<SEC-DOCUMENT>0001080657-15-000013.txt : 20150616
<SEC-HEADER>0001080657-15-000013.hdr.sgml : 20150616
<ACCEPTANCE-DATETIME>20150616152116
ACCESSION NUMBER:		0001080657-15-000013
CONFORMED SUBMISSION TYPE:	10-K/A
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20141231
FILED AS OF DATE:		20150616
DATE AS OF CHANGE:		20150616

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NETREIT, INC.
		CENTRAL INDEX KEY:			0001080657
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				330841255
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-53673
		FILM NUMBER:		15934222

	BUSINESS ADDRESS:	
		STREET 1:		1282 PACIFIC OAKS PLACE
		CITY:			ESCONDIDO
		STATE:			CA
		ZIP:			92029-2900
		BUSINESS PHONE:		760-471-8536

	MAIL ADDRESS:	
		STREET 1:		1282 PACIFIC OAKS PLACE
		CITY:			ESCONDIDO
		STATE:			CA
		ZIP:			92029-2900

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NETREIT
		DATE OF NAME CHANGE:	19990225
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K/A
<SEQUENCE>1
<FILENAME>form10ka.htm
<DESCRIPTION>FORM 10-K/A
<TEXT>
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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>





</DIV>
<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-top:double windowtext 4.5pt;padding:1.0pt 0in 0in 0in;">

<p style="border:none;margin:0in;margin-bottom:.0001pt;padding:0in;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:2.5pt;line-height:90%;">&nbsp;</font></p>

</div>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:13.0pt;line-height:90%;">UNITED STATES</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:13.0pt;line-height:90%;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:90%;">Washington,
D.C. 20549</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:6.0pt;line-height:90%;">________________</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:16.0pt;line-height:90%;">FORM 10-K/A</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">(mark one) </font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.6in;punctuation-wrap:simple;text-indent:-.4in;"><font face="Wingdings 2" lang=EN-US style="font-size:10.0pt;line-height:90%;">R</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:90%;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:90%;">ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15 (d) OF THE SECURITIES</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:90%;"> </font><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:90%;">ACT OF 1934</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:44.55pt;punctuation-wrap:simple;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">For the fiscal year ended December 31,
2014</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:9.5pt;line-height:90%;">or</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.6in;punctuation-wrap:simple;text-indent:-.4in;"><font face="Wingdings 2" lang=EN-US style="font-size:10.0pt;line-height:90%;">&#163;</font><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:90%;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:90%;"> </font><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:90%;">EXCHANGE ACT OF 1934</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:44.55pt;punctuation-wrap:simple;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">For the transition period from ________
to</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">________&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">Commission file number 000-53673</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:20.0pt;line-height:90%;">NETREIT, Inc.</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">(Exact name of registrant as specified
in its charter)</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<div align=center>

<table border=0 cellpadding=0 cellspacing=0 style="border-collapse:collapse;width:100%;">
 <tr style="page-break-inside:avoid;">
  <td valign=top width=54% style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">Maryland</font></b></p>
  </td>
 <td valign=top width=4% style="padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">&nbsp;</font></b></p>
  </td>
 <td valign=top width=42% style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">33-0841255</font></b></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td valign=top width=54% style="border:none;padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">(State of other jurisdiction of
  incorporation or organization)</font></p>
  </td>
 <td valign=top width=4% style="padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=42% style="border:none;padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">(IRS Employer Identification Number)</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td valign=top width=54% style="padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>
  </td>
 <td valign=top width=4% style="padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=42% style="padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td valign=top width=54% style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">1282 Pacific Oaks Place</font></b></p>
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">Escondido, CA</font></b></p>
  </td>
 <td valign=top width=4% style="padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;text-decoration:none;">&nbsp;</font></b></p>
  </td>
 <td valign=bottom width=42% style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">92029-2900</font></b></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td valign=top width=54% style="border:none;padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">(Address of principal executive
  offices)</font></p>
  </td>
 <td valign=top width=4% style="padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=42% style="border:none;padding:0in 2.35pt 0in 2.35pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.0pt;line-height:90%;">(Zip code)</font></p>
  </td>
 </tr>
</table>


</div>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">(760) 471-8536</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">(Registrant&#8217;s telephone number,
including area code)</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:6.0pt;line-height:90%;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">Securities registered pursuant to
Section 12(b) of the Act: None</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:6.0pt;line-height:90%;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">Securities registered pursuant to
Section 12(g) of the Act:</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">Common Stock, Series A, no par value</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">(Title of class)</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:.1pt;line-height:90%;">Indicate by check mark whether the
registrant is a well known seasoned issuer, as defined in Rule 405 of the
Securities Act. </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;letter-spacing:.1pt;line-height:90%;">&#163;&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:.1pt;line-height:90%;"> Yes </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;letter-spacing:.1pt;line-height:90%;">R&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:.1pt;line-height:90%;"> No </font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;">Indicate by check mark if the registrant
is not required to file reports pursuant to Section 13 or 15(d) of the Act. </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;">&#163;&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;"> Yes </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;">R&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;"> No</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the last 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;line-height:90%;">&#163;&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;"> Yes </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;line-height:90%;">R&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;"> No</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:6.0pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">Indicate by check mark if disclosure of delinquent filers
pursuant to item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant&#8217;s knowledge, in definitive proxy or
information statements incorporated by reference in part III of this Form 10-K
or any amendment to this Form 10-K. </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;line-height:90%;">R&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;"> Yes </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;line-height:90%;">&#163;&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;"> No</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:6.0pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;">Indicate by check mark whether the
registrant has submitted electronically and posted on its corporate website, if
any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was required to
submit and post such files). </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;line-height:90%;">R&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;"> Yes </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;">&#163;&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;line-height:90%;"> No </font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:6.0pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of &#8220;large accelerated filer,&#8221;
&#8220;accelerated filer&#8221; and &#8220;smaller reporting company&#8221; in Rule 12b-2 of the
Exchange Act. (Check one):</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<div align=left><table border=0 cellpadding=0 cellspacing=0 style="border-collapse:collapse;width:100%;">
 <tr style="page-break-inside:avoid;">
  <td valign=top width=21% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">Large accelerated filer </font><font face="Wingdings 2" style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">&#163;&nbsp;</font></p>
  </td>
 <td valign=top width=18% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">Accelerated
  filer </font><font face="Wingdings 2" style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">&#163;&nbsp;</font></p>
  </td>
 <td valign=top width=37% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">Non-accelerated
  filer </font><font face="Wingdings 2" style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">&#163;&nbsp;</font></p>
  </td>
 <td valign=top width=24% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:right;"><font face="Times New Roman,serif" style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">Smaller
  reporting company </font><font face="Wingdings 2" style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">R&nbsp;</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td valign=top width=21% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" style="font-size:9.5pt;letter-spacing:-.5pt;line-height:90%;">&nbsp;</font></p>
  </td>
 <td valign=top width=18% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.5pt;letter-spacing:-.5pt;line-height:90%;">&nbsp;</font></p>
  </td>
 <td valign=top width=37% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.5pt;letter-spacing:-.3pt;line-height:90%;">(Do not check if
  a smaller reporting company)</font></p>
  </td>
 <td valign=top width=24% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><font face="Times New Roman,serif" style="font-size:9.5pt;letter-spacing:-.5pt;line-height:90%;">&nbsp;</font></p>
  </td>
 </tr>
</table></div>


<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:5.5pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.2pt;line-height:90%;">Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act).&#160; </font><font face="Wingdings 2" lang=EN-US style="font-size:9.0pt;letter-spacing:-.2pt;line-height:90%;">&#163;&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.2pt;line-height:90%;"> Yes </font><font face="Wingdings 2" lang=EN-US style="font-size:9.5pt;letter-spacing:-.4pt;line-height:90%;">R&nbsp;</font><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.2pt;line-height:90%;"> No</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:6.0pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">At March 15, 2015, registrant had issued and outstanding
16,877,377 shares of its common stock, no par value.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">DOCUMENTS INCORPORATED BY REFERENCE</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">Part III, Items 10, 11, 12, 13 and 14 incorporate by reference
certain specific portions of the definitive Proxy Statement for NetREIT&#8217;s
Annual Meeting currently scheduled to be held on June 12, 2015 to be filed
pursuant to Regulation 14A. Only those portions of the proxy statement which
are specifically incorporated by reference herein shall constitute a part of
this annual report.</font></p>









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<p align=center style="margin:0in;margin-bottom:10.0pt;text-align:center;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:115%;">EXPLANATORY NOTE</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">This Amendment on Form 10-K/A to the NetREIT, Inc
(&#8220;NetREIT&#8221;) Annual Report (&#8220;Annual Report&#8221;) on Form 10-K for the fiscal year
ended December&nbsp;31, 2014 (the &#8220;Original Filing&#8221;) and Form 10K/A (Amendment
No. 1) as filed on April 20, 2015, is being filed solely for the purposes of
amending (i)&nbsp;Part II, Item&nbsp;7 Management&#8217;s discussion and analysis of
financial condition and results of operations and (ii)&nbsp;Part IV,
Item&nbsp;15 to add the references in subsection (a)&nbsp;to documents included
in the Original Filing and to include as exhibits the new certifications
required by Rule 13a-14(a) under the Exchange Act.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The purpose of this amendment is to correct the table of
&#8220;Same-property operating results&#8221; included in Part II, Item 7. in the Section
titled &#8220;results of operations for the year ended December 31, 2014 and
2013&#8221;.The table in the Original filings erroneously included properties that
were not held for the full year during each year,&#160; income tax expense in
&#8221;General &amp; Administrative model homes&#8221; and a mathematical formula error in
the totals for &#8220;Net operating income&#8221;.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">In accordance with Rule 12b-15 under the U.S. Securities
Exchange Act of 1934 (the &#8220;Exchange Act&#8221;), Part II, Item 7 and Part IV, Item&nbsp;15
of the Original Filing have been amended and restated in their entirety. This
Amendment does not amend or otherwise update any other information in the
Original Filing. Accordingly, this Amendment should be read in conjunction with
the Original Filing and Amendment No. 1.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;"><font face="Times New Roman,serif" lang=EN-US style="font-size:9.0pt;line-height:90%;">&nbsp;</font></p>

