EX-99.2 3 ex992-12312020.htm EX-99.2
Exhibit 99.2
ANNUAL SUPPLEMENTAL DATA

As of December 31, 2020

TABLE OF CONTENTS

| PAGE REFERENCE
Financial Summary |
Income Statement Summary | 3
Funds From Operations (FFO) | 5
Core Funds From Operation | 5
Adjusted Funds From Operations (AFFO) | 6
Other Information | 7
Balance Sheet | 8
Rental Income | 9
Debt Summary | 10
Credit Metrics | 11
Credit Facility and Note Covenants | 11
Long-Term Dividend History | 12
Transaction Summary |
Property Acquisitions | 13
Property Dispositions | 13
Property Portfolio |
Lease Expirations | 14
Top 20 Lines of Trade | 15
Top 10 States | 15
Portfolio By Region | 16
Top Tenants | 17
Same Store Rental Income | 18
Leasing Data | 18
Other Property Portfolio Data | 19
Earnings Guidance | 19
COVID-19 Metrics | 20

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, the potential impacts of the COVID-19 pandemic on the company's business operations, financial results and financial position on the world economy, 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, 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 for the year ended December 31, 2020 . 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.
2

INCOME STATEMENT SUMMARY
(in thousands, except per share data)
(unaudited)
|  | Quarter Ended |  | Year Ended
|  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Revenues: |  |  |  |  |  |  |  |
Rental income |  | $ | 162,902 |  |  | $ | 173,163 |  |  | $ | 658,793 |  |  | $ | 669,009 |
Interest and other income from real estate transactions |  | 382 |  |  | 213 |  |  | 1,888 |  |  | 1,478 |
|  | 163,284 |  |  | 173,376 |  |  | 660,681 |  |  | 670,487 |
Operating expenses: |  |  |  |  |  |  |  |
General and administrative |  | 9,247 |  |  | 10,127 |  |  | 38,161 |  |  | 37,651 |
Real estate |  | 8,059 |  |  | 7,258 |  |  | 28,362 |  |  | 27,656 |
Depreciation and amortization |  | 49,095 |  |  | 48,102 |  |  | 196,623 |  |  | 188,871 |
Leasing transaction costs |  | 40 |  |  | 83 |  |  | 76 |  |  | 261 |
Impairment losses – real estate, net of recoveries |  | 4,380 |  |  | 10,868 |  |  | 37,442 |  |  | 31,992 |
Retirement severance costs |  | 1,766 |  |  | — |  |  | 1,766 |  |  | — |
|  | 72,587 |  |  | 76,438 |  |  | 302,430 |  |  | 286,431 |
Gain on disposition of real estate |  | 2,601 |  |  | 6,955 |  |  | 16,238 |  |  | 32,463 |
Earnings from operations |  | 93,298 |  |  | 103,893 |  |  | 374,489 |  |  | 416,519 |
Other expenses (revenues): |  |  |  |  |  |  |  |
Interest and other income |  | (73) |  |  | (200) |  |  | (417) |  |  | (3,112) |
Interest expense(1) |  | 32,084 |  |  | 30,307 |  |  | 129,431 |  |  | 120,023 |
Loss on early extinguishment of debt |  | — |  |  | — |  |  | 16,679 |  |  | — |
|  | 32,011 |  |  | 30,107 |  |  | 145,693 |  |  | 116,911 |
Net earnings |  | 61,287 |  |  | 73,786 |  |  | 228,796 |  |  | 299,608 |
Loss (earnings) attributable to noncontrolling interests |  | — |  |  | — |  |  | 3 |  |  | (428) |
Net earnings attributable to NNN |  | $ | 61,287 |  |  | $ | 73,786 |  |  | $ | 228,799 |  |  | $ | 299,180 |
(1) Includes $2,291 in connection with the early redemption of 3.80% senior unsecured notes due for 2022 for the year ended December 31, 2020

3

INCOME STATEMENT SUMMARY
(in thousands, except per share data)
(unaudited)
|  | Quarter Ended |  | Year Ended
|  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Net earnings attributable to NNN |  | $ | 61,287 |  |  | $ | 73,786 |  |  | $ | 228,799 |  |  | $ | 299,180 |
Series E preferred stock dividends |  | — |  |  | (911) |  |  | — |  |  | (13,201) |
Series F preferred stock dividends |  | (4,485) |  |  | (4,485) |  |  | (17,940) |  |  | (17,940) |
Excess of redemption value over carrying value of preferred shares redeemed |  | — |  |  | (9,856) |  |  | — |  |  | (9,856) |
Net earnings available to common stockholders |  | $ | 56,802 |  |  | $ | 58,534 |  |  | $ | 210,859 |  |  | $ | 258,183 |
Weighted average common shares outstanding: |  |  |  |  |  |  |  |
Basic |  | 173,310 |  |  | 170,763 |  |  | 172,110 |  |  | 164,688 |
Diluted |  | 173,453 |  |  | 171,175 |  |  | 172,217 |  |  | 165,084 |
Net earnings per share available to common stockholders: |  |  |  |  |  |  |  |
Basic |  | $ | 0.33 |  |  | $ | 0.34 |  |  | $ | 1.22 |  |  | $ | 1.56 |
Diluted |  | $ | 0.33 |  |  | $ | 0.34 |  |  | $ | 1.22 |  |  | $ | 1.56 |

