sold 13 properties for $33.5 million producing $2.1 million of gains on sales
•
Raised $434.6 million net proceeds from the issuance of 8,020,285 common shares




Highlights for the nine months ended September 30, 2019:
•
FFO per share increased 2.0% over prior year results
•
Core FFO per share increased 1.5% over prior year results
•
AFFO per common share increased 3.0% over prior year results
•
Invested $509.6 million in property investments, including the acquisition of 131 properties with an aggregate 2,645,000 square feet of gross leasable area at an initial cash yield of 6.9%
•
Sold 43 properties for $94.8 million producing $25.1 million of gains on sales, net of noncontrolling interest
•
Raised $521.8 million in net proceeds from issuance of 9,653,149 common shares

Core FFO guidance for 2019 was increased from a range of $2.71 to $2.76 per share to a range of $2.74 to $2.77 per share. The 2019 AFFO is estimated to be $2.79 to $2.82 per share. The Core FFO guidance equates to net earnings of $1.60 to $1.63 per share, plus $1.14 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, any charges for impairments and preferred stock redemption charges. 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.

The company also announced 2020 Core FFO guidance of $2.83 to $2.87 per share and estimated 2020 AFFO to be $2.90 to $2.94 per share. The Core FFO guidance equates to net earnings of $1.70 to $1.74 per share, plus $1.13 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate, and any charges for impairments. 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.

Jay Whitehurst, Chief Executive Officer, commented: “National Retail Properties posted another quarter of solid results, highlighted by increasing our annual common stock dividend for the 30th consecutive year and by raising over $434 million of well-priced equity. Driven by our high occupancy rate, strong performance in acquisitions and dispositions and a fortress-like balance sheet, we are pleased to raise our guidance for 2019 and to introduce 2020 guidance.  We run our business with a long-term focus, characterized by consistent per share growth on a multi-year basis, and our guidance for 2019 and 2020 reflects that consistent philosophy.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2019, the company owned 3,057 properties in 48 states with a gross leasable area of approximately 32.2 million square feet and with a weighted average remaining lease term of 11.2 years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on October 31, 2019, 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. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated," or other similar words or expressions. 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 the company's tenants, the availability of capital, and, risks related to the company's status as a REIT. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the company’s Securities and Exchange Commission (the "Commission”) 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 Commission. 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, Inc. 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 on Form 10-Q with the Commission for the quarter and nine months ended September 30, 2019. In the opinion of management, all adjustments considered necessary for a fair presentation of these 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

2

including losses), any applicable taxes and noncontrolling interests on the disposition of certain assets, the company’s share of these items from the company’s unconsolidated partnerships and any impairment charges on a depreciable real estate asset.

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.

Core Funds From Operations (“Core FFO”) is a non-GAAP measure of operating performance that adjusts FFO to eliminate the impact of certain GAAP income and expense amounts that the company believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the REIT industry, and management believes that presentation of Core FFO provides investors with a potential metric to assist in their evaluation of the company’s operating performance across multiple periods and in comparison to the operating performance of its peers because it removes the effect of unusual items that are not expected to impact the company’s operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of the company’s core business operations and is a factor in determining management compensation. Items included in calculating FFO that may be excluded in calculating Core FFO may include items like transaction related gains, income or expense, impairments on land or commercial mortgage residual interests, preferred stock redemption costs or other non-core amounts as they occur. The company’s computation of Core FFO may differ from the methodology for calculating Core 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 Core FFO 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 adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. AFFO 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 AFFO a useful supplemental measure of the company’s performance. The company’s computation of AFFO may differ from the methodology for calculating AFFO 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 AFFO is included in the financial information accompanying this release.