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<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;page-break-before:always;text-align:justify;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;letter-spacing:-.1pt;line-height:normal;text-transform:uppercase;">ITEM 7. MANAGEMENT&#8217;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></b></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></i></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">The following
discussion relates to our financial statements and should be read in
conjunction with the financial statements and notes thereto appearing elsewhere
in this report. Statements contained in this &#8220;Management&#8217;s Discussion and
Analysis of Financial Condition and Results of Operations&#8221; that are not
historical facts may be forward-looking statements. Such statements are subject
to certain risks and uncertainties, which could cause actual results to
materially differ from those projected. Some of the information presented is
forward-looking in nature, including information concerning projected future
occupancy rates, rental rate increases, project development timing and
investment amounts. Although the information is based on our current
expectations, actual results could vary from expectations stated in this
report. Numerous factors will affect our actual results, some of which are
beyond our control. These include the timing and strength of national and
regional economic growth, the strength of commercial and residential markets,
competitive market conditions, fluctuations in availability and cost of
construction materials and labor resulting from the effects of worldwide
demand, future interest rate levels and capital market conditions. You are
cautioned not to place undue reliance on this information, which speaks only as
of the date of this report. We assume no obligation to update publicly any
forward-looking information, whether as a result of new information, future
events or otherwise, except to the extent we are required to do so in
connection with our ongoing requirements under federal securities laws to
disclose material information. For a discussion of important risks related to
our business, and an investment in our securities, including risks that could
cause actual results and events to differ materially from results and events
referred to in the forward-looking information. See Item 1A for a discussion of
material risks.</font></i></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></i></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font style="border:none;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">OVERVIEW</font></b></font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:10.0pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The Company </font></font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">operates as a self-managed and
self-administered real estate investment trust, or </font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">REIT.&#160;
The Company invests in a diverse portfolio of real estate assets including
industrial, office, residential, retail, self-storage and model home leased
residential properties located primarily in the western United States. As of
December 31, 2014, including properties held for sale, the Company owned or had
an equity interest in: </font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Fourteen office buildings and one
industrial building (&#8220;Office Properties&#8221;) which total approximately 1,152,000
rentable square feet, </font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Five retail shopping centers (&#8220;Retail
Properties&#8221;) which total approximately 230,000 rentable square feet, </font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Seven self-storage facilities
(&#8220;Self-Storage Properties&#8221;) which total approximately 652,000 rentable square
feet, and </font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Fifty-four Model Homes owned by three
affiliated limited partnerships (&#8220;Residential Properties&#8221;).</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">NetREIT&#8217;s
office, retail and industrial properties are located primarily in Southern
California and Colorado, with two properties located in North Dakota. Our Model
Home properties are located in seven states. We do not develop properties but
acquire properties that are stabilized or that we anticipate will be stabilized
within two or three years of acquisition. We consider a property to be
stabilized once it has achieved an 80% occupancy rate for a full year as of
January 1 of such year, or has been operating for three years. Our geographical
clustering of assets enables us to reduce our operating costs through economies
of scale by servicing a number of properties with less staff, but it also makes
us more susceptible to changing market conditions in these discrete geographic
areas. </font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Most of our office and retail properties are leased to a variety
of tenants ranging from small businesses to large public companies, many of
which do not have publicly rated debt. We have in the past entered into, and
intend in the future to enter into, purchase agreements for real estate having
net leases that require the tenant to pay all of the operating expense (Net,
Net, Net Leases) or pay increases in operating expenses over specific base
years. Most of our office leases are for terms of 3 to 5 years with annual
rental increases built into such leases. In general, we have experienced
decreases in rental rates in many of our submarkets due to recessionary
conditions and other related factors when leases expire and are extended. During
2013 and 2012, the changes in rental rates have affected our operating results
due to the older leases being extended at market rates lower than the old
rates. We cannot give any assurance that as the older leases expire or as we
add new tenants that rental rates will be equal to or above the current market
rates. Also, decreased demand and other negative trends or unforeseeable events
that impair our ability to timely renew or re-lease space could have a negative
effect on our future financial condition, results of operations and cash flow.</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>


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<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our Model Homes are typically leased for 2
to 3 years to the home developer on a triple net lease.&#160; Under a triple net
lease, the tenant is required to pay all operating, maintenance and insurance
costs and real estate taxes with respect to the leased property.</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our self-storage properties are rented pursuant to rental
agreements that are typically for no longer than six months in duration. The
self-storage properties are located in markets having other self-storage properties.
Competition with these other properties will impact the operating results of
these properties, which depends materially on our ability to timely lease
vacant self-storage units, to actively manage unit rental rates, and our
tenants&#8217; ability to make required rental payments. To be successful, we must be
able to continue to respond quickly and effectively to changes in local and
regional economic conditions by adjusting rental rates of these properties
within their regional market in Southern California. We depend on websites,
advertisements, flyers, etc. to secure new tenants to fill any vacancies.</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We seek to diversify our portfolio by commercial real
estate segments to reduce the adverse effect of a single under-performing
segment, geographic market and/or tenant. We further supplement this at the
tenant level through our credit review process, which varies by tenant class.&#160;
For example, our commercial and industrial tenants tend to be corporations or
individual owned businesses.&#160; In these cases, we typically obtain financial
records, including financial statements and tax returns (depending on the
circumstance), and run credit reports for any prospective tenant to support our
decision to enter into a rental arrangement. We also typically obtain security
deposits from these commercial entities. Our Model Home business partners are
also typically substantial home developers with established credit histories.
These tenants are subjected to financial review and analysis prior to us
entering into a sales-leaseback transaction. Our ownership of the underlying
property provides a further means to avoiding significant credit losses. Our
self-storage tenants, on the other hand, are typically individuals or smaller
businesses, and the underlying transaction size is much smaller due to the
short-term nature of the rental agreements. We do not perform credit reviews
for this customer class, instead relying on the small transaction size to avoid
significant credit losses. Our agreements also give us the right to auction off
the storage locker contents in instances in which payment has not been
forthcoming. </font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font style="border:none;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:115%;">SIGNIFICANT TRANSACTIONS IN 2014</font></b></font></p>

<p style="background:white;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" style="border:none;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Preferred Stock
Financing</font></i></font><font color=black face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> - In August 2014, we closed on an offering of our Series B
Preferred Stock. The financing, which will be funded in installments, should be
completed no later than the one-year anniversary of the initial
investment.&nbsp;We issued 16,600 shares of our Series B&nbsp;Preferred Stock
for $16.6 million during 2014. These shares have a $0.01 par value and a $1,000
per share liquidation preference. The Series B Preferred Stock shall be
redeemed through a cash payment equal to the face value of the shares
outstanding at redemption. The return on these funds is 14% - 10% to be paid on
a monthly basis, and the remaining 4% shall accrue and compound monthly and be
payable at the redemption date. We expect to receive a total capital
contribution of $40.0 million from this financing by the conclusion of the
funding period. The proceeds of this financing are to be used for Series B
Preferred investor approved property acquisitions. The Series B Preferred Stock
is scheduled to be redeemed by the third anniversary of the closing date;
however, we can extend the redemption date by up to two additional years. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="background:white;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" style="border:none;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:115%;">Acquisitions - </font></i></font><font face="Times New Roman,serif" style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:115%;">we acquired the
following properties during 2014:</font></font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></font></p>

<p style="margin-bottom:6.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">A</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;"> 93,000 square foot, multi-tenant office
building located in Bismarck, ND for $5.4 million dollars in May (through a
cash payment of $2.0 million and the assumption of the existing loan on the
property of $3.4 million). The property was 85% occupied at acquisition.</font></font></p>

<p style="margin-bottom:6.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">An 84,000 square foot,
multi-tenant office building located in Lakewood, Colorado for $9.4 million in
August (through a cash payment of $2.8 million and a promissory note totaling
$6.6 million). The property was 82% occupied at acquisition.</font></font></p>

<p style="margin-bottom:6.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">A 110,000 square foot,
multi-tenant office property located in Colorado Springs, Colorado for $15.5
million in December (through a cash payment of $5.2 million and a promissory
note of $10.3 million).&#160; The property is comprised of two buildings, and was
97% occupied at acquisition.</font></font></p>

<p style="margin-bottom:6.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">A 79,000 square foot,
multi-tenant office property located in Centennial, Colorado was also acquired
in December for $11.8 million (through a cash payment of $3.3 million and a
promissory note of $8.5 million).&#160; The property was 100% occupied at
acquisition.</font></font></p>

<p style="margin-bottom:6.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Also in December, a
44,000 square foot, multi-tenant retail property located in Colorado Springs,
Colorado for $11.2 million (through a cash payment of $2.4 million, a
promissory note of $8.4 million and $400,000 loan termination fee).&#160; The
property was 97% occupied at acquisition.</font></font></p>


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<p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">NetREIT Dubose, Dubose
Model Home Investors #201 LP and Dubose Model Home Investors #202 LP acquired
eighteen (18) Model Home properties in Pennsylvania and Arizona at various
times during the year (and leased them back to the home builders). The purchase
price for the properties totaled $4.2 million, consisting of cash payments of
$1.7 million and promissory notes of $2.5 million.</font></font></p>

<p style="background:white;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:115%;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Dispositions
- </font></i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We review our portfolio
of investment properties for value appreciation potential on an on-going basis,
and dispose of any properties that no longer satisfy our requirements in this
regard. The proceeds from any such property sale, after repayment of any
associated mortgage, are available for </font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">investing in
properties that we believe will have a much greater likelihood of future price
appreciation.</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">During 2014,
we sold our Fontana Medical Plaza property for $4.1 million (this was a single
tenant property acquired by us in 2009 in a joint venture in which we held a
51% interest), while NetREIT Dubose and our limited partnerships (DMHI #201 and
DMHI #202) sold forty-five Model Home properties (upon the maturity of leases)
for $20.9 million.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Debt </font></i></font><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">transactions - </font></i><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">During
2014</font></font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">, the Company originated approximately $36.4 million of promissory
notes payable and assumed one promissory note of $3.4 million in connection
with property acquisitions.&#160; The originated notes bear interest at interest
rates ranging from 4.3 to 4.5%. During 2014, the Company also refinanced
approximately $10.9 million of existing debt with new debt of approximately
$17.1 million, providing additional cash to invest in new acquisitions.&#160; The
new debt bears interest at an average rate of 4.7%, compared to 5.7% on the old
debt, and, </font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">due to a four year interest-only
provision, </font></font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">we were able to reduce our debt service costs on the
refinanced obligations by approximately $67,000 per year. Although our
aggregate debt outstanding increased due to acquisitions of new properties and
the refinancing of existing debt, the weighted average interest rate of our
non-Model Home property mortgages decreased to 4.9% at December 31, 2014 from
5.4% at December 31, 2013. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:115%;">ECONOMIC ENVIRONMENT</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The United
States continues to be the path of a slow recovery from the recession that
began in 2008.&#160; The current economic environment has shown decreases in
residential housing foreclosures and shadow inventory and a decreasing supply
of homes available for purchase resulting in an increase in single-family home
prices, housing starts and building permits. In addition, unemployment rates
have decreased over the last several years. On the commercial side vacancy
rates have decreased but are still higher than pre-recessionary levels.&#160; U.S. corporations,
earnings and stock market investments and activity have rebounded. We believe
that the pace of the overall recovery will likely continue to be slow and
disjointed as many sections of the country have not seen job growth. Full
recovery will need increasing job growth, but even then it will not be
consistent across industries, geographies or periods of the year causing an
uneven tempo of growth.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Increases in
the size of the U.S. debt, slow economic recovery concerns, and uncertain
surrounding the continue raising of the U.S. Government federal debt ceiling
raise the possibility of additional credit-rating downgrades by rating
agencies. The possibility of further downgrades to the U.S. government&#8217;s
sovereign credit rating, or its perceived creditworthiness, and/or the impact
of the current crisis in Europe with respect to the ability of certain European
Union countries to continue to service their sovereign debt obligations are
inherently unpredictable and could adversely affect the U.S. and global financial
markets and economic conditions.&#160; Although the United States Federal Reserve
Bank has started to scale back the quantitative easing and their intent is to
keep interest rates low through 2015, these credit ratings concerns could cause
interest rates and borrowing costs to rise, which may have a negative effect on
our ability to access both the debt and equity markets on favorable terms.
Continued adverse economic conditions could have a material adverse effect on
our business, financial condition and results of operations.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our ability
to make new investments is highly dependent upon our ability to procure
external financing. Our principal source of external financing includes the
issuance of equity securities and mortgages secured by properties.&#160; The market
for mortgages has improved although the interest rates increase during 2014 but
are still low compared to pre-recessionary rates. We continue to obtain
mortgages from the CMBS market, life insurance companies and regional banks.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">MANAGEMENT EVALUATION OF RESULTS OF OPERATIONS</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Management&#8217;s
evaluation of operating results includes an assessment of our ability to
generate cash flow necessary to pay operating expenses, general and
administrative expenses, debt service and to fund distributions to our
stockholders. As a result, Management&#8217;s assessment of operating results gives
less emphasis to the effects of </font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-line-height-rule:exactly;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-pagination:no-line-numbers;"><font style="border:none;mso-bidi-font-size:11.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:.7pt;">&nbsp;</font></font></p>