4

FUNDS FROM OPERATIONS (FFO)
(in thousands, except per share data)
(unaudited) |  | Quarter Ended |  | Year Ended
|  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Net earnings available to common stockholders |  | $ | 56,802 |  | (1) | $ | 58,534 |  |  | $ | 210,859 |  | (1) | $ | 258,183 |
Real estate depreciation and amortization |  | 48,984 |  |  | 47,998 |  |  | 196,173 |  |  | 188,537 |
Gain on disposition of real estate, net of noncontrolling interests |  | (2,601) |  |  | (6,955) |  |  | (16,238) |  |  | (32,051) |
Impairment losses – depreciable real estate, net of recoveries |  | 4,380 |  |  | 10,868 |  |  | 37,442 |  |  | 31,992 |
Total FFO adjustments |  | 50,763 |  |  | 51,911 |  |  | 217,377 |  |  | 188,478 |
FFO available to common stockholders |  | $ | 107,565 |  |  | $ | 110,445 |  |  | $ | 428,236 |  |  | $ | 446,661 |
FFO per common share: |  |  |  |  |  |  |  |
Basic |  | $ | 0.62 |  |  | $ | 0.65 |  |  | $ | 2.49 |  |  | $ | 2.71 |
Diluted |  | $ | 0.62 |  |  | $ | 0.65 |  |  | $ | 2.49 |  |  | $ | 2.71 |

(1) Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.

CORE FUNDS FROM OPERATIONS
(in thousands, except per share data)
(unaudited) |  | Quarter Ended |  | Year Ended
|  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Net earnings available to common stockholders |  | $ | 56,802 |  | (1) | $ | 58,534 |  |  | $ | 210,859 |  | (1) | $ | 258,183 |
Total FFO adjustments |  | 50,763 |  |  | 51,911 |  |  | 217,377 |  |  | 188,478 |
FFO available to common stockholders |  | 107,565 |  |  | 110,445 |  |  | 428,236 |  |  | 446,661 |
Excess of redemption value over carrying value of preferred share redemption |  | — |  |  | 9,856 |  |  | — |  |  | 9,856 |
Retirement severance costs |  | 1,766 |  |  | — |  |  | 1,766 |  |  | — |
Gain on sale of equity investments |  | — |  |  | — |  |  | — |  |  | (1,331) |
Loss on early extinguishment of debt |  | — |  |  | — |  |  | 16,679 |  |  | — |
Total Core FFO adjustments |  | 1,766 |  |  | 9,856 |  |  | 18,445 |  |  | 8,525 |
Core FFO available to common stockholders |  | $ | 109,331 |  |  | $ | 120,301 |  |  | $ | 446,681 |  |  | $ | 455,186 |
Core FFO per common share: |  |  |  |  |  |  |  |
Basic |  | $ | 0.63 |  |  | $ | 0.70 |  |  | $ | 2.60 |  |  | $ | 2.76 |
Diluted |  | $ | 0.63 |  |  | $ | 0.70 |  |  | $ | 2.59 |  |  | $ | 2.76 |

(1) Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
5

ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(in thousands, except per share data)
(unaudited)
|  | Quarter Ended |  | Year Ended
|  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Net earnings available to common stockholders |  | $ | 56,802 |  | (1) | $ | 58,534 |  |  | $ | 210,859 |  | (1) | $ | 258,183 |
Total FFO adjustments |  | 50,763 |  |  | 51,911 |  |  | 217,377 |  |  | 188,478 |
Total Core FFO adjustments |  | 1,766 |  |  | 9,856 |  |  | 18,445 |  |  | 8,525 |
Core FFO available to common stockholders |  | 109,331 |  |  | 120,301 |  |  | 446,681 |  |  | 455,186 |
Straight-line accrued rent, net of reserves |  | 7,437 |  |  | (631) |  |  | (26,027) |  |  | (2,333) |
Net capital lease rent adjustment |  | 66 |  |  | 94 |  |  | 210 |  |  | 602 |
Below market rent amortization |  | (175) |  |  | (189) |  |  | (887) |  |  | (768) |
Stock based compensation expense |  | 3,275 |  |  | 2,932 |  |  | 12,855 |  |  | 10,737 |
Capitalized interest expense |  | (170) |  |  | (302) |  |  | (1,388) |  |  | (1,099) |
Total AFFO adjustments |  | 10,433 |  |  | 1,904 |  |  | (15,237) |  |  | 7,139 |
AFFO available to common stockholders |  | $ | 119,764 |  | (2) | $ | 122,205 |  |  | $ | 431,444 |  | (2) | $ | 462,325 |
AFFO per common share: |  |  |  |  |  |  |  |
Basic |  | $ | 0.69 |  | (2) | $ | 0.72 |  |  | $ | 2.51 |  | (2) | $ | 2.81 |
Diluted |  | $ | 0.69 |  | (2) | $ | 0.71 |  |  | $ | 2.51 |  | (2) | $ | 2.80 |

