Cole Real Estate Investments 8-K Cole Real Estate Investments Announces Record Second Quarter 2013 Financial Results

Exhibit 99.3

Supplemental Financial Information

Second Quarter 2013, Unaudited

August 5, 2013

Cole Real Estate Investments, Inc.

(f/k/a Cole Credit Property Trust III, Inc.)

Supplemental Unaudited Operating and Financial Data

As of and for the three months ended June 30, 2013

Highlights	3
Financial Information
Condensed Consolidated Unaudited Balance Sheets	8
Condensed Consolidated Unaudited Statements of Operations	9
Financial and Operational Statistics	10
Segment Reporting	11
Reconciliation of GAAP Net Income to Normalized EBITDA	12
Reconciliation of GAAP Net Income to FFO and AFFO	13
Adjusted G&A	15
Debt Overview	16
Real Estate Investment
Real Estate Portfolio Diversification	17
Same Store Summary	18
Tenant Diversification	19
Industry Diversification	21
Geographic Diversification	22
Lease Expirations	24
Multi-Tenant Property Summary	25
Unconsolidated Joint Venture Investment Summary	28
Private Capital Management
Managed Programs	29
Terms and Definitions	32

2

Cole Real Estate Investments Announces Record Second Quarter 2013 Financial Results

Increasing the Dividend and Increasing Second Half 2013 Guidance

PHOENIX, August 5, 2013 – Cole Real Estate Investments, Inc. (NYSE: COLE), a market-leading net lease REIT, today announced record financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Consolidated Highlights

• NYSE Listing – Shares began trading on the NYSE on June 20, 2013 and received early inclusion in the MSCI U.S. REIT Index (RMS/RMZ) on July 3, 2013

• Record Operating Results – Reported consolidated revenue of $250.3 million and net income of $29.1 million, a 91% and 26% year-over-year increase from the second quarter of 2012, respectively

• Record AFFO– Reported consolidated AFFO of $0.23 per diluted share, a 44% year-over-year increase from the second quarter of 2012, which includes $0.03 per diluted share from the private capital management segment

• Accretive Acquisitions – $266 million was acquired in the second quarter 2013 with a weighted average annual lease yield of 7.7% and $1.3 billion of assets were acquired over the past four quarters with a weighted average annual lease yield of 7.8%

• Robust Private Capital Flows – $508 million of capital was raised on behalf of our managed REITs in the second quarter 2013 and also achieved a record-breaking month of $509 million of capital raised during July

• Increased Guidance – 10% increase in second half AFFO guidance to the new range of $0.42 to $0.47 per diluted share

• Increased Dividends – Increased the annual distribution rate to $0.72 from $0.70 per share effective with the August dividend payable September 3, 2013, which represents an 11% increase over the past two quarters

• Tender Offer – Commenced a modified “Dutch auction” tender offer to purchase $250 million of shares currently scheduled to expire on August 8, 2013

• Share Repurchase Program – Authorized to repurchase up to $250 million of shares in the open market starting on the 11th business day following completion of the tender offer

Real Estate Investment Segment Highlights

• Revenue and net income of $167.6 million and $19.9 million, respectively

• AFFO of $0.20 per diluted share, an increase of 25% over the second quarter of 2012

• Normalized EBITDA of $139.3 million, an increase of 27% over the second quarter of 2012

• Acquired six properties with a weighted average annual lease yield of 7.7% and generated an 18% net gain on five properties sold at a weighted average annual lease yield of 7.5%

• Increased the unsecured credit facility to $1.4 billion from $858 million, extended the term of the revolving loans to June 2017 and the term loan to June 2018 and decreased the weighted average interest rate to 2.9% from 3.0%

• Total portfolio occupancy of 99.1%, investment grade tenancy of 55%, and a weighted average remaining lease term of 12.2 years as of June 30, 2013

-more-

3

Private Capital Management Segment Highlights

• Revenue and net income of $82.6 million and $9.2 million, respectively

• AFFO of $0.03 per diluted share and Normalized EBITDA of $15.1 million

• Structured $1.1 billion of real estate acquisitions and $422 million of real estate financing on behalf of the managed REITs in the second quarter 2013

• Merger between Cole Credit Property Trust II, Inc. (“CCPT II”) and Spirit Realty Capital, Inc. (NYSE Ticker: SRC) completed on July 17, 2013

• Cole Corporate Income Trust, Inc. (“CCIT”) announced the close of its offering on September 30, 2013 and CCIT’s Board of Directors has determined to begin the evaluation of potential strategies to provide CCIT stockholders with liquidity

Second Quarter 2013 Financial Results

Revenue

Consolidated revenue for the quarter ended June 30, 2013 increased 91% to $250.3 million, as compared to $131.4 million for the same quarter in 2012. This increase was due to an increase in revenue from the Real Estate Investment segment and the inclusion of revenue from the Private Capital Management segment, which was acquired on April 5, 2013.

Revenue for the Real Estate Investment segment for the quarter ended June 30, 2013 increased 28% to $167.6 million, as compared to $131.4 million for the same quarter in 2012. This increase was primarily due to a $1.0 billion increase in the average gross real estate assets net of gross intangible lease liabilities we owned, for the three months ended June 30, 2013, compared to the three months ended June 30, 2012. In addition, “same store” base rental revenue increased by 1.1% as compared to the year-ago quarter. Revenue for the Private Capital Management segment for the quarter ended June 30, 2013 was $82.6 million before reallowed fees and commissions.

4

Normalized EBITDA

Consolidated Normalized EBITDA increased 40% to $154.3 million for the quarter ended June 30, 2013, compared to $110.0 million for the same quarter in 2012. Normalized EBITDA for the Real Estate Investment segment increased 27% to $139.3 million for the quarter ended June 30, 2013, compared to $110.0 million for the year-ago quarter. Normalized EBITDA for the Private Capital Management segment was $15.0 million for the quarter ended June 30, 2013.