</DIV>
<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">unrealized gains and
losses and other non-cash charges, such as depreciation and amortization and
impairment charges, which may cause fluctuations in net income for comparable
periods but have no impact on cash flows. Management&#8217;s evaluation of our
potential for generating cash flow includes assessments of our recently
acquired properties, our non-stabilized properties, long-term sustainability of
our real estate portfolio, our future operating cash flow from anticipated
acquisitions, and the proceeds from the sales of our real estate assets.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">In addition,
Management evaluates our portfolio and individual properties results of
operations with a primary focus on increasing and enhancing the value, quality
and quantity of properties in our real estate holdings. Properties that have
reached goals in occupancy and rental rates are evaluated for potential added
value appreciation and, if lacking such potential, are sold with the equity
reinvested in properties that have better potential without foregoing cash
flow.&#160; Management focuses its efforts on improving underperforming assets
through re-leasing efforts, including negotiation of lease renewals and rental
rates. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The ability to increase assets under management is
affected by our ability to raise borrowings and/or capital, coupled with our
ability to identify appropriate investments.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">CRITICAL
ACCOUNTING POLICIES</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">As
a company primarily involved in owning income generating real estate assets,
management considers the following accounting policies critical as they reflect
our more significant judgments and estimates used in the preparation of our
financial statements and because they are important for understanding and
evaluating our reported financial results. These judgments affect the reported
amounts of assets and liabilities and our disclosure of contingent assets and
liabilities as of the dates of the financial statements and the reported
amounts of revenue and expenses during the reporting periods. With different
estimates or assumptions, materially different amounts could be reported in our
financial statements. Additionally, other companies may utilize different
estimates that may impact the comparability of our results of operations to
those of companies in similar businesses. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Real Estate Assets and Lease
Intangibles. </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Land, buildings and improvements are recorded at cost,
including tenant improvements and lease acquisition costs (including leasing
commissions, space planning fees, and legal fees). We capitalize any
expenditure that replaces, improves, or otherwise extends the economic life of
an asset, while ordinary repairs and maintenance are expensed as incurred. We
allocate the purchase price of acquired properties between the acquired
tangible assets and liabilities (consisting of land, building, tenant
improvements, land purchase options, and long-term debt) and identified
intangible assets and liabilities (including the value of above-market and
below-market leases, the value of in-place leases, unamortized lease
origination costs and tenant relationships), based in each case on their
respective fair values.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We allocate the purchase price to
tangible assets of an acquired property based on the estimated fair values of
those tangible assets assuming the building was vacant. Estimates of fair value
for land, building and building improvements are based on many factors
including, but not limited to, comparisons to other properties sold in the same
geographic area and independent third party valuations. We also consider
information obtained about each property as a result of its pre-acquisition due
diligence, marketing and leasing activities in estimating the fair values of
the tangible and intangible assets and liabilities acquired. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The value allocated to acquired
lease intangibles is based on management&#8217;s evaluation of the specific
characteristics of each tenant&#8217;s lease. Characteristics considered by
management in allocating these values include the nature and extent of the
existing business relationships with the tenant, growth prospects for
developing new business with the tenant, the remaining term of the lease and
the tenant&#8217;s credit quality, among other factors.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The value allocable to the above-market
or below-market market component of an acquired in-place lease is determined
based upon the present value (using a market discount rate) of the difference
between (i) the contractual rents to be paid pursuant to the lease over its
remaining term, and (ii) management&#8217;s estimate of rents that would be paid
using fair market rates over the remaining term of the lease. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The value of in-place leases,
unamortized lease origination costs and tenant relationships are amortized to
expense over the remaining term of the respective leases, which range from less
than a year to ten years. The amount allocated to acquire in-place leases is
determined based on management&#8217;s assessment of lost revenue and costs incurred
for the period required to lease the &#8220;assumed vacant&#8221; property to the occupancy
level when purchased. The amount allocated to unamortized lease origination
costs is determined by what we would have paid to a third party to secure a new
tenant reduced by the expired term of the respective lease. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>


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<p align=center style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;text-align:center;"><font style="display:none;mso-hide:all;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"></font></font><font style="mso-no-proof:yes;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">5</font></font><font style="mso-no-proof:yes;"><font style="display:none;mso-hide:all;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"></font></font></font></p>



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<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-line-height-rule:exactly;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-pagination:no-line-numbers;"><font style="border:none;mso-bidi-font-size:11.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:.7pt;">&nbsp;</font></font></p>





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<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Impairment of Real
Estate Assets</font></i></b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">.&nbsp;</font></i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> We review the carrying value of each property to
determine if circumstances that indicate impairment in the carrying value of
the investment exist or that depreciation periods should be modified. If
circumstances support the possibility of impairment, we prepare a projection of
the undiscounted future cash flows, without interest charges, of the specific
property and determine if the investment in such property is recoverable. If
impairment is indicated, the carrying value of the property is written down to
its estimated fair value based on our best estimate of the property&#8217;s
discounted future cash flows. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Goodwill and Intangible Assets</font></i></b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">.&nbsp;</font></i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> Intangible
assets, including goodwill and lease intangibles, are comprised of finite-lived
and indefinite-lived assets. Lease intangibles represents the allocation of a
portion of the purchase price of a property acquisition representing the
estimated value of in-place leases, unamortized lease origination costs, tenant
relationships and land purchase options. Intangible assets that are not deemed
to have an indefinite useful life are amortized over their estimated useful
lives. Indefinite-lived assets are not amortized. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We test for impairment of goodwill
and other definite and indefinite lived assets at least annually, and more
frequently as circumstances warrant. Impairment is recognized only if the
carrying amount of the intangible asset is considered to be unrecoverable from
its undiscounted cash flows and is measured as the difference between the
carrying amount and the estimated fair value of the asset. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Sales of Real Estate Assets</font></i></b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">.&nbsp;</font></i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> Gains from the sale of real
estate assets will not be recognized under the full accrual method until
certain criteria are met. Gain or loss (the difference between the sales value
and the cost of the real estate sold) shall be recognized at the date of sale
if a sale has been consummated and the following criteria are met:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">a.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The buyer is independent of the
seller;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">b.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Collection of the sales price is
reasonably assured; and</font></p>

<p style="margin:0in;margin-bottom:10.0pt;margin-left:.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">c.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The seller will not be required to
support the operations of the property or its related obligations to an extent
greater than its proportionate interest. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Gains
relating to transactions which do not meet the criteria for full accrual method
of accounting are deferred and recognized when the full accrual method of
accounting criteria are met or by using the installment or deposit methods of
profit recognition, as appropriate in the circumstances.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Revenue Recognition. </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We recognize revenue from rent, tenant reimbursements,
and other revenue once all of the following criteria are met:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">a.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Persuasive evidence of an arrangement exists;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">b.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Delivery has occurred or services have been rendered;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">c.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The amount is fixed or
determinable; and</font></p>

<p style="margin:0in;margin-bottom:10.0pt;margin-left:.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">d.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The collectability of the amount
is reasonably assured.</font></p>

<p style="margin:0in;margin-bottom:10.0pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Annual rental revenue is recognized in
rental revenues on a straight-line basis over the term of the related lease.
Estimated recoveries from certain tenants for their pro rata share of real
estate taxes, insurance and other operating expenses are recognized as revenues
in the period the applicable expenses are incurred or as specified in the
leases. Other tenants pay a fixed rate and these tenant recoveries are
recognized as revenue on a straight-line basis over the term of the related
leases. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Certain of our leases currently contain rental
increases at specified intervals. We record as an asset, and include in
revenues, deferred rent receivable that will be received if the tenant makes
all rent payments required through the expiration of the initial term of the
lease. Deferred rent receivable in the accompanying balance sheets includes the
cumulative difference between rental revenue recorded on a straight-line basis
and rents received from the tenants in accordance with the lease terms.
Accordingly, Management determines to what extent the deferred rent receivable
applicable to each specific tenant is collectible. We review material deferred
rent receivable, as it relates to straight-line rents, and take into
consideration the tenant&#8217;s payment history, the financial condition of the
tenant, business conditions in the industry in which the tenant operates and
economic conditions in the area in which the property is located. In the event
that the collectability of deferred rent with respect to any given tenant is in
doubt, we record an increase in the allowance for uncollectible accounts, and
write-off of the specific rent receivable. No such reserves related to deferred
rent receivables have been recorded as of December 31, 2014 or 2013.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Income Taxes</font></i></b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">.&nbsp;</font></i><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We
have elected to be taxed as a REIT under Sections 856 through 860 of the Code,
for federal income tax purposes. To qualify as a REIT, we must distribute
annually at least 90% of adjusted taxable income, as defined in the Code, to
our stockholders and satisfy certain other organizational and operating
requirements. As a REIT, no provision will be made for federal income taxes on
income resulting from those sales of real estate </font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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<p align=center style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;text-align:center;"><font style="display:none;mso-hide:all;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"></font></font><font style="mso-no-proof:yes;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">6</font></font><font style="mso-no-proof:yes;"><font style="display:none;mso-hide:all;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"></font></font></font></p>



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<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-line-height-rule:exactly;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-pagination:no-line-numbers;"><font style="border:none;mso-bidi-font-size:11.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:.7pt;">&nbsp;</font></font></p>





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<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">investments
which have or will be distributed to stockholders within the prescribed limits.
However, taxes will be provided for those gains which are not anticipated to be
distributed to stockholders unless such gains are deferred pursuant to Section
1031. In addition, we will be subject to a federal excise tax which equals 4%
of the excess, if any, of 85% of ordinary income plus 95% of any capital gain
net income over cash distributions, as defined. We believe that we have met all
of the REIT distribution and technical requirements for the years ended December
31, 2014 and 2013, respectively.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Earnings and profits that
determine the taxability of distributions to stockholders differ from net
income reported for financial reporting purposes due to differences in
estimated useful lives and methods used to compute depreciation and the
carrying value (basis) on the investments in properties for tax purposes, among
other things. During the years ended December 31, 2014 and 2013, all
distributions were considered return of capital to the stockholders and
therefore non-taxable because of our operating losses. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Fair Value Measurements. </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Certain assets and liabilities are required to be
carried at fair value, or if long-lived assets are deemed to be impaired, to be
adjusted to reflect this condition. The guidance requires disclosure of fair
values calculated under each level of inputs within the following hierarchy:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Level 1 &#8211; Quoted prices in active markets for
identical assets or liabilities at the measurement date.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Level 2 &#8211; Inputs other than quoted process that are observable
for the asset or liability, either directly or indirectly.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Level 3 &#8211; Unobservable inputs for the asset or
liability.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Fair value is defined as the price at which an asset
or liability is exchanged between market participants in an orderly transaction
at the reporting date. Our cash equivalents, mortgage notes receivable,
accounts receivable and payables and accrued liabilities all approximate fair
value due to their short term nature. Management believes that the recorded and
fair values of notes payable are approximately the same as of December 31, 2014
and 2013.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Depreciation and
Amortization. </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The Company records depreciation and amortization expense
using the straight-line method over the useful lives of the respective assets.</font><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">
</font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The cost of buildings are depreciated over estimated useful lives of 39
years, the costs of improvements are amortized over the shorter of the
estimated life of the asset or term of the tenant lease (which range from 1 to
10 years), and the cost of furniture, fixtures and equipment are depreciated
over 4 to 5 years. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">RESULTS
OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our
results of operations for 2014 and 2013 are not indicative of those expected in
future periods as we expect that rental income, interest expense, rental
operating expense, general and administrative expense and depreciation and
amortization will significantly increase in future periods as a result of the
assets acquired over the last two years and as a result of anticipated growth
through future acquisitions of real estate related investments.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Same-Property Operating
Results</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The
table below presents the 2014 and 2013 operating results for the Company&#8217;s
rental properties owned as of January 1, 2013 (with the exception noted below),
thereby excluding the impact on our results of operations from the real estate
properties acquired during 2014. The Company believes that this type of
non-GAAP financial measure, when considered with our financial statements
prepared in accordance with GAAP, is useful to investors to better understand
the Company&#8217;s operating results. Properties are included in this analysis if
they were owned and operated for the entirety of both periods being compared,
except for our Lancaster and Casa Grande properties. These properties were
exchanged for one-another in a like-kind exchange in the second quarter of
2013, and so have both been included in the following analysis. Same-property
operating results should not be considered as an alternative to net income
prepared in accordance with GAAP or as a measure of liquidity, Further,
same-property operating results is a measure for which there is no standard
definition and, as such, it is not consistently defined or reported on among
the Company&#8217;s peers, and thus may not provide an adequate basis for comparison
between REITs.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The
following table summarizes certain components of same-property operating
results for the years ended December 31, 2014 and 2013. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>