(1)Includes the write-off of $7,034 (or $0.04 per share) and $21,792 (or $0.12 per share) of receivables due to reclassifying certain tenants as cash basis for accounting purposes during the quarter and year ended December 31, 2020, respectively.
(2)Amounts include the net straight-line accrued rent impact of the rent deferrals (repayments) from the COVID-19 rent deferral lease amendments of ($2,507) and $30,474 for the quarter and year ended December 31, 2020, respectively. Absent such, AFFO per common share results would have been $0.68 and $2.68 for the quarter and year ended December 31, 2020, respectively.
6

OTHER INFORMATION
(in thousands)
(unaudited)
|  | Quarter Ended |  | Year Ended
|  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Rental income from operating leases(1) |  | $ | 157,408 |  |  | $ | 167,805 |  |  | $ | 639,265 |  |  | $ | 650,112 |
Earned income from direct financing leases(1) |  | $ | 160 |  |  | $ | 174 |  |  | $ | 647 |  |  | $ | 798 |
Percentage rent(1) |  | $ | 114 |  |  | $ | 260 |  |  | $ | 842 |  |  | $ | 1,310 |
Real estate expense reimbursement from tenants(1) |  | $ | 5,220 |  |  | $ | 4,924 |  |  | $ | 18,039 |  |  | $ | 16,789 |
Real estate expenses |  | $ | (8,058) |  |  | $ | (7,258) |  |  | $ | (28,362) |  |  | $ | (27,656) |
Real estate expenses, net of tenant reimbursements |  | $ | (2,838) |  |  | $ | (2,334) |  |  | $ | (10,323) |  |  | $ | (10,867) |
Amortization of debt costs |  | $ | 1,085 |  |  | $ | 944 |  |  | $ | 5,009 |  | (2) | $ | 3,731 |
Scheduled debt principal amortization (excluding maturities) |  | $ | 153 |  |  | $ | 145 |  |  | $ | 596 |  |  | $ | 567 |
Non-real estate depreciation expense |  | $ | 114 |  |  | $ | 108 |  |  | $ | 461 |  |  | $ | 346 |

(1) The consolidated financial statements for the quarter and year ended December 31, 2020 and 2019 are presented under the accounting standard, ASU 2016-02, "Leases (Topic 842)." For the quarter and year ended December 31, 2020, the aggregate of such amounts is $162,902 and $658,793, respectively, classified as rental income on the income statement summary. For the quarter and year ended December 31, 2019, the aggregate of such amounts is $173,163 and $669,009, respectively.
(2) Includes $851 in connection with the redemption of the 3.80% senior unsecured notes due 2022 for the year ended December 31, 2020.
7

BALANCE SHEET
(in thousands)
(unaudited)

|  | December 31, 2020 |  | December 31, 2019
Assets: |  |  |  |
Real estate: |  |  |  |
Accounted for using the operating method, net of accumulated depreciation and amortization |  | $ | 7,208,661 |  |  | $ | 7,287,082 |
Accounted for using the direct financing method |  | 3,994 |  |  | 4,204 |
Real estate held for sale |  | 5,671 |  |  | 9,953 |
Cash and cash equivalents |  | 267,236 |  |  | 1,112 |
Receivables, net of allowance of $835 and $506, respectively |  | 4,338 |  |  | 2,874 |
Accrued rental income, net of allowance of $6,947 and $1,842, respectively |  | 53,958 |  |  | 28,897 |
Debt costs, net of accumulated amortization of $17,294 and $15,574, respectively |  | 1,917 |  |  | 2,783 |
Other assets |  | 92,069 |  |  | 97,962 |
Total assets |  | $ | 7,637,844 |  |  | $ | 7,434,867 |
Liabilities: |  |  |  |
Line of credit payable |  | $ | — |  |  | $ | 133,600 |
Mortgages payable, including unamortized premium and net of unamortized debt costs |  | 11,395 |  |  | 12,059 |
Notes payable, net of unamortized discount and unamortized debt costs |  | 3,209,527 |  |  | 2,842,698 |
Accrued interest payable |  | 19,401 |  |  | 18,250 |
Other liabilities |  | 78,217 |  |  | 96,578 |
Total liabilities |  | 3,318,540 |  |  | 3,103,185 |
Stockholders’ equity of NNN |  | 4,319,300 |  |  | 4,331,675 |
Noncontrolling interests |  | 4 |  |  | 7 |
Total equity |  | 4,319,304 |  |  | 4,331,682 |
Total liabilities and equity |  | $ | 7,637,844 |  |  | $ | 7,434,867 |
Common shares outstanding |  | 175,233 |  |  | 171,694 |
Gross leasable area, Property Portfolio (square feet) |  | 32,461 |  |  | 32,460 |

8

EBITDA

Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate (dollars in thousands):

|  | Quarter Ended December 31, |  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Net earnings attributable to NNN |  | $ | 61,287 |  |  | $ | 73,786 |  |  | $ | 228,799 |  |  | $ | 299,180 |
Interest expense |  | 32,084 |  |  | 30,307 |  |  | 129,431 |  |  | 120,023 |
Depreciation and amortization |  | 49,095 |  |  | 48,102 |  |  | 196,623 |  |  | 188,871 |
Gain on disposition of real estate |  | (2,601) |  |  | (6,955) |  |  | (16,238) |  |  | (32,463) |
Impairment losses – real estate, net of recoveries |  | 4,380 |  |  | 10,868 |  |  | 37,442 |  |  | 31,992 |
Earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (3) |  |  | 428 |
EBITDA |  | $ | 144,245 |  |  | $ | 156,108 |  |  | $ | 576,054 |  |  | $ | 608,031 |