Net Income

Net income increased 26% to $29.1 million for the quarter ended June 30, 2013, compared to $23.1 million for the same quarter in 2012.

FFO and FFO per diluted share

Funds from Operations (FFO) for the quarter ended June 30, 2013, increased 17% to $76.2 million, or $0.16 per diluted share, as compared to $65.0 million, or $0.14 per diluted share, for the same quarter in 2012.

AFFO and AFFO per diluted share

Adjusted Funds from Operations (AFFO) for the quarter ended June 30, 2013, increased 44% to $110.8 million, or $0.23 per diluted share, as compared to $76.8 million, or $0.16 per diluted share, for the same quarter in 2012. AFFO for the Real Estate Investment segment increased 25% to $95.7 million, or $0.20 per diluted share for the quarter ended June 30, 2013, compared to $76.8 million, or $0.16 per diluted share, for the year-ago quarter. AFFO for the Private Capital Management segment was $15.1 million, or $0.03 per diluted share, for the quarter ended June 30, 2013.

Balance Sheet

As of June 30, 2013, Cole had total assets of $7.9 billion, unrestricted cash and cash equivalents of $167.5 million, total debt of $3.5 billion and $566.2 million available for borrowing under its senior unsecured credit facility. The leverage ratio of total debt to gross real estate and related assets was 47% and net debt, which represents total debt less cash, to annualized Normalized EBITDA was 5.4x.

During the second quarter, the Company increased the size of its senior unsecured credit facility to $1.4 billion from $858 million, extended the term of the revolving loans to June 2017 and the term loan to June 2018, while also decreasing the weighted average interest rate to 2.9% from 3.0%.

Tender Offer

On June 20, 2013, Cole commenced a modified “Dutch auction” tender offer to purchase for cash up to $250 million of shares of common stock on the terms and subject to the conditions described in its Offer to Purchase of that date. The tender offer and withdrawal rights will expire at 5:00 p.m. Eastern on August 8, 2013.

Increased Distributions

On August 2, 2013, Cole’s Board of Directors increased the amounts of the previously declared monthly dividends for August and September to $0.06 per share, representing an increase in the annual distribution rate to $0.72 from $0.70 per share. As previously announced, these dividends will be paid to stockholders of record as of August 30 and September 30, 2013, respectively, and the payments dates will be September 3 and October 1, 2013, respectively. The Board also declared a monthly dividend in the amount of $0.06 per share for the month of October 2013, which will be payable on November 1, 2013 to stockholders of record as of October 31, 2013.

5

Increased Second Half 2013 Guidance

The Company increased its guidance for the second half, as follows:

• Total revenue guidance increased by 18% to the range of $557 million to $585 million and is comprised of:

• Real Estate Investment segment revenue in the range of $327 million to $335 million

• Private Capital Management segment revenue (on a gross basis before reallowed fees and commissions) in the range of $230 million to $250 million

• Normalized EBITDA guidance increased by 11% to the range of $297 million to $324 million

• AFFO per diluted share guidance increased by 10% to the range of $0.42 to $0.47

Business Segment Descriptions

Real Estate Investment

As of June 30, 2013, the Company owned 1,014 properties in 48 states with 44.0 million rentable square feet, including properties owned through Consolidated Joint Ventures. Property types owned include single and multi-tenant retail, single tenant office and single tenant industrial. The Company also owned 21 CMBS bonds and three notes receivable and had interests in 12 properties with 2.3 million rentable square feet of commercial and retail space through Unconsolidated Joint Ventures. Total gross asset value of the portfolio was $7.5 billion.

During the second quarter of 2013, the Company acquired six properties for an aggregate purchase price of $266 million, which included one property acquired through a joint venture arrangement.

Also during the second quarter, the Company sold five properties for an aggregate sale price of $31.5 million, recognizing a $4.9 million gain on sale during the second quarter of 2013.

Private Capital Management

As of June 30, 2013, the Company through subsidiaries, collectively known as Cole Capital^™, was the advisor to five publicly registered, non-listed REITs (“managed REITs”), for which it provides capital raising, acquisition, financing, leasing, asset management and shareholder services. As of June 30, 2013 the managed REITs, including CCPT II, owned 1,096 properties, with 37.0 million rentable square feet of single and multi-tenant retail and commercial space, representing $6.5 billion in gross real estate assets. Of the managed REITs properties, CCPT II owned 747 properties with 21.1 million square feet, representing $3.5 billion in gross real estate assets. On July 17, 2013, the merger of CCPT II and Spirit Realty Capital, Inc. was completed.

6

About Cole Real Estate Investments, Inc.

Cole is a real estate investment trust that owns and operates a diversified portfolio of core commercial real estate investments primarily consisting of 1,014 necessity retail, office and industrial properties located throughout the United States. Cole’s portfolio comprises more than 44.0 million square feet of rentable space located in 48 states, including properties owned through consolidated joint venture arrangements. As of June 30, 2013, the rentable space at these properties was 99.1% leased and the weighted average remaining lease term was 12.2 years. As of June 30, 2013, the Company also owned 21 CMBS and three notes receivable. In addition, through unconsolidated joint venture arrangements, as of June 30, 2013, the Company had interests in 12 properties comprising 2.3 million rentable square feet of commercial and retail space.

As of June 30, 2013, the Company was the advisor to Cole Credit Property Trust, Inc. (“CCPT”), CCPT II, Cole Credit Property Trust IV, Inc. (“CCPT IV”), CCIT and Cole Real Estate Income Strategy (Daily NAV), Inc. (“INAV”, collectively with CCPT, CCPT II, CCPT IV and CCIT, the “Managed REITs”). In addition, the Company sponsored 1031 programs and performs property management services for the related properties (collectively, with the Managed REITs, the “Managed Programs”). As of June 30, 2013, the Managed Programs owned 1,096 properties, comprising 37.0 million rentable square feet of single and multi-tenant retail and commercial space. As of June 30, 2013, the rentable space at these properties was 97.5% leased.

