Cole Real Estate Investments 8-K Other Events

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 21, 2011

Cole Credit Property Trust III, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland
(State or other jurisdiction of incorporation
or organization) 000-53960
(Commission File Number) 26-1846406
(I.R.S. Employer
Identification No.)

2555 East Camelback Road, Suite 400, Phoenix, Arizona 85016

(Address of principal executive offices)

(Zip Code)

(602) 778-8700

(Registrant’s telephone number, including area code)

None

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events

This Current Report on Form 8-K is being filed by Cole Credit Property Trust III, Inc. (which may be referred to as the “Registrant,” the “Company,” “we,” “our,” and “us”) to present information about the prior performance of programs sponsored by Cole Real Estate Investments, the Company’s sponsor. This prior performance information is being filed on Form 8-K in order to be incorporated by reference into the Company’s Registration Statement on Form S-11 (File No. 333-164884), as amended.

2

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: April 21, 2011	COLE CREDIT PROPERTY TRUST III, INC.
	By:	/s/ Simon J. Misselbrook
	Name:	Simon J. Misselbrook
	Title:	Vice President of Accounting Principal Accounting Officer

3

APPENDIX A

PRIOR PERFORMANCE TABLES

The prior performance tables that follow present certain information regarding the real estate programs previously sponsored by entities affiliated with our sponsor, Cole Real Estate Investments. The Company has presented all prior programs that have similar investment objectives to this offering. In determining which prior programs have similar investment objectives to this offering, the Company considered factors such as the type of real estate acquired by the program, the extent to which the program was designed to provide current income through the payment of cash distributions or to protect and preserve capital contributions, and the extent to which the program seeks to increase the value of the investments made in the program. The information in this section should be read together with the summary information in our prospectus under “Prior Performance Summary.”

These tables contain information that may aid a potential investor in evaluating the program presented. However, the information contained in these tables does not relate to the properties held or to be held by us, and the purchase of our shares will not create any ownership interest in the programs included in these tables.

These tables are presented on a tax basis rather than in accordance with accounting principles generally accepted in the United States (“GAAP”) except where noted. Tax basis accounting does not take certain income or expense accruals into consideration at the end of each fiscal year. Income may be understated in the tables, as GAAP accounting would require certain amortization or leveling of rental revenue, the amount of which is undetermined at this time. Expenses may be understated by monthly operating expenses, which typically are paid in arrears. The following tables are included in this section:

•  Table I — Experience in Raising and Investing Funds;

•  Table II — Compensation to Sponsor;

•  Table III — Operating Results of Prior Programs;

•  Table IV — Results of Completed Programs; and

•  Table V — Sales or Disposals of Properties.

For information regarding the acquisitions of properties by programs sponsored by Cole Real Estate Investments during the three years ending December 31, 2010, see Table VI contained in Part II of our registration statement, which is not a part of our prospectus. We will provide a copy of Table VI to you upon written request and without charge.

Past performance is not necessarily indicative of future results.

1

TABLE I

EXPERIENCE IN RAISING AND INVESTING FUNDS (UNAUDITED)

This table provides a summary of the experience of the sponsors of Prior Real Estate Programs for which offerings have been closed since January 1, 2008. Information is provided with regard to the manner in which the proceeds of the offerings have been applied. Also set forth below is information pertaining to the timing and length of these offerings and the time period over which the proceeds have been invested in the properties. All figures are as of December 31, 2010.

	Cole Credit Property			Cole Net Lease
	Trust II, Inc.(4)			Portfolio VI(5)(6)
Dollar amount offered	$	2,270,000,000		$	25,640,000
Dollar amount raised		2,162,851,236			25,640,000
Percentage amount raised		100.0	%		100.0	%
Less offering expenses:
Selling commissions and discounts retained by affiliates		6.3	%		5.5	%
Organizational expenses(1)		2.4	%		1.0	%
Other		—			—
Reserves		0.1	%		0.9	%
Percent available for investment		91.2	%		92.6	%
Acquisition costs:(2)
Prepaid items and fees related to purchase of property		1.1	%		0.7	%
Cash down payment		88.1	%		91.9	%
Acquisition fees(3)		2.0	%		—
Other		—			—
Total acquisition cost		91.2	%		92.6	%
Percent leverage		50	%		54	%
Date offering began		6/27/2005			9/10/2007
Length of offering (in months)		Ongoing			5
Months to invest 90% of amount available for investment		40			3

(1)	Organizational expenses include legal, accounting, printing, escrow, filing, recording and other related expenses associated with the formation and original organization of the program and also includes fees paid to the sponsor and to affiliates.
(2)	Acquisition costs expressed as a percentage represent the costs incurred to acquire real estate with the initial capital raised in the respective offerings and do not include the costs incurred to acquire additional real estate with the proceeds from financing transactions and excess working capital.
(3)	Acquisition fees include fees paid to the sponsor or affiliates based upon the terms of the offering memorandum or prospectus.
(4)	These amounts include Cole Credit Property Trust II, Inc.’s initial, follow-on and distribution reinvestment plan offerings. Cole Credit Property Trust II, Inc. began its initial offering on June 27, 2005 and closed its initial offering on May 22, 2007. The total dollar amount registered and available to be offered in the initial offering was $552.8 million. The total dollar amount raised in the initial offering was $547.4 million. Cole Credit Property Trust II, Inc. began its follow-on offering on May 23, 2007 and closed its follow-on offering on January 2, 2009. The total dollar amount registered and available to be offered in the follow-on offering was $1.5 billion. The total dollar amount raised in the follow-on offering was $1.5 billion. It took Cole Credit Property Trust II, Inc. 40 months to invest 90% of the amount available for investment in its initial and follow-on offerings. Cole Credit Property Trust II, Inc. began its distribution reinvestment plan offering on

Past performance is not necessarily indicative of future results.

2

TABLE I

EXPERIENCE IN RAISING AND INVESTING FUNDS (UNAUDITED) — (Continued)

	September 18, 2008 and was currently offering shares under this distribution reinvestment plan offering as of December 31, 2010. The total initial dollar amount registered and available to be offered in the distribution reinvestment plan offering is $285.0 million. The total dollar amount raised in the distribution reinvestment plan offering was $144.5 million as of December 31, 2010.
(5)	The Offering is a Delaware Statutory Trust Program sponsored by Cole Real Estate Investments which consists of the sale of Delaware statutory trust interests in properties initially owned by subsidiaries of Cole Collateralized Senior Notes, LLC, Cole Collateralized Senior Notes II, LLC, Cole Collateralized Senior Notes III, LLC or Cole Collateralized Senior Notes IV, LLC.
(6)	Acquisition cost amounts represent the costs paid by thetenant-in-common or Delaware statutory trust investors to acquire interest in the properties.

Past performance is not necessarily indicative of future results.

3

TABLE II

COMPENSATION TO SPONSOR (UNAUDITED)

This table sets forth the compensation paid to our sponsor and its affiliates, including compensation paid out of the offering proceeds and compensation paid in connection with the ongoing operations of Prior Real Estate Programs. Prior Real Estate Programs whose offerings have closed since January 1, 2008 are shown separately and all other programs have been aggregated. Each of the Prior Real Estate Programs for which information is presented below has similar or identical investment objectives to this program. All amounts are as of December 31, 2010.

	Cole Credit Property		Cole Net Lease
	Trust II, Inc.		Portfolio VI
Date offering commenced		6/27/2005		9/10/2007
Dollar amount raised	$	2,162,851,236	$	25,639,300
Amount paid to sponsor from proceeds of offering:
Underwriting fees		25,741,562		256,401
Acquisition fees and real estate commissions(1)		68,046,144		—
Advisory fees		—		—
Other(2)		20,819,387		—
Amount of cash generated from operations before deducting payments to sponsor		398,931,974		5,285,977
Amount paid to sponsor from operations:
Property management fees		15,426,105		—
Partnership management fees(3)		25,953,917		74,797
Reimbursements		5,421,724		—
Leasing commissions		546,695		—
Other(4)		95,869		—
Amount of property sales and refinancing before deducting payments to sponsor
Cash(5)		—		—
Notes		—		—
Amount paid to sponsor from property sales and refinancing
Incentive fees		—		—
Real estate commissions		—		—
Other		—		—

Past performance is not necessarily indicative of future results.