RENTAL INCOME

NNN recognized the following revenues in rental income (dollars in thousands):

| Quarter Ended December 31, |  | Year Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
Rental income from operating leases | $ | 157,408 |  |  | $ | 167,805 |  |  | $ | 639,265 |  |  | $ | 650,112 |
Earned income from direct financing leases | 160 |  |  | 174 |  |  | 647 |  |  | 798 |
Percentage rent | 114 |  |  | 260 |  |  | 842 |  |  | 1,310 |
Real estate expense reimbursement from tenants | 5,220 |  |  | 4,924 |  |  | 18,039 |  |  | 16,789 |
| $ | 162,902 |  |  | $ | 173,163 |  |  | $ | 658,793 |  |  | $ | 669,009 |

9

DEBT SUMMARY
(in thousands)
As of December 31, 2020
Unsecured Debt |  | Principal |  | Principal, Net of Unamortized Discount |  | Stated Rate |  | Effective Rate |  | Maturity Date
Line of credit payable |  | $ | — |  |  | $ | — |  |  | L + 87.5 bps |  | 2.56% |  | January 2022
Unsecured notes payable: |  |  |  |  |  |  |  |  |  |
2023 |  | 350,000 |  |  | 349,327 |  |  | 3.300% |  | 3.388% |  | April 2023
2024 |  | 350,000 |  |  | 349,726 |  |  | 3.900% |  | 3.924% |  | June 2024
2025 |  | 400,000 |  |  | 399,485 |  |  | 4.000% |  | 4.029% |  | November 2025
2026 |  | 350,000 |  |  | 347,532 |  |  | 3.600% |  | 3.733% |  | December 2026
2027 |  | 400,000 |  |  | 398,842 |  |  | 3.500% |  | 3.548% |  | October 2027
2028 |  | 400,000 |  |  | 397,689 |  |  | 4.300% |  | 4.388% |  | October 2028
2030 |  | 400,000 |  |  | 398,805 |  |  | 2.500% |  | 2.536% |  | April 2030
2048 |  | 300,000 |  |  | 295,910 |  |  | 4.800% |  | 4.890% |  | October 2048
2050 |  | 300,000 |  |  | 294,034 |  |  | 3.100% |  | 3.205% |  | April 2050
Total |  | 3,250,000 |  |  | 3,231,350 |  |  |  |  |  |  |
Total unsecured debt |  | $ | 3,250,000 |  |  | $ | 3,231,350 |  |  |  |  |  |  |
Debt costs |  | $ | (31,140) |  |  |  |  |  |  |
Accumulated amortization |  | 9,317 |  |  |  |  |  |  |
Debt costs, net of accumulated amortization |  | (21,823) |  |  |  |  |  |  |
Notes payable, net of unamortized discount and unamortized debt costs (1) |  | $ | 3,209,527 |  |  |  |  |  |  |
(1) Unsecured notes payable have a weighted average interest rate of 3.7% and a weighted average maturity of 10.2 years

Mortgages Payable |  | Interest Rate |  | Maturity Date |  | Principal Balance |
Mortgage(1) |  | 5.230 | % |  | July 2023 |  | $ | 11,434 |  |
Debt costs |  |  |  |  |  | (147) |  |
Accumulated amortization |  | 108 |  |
Debt costs, net of accumulated amortization |  | (39) |  |
Mortgages payable, including unamortized premium and net of unamortized debt costs |  | $ | 11,395 |  |
(1) Includes unamortized premium |  |  |

10

CREDIT METRICS (1) |  |
Ratings: Moody’s Baa1; S&P BBB+; Fitch BBB+ |  |  |  |  |  |  |  |  |  |  |
| 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  |
Debt / Total assets (gross book) | 30.2 | % |  | 35.3 | % |  | 34.6 | % |  | 35.3 | % |  | 34.4 | % |  |
Debt + preferred / Total assets (gross book) | 43.9 | % |  | 44.0 | % |  | 42.6 | % |  | 39.3 | % |  | 38.4 | % |  |
Debt / EBITDA (last four quarters) | 4.3 |  |  | 4.9 |  |  | 4.8 |  |  | 4.9 |  |  | 5.0 |  |  |
Debt + Pref Stock / EBITDA | 6.2 |  |  | 6.1 |  |  | 5.9 |  |  | 5.5 |  |  | 5.5 |  |  |
EBITDA / Interest expense (cash) | 4.8 |  |  | 4.7 |  |  | 4.8 |  |  | 5.0 |  |  | 4.6 |  |  |
EBITDA / Fixed charges (cash) | 3.4 |  |  | 3.5 |  |  | 3.7 |  |  | 4.0 |  |  | 4.0 |  |  |
(1) Debt amounts used in calculations are net of cash balances.

CREDIT FACILITY AND NOTES COVENANTS

The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2020, the company believes it is in compliance with the covenants.