Contact for Cole Real Estate Investments, Inc.

Stephan Keller	Aaron Halfacre, CFA	Jessica Thorsheim
Executive Vice President, CFO	Head of Strategic Relations	Director, Investor Relations

Our Investor Relations department can be reached via telephone at (877) 405-2653 or via email at investorrelations@colereit.com.

Forward-Looking Statements

Certain statements contained in this release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such statements include, in particular, statements about Cole’s plans, strategies, and prospects and are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of Cole’s performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Cole makes no representation or warranty (express or implied) about the accuracy of any such forward-looking statements contained in this release, and does not intend, and undertakes no obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

7

COLE REAL ESTATE INVESTMENTS, INC.

(F/K/A COLE CREDIT PROPERTY TRUST III, INC.)

CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS

(in thousands, except share and per share amounts)

	June 30, 2013			December 31, 2012
ASSETS
Investment in real estate assets:
Land	$	1,525,353		$	1,488,525
Buildings and improvements, less accumulated depreciation of $249,446 and $187,448, respectively		4,365,738			4,218,182
Acquired intangible lease assets, less accumulated amortization of $160,308 and $121,894, respectively		853,137			859,985
Total investment in real estate assets, net		6,744,228			6,566,692
Investment in notes receivable, net		90,464			90,358
Investment in marketable securities		10,499			51,103
Investment in marketable securities pledged as collateral		257,518			266,098
Investment in unconsolidated entities		94,932			96,785
Total investment in real estate assets and related assets, net		7,197,641			7,071,036
Assets related to real estate held for sale, net		—			23,153
Cash and cash equivalents		167,474			192,504
Restricted cash		25,502			18,444
Rents and tenant receivables, less allowance for doubtful accounts of $440 and $337, respectively		97,956			79,569
Intangible assets, prepaid expenses and other assets, net		104,332			11,790
Deferred financing costs, less accumulated amortization of $16,248 and $23,105, respectively		61,835			57,229
Goodwill		229,102			—
Leasehold improvements and property and equipment, net		21,295			—
Due from affiliates		8,036			—
Total assets	$	7,913,173		$	7,453,725
LIABILITIES AND EQUITY
Notes payable and other borrowings	$	3,501,428		$	3,292,048
Accounts payable and accrued expenses		58,115			42,756
Due to affiliates		—			4,525
Acquired below market lease intangibles, less accumulated amortization of $21,303 and $16,389, respectively		114,934			113,607
Distributions payable		28,501			26,399
Contingent consideration		211,143			5,341
Derivative liabilities, deferred rent and other liabilities		52,968			51,639
Total liabilities		3,967,089			3,536,315
Commitments and contingencies
Redeemable common stock		—			234,578
EQUITY:
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding		—			—
Common stock, $0.01 par value; 990,000,000 shares authorized and 489,808,175 and 479,547,099 shares outstanding, respectively		4,898			4,795
Capital in excess of par value		4,416,151			4,068,015
Accumulated distributions in excess of earnings		(510,539	)		(416,886	)
Accumulated other comprehensive income		18,856			23,101
Total stockholders’ equity		3,929,366			3,679,025
Noncontrolling interests		16,718			3,807
Total equity		3,946,084			3,682,832
Total liabilities and equity	$	7,913,173		$	7,453,725

8

COLE REAL ESTATE INVESTMENTS, INC.

(F/K/A COLE CREDIT PROPERTY TRUST III, INC.)

CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues:
Real estate investment revenue	$	159,812		$	124,910		$	312,089		$	234,066
Interest income on real estate-related investments		7,837			6,452			15,785			10,241
Private capital management revenue		82,643			—			82,643			—
Total revenue		250,292			131,362			410,517			244,307
Expenses:
Reallowed fees and commissions		38,962			—			38,962			—
General and administrative expenses		41,436			4,652			45,467			8,676
Merger related stock-based compensation expense		10,278			—			10,278			—
Property operating expenses		17,507			11,543			33,129			21,298
Property and asset management expenses		1,393			10,988			15,302			21,043
Merger and acquisition related expenses		11,810			17,438			27,423			32,819
Depreciation and amortization		56,393			38,269			104,110			71,540
Total operating expenses		177,779			82,890			274,671			155,376
Operating income		72,513			48,472			135,846			88,931
Other income (expense):
Equity in income of unconsolidated entities		972			552			2,281			886
Other (expense) income		(774	)		675			(851	)		3,992
Interest expense		(48,938	)		(30,141	)		(88,007	)		(57,312	)
Total other expense		(48,740	)		(28,914	)		(86,577	)		(52,434	)
Income from continuing operations before income taxes		23,773			19,558			49,269			36,497
Benefit from income taxes		235			—			235			—
Income from continuing operations		24,008			19,558			49,504			36,497
Discontinued operations:
Income from discontinued operations		195			3,532			838			7,762
Gain on sale of real estate assets		4,931			—			19,007			14,781
Income from discontinued operations		5,126			3,532			19,845			22,543
Net income		29,134			23,090			69,349			59,040
Net income (loss) allocated to noncontrolling interests		111			(133	)		215			(120	)
Net income attributable to the Company	$	29,023		$	23,223		$	69,134		$	59,160
Basic earnings per share:
Income from continuing operations	$	0.05		$	0.04		$	0.10		$	0.08
Income from discontinued operations	$	0.01		$	0.01		$	0.04		$	0.05
Net income attributable to the Company	$	0.06		$	0.05		$	0.14		$	0.13
Diluted earnings per share:
Income from continuing operations	$	0.05		$	0.04		$	0.10		$	0.08
Income from discontinued operations	$	0.01		$	0.01		$	0.04		$	0.05
Net income attributable to the Company	$	0.06		$	0.05		$	0.14		$	0.13
Weighted average number of common shares outstanding:
Basic		487,915,368			473,159,051			484,396,906			470,033,648
Diluted		491,510,128			473,159,051			486,194,286			470,033,648
Distributions declared per common share issued	$	0.17		$	0.16		$	0.33		$	0.31