4

TABLE II

COMPENSATION TO SPONSOR (UNAUDITED) — (Continued)

	60 Other Programs
	(6)
Date offering commenced		N/A
Dollar amount raised	$	—
Amount paid to sponsor from proceeds of offering:
Underwriting fees		—
Acquisition fees and real estate commissions(1)		964,045
Advisory fees		—
Other(2)		14,500
Amount of cash generated from operations before deducting payments to sponsor		80,532,948
Amount paid to sponsor from operations:
Property management fees		2,411,047
Partnership management fees(3)		3,413,397
Reimbursements		—
Leasing commissions		10,500
Other(4)		—
Amount of property sales and refinancing before deducting payments to sponsor
Cash(5)		11,438,651
Notes		—
Amount paid to sponsor from property sales and refinancing
Incentive fees		—
Real estate commissions		—
Other		—

(1)	Properties are acquired with a combination of funds from offering proceeds and debt. The acquisition and real estate commissions reported in this table include the total amount of fees paid to the sponsor or its affiliates regardless of the funding source for these costs.
(2)	Amounts primarily relate to loan coordination fees, a development fee and reimbursement of certain offering costs paid by the sponsor.
(3)	Amounts primarily relate to asset management fees and expenses.
(4)	Amounts primarily relate to construction management fees.
(5)	Amounts herein include initial investments of capital raised and properties acquired through reinvested amounts.
(6)	60 of the offerings of the prior programs aggregated herein were not closed within the past three years and therefore are not shown separately. Amounts presented represent aggregate payments to the sponsor in the most recent three years. The programs have similar investment objectives to our program.

Past performance is not necessarily indicative of future results.

5

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED)

The following sets forth the unaudited operating results of Prior Real Estate Programs sponsored by the sponsor of this program, the offerings of which have been closed since January 1, 2006. The information relates only to programs with investment objectives similar to our program. All figures are as of December 31 of the year indicated, except as noted.

	Cole Collateralized Senior Notes IV, LLC
	May 2005
	(Unaudited)
	2006			2007			2008			2009			2010
Gross Revenues	$	2,070,894		$	1,520,899		$	1,419,521		$	683,412		$	320,154
Profit (loss) on sale of properties		—			121,341			—			—			(354,000	)
Less:
Operating expenses(1)		1,131,745			85,088			146,340			138,335			261,741
Interest paid to note investors		2,371,674			2,369,739			2,369,739			2,369,739			2,424,395
Other interest expense		536,618			343,887			191,182			48,481			—
Depreciation and amortization(2)		426,629			460,010			540,056			611,779			463,232
Net Income (loss) — Tax Basis(3)	$	(2,395,772	)	$	(1,616,484	)	$	(1,827,796	)	$	(2,484,922	)	$	(3,183,214	)
Taxable income
— from operations(4)(9)	$	(2,395,772	)	$	(1,737,825	)	$	(1,827,796	)	$	(2,484,922	)	$	(2,829,214	)
— from gain (loss) on sale		—			121,341			—			—			(354,000	)
Cash generated
— from operations		402,531			1,091,924			1,081,999			496,596			58,413
— from sales		28,358,859			7,870,622			1,222,901			—			—
— from refinancing		—			—			—			—			—
Cash generated from operations, sales and refinancing		28,761,390			8,962,546			2,304,900			496,596			58,413
Less: Cash distributions to investors(11)
— from operating cash flow		402,531			1,091,924			1,081,999			496,596			58,413
— from sales and refinancing		1,969,143			1,277,815			1,287,740	(10)		1,873,143	(10)		2,365,982	(10)
— from other		—			—			—			—			—
Cash generated (deficiency) after cash distributions	$	26,389,716		$	6,592,807		$	(64,839	)	$	(1,873,143	)	$	(2,365,982	)
Less: Special items (not including sales and refinancing)		—			—			—			—			—
Cash generated (deficiency) after cash distributions and special items	$	26,389,716		$	6,592,807		$	(64,839	)	$	(1,873,143	)	$	(2,365,982	)
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—		$	—		$	—		$	—		$	—	(5)
— from recapture		—			—			—			—			—
Capital gain (loss)		—			—			—			—			—
Cash distributions to investors
Source (on a tax basis)
— Investment income	$	—		$	—		$	—		$	—		$	—	(5)
— Return of capital		—			—			—			—			—
Source (on a cash basis)
— Sales		—			—			—			—			—
— Refinancing		—			—			—			—			—
— Operations		—			—			—			—			—
— Other		—			—			—			—			—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table														2	%

Past performance is not necessarily indicative of future results.

6

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Cole Credit Property Trust II, Inc.
	June 2005
	(Unaudited)
	2006		2007		2008		2009			2010
Gross Revenues	$	19,519,507	$	92,100,308	$	202,282,667	$	276,026,961		$	269,274,321
Equity in income of unconsolidated joint venture		—		—		470,978		612,432			964,828
Profit (loss) on sale of properties		—		—		—		—			—
Less:
Operating expenses(1)		3,306,511		12,662,270		32,191,062		50,986,169			47,170,233
Interest expense		8,397,634		39,075,748		78,063,338		98,996,703			102,976,724
Depreciation and amortization(2)		6,469,366		30,482,273		63,858,422		90,750,170			85,162,219
Impairment of real estate assets		—		5,400,000		3,550,000		13,500,000			4,500,435
Net Income (loss) — GAAP Basis(6)	$	1,345,996	$	4,480,017	$	25,090,823	$	22,406,351		$	30,429,538
Taxable income
— from operations(4)	$	3,104,068	$	15,703,828	$	42,432,587	$	53,168,771		$	45,882,738	(7)
— from gain on sale		—		—		—		—			—
Cash generated
— from operations		7,861,475		43,366,041		96,073,918		116,871,698			105,627,000
— from sales		—		—		—		—			—
— from refinancing		—		—		—		—			—
Cash generated from operations, sales and refinancing		7,861,475		43,366,041		96,073,918		116,871,698			105,627,000
Less: Cash distributions to investors
— from operating cash flow		7,075,329		37,727,364		96,051,343		116,871,698			105,627,000
— from sales and refinancing		—		—		—		—			—
— from other(8)		—		—		—		18,111,554			23,623,894
Cash generated (deficiency) after cash distributions		786,146		5,638,677		22,575		(18,111,554	)		(23,623,894	)
Less: Special items (not including sales and refinancing)		—		—		—		—			—
Cash generated (deficiency) after cash distributions and special items	$	786,146	$	5,638,677	$	22,575	$	(18,111,554	)	$	(23,623,894	)
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	10.13	$	16.80	$	21.02	$	27.24		$	22.20
— from recapture		—		—		—		—			—
Capital gain (loss)		—		—		—		—			—
Cash distributions to investors
Source (on a GAAP basis)
— Investment income		26.40		25.00		30.00		26.00			21.90
— Return of capital		36.46		37.00		36.00		41.00			40.50
Source (on a cash basis)
— Sales		—		—		—		—			—
— Refinancing		—		—		—		—			—
— Operations		62.86		62.00		66.00		58.01			50.99
— Other(8)		—		—		—		8.99			11.41
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