Unsecured Credit Facility Key Covenants |  | Required |  | December 31, 2020
Maximum leverage ratio |  | < 0.60 |  | 0.38
Minimum fixed charge coverage ratio |  | > 1.50 |  | 3.89
Maximum secured indebtedness ratio |  | < 0.40 |  | 0.001
Unencumbered asset value ratio |  | > 1.67 |  | 2.67
Unencumbered interest ratio |  | > 1.75 |  | 5.07
|  |  |  | December 31, 2020
Unsecured Notes Key Covenants |  | Required |  | Notes Due (1) | Notes Due (2)
Limitation on incurrence of total debt |  | ≤ 60% |  | 36.0% | 36.0%
Limitation on incurrence of secured debt |  | ≤ 40% |  | 0.1% | 0.1%
Debt service coverage ratio |  | ≥ 1.50 |  | 4.40 | 4.40
Maintenance of total unencumbered assets |  | ≥ 150% |  | 278.4% | 278.2%
(1) Calculations pursuant to covenants for notes payable due 2023-2028 and 2048
(2) Calculations pursuant to covenants for notes payable due 2030 and 2050

11

LONG-TERM DIVIDEND HISTORY

12

PROPERTY ACQUISITIONS

(dollars in thousands)

|  |  | Year Ended December 31,
|  |  |  |  | 2020 |  | 2019
Total dollars invested(1) |  |  |  |  | $ | 179,967 |  |  | $ | 752,497 |
Number of Properties |  |  |  |  | 63 |  |  | 210 |
Gross leasable area (square feet)(2) |  |  |  |  | 449,000 |  |  | 3,164,000 |
Cash cap rate |  |  |  |  | 6.5 | % |  | 6.9 | %

(1) Includes dollars invested in projects under construction or tenant improvements for each respective year.
(2) Includes additional square footage from completed construction on existing Properties.

PROPERTY DISPOSITIONS

(dollars in thousands)

| Year Ended December 31,
| 2020 |  | 2019
| Occupied | Vacant |  | Total |  | Occupied | Vacant |  | Total
Number of properties | 25 |  | 13 |  |  | 38 |  |  | 22 |  | 37 |  |  | 59 |
Gross leasable area (square feet) | 240,000 |  | 185,000 |  |  | 425,000 |  |  | 318,000 |  | 795,000 |  |  | 1,113,000 |
Acquisition costs | $ | 39,390 |  | $ | 26,903 |  |  | $ | 66,293 |  |  | $ | 70,590 |  | $ | 105,312 |  |  | $ | 175,902 |
Net book value | $ | 22,754 |  | $ | 12,870 |  |  | $ | 35,624 |  |  | $ | 37,451 |  | $ | 56,280 |  |  | $ | 93,731 |
Net sale proceeds | $ | 40,992 |  | $ | 13,496 |  |  | $ | 54,488 |  |  | $ | 58,396 |  | $ | 67,798 |  |  | $ | 126,194 |
Cash cap rate | 6.1 | % | — |  |  | 6.1 | % |  | 5.9 | % | — |  |  | 5.9 | %

13

LEASE EXPIRATIONS

|  | % of Total(1) |  | # of Properties |  | Gross Leasable Area (2) |  |  |  | % of Total(1) |  | # of Properties |  | Gross Leasable Area (2)
2021 |  | 3.0 | % |  | 108 |  |  | 1,120,000 |  |  | 2027 |  | 6.3 | % |  | 172 |  |  | 2,443,000 |
2022 |  | 5.4 | % |  | 123 |  |  | 1,577,000 |  |  | 2028 |  | 4.8 | % |  | 158 |  |  | 1,185,000 |
2023 |  | 2.8 | % |  | 114 |  |  | 1,426,000 |  |  | 2029 |  | 3.0 | % |  | 75 |  |  | 1,052,000 |
2024 |  | 3.6 | % |  | 96 |  |  | 1,481,000 |  |  | 2030 |  | 3.6 | % |  | 105 |  |  | 1,122,000 |
2025 |  | 6.2 | % |  | 198 |  |  | 2,093,000 |  |  | 2031 |  | 8.7 | % |  | 188 |  |  | 2,861,000 |
2026 |  | 4.7 | % |  | 186 |  |  | 1,768,000 |  |  | Thereafter |  | 47.9 | % |  | 1,570 |  |  | 13,503,000 |