9

Financial and Operational Statistics

The following table presents certain financial and real estate portfolio information as of and for the three months ended June 30, 2013:

Market Capitalization
Shares outstanding(1)		489,808,175
Closing stock price	$	11.44
Market capitalization (thousands)	$	5,603,406
Total capitalization (thousands)(2)	$	9,104,834
Enterprise value (thousands)(3)	$	8,937,360
High stock close price	$	11.55
Low stock close price	$	9.85
Distributions declared per share(4)	$	0.70
Distribution yield(5)		6.1	%
Financial Ratios
Debt to enterprise value(3) (6)		39.2	%
Annualized Normalized EBITDA (thousands)(7) (8)	$	617,244
Net debt to Annualized Normalized EBITDA(7) (8) (9)		5.4
Gross real estate and related assets (thousands)(10)	$	7,462,923
Total debt to gross real estate and related assets(6) (10)		47.0	%
Unsecured debt to gross real estate and related assets(10)		9.4	%
Distribution payout(11)		76.1	%
Interest coverage ratio(7) (12)		3.15
Weighted average cost of debt(13)		4.22	%
Weighted average years to maturity of debt(13)		6.0
Owned Property Information
Number of properties		1,014
Number of tenants		567
Total square feet (thousands)		44,035
Occupancy(14)		99.1	%
Weighted average remaining lease term (years)(15)		12.2
Percent of investment grade tenants(16)		42.4	%

(1) Excludes shares held in escrow as these are not considered outstanding in accordance with GAAP.

(2) Total capitalization represents market capitalization plus notes payable and other borrowings.

(3) Enterprise value represents total capitalization less cash and cash equivalents.

(4) Represents the annualized distribution per share based on the distribution rate in effect as of June 30, 2013.

(5) Annualized distributions to closing stock price.

(6) Debt represents notes payable and other borrowings.

(7) Normalized EBITDA is a non-GAAP measure. See the Terms and Definitions section that begins on page 32 for a description of our non-GAAP measures and page 12 for a reconciliation of net income to Normalized EBITDA.

(8) Annualized three months ended June 30, 2013.

(9) Net debt represents total GAAP-basis debt less cash.

(10) Gross real estate and related assets represents total gross real estate and related assets, including investments in notes receivables, marketable securities and net investment in unconsolidated entities, net of gross intangible lease liabilities.

(11) Computed by dividing annualized distribution per share by annualized AFFO per share.

(12) Computed by dividing Annualized Normalized EBITDA by interest expense.

(13) Calculated based on the Company’s total debt outstanding of $3.5 billion, which includes $700.0 million outstanding under a senior unsecured credit facility. Rates ranging from 2.44% to 3.44% were used to calculate the variable debt payment obligations in future periods. These were the rates effective as of June 30, 2013.

(14) Percent of leasable square feet for which there is a lease in place.

(15) Calculated using the remaining non-cancelable lease terms.

(16) Based on annualized rental revenue from tenants with credit ratings of BBB- or higher, excluding tenants with implied investment grade ratings. Tenant credit rating may reflect the credit rating of the parent company or a guarantor.

10

Segment Reporting

The Company operates under two business segments - Real Estate Investment and Private Capital Management. The following table presents a summary of the financial results for each business segment (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Real Estate Investment
Rental and other property income	$	144,756		$	114,317		$	283,334		$	214,359
Tenant reimbursement income		15,056			10,593			28,755			19,707
Interest income on notes receivable		1,936			1,476			3,859			2,848
Interest income on marketable securities		5,901			4,976			11,926			7,393
Total real estate investment revenue		167,649			131,362			327,874			244,307
General and administrative expenses		12,757			4,652			16,788			8,676
Merger related stock-based compensation expense		10,278			—			10,278			—
Property operating expenses		17,507			11,543			33,129			21,298
Property and asset management expenses		1,393			10,988			15,302			21,043
Merger and acquisition related expenses		11,810			17,438			27,423			32,819
Depreciation and amortization		50,335			38,269			98,052			71,540
Total operating expenses		104,080			82,890			200,972			155,376
Total other expense(1)		(48,747	)		(28,914	)		(86,584	)		(52,434	)
Income from continuing operations		14,822			19,558			40,318			36,497
Income from discontinued operations		5,126			3,532			19,845			22,543
Net income	$	19,948		$	23,090		$	60,163		$	59,040
Private Capital Management
Dealer manager fees, selling commissions and offering reimbursements	$	51,818		$	—		$	51,818		$	—
Transaction service fees		21,509			—			21,509			—
Management fees and reimbursements		9,316			—			9,316			—
Total private capital management revenue		82,643			—			82,643			—
Reallowed fees and commissions		38,962			—			38,962			—
General and administrative expenses		28,679			—			28,679			—
Depreciation and amortization		6,058			—			6,058			—
Total operating expenses		73,699			—			73,699			—
Total other income		7			—			7			—
Benefit from income taxes(2)		235			—			235			—
Net income	$	9,186		$	—		$	9,186		$	—
Total Company
Total revenue	$	250,292		$	131,362		$	410,517		$	244,307
Total operating expenses		177,779			82,890			274,671			155,376
Total other expense, net		(48,740	)		(28,914	)		(86,577	)		(52,434	)
Benefit from income taxes		235			—			235			—
Income from continuing operations		24,008			19,558			49,504			36,497
Income from discontinued operations		5,126			3,532			19,845			22,543
Net income	$	29,134		$	23,090		$	69,349		$	59,040

(1) Primarily consists of interest expense.