7

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Walgreens — Edgewood, NM
	September 2004
	(Unaudited)
	2006			2007			2008			2009		2010
Gross Revenues	$	276,137		$	276,538		$	275,854		$	298,614	$	275,646
Profit (loss) on sale of properties		—			—			—			—		—
Less:
Operating expenses(1)		13,699			14,229			14,347			14,648		13,806
Interest expense		118,666			118,666			118,991			128,744		118,666
Depreciation and amortization(2)		—			—			—			—		—
Net Income (loss) — Tax Basis(3)	$	143,772		$	143,643		$	142,516		$	155,222	$	143,174
Taxable income
— from operations(4)	$	143,772		$	143,643		$	142,516		$	155,222	$	143,174
— from gain on sale		—			—			—			—		—
Cash generated
— from operations		143,772			143,643			142,516			155,222		143,174
— from sales		—			—			—			—		—
— from refinancing		—			—			—			—		—
Cash generated from operations, sales and refinancing		143,772			143,643			142,516			155,222		143,174
Less: Cash distributions to investors
— from operating cash flow		144,072			144,072			144,072			144,070		144,070
— from sales and refinancing		—			—			—			—		—
— from other		—			—			—			—		—
Cash generated (deficiency) after cash distributions		(300	)		(429	)		(1,556	)		11,152		(896	)
Less: Special items (not including sales and refinancing		—			—			—			—		—
Cash generated (deficiency) after cash distributions and special items	$	(300	)	$	(429	)	$	(1,556	)	$	11,152	$	(896	)
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	67.37		$	67.31		$	66.78		$	72.74	$	67.09
— from recapture		—			—			—			—		—
Capital gain (loss)		—			—			—			—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		67.51			67.51			67.51			67.51		67.51
— Return of capital		—			—			—			—		—
Source (on a cash basis)
— Sales		—			—			—			—		—
— Refinancing		—			—			—			—		—
— Operations		67.51			67.51			67.51			67.51		67.51
— Other		—			—			—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table													100	%

Past performance is not necessarily indicative of future results.

8

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Gander Mountain — Hermantown, MN
	September 2005
	(Unaudited)
	2006			2007		2008			2009		2010
Gross Revenues	$	885,140		$	1,063,286	$	896,361		$	901,115	$	916,365
Profit (loss) on sale of properties		—			—		—			—		—
Less:
Operating expenses(1)		26,926			171,824		34,853			31,397		31,838
Depreciation and amortization(2)		—			—		—			—		—
Net Income (loss) — Tax Basis(3)	$	858,214		$	891,462	$	861,508		$	869,718	$	884,527
Taxable income
— from operations(4)	$	858,214		$	891,462	$	861,508		$	869,718	$	884,527
— from gain on sale		—			—		—			—		—
Cash generated
— from operations		858,214			891,462		861,508			869,718		884,527
— from sales		—			—		—			—		—
— from refinancing		—			—		—			—		—
Cash generated from operations, sales and refinancing		858,214			891,462		861,508			869,718		884,527
Less: Cash distributions to investors
— from operating cash flow		861,636			861,636		861,650			861,643		871,311
— from sales and refinancing		—			—		—			—		—
— from other		—			—		—			—		—
Cash generated (deficiency) after cash distributions		(3,422	)		29,826		(142	)		8,075		13,216
Less: Special items (not including sales and refinancing		—			—		—			—		—
Cash generated (deficiency) after cash distributions and special items	$	(3,422	)	$	29,826	$	(142	)	$	8,075	$	13,216
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	73.21		$	76.04	$	73.49		$	74.19	$	75.45
— from recapture		—			—		—			—		—
Capital gain (loss)		—			—		—			—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		73.50			73.50		73.50			73.50		74.32
— Return of capital		—			—		—			—		—
Source (on a cash basis)
— Sales		—			—		—			—		—
— Refinancing		—			—		—			—		—
— Operations		73.50			73.50		73.50			73.50		74.32
— Other		—			—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table												100	%

Past performance is not necessarily indicative of future results.

9

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Best Buy — Baytown, TX
	October 2005
	(Unaudited)
	2006		2007			2008		2009		2010
Gross Revenues	$	489,624	$	490,312		$	488,836	$	528,932	$	488,255
Profit (loss) on sale of properties		—		—			—		—		—
Less:
Operating expenses(1)		7,846		17,573			8,823		8,973		11,232
Interest Expense		—		—			—		—		—
Depreciation and amortization(2)		—		—			—		—		—
Net Income (loss) — Tax Basis(3)	$	481,778	$	472,739		$	480,013	$	519,959	$	477,023
Taxable income
— from operations(4)	$	481,778	$	472,739		$	480,013	$	519,959	$	477,023
— from gain on sale		—		—			—		—		—
Cash generated
— from operations		481,778		472,739			480,013		519,959		477,023
— from sales		—		—			—		—		—
— from refinancing		—		—			—		—		—
Cash generated from operations, sales and refinancing		481,778		472,739			480,013		519,959		477,023
Less: Cash distributions to investors
— from operating cash flow		445,785		478,572			478,573		478,574		478,574
— from sales and refinancing		—		—			—		—		—
— from other		—		—			—		—		—
Cash generated (deficiency) after cash distributions		35,993		(5,833	)		1,440		41,385		(1,551	)
Less: Special items (not including sales and refinancing		—		—			—		—		—
Cash generated (deficiency) after cash distributions and special items	$	35,993	$	(5,833	)	$	1,440	$	41,385	$	(1,551	)
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	57.89	$	56.80		$	57.67	$	62.47	$	57.31
— from recapture		—		—			—		—		—
Capital gain (loss)		—		—			—		—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		53.56		57.50			57.50		57.50		57.50
— Return of capital		—		—			—		—		—
Source (on a cash basis)
— Sales		—		—			—		—		—
— Refinancing		—		—			—		—		—
— Operations		53.56		57.50			57.50		57.50		57.50
— Other		—		—			—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

10

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Walgreens — Natchitoches, LA
	November 2005
	(Unaudited)
	2006		2007		2008		2009		2010
Gross Revenues	$	242,647	$	255,718	$	255,356	$	255,068	$	255,068
Profit (loss) on sale of properties		—		—		—		—		—
Less:
Operating expenses(1)		10,747		9,056		9,097		8,546		8,995
Interest expense		116,328		130,858		131,217		130,858		130,858
Depreciation and amortization(2)		—		—		—		—		—
Net Income (loss) — Tax Basis(3)	$	115,572	$	115,804	$	115,042	$	115,664	$	115,215
Taxable income
— from operations(4)	$	115,572	$	115,804	$	115,042	$	115,664	$	115,215
— from gain on sale		—		—		—		—		—
Cash generated
— from operations		115,572		115,804		115,042		115,664		115,215
— from sales		—		—		—		—		—
— from refinancing		—		—		—		—		—
Cash generated from operations, sales and refinancing		115,572		115,804		115,042		115,664		115,215
Less: Cash distributions to investors
— from operating cash flow		99,268		114,600		114,597		114,595		114,595
— from sales and refinancing		—		—		—		—		—
— from other		—		—		—		—		—
Cash generated (deficiency) after cash distributions		16,304		1,204		445		1,069		620
Less: Special items (not including sales and refinancing		—		—		—		—		—
Cash generated (deficiency) after cash distributions and special items	$	16,304	$	1,204	$	445	$	1,069	$	620
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	65.55	$	65.69	$	65.25	$	65.61	$	65.35
— from recapture		—		—		—		—		—
Capital gain (loss)		—		—		—		—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		56.31		65.00		65.00		65.00		65.00
— Return of capital		—		—		—		—		—
Source (on a cash basis)
— Sales		—		—		—		—		—
— Refinancing		—		—		—		—		—
— Operations		56.31		65.00		65.00		65.00		65.00
— Other		—		—		—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table										100	%

Past performance is not necessarily indicative of future results.