3

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Income Statement Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Rental income
 
$
168,224

 
$
154,656

 
$
495,846

 
$
462,570

Interest and other income from real estate transactions
 
383

 
675

 
1,265

 
1,113

 
 
168,607

 
155,331

 
497,111

 
463,683

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
General and administrative
 
8,726

 
8,543

 
27,524

 
25,980

Real estate
 
6,706

 
5,759

 
20,398

 
17,449

Depreciation and amortization
 
48,348

 
42,479

 
140,769

 
130,280

Impairment losses – real estate, net of recoveries
 
10,692

 
3,635

 
21,124

 
9,718

Retirement severance costs
 
—

 
222

 
—

 
743

 
 
74,472

 
60,638

 
209,815

 
184,170

Gain on disposition of real estate
 
2,061

 
14,348

 
25,508

 
57,050

Earnings from operations
 
96,196

 
109,041

 
312,804

 
336,563

 
 
 
 
 
 
 
 
 
Other expenses (revenues):
 
 
 
 
 
 
 
 
Interest and other income
 
(501
)
 
(195
)
 
(2,912
)
 
(258
)
Interest expense
 
29,948

 
27,194

 
89,716

 
80,906

Leasing transaction costs
 
51

 
—

 
178

 
—

 
 
29,498

 
26,999

 
86,982

 
80,648

 
 
 
 
 
 
 
 
 
Net earnings
 
66,698

 
82,042

 
225,822

 
255,915

Earnings attributable to noncontrolling interests
 
(5
)
 
(10
)
 
(428
)
 
(29
)
 
 
 
 
 
 
 
 
 
Net earnings attributable to NNN
 
66,693

 
82,032

 
225,394

 
255,886

Series E preferred stock dividends
 
(4,097
)
 
(4,097
)
 
(12,291
)
 
(12,291
)
Series F preferred stock dividends
 
(4,485
)
 
(4,485
)
 
(13,455
)
 
(13,455
)
Net earnings available to common stockholders
 
$
58,111

 
$
73,450

 
$
199,648

 
$
230,140

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
164,884

 
156,853

 
162,641

 
154,582

Diluted
 
165,362

 
157,286

 
163,126

 
155,008

 
 
 
 
 
 
 
 
 
Net earnings per share available to common stockholders:
 
 
 
 
 
 
 
 
Basic
 
$
0.35

 
$
0.47

 
$
1.23

 
$
1.49

Diluted
 
$
0.35

 
$
0.47

 
$
1.22

 
$
1.48




4

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Funds From Operations (FFO) Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
58,111

 
$
73,450

 
$
199,648

 
$
230,140

Real estate depreciation and amortization
 
48,271

 
42,397

 
140,539

 
130,039

Gain on disposition of real estate, net of noncontrolling interests
 
(2,061
)
 
(14,348
)
 
(25,096
)
 
(57,050
)
Impairment losses – depreciable real estate, net of recoveries
 
10,692

 
3,635

 
21,124

 
9,718

Total FFO adjustments
 
56,902

 
31,684

 
136,567

 
82,707

FFO available to common stockholders
 
$
115,013

 
$
105,134

 
$
336,215

 
$
312,847

 
 
 
 
 
 
 
 
 
FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.70

 
$
0.67

 
$
2.07

 
$
2.02

Diluted
 
$
0.70

 
$
0.67

 
$
2.06

 
$
2.02

 
 
 
 
 
 
 
 
 
Core Funds From Operations Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
58,111

 
$
73,450

 
$
199,648

 
$
230,140

Total FFO adjustments
 
56,902

 
31,684

 
136,567

 
82,707

FFO available to common stockholders
 
115,013

 
105,134

 
336,215

 
312,847

 
 
 
 
 
 
 
 
 
Retirement severance costs
 
—

 
222

 
—

 
743

Gain on sale of equity investments
 
—

 
—

 
(1,331
)
 
—

Total Core FFO adjustments
 
—

 
222

 
(1,331
)
 
743

Core FFO available to common stockholders
 
$
115,013

 
$
105,356

 
$
334,884

 
$
313,590

 
 
 
 
 
 
 
 
 
Core FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.70

 
$
0.67

 
$
2.06

 
$
2.03

Diluted
 
$
0.70

 
$
0.67

 
$
2.05

 
$
2.02

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

5

National Retail Properties, Inc.
(in thousands, except per share data)
(unaudited)

 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Adjusted Funds From Operations (AFFO) Reconciliation:
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
 
$
58,111

 
$
73,450

 
$
199,648

 
$
230,140

Total FFO adjustments
 
56,902

 
31,684

 
136,567

 
82,707

Total Core FFO adjustments
 
—

 
222

 
(1,331
)
 