(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020.
(2) Square feet.
14

TOP 20 LINES OF TRADE

|  |  |  | As of December 31, 2020 |  | As of December 31, 2019
|  | Line of Trade |  | % of Total(1) |  | Properties |  | % of Total(2) |  | Properties
1. |  | Convenience stores |  | 18.2 | % |  | 649 |  |  | 18.2 | % |  | 657 |
2. |  | Restaurants – full service |  | 10.5 | % |  | 445 |  |  | 11.1 | % |  | 458 |
3. |  | Automotive service |  | 10.3 | % |  | 373 |  |  | 9.6 | % |  | 358 |
4. |  | Restaurants – limited service |  | 9.7 | % |  | 568 |  |  | 8.8 | % |  | 530 |
5. |  | Family entertainment centers |  | 5.9 | % |  | 98 |  |  | 6.7 | % |  | 98 |
6. |  | Health and fitness |  | 5.3 | % |  | 34 |  |  | 5.2 | % |  | 35 |
7. |  | Theaters |  | 4.4 | % |  | 32 |  |  | 4.7 | % |  | 33 |
8. |  | Recreational vehicle dealers, parts and accessories |  | 3.5 | % |  | 38 |  |  | 3.4 | % |  | 38 |
9. |  | Automotive parts |  | 3.1 | % |  | 156 |  |  | 3.1 | % |  | 161 |
10. |  | Equipment rental |  | 2.6 | % |  | 80 |  |  | 2.6 | % |  | 80 |
11. |  | Home improvement |  | 2.6 | % |  | 49 |  |  | 2.6 | % |  | 48 |
12. |  | Wholesale clubs |  | 2.6 | % |  | 11 |  |  | 2.5 | % |  | 11 |
13. |  | Medical service providers |  | 2.2 | % |  | 85 |  |  | 2.1 | % |  | 84 |
14. |  | General merchandise |  | 1.7 | % |  | 73 |  |  | 1.8 | % |  | 75 |
15. |  | Furniture |  | 1.7 | % |  | 46 |  |  | 1.6 | % |  | 45 |
16. |  | Home furnishings |  | 1.6 | % |  | 15 |  |  | 1.7 | % |  | 20 |
17. |  | Consumer electronics |  | 1.5 | % |  | 16 |  |  | 1.5 | % |  | 17 |
18. |  | Travel plazas |  | 1.5 | % |  | 25 |  |  | 1.6 | % |  | 27 |
19. |  | Drug stores |  | 1.5 | % |  | 35 |  |  | 1.6 | % |  | 36 |
20. |  | Bank |  | 1.3 | % |  | 57 |  |  | 1.3 | % |  | 59 |
|  | Other |  | 8.3 | % |  | 258 |  |  | 8.3 | % |  | 248 |
|  | Total |  | 100.0 | % |  | 3,143 |  |  | 100.0 | % |  | 3,118 |

(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020.
(2) Based on the annual base rent of $674,338,000, which is the annualized base rent for all leases in place as of December 31, 2019.

TOP 10 STATES

| State |  | % of Total(1) |  | Properties |  |  | State |  | % of Total(1) |  | Properties
1. | Texas |  | 17.5 | % |  | 503 |  |  | 6. | Georgia |  | 4.4 | % |  | 151 |
2. | Florida |  | 8.5 | % |  | 225 |  |  | 7. | Indiana |  | 4.2 | % |  | 148 |
3. | Ohio |  | 5.8 | % |  | 199 |  |  | 8. | Tennessee |  | 3.7 | % |  | 141 |
4. | Illinois |  | 5.1 | % |  | 145 |  |  | 9. | Virginia |  | 3.5 | % |  | 114 |
5. | North Carolina |  | 4.5 | % |  | 156 |  |  | 10. | California |  | 3.3 | % |  | 65 |
(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020. |  |

15

PORTFOLIO BY REGION

As a percentage of annual base rent - December 31, 2020
16

TOP TENANTS

Creditworthy Retailers
▪18.7% of annual base rent is from tenants with investment grade rated debt
▪78.5% of annual base rent is from tenants that are publicly traded and/or have rated debt
▪Top 25 tenants (57.3% of annual base rent) operate an average of 1,089 stores each

Top 20 Tenants |  | Properties |  | % of Total (1)
1. | 7-Eleven |  | 140 |  | 5.1 | %
2. | Mister Car Wash |  | 115 |  | 4.6 | %
3. | Camping World |  | 47 |  | 4.4 | %
4. | LA Fitness |  | 30 |  | 3.8 | %
5. | Flynn Restaurant Group (Taco Bell/Arby's) |  | 202 |  | 3.5 | %
6. | GPM Investments (Convenience Stores) |  | 151 |  | 3.3 | %
7. | AMC Theatres |  | 19 |  | 2.9 | %
8. | Couche-Tard (Pantry) |  | 82 |  | 2.7 | %
9. | BJ's Wholesale Club |  | 11 |  | 2.6 | %
10. | Sunoco |  | 59 |  | 2.2 | %
11. | Mavis Tire Express Services |  | 120 |  | 2.2 | %
12. | Main Event |  | 18 |  | 1.8 | %
13. | Frisch's Restaurants |  | 74 |  | 1.8 | %
14. | Bob Evans |  | 115 |  | 1.7 | %
15. | Fikes (Convenience Stores) |  | 56 |  | 1.6 | %
16. | Chuck-E-Cheese's |  | 53 |  | 1.6 | %
17. | Best Buy |  | 15 |  | 1.5 | %
18. | Life Time Fitness |  | 3 |  | 1.5 | %
19. | Dave & Buster's |  | 11 |  | 1.5 | %
20. | Pull-A-Part |  | 20 |  | 1.3 | %

(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of
December 31, 2020.
17

SAME STORE RENTAL INCOME

(dollars in thousands)

Same Store Rental Income – Properties (Cash Basis) (1) |  |
Number of properties | 2,858 |  |
Year ended December 31, 2020 | $ | 552,728 |  |
Year ended December 31, 2019 | $ | 609,453 |  |
Decrease (in dollars) | $ | (56,725) |  |
Change (percent) | (9.3) | % |
(1) Includes all properties owned for current and prior year period excluding any properties under development or re-development.