11

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Kohl’s — Lakewood, CO
	November 2005
	(Unaudited)
	2006		2007		2008		2009			2010
Gross Revenues	$	1,009,577	$	1,064,348	$	1,150,875	$	972,785		$	1,061,191
Profit (loss) on sale of properties		—		—		—		—			—
Less:
Operating expenses(1)		27,941		23,997		26,791		22,020			22,223
Interest expense		524,194		586,904		588,512		586,904			586,904
Depreciation and amortization(2)		—		—		—		—			—
Net Income (loss) — Tax Basis(3)	$	457,442	$	453,447	$	535,572	$	363,861		$	452,064
Taxable income
— from operations(4)	$	457,442	$	453,447	$	535,572	$	363,861		$	452,064
— from gain on sale		—		—		—		—			—
Cash generated
— from operations		457,442		453,447		535,572		363,861			452,064
— from sales		—		—		—		—			—
— from refinancing		—		—		—		—			—
Cash generated from operations, sales and refinancing		457,442		453,447		535,572		363,861			452,064
Less: Cash distributions to investors
— from operating cash flow		387,805		447,660		445,460		447,660			447,660
— from sales and refinancing		—		—		—		—			—
— from other		—		—		—		—			—
Cash generated (deficiency) after cash distributions		69,637		5,787		90,112		(83,799	)		4,404
Less: Special items (not including sales and refinancing		—		—		—		—			—
Cash generated (deficiency) after cash distributions and special items	$	69,637	$	5,787	$	90,112	$	(83,799	)	$	4,404
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	61.31	$	60.78	$	71.78	$	48.77		$	60.59
— from recapture		—		—		—		—			—
Capital gain (loss)		—		—		—		—			—
Cash distributions to investors
Source (on a tax basis)
— Investment income		51.98		60.00		59.71		60.00			60.00
— Return of capital		—		—		—		—			—
Source (on a cash basis)
— Sales		—		—		—		—			—
— Refinancing		—		—		—		—			—
— Operations		51.98		60.00		59.71		60.00			60.00
— Other		—		—		—		—			—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

12

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	The Shoppes at North Village — St. Joseph, MO
	December 2005
	(Unaudited)
	2006		2007		2008			2009		2010
Gross Revenues	$	2,824,347	$	4,209,047	$	4,139,927		$	3,977,184	$	4,140,512
Profit (loss) on sale of properties		—		—		—			—		—
Less:
Operating expenses(1)		871,927		1,270,287		1,486,329			1,285,810		1,354,968
Interest expense		1,094,702		1,611,155		1,615,569			1,611,154		1,611,155
Depreciation and amortization(2)		—		—		—			—		—
Net Income (loss) — Tax Basis(3)	$	857,718	$	1,327,605	$	1,038,029		$	1,080,220	$	1,174,389
Taxable income
— from operations(4)	$	857,718	$	1,327,605	$	1,038,029		$	1,080,220	$	1,174,389
— from gain on sale		—		—		—			—		—
Cash generated
— from operations		857,718		1,327,605		1,038,029			1,080,220		1,174,389
— from sales		—		—		—			—		—
— from refinancing		—		—		—			—		—
Cash generated from operations, sales and refinancing		857,718		1,327,605		1,038,029			1,080,220		1,174,389
Less: Cash distributions to investors
— from operating cash flow		808,917		1,246,236		1,176,954			846,026		910,836
— from sales and refinancing		—		—		—			—		—
— from other		—		—		—			—		—
Cash generated (deficiency) after cash distributions		48,801		81,369		(138,925	)		234,194		263,553
Less: Special items (not including sales and refinancing		—		—		—			—		—
Cash generated (deficiency) after cash distributions and special items	$	48,801	$	81,369	$	(138,925	)	$	234,194	$	263,553
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	41.98	$	64.98	$	50.81		$	52.87	$	57.48
— from recapture		—		—		—			—		—
Capital gain (loss)		—		—		—			—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		39.59		61.00		57.18			41.84		45.01
— Return of capital		—		—		0.43			—		—
Source (on a cash basis)
— Sales		—		—		—			—		—
— Refinancing		—		—		—			—		—
— Operations		39.59		61.00		57.18			41.84		45.01
— Other		—		—		0.43			—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

13

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Walgreens — Sumter, SC
	January 2006
	(Unaudited)
	2006		2007		2008			2009		2010
Gross Revenues	$	314,624	$	325,980	$	325,445		$	325,085	$	325,085
Profit (loss) on sale of properties		—		—		—			—		—
Less:
Operating expenses(1)		14,066		13,354		13,830			12,921		12,704
Interest expense		158,325		171,598		172,138			171,668		171,668
Depreciation and amortization(2)		—		—		—			—		—
Net Income (loss) — Tax Basis(3)	$	142,233	$	141,028	$	139,477		$	140,496	$	140,713
Taxable income
— from operations(4)	$	142,233	$	141,028	$	139,477		$	140,496	$	140,713
— from gain on sale		—		—		—			—		—
Cash generated
— from operations		142,233		141,028		139,477			140,496		140,713
— from sales		—		—		—			—		—
— from refinancing		—		—		—			—		—
Cash generated from operations, sales and refinancing		142,233		141,028		139,477			140,496		140,713
Less: Cash distributions to investors
— from operating cash flow		121,169		139,884		139,887			139,880		139,880
— from sales and refinancing		—		—		—			—		—
— from other		—		—		—			—		—
Cash generated (deficiency) after cash distributions		21,064		1,144		(410	)		616		833
Less: Special items (not including sales and refinancing		—		—		—			—		—
Cash generated (deficiency) after cash distributions and special items	$	21,064	$	1,144	$	(410	)	$	616	$	833
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	66.09	$	65.53	$	64.81		$	65.29	$	65.39
— from recapture		—		—		—			—		—
Capital gain (loss)		—		—		—			—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		56.31		65.00		65.00			65.00		65.00
— Return of capital		—		—		—			—		—
Source (on a cash basis)
— Sales		—		—		—			—		—
— Refinancing		—		—		—			—		—
— Operations		56.31		65.00		65.00			65.00		65.00
— Other		—		—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

14

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Kohl’s — St. Joseph, MO
	February 2006
	(Unaudited)
	2006		2007			2008		2009			2010
Gross Revenues	$	564,619	$	710,939		$	801,046	$	694,012		$	728,238
Profit (loss) on sale of properties		—		—			—		—			—
Less:
Operating expenses(1)		159,442		179,656			170,276		162,445			148,858
Interest expense		190,758		325,358			326,249		325,358			325,358
Depreciation and amortization(2)		—		—			—		—			—
Net Income (loss) — Tax Basis(3)	$	214,419	$	205,925		$	304,521	$	206,209		$	254,022
Taxable income
— from operations(4)	$	214,419	$	205,925		$	304,521	$	206,209		$	254,022
— from gain on sale		—		—			—		—			—
Cash generated
— from operations		214,419		205,925			304,521		206,209			254,022
— from sales		—		—			—		—			—
— from refinancing		—		—			—		—			—
Cash generated from operations, sales and refinancing		214,419		205,925			304,521		206,209			254,022
Less: Cash distributions to investors
— from operating cash flow		132,308		247,020			247,020		247,020			247,020
— from sales and refinancing		—		—			��		—			—
— from other		—		—			—		—			—
Cash generated (deficiency) after cash distributions		82,111		(41,095	)		57,501		(40,811	)		7,002
Less: Special items (not including sales and refinancing		—		—			—		—			—
Cash generated (deficiency) after cash distributions and special items	$	82,111	$	(41,095	)	$	57,501	$	(40,811	)	$	7,002
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	52.08	$	50.02		$	73.97	$	50.09		$	61.70
— from recapture		—		—			—		—			—
Capital gain (loss)		—		—			—		—			—
Cash distributions to investors
Source (on a tax basis)
— Investment income		32.14		60.00			60.00		60.00			60.00
— Return of capital		—		—			—		—			—
Source (on a cash basis)
— Sales		—		—			—		—			—
— Refinancing		—		—			—		—			—
— Operations		32.14		60.00			60.00		60.00			60.00
— Other		—		—			—		—			—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table												100	%

Past performance is not necessarily indicative of future results.