743

Core FFO available to common stockholders
 
115,013

 
105,356

 
334,884

 
313,590

 
 
 
 
 
 
 
 
 
Straight-line accrued rent
 
(542
)
 
59

 
(1,702
)
 
(871
)
Net capital lease rent adjustment
 
170

 
192

 
508

 
655

Below-market rent amortization
 
(178
)
 
(219
)
 
(579
)
 
(2,334
)
Stock based compensation expense
 
2,734

 
2,205

 
7,805

 
6,640

Capitalized interest expense
 
(327
)
 
(596
)
 
(797
)
 
(2,500
)
Total AFFO adjustments
 
1,857

 
1,641

 
5,235

 
1,590

AFFO available to common stockholders
 
$
116,870

 
$
106,997

 
$
340,119

 
$
315,180

 
 
 
 
 
 
 
 
 
AFFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.71

 
$
0.68

 
$
2.09

 
$
2.04

Diluted
 
$
0.71

 
$
0.68

 
$
2.09

 
$
2.03

 
 
 
 
 
 
 
 
 
Other Information:
 
 
 
 
 
 
 
 
Rental income from operating leases(1)
 
$
163,673

 
$
150,418

 
$
482,306

 
$
449,216

Earned income from direct financing leases(1)
 
$
204

 
$
242

 
$
624

 
$
696

Percentage rent(1)
 
$
329

 
$
284

 
$
1,051

 
$
1,018

 
 
 
 
 
 
 
 
 
Real estate expense reimbursement from tenants(1)
 
$
4,018

 
$
3,712

 
$
11,865

 
$
11,640

Real estate expenses
 
(6,706
)
 
(5,759
)
 
(20,398
)
 
(17,449
)
Real estate expenses, net of tenant reimbursements
 
$
(2,688
)
 
$
(2,047
)
 
$
(8,533
)
 
$
(5,809
)
 
 
 
 
 
 
 
 
 
Amortization of debt costs
 
$
936

 
$
913

 
$
2,787

 
$
2,695

Scheduled debt principal amortization (excluding maturities)
 
$
141

 
$
134

 
$
422

 
$
400

Non-real estate depreciation expense
 
$
80

 
$
84

 
$
238

 
$
249

(1) 
The condensed consolidated financial statements for the quarter and nine months ended September 30, 2019 and 2018 are presented under the new accounting standard, ASU 2016-02, "Leases (Topic 842)."  For the quarter and nine months ended September 30, 2019, the aggregate of such amounts is $168,224 and $495,846, respectively, classified as rental income on the income statement summary. For the quarter and nine months ended September 30, 2018, the aggregate of such amounts is $154,656 and $462,570, respectively.


6




Earnings Guidance:
 
 
 
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.
 
 
2019 Guidance 
 
2020 Guidance 
  Net earnings per common share excluding any gains on disposition of real estate, impairment charges and preferred stock redemption charges
 
$1.60 - $1.63 per share
 
$1.70 - $1.74 per share
  Real estate depreciation and amortization per share
 
$1.14 per share
 
$1.13 per share
Core FFO per share
 
$2.74 - $2.77 per share
 
$2.83 - $2.87 per share
  AFFO per share
 
$2.79 - $2.82 per share
 
$2.90 - $2.94 per share
  G&A expenses
 
$37.0 - $38.0 Million
 
$42.0 - $43.0 Million
  Real estate expenses, net of tenant reimbursements
 
$10.0 - $10.5 Million
 
$8.0 - $9.0 Million
  Acquisition volume
 
$650 - $750 Million
 
$550 - $650 Million
  Disposition volume
 
$110 - $130 Million
 
$80 - $120 Million


7

National Retail Properties, Inc.
(in thousands)
(unaudited)

 
 
September 30, 2019
 
December 31, 2018
Balance Sheet Summary
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
Real estate:
 
 
 
 
Accounted for using the operating method, net of accumulated depreciation and amortization
 