LEASING DATA

(dollars in thousands)

Year Ended December 31, 2020 |  | Renewals With Same Tenant(1) |  | Vacancy Re-lease To New Tenant |  |  |  | Re-leasing Totals |
Number of leases |  | 76 |  |  | 11 |  |  |  |  | 87 |  |
Prior cash rents |  | $ | 13,586 |  |  | $ | 2,304 |  |  |  |  | $ | 15,890 |  |
New cash rents |  | $ | 13,557 |  |  | $ | 2,143 |  |  |  |  | $ | 15,700 |  | (2)
New rents / prior rents |  | 99.8 | % |  | 93.0 | % |  |  |  | 98.8 | % |
Tenant improvements |  | $ | — |  |  | $ | 2,652 |  |  |  |  | $ | 2,652 |  |

(1)Long-term renewal rate for the period of 2010 through 2020 was 83.7%.
(2)Represents 2.3% of total annualized base rent as of December 31, 2020.
18

OTHER PROPERTY PORTFOLIO DATA

As of December 31, 2020
Tenant Financials

|  | # of Properties |  | % of Annual Base Rent(1) |  |
Property Level Financial Information |  | 2,637 |  |  | 80 | % |  |
Tenant Corporate Financials |  | 2,432 |  |  | 78 | % |  |

Rent Increases | % of Annual Base Rent(1)
| Annual |  | Five Year |  | Other |  | Total
CPI – Based | 33 | % |  | 46 | % |  | 2 | % |  | 81 | %
Fixed Rate | 3 | % |  | 11 | % |  | 1 | % |  | 15 | %
No increases | — |  |  | — |  |  | 4 | % |  | 4 | %
| 36 | % |  | 57 | % |  | 7 | % |  | 100 | %

Lease Structure
▪91.6% of the company's annual base rent is from NNN leases
▪95.3% of the company's annual base rent is from NNN leases and NN leases (with roof warranty)
(1) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020.

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.

|  | 2021 Guidance
Net earnings per common share excluding any gains on disposition of real estate and impairment charges |  | $1.42 - $1.49 per share
Real estate depreciation and amortization per share |  | $1.13 per share
Core FFO per share |  | $2.55 - $2.62 per share
AFFO per share(1) |  | $2.77 - $2.84 per share
General and administrative expenses |  | $42 - $44 Million
Real estate expenses, net of tenant reimbursements |  | $11 - $13 Million
Acquisition volume |  | $400 - $500 Million
Disposition volume |  | $80 - $100 Million

(1) Estimates include the net straight-line accrued rent impact of the rent repayment from the COVID-19 rent deferral lease amendments of $28,375,000 for 2021. Absent such, AFFO per common share guidance would have been $2.61 - $2.68 per share for 2021.
19

COVID-19 METRICS

Collections
The following table details NNN's rent collections as of January 31, 2021, excluding the repayment of amounts previously deferred according to the rent deferral lease amendments:

|  |  | Quarter Ended
|  |  | June 30, 2020(1) |  | September 30, 2020(2) |  | December 31, 2020(3)
Collected, as of January 31, 2021 |  |  | 73.7 | % |  | 90.6 | % |  | 95.7 | %
Deferred |  |  | 15.4 | % |  | 4.3 | % |  | 0.2 | %
Abated |  |  | 1.3 | % |  | 0.1 | % |  | — |
Outstanding, as of January 31, 2021 |  |  | 9.6 | % |  | 5.0 | % |  | 4.1 | %
Total |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %

(1) Based on the annual base rent of $676,538,000, which is the annualized base rent for all leases in place as of June 30, 2020.
(2) Based on the annual base rent of $674,077,000, which is the annualized base rent for all leases in place as of September 30, 2020.
(3) Based on the annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31,2020.
20

Collections by Line of Trade
The following table details NNN's rent collections received as of January 31, 2021, excluding the repayment of amounts previously deferred according to the rent deferral lease amendments, by NNN's top 20 lines of trade:

|  |  |  |  | % of Rent Collected
|  |  | % of Total Annual Base Rent(1) |  | Quarter Ended
| Top 20 Lines Of Trade |  |  | June 30, 2020(2) |  | September 30, 2020(3) |  | December 31, 2020(1)
1. | Convenience stores |  | 18.2 | % |  | 99.9 | % |  | 100.0 | % |  | 99.9 | %
2. | Restaurants – full service |  | 10.5 | % |  | 41.2 | % |  | 76.3 | % |  | 86.1 | %
3. | Automotive service |  | 10.3 | % |  | 86.9 | % |  | 100.0 | % |  | 99.5 | %
4. | Restaurants – limited service |  | 9.7 | % |  | 80.1 | % |  | 73.6 | % |  | 99.9 | %
5. | Family entertainment centers |  | 5.9 | % |  | 9.2 | % |  | 88.6 | % |  | 99.3 | %
6. | Health and fitness |  | 5.3 | % |  | 58.4 | % |  | 86.3 | % |  | 98.4 | %
7. | Theaters |  | 4.4 | % |  | 6.3 | % |  | 34.8 | % |  | 42.4 | %
8. | Recreational vehicle dealers, parts and accessories |  | 3.5 | % |  | 100.0 | % |  | 99.7 | % |  | 100.0 | %
9. | Automotive parts |  | 3.1 | % |  | 88.0 | % |  | 100.0 | % |  | 99.5 | %
10. | Equipment rental |  | 2.6 | % |  | 100.0 | % |  | 100.0 | % |  | 99.8 | %
11. | Home improvement |  | 2.6 | % |  | 97.2 | % |  | 99.0 | % |  | 99.4 | %
12. | Wholesale clubs |  | 2.6 | % |  | 100.0 | % |  | 100.0 | % |  | 99.7 | %
13. | Medical service providers |  | 2.2 | % |  | 60.3 | % |  | 98.8 | % |  | 99.9 | %
14. | General merchandise |  | 1.7 | % |  | 93.8 | % |  | 99.9 | % |  | 99.2 | %
15. | Furniture |  | 1.7 | % |  | 51.0 | % |  | 96.9 | % |  | 99.4 | %
16. | Home furnishings |  | 1.6 | % |  | 22.8 | % |  | 99.2 | % |  | 99.9 | %
17. | Consumer electronics |  | 1.5 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %
18. | Travel plazas |  | 1.5 | % |  | 98.9 | % |  | 100.0 | % |  | 100.0 | %
19. | Drug stores |  | 1.5 | % |  | 100.0 | % |  | 100.0 | % |  | 99.9 | %
20. | Bank |  | 1.3 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %
| Other |  | 8.3 | % |  | 89.5 | % |  | 98.9 | % |  | 99.4 | %
| Total |  | 100.0 | % |  | 73.7 | % |  | 90.6 | % |  | 95.7 | %
(1) Based on annual base rent of $675,120,000, which is the annualized base rent for all leases in place as of December 31, 2020.
(2) Based on annual base rent of $676,538,000, which is the annualized base rent for all leases in place as of June 30, 2020.
(3) Based on annual base rent of $674,077,000, which is the annualized base rent for all leases in place as of September 30, 2020.

21

The following table outlines the rent deferred and corresponding recapture payback by quarter of the rent deferral lease amendments executed as of December 31, 2020 (dollars in thousands):

|  |  | Deferred |  |  | Repayment
|  |  | Accrual Basis Tenants |  | Cash Basis Tenants |  | Total |  | % of Total |  |  | Accrual Basis Tenants |  | Cash Basis Tenants |  | Total |  | % of Total |  | Cumulative Total
2020 | Q2 |  | $ | 26,069 |  |  | $ | 7,791 |  |  | $ | 33,860 |  |  | 65.0 | % |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — |  |  | — |
| Q3 |  | 7,329 |  |  | 5,402 |  |  | 12,731 |  |  | 24.4 | % |  |  | 417 |  |  | — |  |  | 417 |  |  | 0.8 | % |  | 0.8 | %
| Q4 |  | 315 |  |  | 3,813 |  |  | 4,128 |  |  | 7.9 | % |  |  | 2,822 |  |  | 20 |  |  | 2,842 |  |  | 5.5 | % |  | 6.3 | %
|  |  | 33,713 |  |  | 17,006 |  |  | 50,719 |  |  | 97.3 | % |  |  | 3,239 |  |  | 20 |  |  | 3,259 |  |  | 6.3 | % |  | 6.3 | %
2021 | Q1 |  | 141 |  |  | 1,269 |  |  | 1,410 |  |  | 2.7 | % |  |  | 10,813 |  |  | 1,313 |  |  | 12,126 |  |  | 23.2 | % |  | 29.5 | %
| Q2 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 9,571 |  |  | 2,405 |  |  | 11,976 |  |  | 23.0 | % |  | 52.5 | %
| Q3 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 4,875 |  |  | 2,280 |  |  | 7,155 |  |  | 13.7 | % |  | 66.2 | %
| Q4 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 3,257 |  |  | 2,280 |  |  | 5,537 |  |  | 10.6 | % |  | 76.8 | %
|  |  | 141 |  |  | 1,269 |  |  | 1,410 |  |  | 2.7 | % |  |  | 28,516 |  |  | 8,278 |  |  | 36,794 |  |  | 70.5 | % |  | 76.8 | %
2022 | Q1 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 1,221 |  |  | 2,216 |  |  | 3,437 |  |  | 6.6 | % |  | 83.4 | %
| Q2 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 719 |  |  | 2,216 |  |  | 2,935 |  |  | 5.6 | % |  | 89.0 | %
| Q3 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 70 |  |  | 2,216 |  |  | 2,286 |  |  | 4.4 | % |  | 93.4 | %
| Q4 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 70 |  |  | 2,216 |  |  | 2,286 |  |  | 4.4 | % |  | 97.8 | %
|  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 2,080 |  |  | 8,864 |  |  | 10,944 |  |  | 21.0 | % |  | 97.8 | %
2023 | Q1 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 10 |  |  | 1,113 |  |  | 1,123 |  |  | 2.2 | % |  | 100.0 | %
| Q2 |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 9 |  |  | — |  |  | 9 |  |  | — |  |  | 100.0 | %
|  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 19 |  |  | 1,113 |  |  | 1,132 |  |  | 2.2 | % |  | 100.0 | %
|  |  | $ | 33,854 |  |  | $ | 18,275 |  |  | $ | 52,129 |  |  |  |  |  | $ | 33,854 |  |  | $ | 18,275 |  |  | $ | 52,129 |  |  |  |  |

22