15

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Home Depot — Bellingham, WA
	April 2006
	(Unaudited)
	2006		2007		2008		2009		2010
Gross Revenues	$	608,739	$	1,571,778	$	1,572,745	$	1,568,675	$	1,698,802
Profit (loss) on sale of properties		—		—		—		—		—
Less:
Operating expenses(1)		14,676		54,775		60,817		59,764		61,629
Depreciation and amortization(2)		—		—		—		—		—
Net Income (loss) — Tax Basis(3)	$	594,063	$	1,517,003	$	1,511,928	$	1,508,911	$	1,637,173
Taxable income
— from operations(4)	$	594,063	$	1,517,003	$	1,511,928	$	1,508,911	$	1,637,173
— from gain on sale		—		—		—		—		—
Cash generated
— from operations		594,063		1,517,003		1,511,928		1,508,911		1,637,173
— from sales		—		—		—		—		—
— from refinancing		—		—		—		—		—
Cash generated from operations, sales and refinancing		594,063		1,517,003		1,511,928		1,508,911		1,637,173
Less: Cash distributions to investors
— from operating cash flow		463,771		1,494,708		1,494,264		1,494,715		1,494,715
— from sales and refinancing		—		—		—		—		—
— from other		—		—		—		—		—
Cash generated (deficiency) after cash distributions		130,292		22,295		17,664		14,196		142,458
Less: Special items (not including sales and refinancing		—		—		—		—		—
Cash generated (deficiency) after cash distributions and special items	$	130,292	$	22,295	$	17,664	$	14,196	$	142,458
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	24.05	$	61.40	$	61.20	$	61.07	$	66.27
— from recapture		—		—		—		—		—
Capital gain (loss)		—		—		—		—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		18.77		60.50		60.48		60.50		60.50
— Return of capital		—		—		—		—		—
Source (on a cash basis)
— Sales		—		—		—		—		—
— Refinancing		—		—		—		—		—
— Operations		18.77		60.50		60.48		60.50		60.50
— Other		—		—		—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table										100	%

Past performance is not necessarily indicative of future results.

16

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Cole Net Lease Portfolio I
	May 2006
	(Unaudited)
	2006		2007		2008			2009		2010
Gross Revenues	$	583,357	$	1,429,279	$	1,426,846		$	1,424,945	$	1,425,015
Profit (loss) on sale of properties		—		—		15,000			—		—
Less:
Operating expenses(1)		26,130		36,148		49,261			45,508		38,796
Interest expense		265,912		752,356		754,449			752,387		752,387
Depreciation and amortization(2)		—		—		—			—		—
Net Income (loss) — Tax Basis(3)	$	291,315	$	640,775	$	638,136		$	627,050	$	633,832
Taxable income
— from operations(4)	$	291,315	$	640,775	$	623,136		$	627,050	$	633,832
— from gain on sale		—		—		15,000			—		—
Cash generated
— from operations		291,315		640,775		623,136			627,050		633,832
— from sales		—		—		15,000			—		—
— from refinancing		—		—		—			—		—
Cash generated from operations, sales and refinancing		291,315		640,775		638,136			627,050		633,832
Less: Cash distributions to investors
— from operating cash flow		203,698		623,484		623,482			623,480		623,481
— from sales and refinancing		—		—		15,000			—		—
— from other		—		—		—			—		—
Cash generated (deficiency) after cash distributions		87,617		17,291		(346	)		3,570		10,351
Less: Special items (not including sales and refinancing		—		—		—			—		—
Cash generated (deficiency) after cash distributions and special items	$	87,617	$	17,291	$	(346	)	$	3,570	$	10,351
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	30.37	$	66.80	$	64.96		$	65.37	$	66.08
— from recapture		—		—		—			—		—
Capital gain (loss)		—		—		1.56			—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		21.24		65.00		65.00			65.00		65.00
— Return of capital		—		—		—			—		—
Source (on a cash basis)
— Sales		—		—		1.56			—		—
— Refinancing		—		—		—			—		—
— Operations		21.24		65.00		63.44			65.00		65.00
— Other		—		—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

17

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Cole Net Lease Portfolio II
	June 2006
	(Unaudited)
	2006		2007		2008		2009		2010
Gross Revenues	$	313,447	$	1,539,612	$	1,579,494	$	1,529,434	$	1,528,068
Profit (loss) on sale of properties		—		—		—		—		—
Less:
Operating expenses(1)		4,849		64,435		75,030		71,118		69,062
Interest expense		133,317		797,719		799,905		797,719		797,719
Depreciation and amortization(2)		—		—		—		—		—
Net Income (loss) — Tax Basis(3)	$	175,281	$	677,458	$	704,559	$	660,597	$	661,287
Taxable income
— from operations(4)	$	175,281	$	677,458	$	704,559	$	660,597	$	661,287
— from gain on sale		—		—		—		—		—
Cash generated
— from operations		175,281		677,458		704,559		660,597		661,287
— from sales		—		—		—		—		—
— from refinancing		—		—		—		—		—
Cash generated from operations, sales and refinancing		175,281		677,458		704,559		660,597		661,287
Less: Cash distributions to investors
— from operating cash flow		77,402		650,712		650,718		650,710		650,710
— from sales and refinancing		—		—		—		—		—
— from other		—		—		—		—		—
Cash generated (deficiency) after cash distributions		97,879		26,746		53,841		9,887		10,577
Less: Special items (not including sales and refinancing		—		—		—		—		—
Cash generated (deficiency) after cash distributions and special items	$	97,879	$	26,746	$	53,841	$	9,887	$	10,577
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	17.51	$	67.67	$	70.38	$	65.99	$	66.06
— from recapture		—		—		—		—		—
Capital gain (loss)		—		—		—		—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		7.73		65.00		65.00		65.00		65.00
— Return of capital		—		—		—		—		—
Source (on a cash basis)
— Sales		—		—		—		—		—
— Refinancing		—		—		—		—		—
— Operations		7.73		65.00		65.00		65.00		65.00
— Other		—		—		—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table										100	%

Past performance is not necessarily indicative of future results.

18

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Barrywoods Crossing — Kansas City, MO
	July 2006
	(Unaudited)
	2006		2007			2008		2009		2010
Gross Revenues	$	969,929	$	3,887,472		$	4,145,429	$	3,894,998	$	4,516,114
Profit (loss) on sale of properties		—		—			—		—
Less:
Operating expenses(1)		642,129		1,261,696			1,391,359		1,333,093		1,437,777
Interest expense		126,766		1,521,195			1,546,548		1,542,323		1,542,323
Depreciation and amortization(2)		—		—			—		—		—
Net Income (loss) — Tax Basis(3)	$	201,034	$	1,104,581		$	1,207,522	$	1,019,582	$	1,536,014
Taxable income
— from operations(4)	$	201,034	$	1,104,581		$	1,207,522	$	1,019,582	$	1,536,014
— from gain on sale		—		—			—		—		—
Cash generated
— from operations		201,034		1,104,581			1,207,522		1,019,582		1,536,014
— from sales		—		—			—		—		—
— from refinancing		—		—			—		—		—
Cash generated from operations, sales and refinancing		201,034		1,104,581			1,207,522		1,019,582		1,536,014
Less: Cash distributions to investors
— from operating cash flow		—		1,486,685			1,198,964		893,615		1,007,503
— from sales and refinancing		—		—			—		—		—
— from other		—		—			—		—		—
Cash generated (deficiency) after cash distributions		201,034		(382,104	)		8,558		125,967		528,511
Less: Special items (not including sales and refinancing		—		—			—		—		—
Cash generated (deficiency) after cash distributions and special items	$	201,034	$	(382,104	)	$	8,558	$	125,967	$	528,511
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	9.85	$	54.15		$	59.19	$	49.98	$	75.29
— from recapture		—		—			—		—		—
Capital gain (loss)		—		—			—		—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		—		64.00			50.31		41.52		49.39
— Return of capital		—		8.88			8.46		2.28		—
Source (on a cash basis)
— Sales		—		—			—		—		—
— Refinancing		—		—			—		—		—
— Operations		—		64.00			50.31		41.52		49.39
— Other		—		8.88			8.46		2.28		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