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<p><font lang=EN-US>&nbsp;&#32;</font></p>
<div align=left><table border=1 cellpadding=0 cellspacing=0 style="border:none;border-collapse:collapse;width:100%;">
 <tr style="height:12.95pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:9.0pt;text-decoration:none;">&nbsp;</font></b></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=34% style="border:none;border-bottom:solid windowtext 1.0pt;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">Year Ended December 31,</font></b></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=24% style="border:none;border-bottom:solid windowtext 1.0pt;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">Variance</font></b></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><u><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">Same - property operating results:</font></u></b></p>
  </td>
 <td nowrap valign=bottom width=16% style="border:none;border-bottom:solid windowtext 1.0pt;height:.1in;padding:0in 3.0pt 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">2014</font></b></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;border-top:solid windowtext 1.0pt;height:.1in;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">2013</font></b></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=12% style="border:none;border-bottom:solid windowtext 1.0pt;height:.1in;padding:0in 3.0pt 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">$</font></b></p>
  </td>
 <td valign=bottom width=12% style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;height:.1in;padding:0in 7.9pt 0in 5.75pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">%</font></b></p>
  </td>
 </tr>
<tr style="height:12.95pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">Rental revenues - Commercial properties</font></p>
  </td>
 <td nowrap valign=bottom width=16% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$16,242,554</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$16,253,873</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=12% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$&#160;&#160;&#160;&#160;&#160;&#160; (11,319)</font></p>
  </td>
 <td valign=bottom width=12% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 7.9pt 0in 5.75pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">-0.1%</font></p>
  </td>
 </tr>
<tr style="height:12.95pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">Rental revenues - Model Homes</font></p>
  </td>
 <td nowrap valign=bottom width=16% style="border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">567,492</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">567,492</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=12% style="border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p>
  </td>
 <td valign=bottom width=12% style="border:none;height:12.95pt;padding:0in 7.9pt 0in 5.75pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">0.0%</font></p>
  </td>
 </tr>
<tr style="height:12.95pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">Rental operating costs &#8211; Commercial properties </font></p>
  </td>
 <td nowrap valign=bottom width=16% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">6,687,159</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">6,186,831</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=12% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$&#160; &#160;&#160;&#160;&#160;&#160;&#160;500,328 </font></p>
  </td>
 <td valign=bottom width=12% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 7.9pt 0in 5.75pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">8.1%</font></p>
  </td>
 </tr>
<tr style="height:12.95pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">Rental operating costs &#8211; Model Homes</font></p>
  </td>
 <td nowrap valign=bottom width=16% style="border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">185,476</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">195,590</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=12% style="border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$&#160;&#160;&#160;&#160;&#160;&#160; (10,114)</font></p>
  </td>
 <td valign=bottom width=12% style="border:none;height:12.95pt;padding:0in 7.9pt 0in 5.75pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">-5.2%</font></p>
  </td>
 </tr>
<tr style="height:12.95pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">General and administrative &#8211; Commercial properties</font></p>
  </td>
 <td nowrap valign=bottom width=16% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">3,879,237</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">3,700,635</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=12% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; 178,602</font></p>
  </td>
 <td valign=bottom width=12% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 7.9pt 0in 5.75pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">4.8%</font></p>
  </td>
 </tr>
<tr style="height:12.95pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">General and administrative &#8211; Model Homes</font></p>
  </td>
 <td nowrap valign=bottom width=16% style="border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">939,696</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">1,366,021</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=12% style="border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$&#160;&#160;&#160;&#160; (426,325)</font></p>
  </td>
 <td valign=bottom width=12% style="border:none;height:12.95pt;padding:0in 7.9pt 0in 5.75pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">-31.2%</font></p>
  </td>
 </tr>
<tr style="height:12.95pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=36% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">Net operating income</font></p>
  </td>
 <td nowrap valign=bottom width=16% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$ 5,118,478</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=14% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$5,372,288</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=12% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 3.0pt 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">$&#160;&#160;&#160;&#160; (253,810)</font></p>
  </td>
 <td valign=bottom width=12% style="background:#B8CCE4;border:none;height:12.95pt;padding:0in 7.9pt 0in 5.75pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;">-4.7%</font></p>
  </td>
 </tr>
</table></div>


<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Revenues.&#160; </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Total revenue was $19.9 million for the year ended
December 31, 2014, compared to $19.6 for the same period in 2013, an increase
of $339,000 or 1.7%. The increase in rental income as reported in 2014 as
compared to 2013 reflects:</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">A net increase in
industrial and office properties rental income of $1.0 million as a result of
the five property acquisitions we made during 2014.&#160; The resulting $1.3 million
increase in rental revenues arising from these new properties more than
compensated for the decline in rental income owing to a non-recurring lease
cancellation fee of $345,000 received in 2013.</font></font></p>

<p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></font></p>

<p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol style="border:none;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Revenues from rentals
of Model Homes decreased to $2.0 million in 2014 from $2.9 million in the prior
year. The 30.0% decrease in rental revenues arose as a result of a reduction in
the number of Model Homes that we owned in 2014 compared to the prior year. We
owned 54 Model Homes at December 31, 2014 compared to 77 homes at December 31,
2013. </font></font></p>

<p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></font></p>

<p style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=Symbol lang=EN-US style="font-size:10.0pt;line-height:normal;">&#183;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Self-storage revenue
increased $140,000 during 2014, primarily as a result of additional revenues of
approximately $95,000 generated from our Lancaster self-storage facility. This
facility was acquired in May 2013; therefore our 2014 results reflect a full
year of site revenue compared to eight months of site revenue included in our
results of operations in 2013. </font></font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Rental
Operating Costs</font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">.&#160; Rental operating costs were $7.5 million for the
year ended December 31, 2014 compared to $6.4 million for the same period in
2013, an increase of $1.1 million or 17.0%. Costs associated with properties
acquired during 2014 accounted for $593,000 of this increase. Additionally, we
experienced an increase in our costs at properties we owned during all of 2014
and 2013 due to an increase in third party on-site management fees ($171,000),
additional repairs and maintenance costs ($95,000), an increase in janitorial
expenses ($60,000), additional legal and accounting fees ($68,000) and an increase
in the cost of unreimbursed utilities ($66,000).</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Rental operating
costs as a percentage of rental and fee income was 37.5% and 32.6% for the
years ended December 31, 2014 and 2013, respectively, primarily due to the
decline in Model Home rental revenues. Model Home rental operating costs as a
percentage of rental and fee income was 8.9% and 6.6% for the years ended
December 31, 2014 and 2013, respectively. Model Home rental operating costs are
typically low as the leasees pay for all of the expenses related to the homes,
including taxes and insurance. Although Model Home operating costs remained
relatively consistent as a percentage of revenues, the decrease in the scope of
Model Home business translated into an increase in our overall rental operating
costs as a percentage of rental and fee income.</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">General and
Administrative Expenses. </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">General
and administrative (&#8220;G&amp;A&#8221;) expenses were $5.6 million for the year ended
December 31, 2014,</font><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;line-height:normal;">
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">compared to $5.4 for the same period in
2013, representing an increase of $112,000 or 2.1%. While our overall G&amp;A
costs remained relatively unchanged, our federal income taxes increased by
$430,000 at our taxable REIT subsidiaries due to the gains on the sales of
model homes, which increase was partially offset by a decrease in compensation
costs of $295,000 due to the reassignment of certain of our personnel to NTR
Property Management, our in-house property management company (the costs of
which are included in rental operating expenses).</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Depreciation
and Amortization</font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">. Depreciation
and amortization expenses were $6.0 million for the year ended December 31,
2014,</font><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;line-height:normal;"> </font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">compared to $5.3 million for the same period in 2013,
representing an increase of $740,000 or 13.9%. Depreciation costs associated
with properties acquired during 2014 accounted for all of this increase.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Asset
Impairments. </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We review the carrying value of each of our real estate
properties annually to determine if circumstances indicate an impairment in the
carrying value of these investments exists. During fiscal 2013, we recognized
asset impairment charges on our Havana Parker and Morena Office Centre
properties of $1.5 million and </font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-line-height-rule:exactly;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-pagination:no-line-numbers;"><font style="border:none;mso-bidi-font-size:11.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:.7pt;">&nbsp;</font></font></p>





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<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">$500,000, respectively.
During fiscal 2014, we recognized an additional impairment charge of $950,000
for our Havana Parker property. These impairment charges reflect management&#8217;s
estimate of the fair market value based on sales comps of like property in the
same geographical area. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Interest
Expense.</font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;"> Interest expense, including amortization of deferred
finance charges, increased by $1.4 million, or 28.0%, to $6.5 million for the
year ended December 31, 2014</font><font face=Arial,sans-serif lang=EN-US style="font-size:10.0pt;line-height:normal;"> </font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">compared to $5.1
million for the same period in 2013. The increase in interest expense was
primarily the result of the preferred return on the Series B Preferred Stock
issued in August 2014 of $776,000, and amortization of the deferred offering
costs associated with that transaction. Additionally, we incurred interest
costs of $269,000 as a result of our 2014 acquisitions of the Bismarck and
Union Terrace properties. The interest expense for our other 2014 acquisitions
was minimal due to the timing of the closing (they were acquired in
late-December 2014). The weighted average interest rate on our outstanding debt
was 4.9% as of December 31, 2014 compared to 5.1% as of December 31, 2013. </font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Gain on Sale
of Real Estate Assets and Partnerships, net.</font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;"> For the year
ended December 21, 2014, we had a gain on the sale of our Fontana Medical
Center of $1.7 million, gains from the sales of Model Homes of $3.5 million and
a loss on the sale of a land parcel of $0.1 million. For the year ended
December 31, 2013, the Company had a net gain on the sale of the Casa Grande
Apartments totaling $322,000 and gains from the sales of Model Homes totaling
$1.3 million. In addition, in 2013 the Company also recognized gains from the
liquidation of its interests in the two limited partnerships totaling $372,000.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">Gain on
Extinguishment of Debt. </font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:normal;">In
December 2014, the Company and the lender for the Havana Parker Complex entered
into to a loan modification agreement pursuant to which the lender agreed to
reduce the outstanding loan balance on the property by $537,000 (from
$3,037,000 to $2,500,000) and also agreed to defer a portion of the monthly
interest on the loan until loan maturity. Under the modified agreement,
interest only payments (at 2.5%) are due through in July 1, 2016, at which time
all principal and the deferred interest are due. The Company has the option to extend
the loan maturity date for one additional year in exchange for making a
one-time payment of $100,000 (which will be applied to outstanding principal).</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;"><font style="border:none;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">LIQUIDITY AND CAPITAL RESOURCES</font></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Overview</font></i></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">As discussed above under Economic
Environment, during 2014, there have been signs of economic improvement and
stabilization in the equity markets. We expect the market turbulence could
continue in the commercial real estate arena due to the uncertainties
previously discussed. We believe that as a result of the trends, new mortgage
financing will continue remain less favorable in terms of loan amount to value
as pre-recession days, which may negatively impact our ability to finance
future acquisitions. Long-term interest rates remain relatively low by
historical standards but we anticipate that interest rates will increase during
the next couple years.&nbsp;&nbsp;On the other hand, we believe the negative
trends in the mortgage markets for smaller properties and in some geographic
locations have reduced property prices and may, in certain cases, reduce
competition for those properties.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our future sources of liquidity include
existing cash and cash equivalents, cash flows from operations, new mortgages
on our unencumbered properties, refinancing of existing mortgages, future sales
of our Series B Preferred Stock (as described below) and the possible sale of
additional equity/debt securities. Our available liquidity at December 31, 2014
included cash and cash equivalents of $5.6 million, as well as our potential
borrowing capacity under potential credit facilities such as a revolving line
of credit or from mortgages on unencumbered properties and refinancing of
mortgages with low debt to value. We do not have a revolving line of credit at
the current time, and we cannot guarantee that we will be able to consummate a
line of credit in the near future, but we have been exploring the possibilities
of obtaining such a line of credit. We also do not have any commitments or
other arrangements with any financial institution to borrow any amounts in the
form of mortgages on currently unencumbered properties or through refinancing
existing mortgages and we cannot be certain that a financial institution would
ultimately provide such financing, but we estimate that such borrowings
represent additional borrowing capacity of approximately $12.5 million. During
2014, for example, we refinanced approximately $10.9 million of existing debt
with new debt of approximately $17.1 million.&#160; The new debt bears interest at
an average rate of 4.7% compared to 5.7% on the old debt and, due to a four
year interest-only provision, our annual debt service costs decreased by $67,000
as a result of this transaction. We are currently working with an institution
to refinance an existing mortgage with an outstanding principal balance of
approximately $3.0 million with interest at 5.6% with a new mortgage of $6.0
million with interest at 4.5%.&nbsp; We expect this refinancing to close in the
next quarter. </font></font></p>