(2) While most of the business activities of the Company’s Private Capital Management segment are conducted through a subsidiary of the Company that is a taxable REIT subsidiary (“TRS”), revenues and expenses recorded in the TRS for tax purposes are not the same as those included in the Private Capital Management segment in accordance with GAAP. In future periods, we expect to recognize an income tax expense, not a benefit from income taxes.

	Total Assets as of
	June 30, 2013		December 31, 2012
Real estate investment	$	7,546,129	$	7,453,725
Private capital management		367,044		—
Total company	$	7,913,173	$	7,453,725

11

Reconciliation of GAAP Net Income to Normalized EBITDA

The calculations of EBITDA and Normalized EBITDA, and reconciliation to net income, which is the most directly comparable GAAP financial measure, are presented in the table below (in thousands):

	Three Months Ended June 30, 2013									Three Months Ended June 30, 2012
	Total			Real Estate Investment			Private Capital Management			Total			Real Estate Investment			Private Capital Management
Net income attributable to the company	$	29,023		$	19,837		$	9,186		$	23,223		$	23,223		$	—
Adjustments:
Interest expense		48,938			48,938			—			28,846			28,846			—
Depreciation and amortization		56,463			50,405			6,058			41,294			41,294			—
Benefit from income taxes		(235	)		—			(235	)		—			—			—
Proportionate share of adjustments for unconsolidated joint ventures		111			111			—			(133	)		(133	)		—
EBITDA(1)		134,300			119,291			15,009			93,230			93,230			—
Management adjustments:
Gain on sale of real estate assets		(4,931	)		(4,931	)		—			(664	)		(664	)		—
Merger and acquisition related expenses		11,810			11,810			—			17,438			17,438			—
Merger related stock-based compensation expense		10,278			10,278			—			—			—			—
Listing and tender offer expenses		2,854			2,854			—			—			—			—
Total adjustments		20,011			20,011			—			16,774			16,774			—
Normalized EBITDA(1)	$	154,311		$	139,302		$	15,009		$	110,004		$	110,004		$	—

(1) EBITDA and Normalized EBITDA are non-GAAP measures. See the Terms and Definitions section that begins on page 32 for a description of our non-GAAP measures.

12

Reconciliation of GAAP Net Income to

Funds from Operations and Adjusted Funds from Operations

The calculations of funds from operations (FFO) and adjusted funds from operations (AFFO), and reconciliation to net income, which is the most directly comparable GAAP financial measure, are presented in the tables below (in thousands, except share and per share amounts):

	Three Months Ended
	June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012
Total Company
Net income attributable to the company	$	29,023		$	40,111		$	125,611		$	18,567		$	23,223
Depreciation and amortization of real property		50,405			47,835			45,516			44,380			41,294
Depreciation and amortization of real estate assets in unconsolidated joint ventures		1,733			1,860			2,162			1,549			1,138
Net gain on sale and condemnation of real estate assets		(4,931	)		(13,953	)		(93,676	)		—			(664	)
FFO - Total Company(1)		76,230			75,853			79,613			64,496			64,991
Merger and acquisition related expenses		11,810			15,613			17,460			13,612			17,438
Merger related stock-based compensation expense		10,278			—			—			—			—
Listing and tender offering expenses		2,854			—			—			—			—
Amortization of deferred financing costs		3,958			3,753			5,477			3,859			3,379
Straight-line rent adjustments		(8,881	)		(9,688	)		(8,942	)		(8,937	)		(8,209	)
Above/below market lease intangibles amortization, net		731			888			834			535			801
Loss on derivatives and extinguishment of debt		7,782			—			3,514			9,263			—
Loss (gain) on the sale of marketable securities		1,331			—			(12,455	)		—			—
Other amortization (accretion), net(2)		4,547			(1,375	)		(1,524	)		(1,403	)		(1,190	)
Proportionate share of adjustments for unconsolidated joint ventures		121			30			(567	)		(888	)		(409	)
AFFO - Total Company(1) (3)	$	110,761		$	85,074		$	83,410		$	80,537		$	76,801
FFO per common share, basic	$	0.16		$	0.16		$	0.17		$	0.14		$	0.14
FFO per common share, diluted	$	0.16		$	0.16		$	0.17		$	0.14		$	0.14
AFFO per common share, basic	$	0.23		$	0.18		$	0.17		$	0.17		$	0.16
AFFO per common share, diluted	$	0.23		$	0.18		$	0.17		$	0.17		$	0.16
Distributions paid (including DRIP)	$	83,791		$	76,894		$	77,246		$	77,705		$	76,419
Weighted average shares outstanding, basic		487,915,368			480,819,849			478,762,187			476,353,149			473,159,051
Weighted average shares outstanding, diluted		491,510,128			480,819,849			478,762,187			476,353,149			473,159,051

13

Reconciliation of Net Income to

Funds from Operations and Adjusted Funds from Operations (Continued)