$
7,121,156

 
$
6,838,907

Accounted for using the direct financing method
 
6,882

 
8,069

Real estate held for sale
 
13,961

 
28,456

Cash and cash equivalents
 
353,688

 
114,267

Receivables, net of allowance of $506 and $2,273, respectively
 
2,882

 
3,797

Accrued rental income, net of allowance of $1,842
 
28,570

 
25,387

Debt costs, net of accumulated amortization
 
3,104

 
4,081

Other assets
 
97,441

 
80,474

Total assets
 
$
7,627,684

 
$
7,103,438

 
 
 
 
 
Liabilities:
 
 
 
 
Line of credit payable
 
$
—

 
$
—

 Mortgages payable, including unamortized premium and net of unamortized debt cost
 
12,221

 
12,694

 Notes payable, net of unamortized discount and unamortized debt costs
 
2,841,680

 
2,838,701

Accrued interest payable
 
45,886

 
19,519

Other liabilities
 
101,393

 
77,919

Total liabilities
 
3,001,180

 
2,948,833

 
 
 
 
 
Stockholders' equity of NNN
 
4,626,497

 
4,154,250

Noncontrolling interests
 
7

 
355

Total equity
 
4,626,504

 
4,154,605

 
 
 
 
 
Total liabilities and equity
 
$
7,627,684

 
$
7,103,438

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
 
171,637

 
161,504

 
 
 
 
 
Gross leasable area, Property Portfolio (square feet)
 
32,209

 
30,487

 
 
 
 
 


8

National Retail Properties, Inc.
Debt Summary
As of September 30, 2019
(in thousands)
(unaudited)
Unsecured Debt
 
Principal
 
Principal, Net of Unamortized Discount
 
Stated Rate
 
Effective Rate
 
Maturity Date
Line of credit payable
 
$
—

 
$
—

 
L + 87.5 bps

 
3.165
%
 
   January 2022
 
 
 
 
 
 
 
 
 
 
 
Unsecured notes payable:
 
 
 
 
 
 
 
 
 
 
2022
 
325,000

 
323,293

 
3.800
%
 
3.985
%
 
   October 2022
2023
 
350,000

 
348,981

 
3.300
%
 
3.388
%
 
   April 2023
2024
 
350,000

 
349,635

 
3.900
%
 
3.924
%
 
   June 2024
2025
 
400,000

 
399,368

 
4.000
%
 
4.029
%
 
   November 2025
2026
 
350,000

 
347,080

 
3.600
%
 
3.733
%
 
   December 2026
2027
 
400,000

 
398,657

 
3.500
%
 
3.548
%
 
   October 2027
2028
 
400,000

 
397,385

 
4.300
%
 
4.388
%
 
   October 2028
2048
 
300,000

 
295,826

 
4.800
%
 
4.890
%
 
   October 2048
Total
 
2,875,000

 
2,860,225

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total unsecured debt(1)
 
$
2,875,000

 
$
2,860,225

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Debt costs
 
 
 
(26,932
)
 
 
 
 
 
 
Accumulated amortization
 
8,387

 
 
 
 
 
 
Debt costs, net of accumulated amortization
 
(18,545)
 
 
 
 
 
 
Notes payable, net of unamortized discount and unamortized debt costs
 
$
2,841,680

 
 
 
 
 
 
(1)  Unsecured notes payable have a weighted average interest rate of 4.0% and a weighted average maturity of 8.6 years.
 

Mortgages Payable
 
Principal Balance
 
Interest Rate
 
Maturity Date
 
Mortgage(1)
 
$
12,282

 
5.23
%
 
   July 2023
 
 
 
 
 
 
 
 
 
Debt costs
 
(147
)
 
 
 
 
 
Accumulated amortization
 
86

 
 
 
 
 
Debt costs, net of accumulated amortization
 
(61)
 
 
 
 
 
Mortgages payable, including unamortized premium and net of unamortized debt costs
 
$
12,221

 
 
 
 
 
(1)   Includes unamortized premium
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

9

National Retail Properties, Inc.
Property Portfolio

Top 20 Lines of Trade
 
 
 
 
As of September 30,
 
 
 
Line of Trade
 
2019(1)
 
2018(2)
 
1.
 
Convenience stores
 
17.5
%
 
18.5
%
 
2.
 
Restaurants – full service
 
11.3
%
 
11.8
%
 
3.
 