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<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our future capital needs include paying
down existing borrowings, maintaining our existing properties, funding tenant
improvement, paying lease commissions and the payment of a competitive
distribution to our stockholders. We also are actively seeking investments that
are likely to produce income in order to pay distributions as well as long-term
gains for our stockholders.&nbsp;To ensure that we are able to effectively
execute these objectives, we routinely review our liquidity requirements and
continually evaluate all potential sources of liquidity. </font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our short term liquidity needs include
paying our current operating costs, satisfying the debt service requirements of
our existing mortgages and funding for our distributions to stockholders.
During the year ended December 31, 2014, our principal debt service and the
cash portion of the distributions to our shareholders&#8217; was $8.6 million, while
the net cash provided by our operating activities totaled $4.0 million. The
remainder of the distribution was covered by proceeds from sales of real estate
assets. We believe that the cash flow from our existing portfolio,
distributions from joint ventures in Model Home partnerships and our
anticipated acquisitions (when operational for the full term) will be
sufficient to fund our near term operating costs, fund the debt service costs
on our existing mortgages, and fund the cash portion of distribution to
stockholders at the current rate.&nbsp;However, if our cash flow from operating
activities is not sufficient to fund our short term liquidity needs, including
the payment of cash dividends at current rates to our stockholders, we will
fund a portion of these needs from additional borrowings of secured or
unsecured indebtedness or we will reduce the rate of distribution to the
stockholders.&nbsp;&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our long-term liquidity needs include
proceeds necessary to grow and maintain our portfolio of investments. </font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We believe that the $23.4 million available
from the sale of preferred stock as discussed below along with the potential
financing capital available to us in the future </font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">is sufficient to fund our long-term liquidity needs.&#160; We
are continually reviewing our existing portfolio for properties that have met
maximized short and long term potential with the intent of selling those
properties and reinvesting the proceeds in properties that have equivalent or
better short term benefits and better long term potential.&#160; We expect to obtain
additional cash in connection with refinancing of maturing mortgages and
assumption of existing debt collateralized by some or all of our real property
in the future to meet our long-term liquidity needs.&#160; If we are unable to
arrange a line of credit, borrow on unencumbered properties, or sell securities
to the public we may not be able to acquire additional properties to meet our
long-term objectives.&nbsp;&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Cash and Cash Equivalents</font></i></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">At December 31, 2014, we had approximately
$5.6 million in cash and cash equivalents compared to approximately $10.2
million at December 31, 2013. Our cash and cash equivalents are held in bank
accounts at third party institutions and consist of invested cash and cash in
our operating accounts.&nbsp;&nbsp;During 2014 and 2013, we did not experience
any loss or lack of access to our cash or cash equivalents. Approximately $3.0
million of our cash balance is intended for capital expenditures on existing
Properties. We intend to use the remainder of our existing cash and cash
equivalents for acquisitions, general corporate purposes and distributions to
our stockholders.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Series B Preferred Stock</font></i></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></i></b></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="background:white;border:none;"><font face="Times New Roman,serif" lang=EN-US style="background:white;font-size:10.0pt;">In August 2014,&nbsp;the Company closed on
an </font></font><font color=black style="border:none;"><font color=black face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">offering of our Series B
Preferred Stock.</font></font><font style="background:white;border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> &nbsp;</font></font><font color=black style="border:none;"><font color=black face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We expect to receive a total capital
contribution of $40.0 million from this financing by the conclusion of the
funding period. </font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">An initial investment of $16.6
million was made at the close of the transaction, and an additional investment
of $23.4 million will be made on or before the one year anniversary of the
initial investment.&nbsp;</font><font color=black face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We believe that the
remaining proceeds from this offering will allow us to increase the size of our
property portfolio by approximately $78.0 million. We will continue to seek
acquisitions or properties for equity in a DownREIT structure.&#160; Our ability to
access equity markets is dependent on a number of factors including general
market conditions for the REIT industry and market perception of our Company.</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">
&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Secured Debt</font></i></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">As of December 31, 2014, NetREIT had mortgage notes payable
in the aggregate principal amount of $116.2 million, collateralized by a total
of 26 properties with loan terms at issuance ranging from 3 to 30 years.&nbsp;
The weighted-average interest rate on the mortgage notes payable as of December
31, 2014 was approximately 5.0%, and our debt to book value on these properties
was approximately 63.0%. </font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">As of December 31, 2014, NetREIT Dubose, and related
entities, had 54 fixed-rate mortgage notes payable in the aggregate principal
amount of $7.7 million, collateralized by a total of 54 Model Home properties.
These loans generally have a term at issuance of three to five years.&nbsp; The
average balance outstanding and the weighted-average interest rate on these
mortgage loans are $321,000 and 5.2%, respectively, as of December 31,
2014.&nbsp;Our debt to net book value on these properties is approximately
57.0%. The Company has guaranteed these promissory notes.&nbsp; The </font></font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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</DIV>
<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">balloon principal payments on the notes payable are in
2016 and 2019, and are typically tied to the end of the lease and the sale of
the Model Home properties securing the debt.</font></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Despite the disruptions in the debt market discussed in
&quot;Overview&quot; above, we have been able to refinance maturing debts
before scheduled maturity dates and we have also not experienced any unusual
difficulties financing our acquisitions.</font></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Cash Flows for the Years Ended December 31, 2014 and 2013</font></i></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Operating Activities: </font></i></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Net cash provided by operating activities
was essentially unchanged in comparison to the prior year &#8211; cash flow from
operations of $4.4 million for 2014 compared to cash flow from operations of
$4.1 million for 2013. We anticipate that </font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">with</font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> the recent
acquisitions and the future anticipated acquisitions, the cash provided by
operating activities will cover the cash portion of our distributions to
stockholders in the future.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Investing Activities: </font></i></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Net cash used in investing activities was
$42.3 million for the year ended December 31, 2014, compared to net cash used
of $0.2 million during the same period in 2013. The increase in net cash used
in the current year was primarily due to the acquisitions of the five
properties for $53.3 million and the acquisition of 18 Model Homes for an
aggregate purchase price of $5.7 million. Results for 2013 include the
acquisition of our Lancaster property and five Model Homes for $5.3 million.
During 2013, our investment activities were curtailed due to the time we spent
on a very large portfolio of office buildings, only to lose out on the
opportunity after six months of due diligence and negotiations.&#160; Hence, we only
acquired one non-Model Home property for $3.6 million. These uses of funds were
offset by the proceeds received on sales of real estate of $22.3 million from
the sale of the Fontana Medical Plaza property and 34 Model Homes in 2014,
compared to proceeds received on sales of real estate of $11.5 million from the
sale of the Casa Grande apartments and 31 Model Homes in 2013.&#160; </font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We anticipate that the acquisitions of
both the non-Model Home properties and of Model Homes will increase during 2015
and thereafter. Future acquisitions by the Company will depend on funds
available from cash on hand and the proceeds from the issuance of our Series B
Preferred Stock and from the sale of existing properties. Future acquisitions
of Model Homes will depend on the availability of Model Homes from developers
at acceptable prices.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=black style="border:none;"><font color=black face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We currently project that we
could spend up to $3.0 million on capital improvements, tenant improvements and
leasing costs for properties within our portfolio during 2015. Capital
expenditures may fluctuate in any given period subject to the nature, extent,
and timing of improvements required to the properties. We may spend more on
gross capital expenditures during 2015 as compared to 2014 due to rising
construction costs and the anticipated increase in property acquisitions in
2015. Tenant improvements and leasing costs may also fluctuate in any given
year depending upon factors such as the property, the term of the lease, the
type of lease, the involvement of external leasing </font></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">agents</font><font color=black face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> and
overall market conditions.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=black style="border:none;"><font color=black face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=black style="border:none;"><i><font color=black face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Financing</font></i></font><font style="border:none;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> Activities: </font></i></font><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Net cash provided by financing activities
in 2014 was $33.7 million compared to cash used of $4.5 million for the
comparable prior year period. The increase in cash flow in the current year was
primarily attributable to net inflow of $36.4 million from new mortgage and
debt refinancing activity and the net cash inflow of $13.9 million from the
sale of Series B Preferred Stock, offset by the net cash outflow of $1.6
million used to redeem preferred shares. Net cash flows associated with
noncontrolling interests also adversely impacted our operations by $11.1
million (a net cash outflow of $7.5 million during 2014 (primarily due to special
distributions of stemming from two years of high Model Home sales activity)
compared to a net cash inflow of $3.6 million in 2013 (due to capital raising
activities of the Model Home entities).</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We anticipate mortgaging one unencumbered
property and increasing mortgages balances in connection with refinancing debt
maturing in 2015 on several other properties (during the next two years) to
provide additional funds for financing activities. These properties have an
estimated market value of approximately $33.3 million and mortgage obligations of
$10.8 million, which we believe will allow us to increase our net borrowings by
approximately $12.5 million. In addition, we expect that we will generate
approximately $23.4 million from the planned issuance of Series B Preferred
Stock.&nbsp;We anticipate using the cash so provided to acquire approximately
$120.0 million of new properties. We are also pursuing other sources of capital
either through a line of credit facility or the possible sale of additional
equity/debt securities to provide resources to pursue future acquisitions.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">On February 6, 2015, we entered into an Agreement of
Purchase and Sale and Joint Escrow Instructions to sell 100% of our Sparky&#8217;s
Self-Storage Portfolio, as defined in the Purchase Agreement, for a purchase
price of approximately $36.3 million to</font><font color=#1F497D face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;"> </font><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">an
unaffiliated third party purchaser. The Self-Storage Portfolio is a portfolio
of seven self-storage properties located in San Bernardino County, California.
The Buyer is currently conducting due </font></font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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</DIV>
<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font style="border:none;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">diligence on the
Self-Storage Portfolio during an initial 55-day inspection period.&nbsp;
Initially, the Buyer escrowed a deposit in the amount of $500,000.&nbsp; At the
expiration of the due diligence period, an additional $500,000 deposit will be
due, and the total deposit will become non-refundable and will be applied to
the purchase price at closing. The sale of the Self-Storage Portfolio is
subject to the fulfillment of certain closing conditions and other terms and
conditions customary for real estate transactions.&nbsp; There can be no
assurance that any or all of the conditions will be satisfied or, if satisfied,
that the Self-Storage Portfolio will be sold.&nbsp;Assuming that outstanding
contingencies are satisfied, we anticipate that the closing of the Self-Storage
Portfolio sale will take place in the second quarter of 2015. We expect that
the net proceeds from this transaction will be redeployed into our property
portfolio.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Off-Balance Sheet
Arrangements</font></i></b></font></p>