19

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Cole Net Lease Portfolio III
	December 2006
	(Unaudited)
	2006		2007		2008		2009		2010
Gross Revenues	$	—	$	2,447,247	$	2,416,921	$	2,413,694	$	2,413,690
Profit (loss) on sale of properties		—		—		13,766		—		—
Less:
Operating expenses(1)		—		119,032		109,158		107,334		105,115
Interest expense		—		1,241,384		1,305,593		1,302,026		1,302,026
Depreciation and amortization(2)		—		—		—		—		—
Net Income (loss) — Tax Basis(3)	$	—	$	1,086,831	$	1,015,936	$	1,004,334	$	1,006,549
Taxable income
— from operations(4)	$	—	$	1,086,831	$	1,002,170	$	1,004,334	$	1,006,549
— from gain on sale		—		—		13,766		—		—
Cash generated
— from operations		—		1,086,831		1,002,170		1,004,334		1,006,549
— from sales		—		—		21,115		—		—
— from refinancing		—		—		—		—		—
Cash generated from operations, sales and refinancing		—		1,086,831		1,023,285		1,004,334		1,006,549
Less: Cash distributions to investors
— from operating cash flow		—		1,004,184		1,004,185		1,004,184		1,004,184
— from sales and refinancing		—		—		13,766		—		—
— from other		—		—		—		—		—
Cash generated (deficiency) after cash distributions		—		82,647		5,334		150		2,365
Less: Special items (not including sales and refinancing		—		—		—		—		—
Cash generated (deficiency) after cash distributions and special items	$	—	$	82,647	$	5,334	$	150	$	2,365
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—	$	70.35	$	64.87	$	65.01	$	65.15
— from recapture		—		—		—		—		—
Capital gain (loss)		—		—		0.89		—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		—		65.00		65.00		65.00		65.00
— Return of capital		—		—		—		—		—
Source (on a cash basis)
— Sales		—		—		0.89		—		—
— Refinancing		—		—		—		—		—
— Operations		—		65.00		64.11		65.00		65.00
— Other		—		—		—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table										100	%

Past performance is not necessarily indicative of future results.

20

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Centerpointe Shopping Center — Woodridge, IL
	May 2007
	(Unaudited)
	2007		2008			2009		2010
Gross Revenues	$	2,632,042	$	4,241,709		$	4,267,839	$	4,178,527
Profit (loss) on sale of properties		—		—			—		—
Less:
Operating expenses(1)		643,478		1,525,240			1,393,905		1,274,911
Interest expense		837,535		1,525,064			1,520,897		1,520,897
Depreciation and amortization(2)		—		—			—		—
Net Income (loss) — Tax Basis(3)	$	1,151,029	$	1,191,405		$	1,353,037	$	1,382,719
Taxable income
— from operations(4)	$	1,151,029	$	1,191,405		$	1,353,037	$	1,382,719
— from gain on sale		—		—			—		—
Cash generated
— from operations		1,151,029		1,191,405			1,353,037		1,382,719
— from sales		—		—			—		—
— from refinancing		—		—			—		—
Cash generated from operations, sales and refinancing		1,151,029		1,191,405			1,353,037		1,382,719
Less: Cash distributions to investors
— from operating cash flow		807,647		1,334,400			1,334,400		1,225,408
— from sales and refinancing		—		—			—		—
— from other		—		—			—		—
Cash generated (deficiency) after cash distributions		343,382		(142,995	)		18,637		157,311
Less: Special items (not including sales and refinancing		—		—			—		—
Cash generated (deficiency) after cash distributions and special items	$	343,382	$	(142,995	)	$	18,637	$	157,311
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	52.08	$	53.91		$	61.22	$	62.57
— from recapture		—		—			—		—
Capital gain (loss)		—		—			—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		36.55		60.38			60.38		55.45
— Return of capital		—		—			—		—
Source (on a cash basis)
— Sales		—		—			—		—
— Refinancing		—		—			—		—
— Operations		36.55		60.38			60.38		55.45
— Other		—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table									100	%

Past performance is not necessarily indicative of future results.

21

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Cole Net Lease Portfolio IV
	May 2007
	(Unaudited)
	2007		2008		2009		2010
Gross Revenues	$	533,742	$	904,933	$	890,068	$	898,522
Profit (loss) on sale of properties		—		—		—		—
Less:
Operating expenses(1)		57,576		150,569		136,884		150,707
Interest expense		217,699		368,879		367,871		367,871
Depreciation and amortization(2)		—		—		—		—
Net Income (loss) — Tax Basis(3)	$	258,467	$	385,485	$	385,313	$	379,944
Taxable income
— from operations(4)	$	258,467	$	385,485	$	385,313	$	379,944
— from gain on sale		—		—		—		—
Cash generated
— from operations		258,467		385,485		385,313		379,944
— from sales		—		—		—		—
— from refinancing		—		—		—		—
Cash generated from operations, sales and refinancing		258,467		385,485		385,313		379,944
Less: Cash distributions to investors
— from operating cash flow		232,801		360,185		360,180		370,085
— from sales and refinancing		—		—		—		—
— from other		—		—		—		—
Cash generated (deficiency) after cash distributions		25,666		25,300		25,133		9,859
Less: Special items (not including sales and refinancing		—		—		—		—
Cash generated (deficiency) after cash distributions and special items	$	25,666	$	25,300	$	25,133	$	9,859
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	43.06	$	64.22	$	64.19	$	63.29
— from recapture		—		—		—		—
Capital gain (loss)		—		—		—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		38.78		60.00		60.00		61.65
��� Return of capital		—		—		—		—
Source (on a cash basis)
— Sales		—		—		—		—
— Refinancing		—		—		—		—
— Operations		38.78		60.00		60.00		61.65
— Other		—		—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table								100	%

Past performance is not necessarily indicative of future results.

22

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Cole Net Lease Portfolio V
	June 2007
	(Unaudited)
	2007		2008			2009		2010
Gross Revenues	$	1,216,587	$	2,873,638		$	3,074,756	$	2,870,184
Profit (loss) on sale of properties		—		—			—		—
Less:
Operating expenses(1)		33,570		109,101			104,964		104,694
Interest expense		444,412		1,378,431			1,374,664		1,374,664
Depreciation and amortization(2)		—		—			—		—
Net Income (loss) — Tax Basis(3)	$	738,605	$	1,386,106		$	1,595,128	$	1,390,826
Taxable income
— from operations(4)	$	738,605	$	1,386,106		$	1,595,128	$	1,390,826
— from gain on sale		—		—			—		—
Cash generated
— from operations		738,605		1,386,106			1,595,128		1,390,826
— from sales		—		—			—		—
— from refinancing		—		—			—		—
Cash generated from operations, sales and refinancing		738,605		1,386,106			1,595,128		1,390,826
Less: Cash distributions to investors
— from operating cash flow		550,545		1,449,144			1,449,147		1,501,499
— from sales and refinancing		—		—			—		—
— from other		—		—			—		—
Cash generated (deficiency) after cash distributions		188,060		(63,038	)		145,981		(110,673	)
Less: Special items (not including sales and refinancing		—		—			—		—
Cash generated (deficiency) after cash distributions and special items	$	188,060	$	(63,038	)	$	145,981	$	(110,673	)
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	33.64	$	63.13		$	72.65	$	63.34
— from recapture		—		—			—		—
Capital gain (loss)		—		—			—		—
Cash distributions to investors
Source (on a tax basis)
— Investment income		25.07		66.00			66.00		68.38
— Return of capital		—		—			—		—
Source (on a cash basis)
— Sales		—		—			—		—
— Refinancing		—		—			—		—
— Operations		25.07		66.00			66.00		68.38
— Other		—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table									100	%

Past performance is not necessarily indicative of future results.