	Three Months Ended
	June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012
Real Estate Investment Segment
Net income attributable to the company	$	19,837		$	40,111		$	125,611		$	18,567		$	23,223
Depreciation and amortization of real property		50,405			47,835			45,516			44,380			41,294
Depreciation and amortization of real estate assets in unconsolidated joint ventures		1,733			1,860			2,162			1,549			1,138
Net gain on sale and condemnation of real estate assets		(4,931	)		(13,953	)		(93,676	)		—			(664	)
FFO - Real Estate Investment Segment(1)		67,044			75,853			79,613			64,496			64,991
Merger and acquisition related expenses		11,810			15,613			17,460			13,612			17,438
Merger related stock-based compensation expense		10,278			—			—			—			—
Listing and tender offering expenses		2,854			—			—			—			—
Amortization of deferred financing costs		3,958			3,753			5,477			3,859			3,379
Straight-line rent adjustments		(8,881	)		(9,688	)		(8,942	)		(8,937	)		(8,209	)
Above/below market lease intangibles amortization, net		731			888			834			535			801
Loss on derivatives and extinguishment of debt		7,782			—			3,514			9,263			—
Loss (gain) on the sale of marketable securities		1,331			—			(12,455	)		—			—
Other accretion, net		(1,365	)		(1,375	)		(1,524	)		(1,403	)		(1,190	)
Proportionate share of adjustments for unconsolidated joint ventures		121			30			(567	)		(888	)		(409	)
AFFO - Real Estate Investment Segment(1) (3)	$	95,663		$	85,074		$	83,410		$	80,537		$	76,801
Private Capital Management Segment
Net income attributable to the company	$	9,186		$	—		$	—		$	—		$	—
Other amortization, net		5,912			—			—			—			—
AFFO - Private Capital Management Segment(1) (3)	$	15,098		$	—		$	—		$	—		$	—

(1) FFO and AFFO are non-GAAP measures. See the Terms and Definitions section that begins on page 32 for a description of our non-GAAP measures.

(2) Primarily consists of CMBS accretion and amortization of intangible assets.

(3) During the three months ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, the Company capitalized expenses incurred related to the ongoing maintenance of the properties, including tenant improvements and leasing commissions, of $983,000, $1.3 million, $1.4 million, $2.1 million, and $2.8 million, respectively.

14

Adjusted G&A

The following table shows information regarding the Company’s general and administrative expenses (in thousands):

	Three Months Ended June 30, 2013
	Total		Real Estate Investment		Private Capital Management
G&A	$	41,436	$	12,757	$	28,679
Less:
Listing and tender offer expenses		2,854		2,854		—
Expense reimbursements from managed programs		10,836		—		10,836
Adjusted G&A(1)	$	27,746	$	9,903	$	17,843

(1) Adjusted G&A is a non-GAAP measure. See the Terms and Definitions section that begins on page 32 for a description of our non-GAAP measures.

15

Debt Overview

As of June 30, 2013, the Company had $3.5 billion of debt outstanding, with a weighted average years to maturity of 6.0 years and weighted average interest rate of 4.22%. The following tables show certain information regarding the Company’s debt, as of June 30, 2013 (in thousands):

	Minimum Interest Rate			Maximum Interest Rate			Weighted Average Interest Rate			Weighted Average Years to Maturity		Balance
Fixed rate debt		2.75	%		6.83	%		4.74	%		6.8	$	2,578,318
Variable rate debt		1m LIBOR + 2.25	%		1m LIBOR + 3.25	%		3.01	%		3.0		96,843
Construction facilities		1m LIBOR + 2.35	%		1m LIBOR + 2.35	%		2.54	%		0.5		26,752
Credit facility - term loan		3.30	%		3.30	%		3.30	%		4.9		500,000
Credit facility - revolving line of credit		1m LIBOR + 1.65	%		1m LIBOR + 2.25	%		1.92	%		3.9		200,000
Repurchase agreements		3m LIBOR + 1.20	%		3m LIBOR + 1.75	%		1.72	%		0.1		100,057
Total												$	3,501,970

Year of Maturity	Balloon Payments		Amortizing Principal Payments		Debt Maturity
Remaining 2013	$	126,809	$	1,146	$	127,955
2014		51,809		2,338		54,147
2015		174,000		3,191		177,191
2016		162,836		5,892		168,728
2017		387,089		6,064		393,153
2018		685,385		6,545		691,930
2019		307,648		8,225		315,873
2020		330,065		5,444		335,509
Thereafter		1,235,294		2,190		1,237,484
Total	$	3,460,935	$	41,035	$	3,501,970

16

Real Estate Portfolio Diversification

The following table presents diversifications of the Company’s real estate portfolio, including property type information, as of June 30, 2013:

	Number of Investments			Rentable Square Feet (thousands)		Annualized Revenue(1) (thousands)		% of Annualized Revenue			Weighted Average Lease Term Remaining(2)
Freestanding retail		886			17,740	$	270,685		44.3	%		14.8
Multi-tenant retail		73			11,056		144,714		23.8	%		7.5
Office		34			5,940		108,888		17.9	%		11.8
Industrial		21			9,299		43,645		7.2	%		12.4
Total real estate assets		1,014			44,035		567,932		93.2	%		12.2
Secured notes and CMBS		24			N/A		22,364		3.7	%		N/A
Unconsolidated joint ventures		12	(3)		2,306		18,851		3.1	%		7.7
Total real estate and related assets		1,050			46,341	$	609,147		100.0	%

(1) Annualized revenue for real estate assets represents the average annual base rental income over the respective lease terms, including adjustments for rent concessions or abatements, if any. Annualized revenue for the secured notes and CMBS represents average annual interest income over the respective loan term, excluding adjustments for accretion or amortization of discounts or premiums. Annualized revenue for the unconsolidated joint ventures represents the Company’s interest in the average annual base rental income over the respective lease terms, including adjustments for rent concessions or abatements, if any.

(2) Calculated using the non-cancelable lease terms.

(3) Represents properties owned by unconsolidated joint ventures.

17

Same Store Summary

We review our stabilized operating results from properties that we owned for the entirety of both the current and prior year reporting periods, referred to as “same store.”