<p style="background:white;border:none;margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">As of December 31, 2014, we do not have
any off-balance sheet arrangements or obligations, including contingent
obligations.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Non-GAAP Supplemental Financial Measures: </font></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Funds From Operations (&#8220;FFO&#8221;)</font></i></b></font><font style="border:none;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> &nbsp;</font></i></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Management believes that FFO is a useful supplemental
measure of our operating performance. We compute FFO using the definition
outlined by the National Association of Real Estate Investment Trusts
(&#8220;NAREIT&#8221;). NAREIT defines FFO as net income (loss) in accordance with GAAP,
plus depreciation and amortization of real estate assets (excluding
amortization of deferred financing costs and depreciation of non-real estate
assets) reduced by gains and losses from sales of depreciable operating
property and extraordinary items, as defined by GAAP. Other REITs may use
different methodologies for calculating FFO and, accordingly, our FFO may not
be comparable to other REITs. Because FFO excludes depreciation and
amortization, gains and losses from property dispositions that are available
for distribution to stockholders and extraordinary items, it provides a
performance measure that, when compared year over year, reflects the impact to
operations from trends in occupancy rates, rental rates, operating costs,
development activities, general and administrative expenses and interest costs,
providing a perspective not immediately apparent from net income. In addition,
Management believes that FFO provides useful information to the investment
community about our financial performance when compared to other REITs since
FFO is generally recognized as the industry standard for reporting the
operations of REITs. However, FFO should not be viewed as an alternative
measure of our operating performance since it does not reflect either
depreciation and amortization costs or the level of capital expenditures and
leasing costs necessary to maintain the operating performance of our properties
which are significant economic costs and could materially impact our results
from operations.</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The following table presents our FFO for
the years ended December 31, 2014 and 2013.</font></font></p>



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 <tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=2 nowrap valign=bottom width=66% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">Year Ended December 31, </font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=15% style="border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">2014</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face=Calibri,sans-serif style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=15% style="border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">2013</font></b></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=2 nowrap valign=bottom width=66% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Net
  loss </font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(4,045,683)</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(4,089,094)</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=2 nowrap valign=bottom width=66% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Adjustments:</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=2 nowrap valign=bottom width=66% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Income
  attributable to noncontrolling interests</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3,192,082</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">1,566,023</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=2 nowrap valign=bottom width=66% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Depreciation
  and amortization</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">6,049,385</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">5,309,560</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=2 nowrap valign=bottom width=66% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Asset
  impairments</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">950,000</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">2,000,000</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=2 nowrap valign=bottom width=66% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Gain
  on sale of real estate assets</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(5,120,699)</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(1,992,754)</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=4% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=62% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">FFO</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;border-bottom:double black 2.25pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$</font></b></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;border-bottom:double black 2.25pt;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">1,025,085</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;border-bottom:double black 2.25pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$</font></b></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;border-bottom:double black 2.25pt;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">2,793,735</font></b></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td nowrap valign=bottom width=4% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=62% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table></div>


<p style="border:none;margin:0in;margin-bottom:.0001pt;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">No conclusion or comparisons should be
made from the presentation of these figures. </font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><b><i><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">Modified Funds From Operations
(&#8220;MFFO&#8221;)</font></i></b></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">We define MFFO, a non-GAAP measure,
consistent with the Investment Program Association&#8217;s (&#8220;IPA&#8221;) Guideline 2010-01,
</font><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Supplemental Performance Measure for Publicly Registered, Non-Listed REIT </font></i><b><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Modified
Funds From Operations,</font></i></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"> or the Practice Guideline, issued by the IPA in
November 2010. The Practice Guideline defines MFFO as FFO further adjusted for
the following items, as applicable, included in the determination of GAAP net
income: acquisition fees and expenses; amounts relating to deferred rent
receivables and amortization of above-market and below-market leases and
liabilities (which are adjusted in order to reflect such payments from a GAAP
accrual basis to a cash basis of disclosing the rent and lease payments);
accretion of discounts and amortization of premiums on debt investments;
nonrecurring impairments of real estate-related investments (i.e., infrequent
or unusual, not reasonably likely to recur in the ordinary course of business);
mark-to-market adjustments included in net income; nonrecurring gains or losses
included in net income from the extinguishment or sale of debt, hedges, foreign
</font></font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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<p align=center style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;text-align:center;"><font style="display:none;mso-hide:all;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"></font></font><font style="mso-no-proof:yes;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">12</font></font><font style="mso-no-proof:yes;"><font style="display:none;mso-hide:all;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;"></font></font></font></p>



<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;"><font face=Calibri,sans-serif style="border:none;"><font face=Calibri,sans-serif lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>





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<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-line-height-rule:exactly;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-pagination:no-line-numbers;"><font style="border:none;mso-bidi-font-size:11.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:.7pt;">&nbsp;</font></font></p>





</DIV>
<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">exchange, derivatives or securities holdings where trading
of such holdings is not a fundamental attribute of the business plan,
unrealized gains or losses resulting from consolidation from, or
deconsolidation to, equity accounting, and after adjustments for consolidated
and unconsolidated partnerships and joint ventures, with such adjustments
calculated to reflect MFFO on the same basis. The accretion of discounts and
amortization of premiums on debt investments, nonrecurring unrealized gains and
losses on hedges, foreign exchange, derivatives or securities holdings,
unrealized gains and losses resulting from consolidations, as well as other
listed cash flow adjustments are adjustments made to net income in calculating
the cash flows provided by operating activities and, in some cases, reflect
gains or losses which are unrealized and may not ultimately be realized. </font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Our MFFO calculation complies with the
IPA&#8217;s Practice Guideline described above. In calculating MFFO, we exclude
acquisition related expenses, amortization of above-market and below-market
leases, deferred rent receivables and the adjustments of such items related to
noncontrolling interests. Under GAAP, acquisition fees and expenses are
characterized as operating expenses in determining operating net income. These
expenses are paid in cash by us. All paid and accrued acquisition fees and
expenses will have negative effects on returns to investors, the potential for
future distributions, and cash flows generated by us, unless earnings from
operations or net sales proceeds from the disposition of other properties are
generated to cover the purchase price of the property, these fees and expenses
and other costs related to such property. The acquisition of properties, and
the corresponding acquisition fees and expenses, is the key operational feature
of our business plan to generate operational income and cash flow to fund
distributions to our stockholders. Further, under GAAP, certain contemplated
non-cash fair value and other non-cash adjustments are considered operating
non-cash adjustments to net income in determining cash flow from operating
activities. In addition, we view fair value adjustments of impairment charges
and gains and losses from dispositions of assets as non-recurring items or
items which are unrealized and may not ultimately be realized, and which are
not reflective of on-going operations and are therefore typically adjusted for
when assessing operating performance. In particular, we believe it is
appropriate to disregard impairment charges, as this is a fair value adjustment
that is largely based on market fluctuations and assessments regarding general
market conditions which can change over time. An asset will only be evaluated
for impairment if certain impairment indications exist and if the carrying, or
book value, exceeds the total estimated undiscounted future cash flows
(including net rental and lease revenues, net proceeds on the sale of the
property, and any other ancillary cash flows at a property or group level under
GAAP) from such asset. Investors should note, however, that determinations of
whether impairment charges have been incurred are based partly on anticipated
operating performance, because estimated undiscounted future cash flows from a
property, including estimated future net rental and lease revenues, net proceeds
on the sale of the property, and certain other ancillary cash flows, are taken
into account in determining whether an impairment charge has been incurred.
While impairment charges are excluded from the calculation of MFFO as described
above, investors are cautioned that due to the fact that impairments are based
on estimated future undiscounted cash flows and the relatively limited term of
our operations, it could be difficult to recover any impairment charges. </font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">&nbsp;</font></font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">The following table presents our MFFO for
the years ended December 31, 2014 and 2013.</font></font></p>



<div align=left><table border=0 cellpadding=0 cellspacing=0 style="border-collapse:collapse;width:100%;">
 <tr style="height:.1in;page-break-inside:avoid;">
  <td nowrap valign=bottom width=4% style="height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=62% style="height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=2 nowrap valign=bottom width=66% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">Years ended December 31,</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face=Calibri,sans-serif style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=15% style="border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">2014</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face=Calibri,sans-serif style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=15% style="border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">2013</font></b></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=3 nowrap valign=bottom width=68% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Funds
  from operations</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;border-top:solid black 1.0pt;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$1,025,085</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;border-top:solid black 1.0pt;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$2,793,735</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=3 nowrap valign=bottom width=68% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Adjustments:</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=3 nowrap valign=bottom width=68% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Straight
  line rent adjustment</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">376,661</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">329,510</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=3 nowrap valign=bottom width=68% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Above-market
  and below-market rents</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(156,257)</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(168,511)</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=3 nowrap valign=bottom width=68% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Lease
  commission amortization</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">393,322</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">396,760</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=3 nowrap valign=bottom width=68% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Finance
  charge amortization</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">417,723</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">297,312</font></p>
  </td>
 </tr>
<tr style="height:10.5pt;page-break-inside:avoid;">
  <td colspan=3 nowrap valign=bottom width=68% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Acquisition
  costs</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">163,429</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=2% style="background:#B8CCE4;border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=13% style="background:#B8CCE4;border:none;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">109,861</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td nowrap valign=bottom width=4% style="height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=64% style="height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">MFFO</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;border-bottom:double black 2.25pt;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$</font></b></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;border-bottom:double black 2.25pt;height:15.0pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$2,219,963</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 <td nowrap valign=bottom width=2% style="border:none;border-bottom:double black 2.25pt;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$</font></b></p>
  </td>
 <td nowrap valign=bottom width=13% style="border:none;border-bottom:double black 2.25pt;height:15.0pt;padding:0in 3.0pt 0in 0in;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">$3,758,667</font></b></p>
  </td>
 </tr>
</table></div>


<h1 align=left style="border:none;margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:left;"><font face="Times New Roman,serif" style="border:none;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;letter-spacing:-.1pt;text-autospace:ideograph-other;text-decoration:none;text-transform:uppercase;">&nbsp;</font></b></font></h1>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