23

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

	Cole Net Lease Portfolio VI
	September 2007
	(Unaudited)
	2007		2008		2009			2010
Gross Revenues	$	598,105	$	3,551,029	$	3,497,557		$	3,491,178
Profit (loss) on sale of properties		—		—		—			—
Less:
Operating expenses(1)		45,111		229,233		212,360			203,081
Interest expense		144,049		1,700,718		1,696,068			1,696,069
Depreciation and amortization(2)		—		—		—			—
Net Income (loss) — Tax Basis(3)	$	408,945	$	1,621,078	$	1,589,129		$	1,592,028
Taxable income
— from operations(4)	$	408,945	$	1,621,078	$	1,589,129		$	1,592,028
— from gain on sale		—		—		—			—
Cash generated
— from operations		408,945		1,621,078		1,589,129			1,592,028
— from sales		—		—		—			—
— from refinancing		—		—		—			—
Cash generated from operations, sales and refinancing		408,945		1,621,078		1,589,129			1,592,028
Less: Cash distributions to investors
— from operating cash flow		269,301		1,589,676		1,589,678			1,589,678
— from sales and refinancing		—		—		—			—
— from other		—		—		—			—
Cash generated (deficiency) after cash distributions		139,644		31,402		(549	)		2,350
Less: Special items (not including sales and refinancing		—		—		—			—
Cash generated (deficiency) after cash distributions and special items	$	139,644	$	31,402	$	(549	)	$	2,350
Tax and distribution data per $1,000 invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	17.58	$	63.22	$	61.98		$	62.09
— from recapture		—		—		—			—
Capital gain (loss)		—		—		—			—
Cash distributions to investors
Source (on a tax basis)
— Investment income		11.57		62.00		62.00			62.00
— Return of capital		—		—		—			—
Source (on a cash basis)
— Sales		—		—		—			—
— Refinancing		—		—		—			—
— Operations		11.57		62.00		62.00			62.00
— Other		—		—		—			—
Amount (in percentage terms) remaining invested in program properties at the end of the last year reported in the table									100	%

Past performance is not necessarily indicative of future results.

24

TABLE III

OPERATING RESULTS OF PRIOR PROGRAMS (UNAUDITED) — (Continued)

(1)	Operating expenses include management fees paid to affiliates for such services as accounting, property supervision, etc.
(2)	Amortization of organizational costs is computed over a period of 60 months. Depreciation of commercial real property is determined on the straight-line method over an estimated useful life of 39 years. Leasehold interests are amortized over the life of the lease.
(3)	The respective program maintains its books on a tax basis of accounting rather than a GAAP basis. There are several potential differences in tax and GAAP basis, including, among others; (a) tax basis accounting does not take certain income or expense accruals into consideration at the end of each fiscal year, (b) rental income is recorded on a tax basis, as it is received where it is accrued on a straight-line basis over the life of the lease for GAAP, and (c) all properties are recorded at cost and depreciated over their estimated useful life on a tax basis even if they qualify as a direct financing lease for GAAP purposes. These differences generally result in timing differences between fiscal years but total operating income over the life of the partnership will not be significantly different between the two bases of accounting.
(4)	Cash generated from operation generally includes net income plus depreciation and amortization plus, where applicable, any decreases in accounts receivable and accrued rental income or increases in accounts payable minus, where applicable, any increases in accounts receivable and accrued rental income or decreases in accounts payable. In addition, cash generated from operations is reduced for any property costs related to development projects and is increased by proceeds when the project is sold (usually in less than twelve months).
(5)	Investors in this program receive interest income which is reported to them onForm 1099-INT, thus tax and cash distribution data per $1,000 invested is not included.
(6)	Cole Credit Property Trust, Inc. and Cole Credit Property Trust II, Inc. maintain their books on a GAAP basis of accounting rather than on a tax basis.
(7)	Due to the timing of tax return filings, amounts shown represent estimates and may change when tax returns are filed at a future date.
(8)	Includes cash flows from operations in excess of distributions from previous periods and cash proceeds from line of credit borrowings.
(9)	Cash generated from operations for this program generally includes net income (loss) plus depreciation and amortization, plus distributions in the form of interest paid to note investors, minus, where applicable, profit on sale of properties.
(10)	Includes cash flows from sales in excess of distributions from previous periods.
(11)	Investors in this program receive interest income per annum. Amounts represent the funding source of the interest payments, the total of which is disclosed above in interest paid to note investors.

Past performance is not necessarily indicative of future results.

25

TABLE IV

RESULTS OF COMPLETED PROGRAMS (UNAUDITED)

The following table presents summary information on the results of Prior Real Estate Programs that completed operations since January 1, 2006 to December 31, 2010 and that had similar or identical investment objectives to those of our program. All amounts are from the inception of the program to the date the program was completed.

	Cole
	Collateralized			Cole
	Senior Notes,			Santa Fe
Program Name	LLC			Investors, LP
Dollar amount raised	$	28,038,500		$	6,180,000
Number of properties purchased		45			1
Date of closing of offering		6/3/2004			11/20/2002
Date of first sale of property		11/6/2003			11/30/2007
Date of final sale of property		4/26/2006			11/30/2007
Tax and Distribution Data Per $1,000 Investment Through 12/31/09
Federal income tax results:
Ordinary income (loss)
— from operations	$	—	(2)	$	(304	)
— from recapture		—	(2)		429
Capital gain (loss)		—	(2)		1,762
Deferred gain
— Capital		—	(2)		—
— Ordinary		—	(2)		—
Cash distributions to investors:
Source (on Tax Basis)(1)
— Investment income		—	(2)		824
— Return of capital		28,038,500	(2)		1,000
Source (on Cash Basis)
— Sales		85,696,933	(3)		1,731
— Refinancing		—	(2)		—
— Operations		(506,433)	(2)		93
— Other		—	(2)		—
Receivable on net purchase money financing		—	(2)		—

Past performance is not necessarily indicative of future results.

26

TABLE IV

RESULTS OF COMPLETED PROGRAMS (UNAUDITED) — (Continued)

					Cole
			Cole Credit		Collateralized
	Cole Credit		Property		Senior
	Property		Fund II,		Notes II,
Program Name	Fund, LP		LP		LLC
Dollar amount raised	$	25,000,000	$	24,494,500	$	28,750,000
Number of properties purchased		14		10		49
Date of closing of offering		9/2/2003		3/25/2004		2/15/2005
Date of first sale of property		9/30/2008		9/30/2008		8/13/2004
Date of final sale of property		9/30/2008		9/30/2008		5/8/2008
Tax and Distribution Data Per $1,000 Investment Through 12/31/09
Federal income tax results:
Ordinary income (loss)
— from operations	$	230	$	218	$	—	(2	)
— from recapture		220		252		—	(2	)
Capital gain (loss)		202		119		—	(2	)
Deferred gain
— Capital		—		—		—	(2	)
— Ordinary		—		—		—	(2	)
Cash distributions to investors:
Source (on Tax Basis)(1)
— Investment income		488		507		—	(2	)
— Return of capital		1,000		1,000		28,750,000	(2	)
Source (on Cash Basis)
— Sales		1,035		1,091		153,355,044	(3	)
— Refinancing		—		—		—	(2	)
— Operations		453		416		(7,231,419)	(2	)
— Other		—		—		—	(2	)
Receivable on net purchase money financing		—		—		—	(2	)

(1)	The respective program maintains its books on a tax basis of accounting rather than on a GAAP basis. There are potential differences in accounting for cash distributions on a tax basis and GAAP basis, the most significant of which is that partnership syndication costs, which include securities commissions and other costs, would be recorded as a reduction of capital for GAAP purposes, which would result in lower return of capital and higher investment income amounts on a GAAP basis than on a tax basis.
(2)	Investors in this program receive interest per annum, which is included in interest expense. Therefore, tax and cash distribution data per $1,000 invested is not applicable.
(3)	Over the course of the program, certain properties acquired with the initial note proceeds were sold and the sales proceeds were reinvested in replacement properties. Certain replacement properties were subsequently sold and the sales proceeds were reinvested in new replacement properties, this may have occurred multiple times over the life of the program or certain properties. This amount represents the accumulated proceeds from sale and reinvestment of the sales proceeds in replacement properties.