The following tables show our same store portfolio statistics, which include 700 properties, acquired prior to April 1, 2012 and owned through June 30, 2013, excluding properties acquired through the Unconsolidated Joint Ventures:

	Three Months Ended June 30,				Increase/(Decrease)
	2013		2012		$ Change			% Change
Same store base rental revenue (1)	$	101,769	$	100,701	$	1,068			1.1	%
Same store other rental revenue		4,994		6,013		(1,019	)		(16.9	)%
Total same store rental revenue		106,763		106,714		49			—	%
Rental and other property income from income-producing properties acquired subsequent to March 31, 2012 and properties sold prior to June 30, 2013		37,993		7,603		30,390			399.7	%
Total rental and other property income	$	144,756	$	114,317	$	30,439			26.6	%

			Base Rental Revenue (in thousands)(1)
	Number of		Three Months Ended June 30,				Increase/(Decrease)
Property Type	Properties		2013		2012		$ Change		% Change
Freestanding retail		598	$	52,806	$	52,581	$	225		0.4	%
Multi-tenant retail		58		26,178		25,592		586		2.3	%
Office		26		15,784		15,568		216		1.4	%
Industrial		18		7,001		6,960		41		0.6	%
Total		700	$	101,769	$	100,701	$	1,068		1.1	%

The following tables show our same store portfolio statistics, which include 647 properties, acquired prior to January 1, 2012 and owned through June 30, 2013, excluding properties acquired through the Unconsolidated Joint Ventures:

	Six Months Ended June 30,				Increase/(Decrease)
	2013		2012		$ Change			% Change
Same store base rental revenue (1)	$	186,924	$	185,096	$	1,828			1.0	%
Same store other rental revenue		9,293		10,482		(1,189	)		(11.3	)%
Total same store rental revenue		196,217		195,578		639			0.3	%
Rental and other property income from income-producing properties acquired subsequent to December 31, 2011 and properties sold prior to June 30, 2013		87,117		18,781		68,336			363.9	%
Total rental and other property income	$	283,334	$	214,359	$	68,975			32.2	%

			Base Rental Revenue (in thousands)(1)
	Number of		Six Months Ended June 30,				Increase/(Decrease)
Property Type	Properties		2013		2012		$ Change		% Change
Freestanding retail		555	$	99,134	$	98,789	$	345		0.3	%
Multi-tenant retail		51		44,492		43,565		927		2.1	%
Office		23		29,296		28,848		448		1.6	%
Industrial		18		14,002		13,894		108		0.8	%
Total		647	$	186,924	$	185,096	$	1,828		1.0	%

(1) Base rental revenue represents contractual base rental revenue earned and does not include the impact of certain GAAP adjustments to rental revenue, such as straight-line rent and amortization of above market intangible lease assets and below market lease intangible liabilities. Such GAAP adjustments are included in the line item referred to as “same store other rental revenue.”

18

Tenant Diversification

The following table shows certain information regarding the tenant diversification of the Company’s real estate portfolio, including consolidated joint ventures, as of June 30, 2013:

	Tenant	Number of Leases		Number of States		Leased Square Feet (thousands)		% of Leased Square Feet			Annualized Rental Revenue(1) (thousands)		% of Annualized Rental Revenue			Weighted Average Lease Term Remaining(2)		S&P Credit Rating(3)
1	Walgreens		73		30		1,078		2.5	%	$	27,229		4.8	%		17.9	BBB
2	Albertson’s		34		6		1,969		4.5	%		24,074		4.2	%		16.8	B
3	PetSmart		42		16		1,300		3.0	%		23,800		4.2	%		8.3	BB+
4	CVS		54		22		860		2.0	%		20,275		3.6	%		18.1	BBB+
5	BJ’s Wholesale Club		3		8		2,230		5.1	%		19,106		3.4	%		17.7	B
6	Wal-Mart		9		7		1,913		4.4	%		15,320		2.7	%		11.0	AA
7	Apollo Group		1		1		600		1.4	%		14,557		2.6	%		17.8	Not Rated
8	L.A. Fitness		17		8		752		1.7	%		14,208		2.5	%		11.0	Not Rated
9	Amazon		3		2		3,048		7.0	%		13,922		2.5	%		13.3	AA-
10	Home Depot		12		8		1,810		4.1	%		13,207		2.3	%		14.9	A-
11	Kohl’s		19		9		1,499		3.4	%		13,012		2.3	%		15.1	BBB+
12	Family Dollar		140		26		1,185		2.7	%		12,839		2.3	%		13.8	BBB-
13	Tractor Supply		42		20		875		2.0	%		11,092		2.0	%		11.7	Not Rated
14	Merrill Lynch		1		1		482		1.1	%		10,963		1.9	%		11.4	A
15	Best Buy		20		12		673		1.5	%		9,506		1.7	%		6.2	BB
16	On The Border		27		13		190		0.4	%		8,556		1.5	%		16.8	Not Rated
17	Encana Oil & Gas, USA		1		1		319		0.7	%		7,806		1.4	%		14.0	Not Rated
18	HealthNow		1		1		430		1.0	%		7,722		1.4	%		11.1	BBB-
19	Stripes		24		2		140		0.3	%		6,932		1.2	%		15.6	Not Rated
20	RSA Security		1		1		328		0.8	%		6,915		1.2	%		10.7	A
21	Lowe’s		9		9		1,204		2.8	%		6,445		1.1	%		13.8	A-
22	AT&T		9		7		1,021		2.3	%		6,279		1.1	%		6.2	A-
23	Advance Auto Parts		45		10		304		0.7	%		5,885		1.0	%		9.9	BBB-
24	Cigna		2		2		299		0.7	%		5,773		1.0	%		9.2	A+
25	Dick’s Sporting Goods		10		6		472		1.1	%		5,650		1.0	%		6.5	Not Rated
	Top 25 Tenants		599				24,981		57.2	%	$	311,073		54.9	%

19

Tenant Diversification (Continued)