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</DIV>
<p><font lang=EN-US>&nbsp;&#32;</font></p>
<div align=left><table border=1 cellpadding=0 cellspacing=0 style="border:none;border-collapse:collapse;width:100%;">
 <tr style="height:15.0pt;page-break-inside:avoid;">
  <td colspan=3 valign=bottom width=100% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">PART
  IV</font></b></p>
  </td>
 </tr>
<tr style="height:11.5pt;page-break-inside:avoid;">
  <td colspan=3 valign=bottom width=100% style="background:white;border:none;height:11.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td colspan=3 valign=bottom width=100% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">ITEM 15. EXHIBITS,
  FINANCIAL STATEMENT SCHEDULES</font></b></p>
  </td>
 </tr>
<tr style="height:11.5pt;page-break-inside:avoid;">
  <td colspan=3 valign=bottom width=100% style="background:white;border:none;height:11.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td colspan=3 valign=bottom width=100% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;(1) Financial Statements
  - the following documents are filed as part of the Annual report:</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#8226;</font></b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">
  Report of Independent Registered Public Accounting Firm</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#8226; Consolidated Balance
  Sheets as of December 31, 2014 and 2013</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#8226; Consolidated Statements
  of Operations for the years ended December 31, 2014 and 2013</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#8226; Consolidated Statements
  of&#160; Equity for the years ended December 31, 2014 and 2013</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#8226; Consolidated Statements
  of Cash Flows for the years ended December 31, 2014 and 2013</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#8226; </font></b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Notes
  to Consolidated Financial Statements </font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td colspan=3 valign=bottom width=100% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;(2) Financial Statement
  Schedules - the following documents are filed as part of the Annual report:</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#8226; </font></b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Schedule
  III - Real Estate Assets and Accumulated Depreciation and Amortization as of
  December 31, 2014</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">All other financial
  statement schedules have been omitted for the reason that the required
  information is presented</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=bottom width=92% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">in financial statements or
  notes thereto, the amounts involved are not significant or the schedules are
  not applicable.</font></p>
  </td>
 </tr>
<tr style="height:9.9pt;page-break-inside:avoid;">
  <td colspan=3 valign=bottom width=100% style="background:white;border:none;height:9.9pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td colspan=3 valign=bottom width=100% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;(3) Exhibits - </font><font face="Times New Roman,serif" style="font-size:10.0pt;">an index to the
  Exhibits as filed as part of this Form 10-K is set forth below.</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td colspan=2 valign=bottom width=9% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td colspan=2 valign=bottom width=9% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr height=0>
  <td width=8% style="border:none;">&nbsp;</td>
 <td width=1% style="border:none;">&nbsp;</td>
 <td width=91% style="border:none;">&nbsp;</td>
 </tr>
</table></div>


<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>









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<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-line-height-rule:exactly;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-pagination:no-line-numbers;"><font style="border:none;mso-bidi-font-size:11.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:.7pt;">&nbsp;</font></font></p>





</DIV>
<p><font lang=EN-US>&nbsp;&#32;</font></p>
<div align=left><table border=1 cellpadding=0 cellspacing=0 style="border:none;border-collapse:collapse;margin-left:0in;width:100%;">
 <tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;border-bottom:solid black 1.5pt;height:15.0pt;padding:0in 0in 0in 0in;">
   <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Number</font></b></p>
   </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
   <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
   </td>
 <td valign=bottom width=89% style="background:white;border:none;border-bottom:solid black 1.5pt;height:15.0pt;padding:0in 0in 0in 0in;">
   <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Description </font></b></p>
   </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">2.1</font></p>
  </td>
 <td valign=top width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Plan and Agreement of
  Merger, by and between NetREIT, Inc., a Maryland corporation, and NetREIT, a
  California corporation, dated as of July&nbsp;30, 2010 (incorporated by
  reference to Exhibit 2.01 to NetREIT&#8217;s Report on Form 8-K filed August 10,
  2010).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">2.2</font></p>
  </td>
 <td valign=top width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Agreement of Purchase
  &amp; Sale, between NetREIT, Inc. and Mullrock 3 Murphy Canyon, LLC, dated as
  of July 12, 2010 (incorporated by reference to Exhibit 2.1 to NetREIT&#8217;s
  Report on Form 8-K filed August 13, 2010).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.1</font></p>
  </td>
 <td valign=top width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Articles of Amendment and
  Restatement of the Articles of Incorporation of NetREIT, dated as of
  July&nbsp;30, 2010 (incorporated by reference to Exhibit 3.01 to NetREIT&#8217;s
  Report on Form 8-K filed August 10, 2010).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.2</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Amended and Restated
  Bylaws of NetREIT, Inc. (incorporated by reference to Exhibit 3.02 to
  NetREIT&#8217;s Report on Form 8-K filed August 10, 2010).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.3</font></p>
  </td>
 <td valign=top width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Articles of Merger filed
  with the Maryland State Department of Assessments and Taxation and the
  California Secretary of State on August&nbsp;4, 2010 (incorporated by
  reference to Exhibit 3.03 to NetREIT&#8217;s Report on Form 8-K filed August 10,
  2010).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:14.85pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:14.85pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.4</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:14.85pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:14.85pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Articles of Incorporation
  filed January 28, 1999 (incorporated by reference to Exhibit 3.1 to NetREIT&#8217;s
  Report on Form 10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.5</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Certificate of
  Determination of Series AA Preferred Stock filed April 4, 2005</font><font color=black face="Times New Roman,serif" style="font-size:8.0pt;"> </font><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(incorporated
  by reference to Exhibit 3.2 to NetREIT&#8217;s Report on Form 10-12B, file no.
  001-34049,&#160; filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.6</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Bylaws of NetREIT
  (incorporated by reference to Exhibit 3.3 to NetREIT&#8217;s Report on Form 10-12B,
  file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.7</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Audit Committee Charter
  (incorporated by reference to Exhibit 3.4 to NetREIT&#8217;s Report on Form 10-12B,
  file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.8</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Compensation and Benefits
  Committee Charter (incorporated by reference to Exhibit 3.5 to NetREIT&#8217;s
  Report on Form 10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.9</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Nominating and Corporate
  Governance Committee Charter (incorporated by reference to Exhibit 3.6 to
  NetREIT&#8217;s Report on Form 10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">3.10</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Principles of Corporate
  Governance of NetREIT (incorporated by reference to Exhibit 3.7 to NetREIT&#8217;s
  Report on Form 10-12B, file no. 001-34049,&#160; filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">4.1</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Form of Common Stock
  Certificate (incorporated by reference to Exhibit 4.1 to NetREIT&#8217;s Report on
  Form 10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">4.2</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Form of Series AA
  Preferred Stock Certificate (incorporated by reference to Exhibit 4.2 to
  NetREIT&#8217;s Report on Form 10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">4.3</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Registration Rights
  Agreement 2005 (incorporated by reference to Exhibit 4.3 to NetREIT&#8217;s Report
  on Form 10-12B, file no. 001-34049, filed September 5, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">4.4</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Registration Rights
  Agreement 2007 (incorporated by reference to Exhibit 4.4 to NetREIT&#8217;s Report
  on Form 10-12B, file no. 001-34049, filed September 5, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.1</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">1999 Flexible Incentive
  Plan (incorporated by reference to Exhibit 10.1 to NetREIT&#8217;s Report on Form
  10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table></div>


<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>


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<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-line-height-rule:exactly;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-pagination:no-line-numbers;"><font style="border:none;mso-bidi-font-size:11.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:.7pt;">&nbsp;</font></font></p>





</DIV>
<p><font lang=EN-US>&nbsp;&#32;</font></p>
<div align=left><table border=1 cellpadding=0 cellspacing=0 style="border:none;border-collapse:collapse;margin-left:0in;width:100%;">
 <tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Number</font></b></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Description </font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.2</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">NetREIT Dividend
  Reinvestment Plan (incorporated by reference to Exhibit 10.2 to NetREIT&#8217;s
  Report on Form 10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.3</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Form of Property
  Management Agreement (incorporated by reference to Exhibit 10.3 to NetREIT&#8217;s
  Report on Form 10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.4</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Option Agreement to
  acquire CHG Properties (incorporated by reference to Exhibit 10.4 to
  NetREIT&#8217;s Report on Form 10-12B, file no. 001-34049, filed May 6, 2008).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.5</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Employment Agreement as of
  April 20, 1999 by and between the Company and Jack K. Heilbron (incorporated
  by reference to Exhibit 10.5 to NetREIT&#8217;s Report on Form 10-12G/A filed June
  26, 2009).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.6</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Employment Agreement as of
  April 20, 1999 by and between the Company and Kenneth W. Elsberry
  (incorporated by reference to Exhibit 10.6 to NetREIT&#8217;s Report on Form
  10-12G/A filed June 26, 2009).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.7</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Loan Assumption and
  Security Agreement, and Note Modification Agreement (incorporated by
  reference to Exhibit 10.7 to NetREIT&#8217;s Report on Form 8-K filed August 27,
  2009).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.8</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Promissory Note
  (incorporated by reference to Exhibit 10.8 to NetREIT&#8217;s Report on Form 8-K
  filed August 27, 2009).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.9</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Loan Agreement by and
  Between Jackson National Life Insurance Company and NetREIT Inc.
  (incorporated by reference to Exhibit 10.9 to NetREIT&#8217;s Report on Form 8-K
  filed August 27, 2010).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.10</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Fixed Rate Promissory Note
  Between Jackson National Life Insurance Company and NetREIT Inc.
  (incorporated by reference to Exhibit 10.10 to NetREIT&#8217;s Report on Form 8-K
  filed August 27, 2010).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.11</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Employment Agreement for
  Mr. Heilbron Effective as of January 1, 2011 (incorporated by reference to
  Exhibit 10.11 to NetREIT&#8217;s Report on Form 8-K filed January 24, 2011).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.12</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Employment Agreement for
  Mr. Elsberry Effective as of January 1, 2011 (incorporated by reference to
  Exhibit 10.12 to NetREIT&#8217;s Report on Form 8-K filed January 24, 2011).&#160; </font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.13</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Employment Agreement for
  Mr. Dubose Effective as of January 1, 2011 (incorporated by reference to
  Exhibit 10.13 to NetREIT&#8217;s Report on Form 8-K filed January 24, 2011).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.14</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Purchase &amp; Sale
  Agreement and Joint Escrow Instructions to acquire Dakota Bank Building
  (incorporated by reference to Exhibit 10.14 to NetREIT&#8217;s Report on Form 8-K
  filed February 3, 2011)</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.15</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Promissory Note - Dakota
  Bank Buildings (incorporated by reference to Exhibit 10.15 to NetREIT&#8217;s
  Report on Form 8-K/A filed May 31, 2011).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.16</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Mortgage, Security
  Agreement and Fixture Financing Statement - Dakota Bank Buildings (incorporated
  by reference to Exhibit 10.16 to NetREIT&#8217;s Report on Form 8-K/A filed May 31,
  2011).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.17</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Property Contribution
  Agreement and Joint Escrow Instructions- Port of San Diego Complex
  (incorporated by reference to Exhibit 10.17 to NetREIT&#8217;s Report on Form 8-K
  filed September 12, 2011).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.18</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">First Amended and Restated
  NetREIT National City Partners, LP Limited Partnership Agreement
  (incorporated by reference to Exhibit 10.18 to NetREIT&#8217;s Report on Form 8-K
  filed December 30, 2011).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=8% style="border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.19</font></p>
  </td>
 <td valign=bottom width=3% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=89% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Assumption Agreement -
  NetREIT National City Partners, LP (incorporated by reference to Exhibit
  10.19 to NetREIT&#8217;s Report on Form 8-K filed December 30, 2011).</font></p>
  </td>
 </tr>
</table></div>


<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>


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<p style="border:none;margin:0in;margin-bottom:.0001pt;mso-border-shadow:yes;mso-line-height-rule:exactly;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-pagination:no-line-numbers;"><font style="border:none;mso-bidi-font-size:11.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:.7pt;">&nbsp;</font></font></p>