Automotive service
 
9.3
%
 
7.6
%
 
4.
 
Restaurants – limited service
 
8.8
%
 
7.8
%
 
5.
 
Family entertainment centers
 
6.8
%
 
7.0
%
 
6.
 
Health and fitness
 
5.3
%
 
5.6
%
 
7.
 
Theaters
 
4.8
%
 
5.1
%
 
8.
 
Recreational vehicle dealers, parts and accessories
 
3.5
%
 
3.0
%
 
9.
 
Automotive parts
 
3.2
%
 
3.5
%
 
10.
 
Equipment rental
 
2.7
%
 
1.9
%
 
11.
 
Home improvement
 
2.6
%
 
2.2
%
 
12.
 
Wholesale clubs
 
2.6
%
 
2.4
%
 
13.
 
Medical service providers
 
2.2
%
 
2.3
%
 
14.
 
General merchandise
 
1.8
%
 
1.8
%
 
15.
 
Home furnishings
 
1.7
%
 
1.5
%
 
16.
 
Furniture
 
1.6
%
 
1.8
%
 
17.
 
Drug stores
 
1.6
%
 
1.8
%
 
18.
 
Travel plazas
 
1.6
%
 
1.7
%
 
19.
 
Consumer electronics
 
1.5
%
 
1.7
%
 
20.
 
Banks
 
1.4
%
 
1.7
%
 
 
 
Other
 
8.2
%
 
9.3
%
 
 
 
Total
 
100.0
%
 
100.0
%
 

Top 10 States
 
State
 
 
% of Total(1)
 
 
State
 
 
% of Total(1)
 
1.
Texas
 
 
17.3
%
 
6.
Georgia
 
 
4.5
%
 
2.
Florida
 
 
9.0
%
 
7.
Indiana
 
 
4.0
%
 
3.
Ohio
 
 
5.7
%
 
8.
Tennessee
 
 
3.8
%
 
4.
Illinois
 
 
5.1
%
 
9.
Virginia
 
 
3.7
%
 
5.
North Carolina
 
 
4.6
%
 
10.
California
 
 
3.1
%
 
 
(1) Based on the annualized base rent for all leases in place as of September 30, 2019.
 
 
(2) Based on the annualized base rent for all leases in place as of September 30, 2018.
 




10

National Retail Properties, Inc.
Property Portfolio

Top Tenants ( ≥ 2.0%)
 
 
 
Properties
 
% of Total(1)
 
7-Eleven
 
140

 
5.1
%
 
Mister Car Wash
 
109

 
4.3
%
 
Camping World
 
47

 
4.3
%
 
LA Fitness
 
30

 
3.8
%
 
Flynn Restaurant Group (Taco Bell/Arby's)
 
204

 
3.5
%
 
GPM Investments (Convenience Stores)
 
151

 
3.4
%
 
AMC Theatre
 
20

 
3.1
%
 
Couche Tard (Pantry)
 
85

 
2.8
%
 
BJ's Wholesale Club
 
11

 
2.6
%
 
Sunoco
 
61

 
2.3
%
 
Chuck E. Cheese's
 
53

 
2.2
%

Lease Expirations(2) 
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable
Area(3)
 
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable Area(3)
2019
 
0.3
%
 
17

 
377,000

 
2025
 
5.1
%
 
145

 
1,573,000

2020
 
2.1
%
 
89

 
944,000

 
2026
 
4.7
%
 
176

 
1,681,000

2021
 
3.7
%
 
119

 
1,301,000

 
2027
 
7.3
%
 
193

 
2,611,000

2022
 
5.6
%
 
123

 
1,634,000

 
2028
 
4.7
%
 
157

 
1,172,000

2023
 
3.0
%
 
118

 
1,468,000

 
2029
 
3.0
%
 
75

 
1,030,000

2024
 
3.8
%
 
101

 
1,596,000

 
Thereafter
 
56.7
%
 
1,713

 
16,264,000


(1) 
Based on the annual base rent of $658,347,000, which is the annualized base rent for all leases in place as of September 30, 2019.
(2) 
As of September 30, 2019, the weighted average remaining lease term is 11.2 years.
(3) 
Square feet.










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