Past performance is not necessarily indicative of future results.

27

TABLE V

SALES OR DISPOSALS OF PROPERTIES (UNAUDITED)

This table provides summary information on the results of sales or disposals of properties since January 1, 2008 by Prior Real Estate Programs having similar investment objectives to those of our program. All amounts are through December 31, 2010.

																					Excess
															Including Closing and Soft Costs						(Deficiency)
					Selling Price, Net of Closing Costs and GAAP Adjustments												Total				of Property
									Purchase								Acquisition				Operating
									Money		Adjustments						Cost, Capital				Cash
					Cash Received		Mortgage		Mortgage		Resulting from				Original		Improvements,				Receipts
	Date		Date of		Net of Closing		Balance at		Taken Back by		Application of				Mortgage		Closing and				Over Cash
Property	Acquired		Sale		Costs		Time of Sale		Program		GAAP(3)		Total(1)		Financing		Soft Costs(2)		Total		Expenditures
Cole Collateralized Senior Notes II, LLC
Tortuga Cantina Woodlands, TX		12/03		05/08		502,807		1,355,250		—		—		1,858,057		1,345,997		671,188		2,017,185		414,142
Cole Collateralized Senior Notes III, LLC			��
DST Interests in Cole Net Lease Portfolio VI(4)(6)		Various		02/08		23,798,400		29,740,000		—		—		53,538,400		29,740,000		23,798,400		53,538,400		386,094
Cole Acquisitions I, LLC(5)
CVS Robertsdale, AL		04/06		02/08		1,703,695		2,720,000		—		—		4,423,695		3,348,000		1,111,360		4,459,360		222,906
Cole Credit Property Fund, LP
Payless Shoes Columbia, SC		02/03		09/08		539,250		860,000		—		—		1,399,250		—		1,581,966		1,581,966		582,574
Walgreens Jacksonville, FL		02/03		09/08		2,538,500		2,510,750		—		—		5,049,250		3,652,000		855,318		4,507,318		1,398,635
CVS Hamilton, OH		03/03		09/08		1,811,750		1,787,500		—		—		3,599,250		—		3,266,592		3,266,592		1,058,181
Walgreens Akron, OH		04/03		09/08		919,250		1,900,000		—		—		2,819,250		—		2,800,400		2,800,400		688,613
Walgreens Seattle, WA		04/03		09/08		3,299,244		3,349,500		—		—		6,648,744		4,848,000		1,223,201		6,071,201		2,019,210
Walgreens LaMarque, TX		05/03		09/08		2,232,250		2,277,000		—		—		4,509,250		3,296,000		832,650		4,128,650		1,188,276
CVS Mechanicville, NY		06/03		09/08		1,298,850		1,290,000		—		—		2,588,850		1,824,000		544,647		2,368,647		649,045
Office Depot Laurel, MS		06/03		09/08		1,379,250		1,270,000		—		—		2,649,250		—		2,320,534		2,320,534		815,536
Home Depot Colma, CA(7)		06/03		09/08		17,553,309		21,613,000		—		—		39,166,309		26,400,000		6,970,111		33,370,111		11,735,401
Walgreens Saginaw, MI		06/03		09/08		1,916,750		2,282,500		—		—		4,199,250		—		4,141,775		4,141,775		1,222,700
Walgreens Tulsa, OK		08/03		09/08		973,750		1,215,500		—		—		2,189,250		—		2,208,207		2,208,207		675,934
Walgreens Broken Arrow, OK		08/03		09/08		971,750		1,127,500		—		—		2,099,250		—		2,041,363		2,041,363		628,969
Office Depot — London, KY		09/03		09/08		1,819,250		1,680,000		—		—		3,499,250		—		3,076,041		3,076,041		1,070,680
Cole Credit Property Fund II, LP
Best Buy Las Cruces, NM		11/03		09/08		2,290,250		3,809,000		—		—		6,099,250		—		5,873,060		5,873,060		1,473,826
Staples Angola, IN		12/03		09/08		1,200,250		1,999,000		—		—		3,199,250		—		3,087,065		3,087,065		733,421
TJ Maxx Staunton, VA		02/04		09/08		1,183,250		3,116,000		—		—		4,299,250		—		5,033,670		5,033,670		1,320,813
AT&T Santa Clara, CA		03/04		09/08		4,156,030		6,032,000		—		—		10,188,030		—		9,293,258		9,293,258		2,025,298
Walgreens Tulsa (Memorial), OK		03/04		09/08		1,023,250		1,926,000		—		—		2,949,250		2,320,000		657,933		2,977,933		631,667
Walgreens Crossville, TN		03/04		09/08		1,696,250		2,753,000		—		—		4,449,250		3,388,000		871,868		4,259,868		815,324
CVS Columbia I, TN		05/04		09/08		884,250		1,715,000		—		—		2,599,250		1,840,000		547,215		2,387,215		275,980
CVS Columbia II, TN		05/04		09/08		664,250		1,735,000		—		—		2,399,250		1,860,000		558,230		2,418,230		291,369
Walgreens Newton, IA		10/04		09/08		1,936,250		2,393,000		—		—		4,329,250		2,393,000		2,107,368		4,500,368		794,166

(1)	None of the amounts are being reported for tax purposes on the installment basis. See Table IV for allocation of the taxable gains between ordinary and capital income for all sales.
(2)	The amounts shown do not include a pro rata share of the original offering costs. There were no carried interest received in lieu of commissions in connection with the acquisition of the property.
(3)	As the financial statements are prepared on an income tax basis, there are no GAAP adjustments included herein.
(4)	Amounts herein relate to the sale of DST interests in single-tenant commercial properties. There was no gain or loss related to the sales as the interests in the property were sold at cost, with each purchaser acquiring their interest with cash and the assumption of a pro-rata portion of any existing loan on the property.

Past performance is not necessarily indicative of future results.

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TABLE V

SALES OR DISPOSALS OF PROPERTIES (UNAUDITED) — (Continued)

(5)	These properties were acquired by a joint venture between Cole Collateralized Senior Notes, LLC, Cole Collateralized Senior Notes II, LLC, Cole Collateralized Senior Notes III, LLC, and Cole Collateralized Senior Notes IV, LLC.
(6)	DST Interests in Cole Net Lease Portfolio VI include: Mercedes Benz West Covina, CA, Walgreens Westford, MA, Walgreens Wilmington, MA, Walgreens Brenham, TX, Starbucks Crestwood, KY, Starbucks Danville, KY, and Starbucks Somerset, KY.
(7)	Home Depot Colma, CA was acquired by Cole Credit Property Fund, LP and Cole Credit Property Fund II, LP.

Past performance is not necessarily indicative of future results.

29