</DIV>
<p><font lang=EN-US>&nbsp;&#32;</font></p>
<div align=left><table border=1 cellpadding=0 cellspacing=0 style="border:none;border-collapse:collapse;margin-left:0in;width:100%;">
 <tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Number</font></b></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Description </font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.20</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Agreement and Plan of
  Merger between the Company and C I Holding Group, Inc. (incorporated by
  reference to Exhibit 10.23 to NetREIT&#8217;s Report on Form 8-K filed February 6,
  2013).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.21</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">NetREIT National City
  Partners LP Promissory Note (incorporated by reference to Exhibit 10.24 to
  NetREIT&#8217;s Report on Form 8-K filed March 5, 2013).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.22</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">NetREIT National City
  Partners LP Deed of Trust (incorporated by reference to Exhibit 10.25 to
  NetREIT&#8217;s Report on Form 8-K filed March 5, 2013).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.23</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Preferred Stock Purchase
  Agreement dated as of August 4, 2014, by and between NetREIT, Inc., and PFP
  III Sub II, LLC (incorporated by reference to Exhibit 10.23 to NetREIT&#8217;s
  Report on Form 8-K filed August 8, 2014).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.24</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Investor Agreement dated
  as of August 4, 2014, by and between NetREIT, Inc., and PFP III Sub II, LLC
  (incorporated by reference to Exhibit 10.24 to NetREIT&#8217;s Report on Form 8-K
  filed August 8, 2014).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.25</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Articles
  Supplementary filed on August 4, 2014 (incorporated by reference to Exhibit
  10.26 to NetREIT&#8217;s Report on Form 8-K filed August 8, 2014).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.26</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Amendment
  No. 1 to Amended and Restated Bylaws of NetREIT, Inc. effective as of August
  8, 2014 (incorporated by reference to Exhibit 10.27 to NetREIT&#8217;s Report on
  Form 8-K filed August 8, 2014).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">10.27</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Specimen Certificate for
  NetREIT, Inc. Series B Preferred Stock (incorporated by reference to Exhibit
  10.28 to NetREIT&#8217;s Report on Form 8-K filed August 8, 2014).</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:4.0pt;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:4.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:4.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:4.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.2in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">23.1</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Consent of Independent
  Registered Public Accounting Firm **</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">31.1</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Certificate of the Company&#8217;s
  Chief Executive Officer (Principal Executive Officer) pursuant to Exchange
  Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the
  Sarbanes-Oxley Act of 2002. *</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">31.2</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Certification of the
  Company&#8217;s Chief Financial Officer pursuant to Exchange Act Rules
  13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley
  Act of 2002. *</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;page-break-inside:avoid;">
  <td valign=top width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">31.3</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Certification of principal
  Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C.
  1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.2in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">101.INS</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp; </font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Instance Document **</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.2in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">101.SCH</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp; </font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">XBRL Taxonomy Extension
  Schema Document **</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.2in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">101.CAL</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp; </font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">XBRL Taxonomy Extension
  Calculation Linkbase Document **</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.2in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">101.DEF</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp; </font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">XBRL Taxonomy Extension
  Definition Linkbase Document **</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.2in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">101.LAB</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp; </font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">XBRL Taxonomy Extension
  Label Linkbase Document **</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:.2in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">101.PRE</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp; </font></p>
  </td>
 <td colspan=6 valign=bottom width=91% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">XBRL Taxonomy Extension
  Presentation Linkbase Document **</font></p>
  </td>
 </tr>
<tr style="height:.1in;page-break-inside:avoid;">
  <td valign=bottom width=7% style="background:white;border:none;border-bottom:solid black 1.0pt;height:.1in;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="background:white;border:none;border-bottom:solid black 1.0pt;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=8% style="background:white;border:none;border-bottom:solid black 1.0pt;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=9% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=9% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=8% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=14% style="background:white;border:none;height:.1in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td width=43% style="border:none;padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p></td>
 </tr>
<tr style="height:.2in;page-break-inside:avoid;">
  <td colspan=7 valign=bottom width=57% style="background:white;border:none;height:.2in;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&#160; * Filed herewith</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">**&#160; Previously filed as
  like-numbered exhibit to Original Filing and incorporated&#160;&#160;&#160;&#160;&#160;&#160; by reference
  herein</font></p>
  </td>
 <td width=43% style="border:none;padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></p></td>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>exhibit31_1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER
<TEXT>
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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>





</DIV>
<p align=right style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;page-break-before:always;text-align:right;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">EXHIBIT 31.1</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">CERTIFICATION OF CHIEF
EXECUTIVE OFFICER PURSUANT TO</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">I, Jack K. Heilbron, certify that: </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">1.&#160;&#160; I
have reviewed this Annual Report on Form 10-K of NetREIT, Inc.; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">2.&#160;&#160; Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">3.&#160;&#160; Based
on my knowledge, the financial statements and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the issuer as of, and for,
the periods presented in this report;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">4.&#160;&#160; The
registrant&#8217;s other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
have:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">(a) Designed
such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">(b) Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">(c)&#160; Evaluated
the effectiveness of the registrant&#8217;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">(d) Disclosed
in this report any change in the registrant&#8217;s internal control over financial
reporting that occurred during the registrant&#8217;s most recent fiscal quarter (the
registrant&#8217;s fourth fiscal quarter in the case of an annual report) that has
material affected, or is reasonably likely to materially effect, the
registrant&#8217;s internal control over financial reporting; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">5.&#160;&#160; The
registrant&#8217;s other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant&#8217;s auditors and the audit committee of the registrant&#8217;s board of
directors (or persons performing the equivalent functions):</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">(a) All
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#8217;s ability to record, process, summarize and
report financial information; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:98%;">(b) Any
fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant&#8217;s internal control over financial
reporting.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:98%;">&nbsp;</font></p>

<div align=left><table border=0 cellpadding=0 cellspacing=0 style="border-collapse:collapse;width:100%;">
 <tr style="height:.1in;page-break-inside:avoid;">
  <td nowrap valign=bottom width=66% style="height:.1in;padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">Date: </font><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">June &#173;16, 2015</font><font color=black face="Times New Roman,serif" style="font-size:11.0pt;"> &nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="height:.1in;padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" lang=EN-CA style="font-size:12.0pt;">By:</font></p>
  </td>
 <td nowrap valign=bottom width=30% style="border:none;border-bottom:solid windowtext 1.0pt;height:.1in;padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">&#160;</font><i><font color=black face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">/s/ Jack K. Heilbron</font></i></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=66% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=30% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">Jack K. Heilbron, </font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=66% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=30% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
</table></div>


<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&#160;&nbsp;</font></p>

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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>exhibit31_2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER
<TEXT>
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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>





</DIV>
<p align=right style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;page-break-before:always;text-align:right;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">EXHIBIT 31.2</font></p>

<p align=right style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:right;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:center;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">CERTIFICATION
OF CHIEF FINANCIAL OFFICER PURSUANT TO</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:center;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">SECTION
302 OF THE SARBANES-OXLEY ACT OF 2002</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">1.&#160;&#160; I
have reviewed this Annual Report on Form 10-K of NetREIT, Inc.; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">2.&#160;&#160; Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">3.&#160;&#160; Based
on my knowledge, the financial statements and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the issuer as of, and for,
the periods presented in this report;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">4.&#160;&#160; The
registrant&#8217;s other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
have:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">(a) Designed
such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">(b) Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles; and </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">(c)&#160; Evaluated
the effectiveness of the registrant&#8217;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">(d) Disclosed
in this report any change in the registrant&#8217;s internal control over financial
reporting that occurred during the registrant&#8217;s most recent fiscal quarter (the
registrant&#8217;s fourth fiscal quarter in the case of an annual report) that has
material affected, or is reasonably likely to materially effect, the
registrant&#8217;s internal control over financial reporting; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.2in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">5.&#160;&#160; The
registrant&#8217;s other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant&#8217;s auditors and the audit committee of the registrant&#8217;s board of
directors (or persons performing the equivalent functions):</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">(a) All
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#8217;s ability to record, process, summarize and
report financial information; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:8.0pt;line-height:97%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;line-height:97%;">(b) Any
fraud, whether or not material, that involves Management or other employees who
have a significant role in the registrant&#8217;s internal control over financial
reporting.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">.</font></p>

<div align=left><table border=0 cellpadding=0 cellspacing=0 style="border-collapse:collapse;width:100%;">
 <tr style="height:.1in;page-break-inside:avoid;">
  <td nowrap valign=bottom width=66% style="height:.1in;padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Date:
  June &#173;16, 2015</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="height:.1in;padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;line-height:115%;">By:</font></p>
  </td>
 <td nowrap valign=bottom width=30% style="border:none;border-bottom:solid windowtext 1.0pt;height:.1in;padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">&#160;</font><i><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">/s/
  Kenneth W. Elsberry</font></i></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=66% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=30% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Kenneth
  W. Elsberry, </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Chief
  Financial Officer</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=66% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=Calibri,sans-serif style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=Calibri,sans-serif style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=30% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman,serif" style="font-size:9.0pt;line-height:115%;">(Principal Financial Officer)</font></p>
  </td>
 </tr>
</table></div>


<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>




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<DOCUMENT>
<TYPE>EX-31.3
<SEQUENCE>4
<FILENAME>exhibit31_3.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
<TEXT>
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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>





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<p align=right style="margin:0in;margin-bottom:.0001pt;page-break-before:always;text-align:right;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">EXHIBIT
31.3</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">CERTIFICATION PURSUANT TO 18
U.S.C. SECTION 1350</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">AS ADOPTED PURSUANT TO SECTION
906</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">OF THE SARBANES-OXLEY ACT OF 2002</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Each
of the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, in
their capacities as CEO and CFO, respectively, of NetREIT, Inc. (the &#8220;</font><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Company</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8221;)
that, to the best of his knowledge:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">(i)&#160;&#160; the Annual Report for the
year ended December 31, 2014 of the Company on Form 10-K (the &#8220;</font><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Report</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8221;)
fully complies with the requirements of Section 13(a) of the Securities Exchange
Act of 1934, as amended; and </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.4in;text-align:justify;text-indent:-.2in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">(ii)&#160; the information contained
in the Report fairly presents, in all material respects, the financial
condition and the results of operations of the Company.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<div align=left><table border=0 cellpadding=0 cellspacing=0 style="border-collapse:collapse;width:100%;">
 <tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Date: June &#173;16,
  2015</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">By</font><font color=black face=Calibri,sans-serif style="font-size:11.0pt;line-height:115%;">:&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=38% style="border:none;border-bottom:solid windowtext 1.0pt;padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">&#160;</font><i><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">/s/ Jack K.
  Heilbron</font></i></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=38% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Jack K. Heilbron, </font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=38% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Chief Executive
  Officer</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=38% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Date: June &#173;16,
  2015</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">
  <p align=right style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:right;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;line-height:115%;">By:</font></p>
  </td>
 <td nowrap valign=bottom width=38% style="border:none;border-bottom:solid windowtext 1.0pt;padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">&#160;</font><i><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">/s/ Kenneth W.
  Elsberry</font></i></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=38% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Kenneth W.
  Elsberry, </font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=38% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">Chief Financial
  Officer</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=38% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=38% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td nowrap valign=bottom width=58% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">&#160;&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=4% style="padding:.5pt .5pt 0in .5pt;">&nbsp;</td>
 <td nowrap valign=bottom width=38% style="padding:.5pt .5pt 0in .5pt;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">(</font><font color=black face="Times New Roman,serif" style="font-size:9.0pt;line-height:115%;">Principal Accounting and Financial Officer</font><font color=black face="Times New Roman,serif" style="font-size:10.0pt;line-height:115%;">)&nbsp;</font></p>
  </td>
 </tr>
</table></div>


<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><i><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">A signed original of this written
statement required by Section 906, or other document authenticating,
acknowledging, or otherwise adopting the signature that appears in typed form
within the electronic version of this written statement required by Section
906, has been provided to NetREIT, Inc. and will be retained by NetREIT, Inc.
and furnished to the Securities and Exchange Commission or its staff upon
request.</font></i></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;text-align:justify;"><font style="border:none;"><font face="Times New Roman,serif" lang=EN-CA style="font-size:10.0pt;">&nbsp;</font></font></p>

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