	Tenant	Number of Leases		Number of States		Leased Square Feet (thousands)		% of Leased Square Feet			Annualized Rental Revenue(1) (thousands)		% of Annualized Rental Revenue			Weighted Average Lease Term Remaining(2)		S&P Credit Rating(3)
26	Academy Sports		7		4		591		1.4	%	$	5,464		1.0	%		14.6	B
27	Outback Steakhouse		20		14		124		0.3	%		5,196		0.9	%		18.8	B+
28	Thorntons Oil		23		4		79		0.2	%		4,935		0.9	%		12.5	Not Rated
29	Aaron Rents		6		17		655		1.5	%		4,912		0.9	%		11.3	Not Rated
30	Ross		16		10		466		1.1	%		4,830		0.9	%		4.4	A-
31	Bed Bath & Beyond		16		10		431		1.0	%		4,677		0.8	%		4.9	BBB+
32	VA Clinic		1		1		66		0.2	%		4,657		0.8	%		16.7	AA+
33	The Medicines Company		1		1		179		0.4	%		4,577		0.8	%		10.4	Not Rated
34	Golden Corral		22		7		234		0.5	%		4,391		0.8	%		13.9	Not Rated
35	Giant Eagle		4		1		303		0.7	%		4,365		0.8	%		14.1	Not Rated
36	MedAssets		1		1		231		0.5	%		4,364		0.8	%		14.7	B+
37	Hobby Lobby		10		8		552		1.3	%		4,306		0.8	%		7.6	Not Rated
38	Applebee’s		9		12		95		0.2	%		4,284		0.8	%		15.0	Not Rated
39	Cracker Barrel		12		5		120		0.3	%		3,929		0.7	%		15.0	Not Rated
40	Wendy’s		9		6		107		0.2	%		3,856		0.7	%		19.1	Not Rated
41	FedEx		8		8		390		0.9	%		3,559		0.6	%		7.6	BBB
42	Stop & Shop		2		2		122		0.3	%		3,521		0.6	%		18.1	BBB
43	Sysmex		1		1		163		0.4	%		3,507		0.6	%		13.3	Not Rated
44	Wells Fargo		8		7		241		0.6	%		3,414		0.6	%		9.5	AA-
45	Ryan’s Buffet		1		9		137		0.3	%		3,373		0.6	%		9.5	Not Rated
46	Igloo		1		1		914		2.1	%		3,345		0.6	%		11.3	Not Rated
47	Banner Life Insurance Company		1		1		116		0.3	%		3,131		0.6	%		13.2	AA-
48	Sam’s Club		3		3		373		0.9	%		3,109		0.5	%		7.5	AA
49	Carmax		2		2		116		0.3	%		3,039		0.5	%		15.4	Not Rated
50	Hanesbrands		1		1		930		2.1	%		2,993		0.5	%		8.5	BB
	Tenants 26—50		185				7,735		18.0	%	$	101,734		18.1	%
	Top 50 Tenants		784				32,716		75.2	%	$	412,807		73.0	%
	Total Portfolio		1,767		48		43,629		100	%	$	567,932		100.0	%

(1) Represents the average annual base rental income over the respective lease terms, including adjustments for rent concessions or abatements, if any.

(2) Calculated using the non-cancelable lease terms.

(3) Standard & Poor’s Credit rating may reflect the credit rating of the parent company or a guarantor.

20

Industry Diversification

The following table shows certain information regarding the tenant industry diversification of the Company’s real estate portfolio, including consolidated joint ventures, as of June 30, 2013:

Industry	Number of Leases		Number of Tenants		Number of States		Leased Square Feet (thousands)		Annualized Rental Revenue(1) (thousands)		% of Annualized Rental Revenue			Weighted Average Lease Term Remaining (2)
Grocery		75		25		24		4,014	$	52,524		9.1	%		15.3
Drugstore		127		2		36		1,938		47,504		8.4	%		18.0
Discount store		228		15		32		4,563		44,030		7.8	%		10.1
Full service restaurant		189		80		30		1,100		38,856		6.8	%		14.6
Home and garden		69		9		29		3,937		31,442		5.5	%		13.4
Pet supplies		49		2		18		1,405		25,438		4.5	%		8.2
Warehouse club		7		3		11		2,767		24,200		4.3	%		16.2
Healthcare		58		44		17		899		22,439		4.0	%		11.2
Financial services		61		29		14		859		20,067		3.5	%		12.0
Limited service restaurant		133		57		26		730		18,934		3.3	%		11.3
Convenience store		82		9		16		346		17,567		3.1	%		14.3
Other professional services		9		8		8		953		17,113		3.0	%		11.1
Fitness		26		9		10		882		16,217		2.9	%		10.7
Specialty retail		96		44		20		1,310		15,613		2.7	%		8.1
Education		6		5		4		632		15,127		2.7	%		17.4
Department store		27		6		10		2,266		15,081		2.7	%		14.8
Apparel		111		50		12		933		14,552		2.6	%		5.0
Wholesale		3		1		2		3,048		13,922		2.5	%		13.3
Sporting goods		25		9		12		1,256		13,891		2.4	%		10.3
Manufacturing		5		5		5		3,207		13,295		2.3	%		10.5
Electronics and appliances		32		6		18		930		13,029		2.3	%		6.8
Automotive		75		9		19		613		12,239		2.2	%		12.5
Insurance services		8		6		7		571		11,756		2.1	%		9.6
Hobby, books and music		46		13		17		995		9,957		1.8	%		5.8
Home furnishings		40		15		13		757		8,899		1.6	%		6.0
Communications		33		9		11		1,076		7,991		1.4	%		5.6
Mining and natural resources		1		1		1		319		7,806		1.4	%		14.0
Office supplies		23		4		11		441		6,434		1.1	%		5.5
Logistics (shipping, delivery, warehousing)		11		2		11		394		3,674		0.6	%		7.4
Personal services		95		78		14		148		3,642		0.6	%		4.0
Agriculture		2		2		2		156		1,927		0.3	%		12.7
Technology		1		1		1		107		1,594		0.3	%		8.5
Childcare		8		4		5		60		868		0.2	%		12.2
Government and non-profit		4		3		3		10		177		—	%(3)		1.1
Real estate services		1		1		1		4		70		—	%(3)		0.8
Entertainment and recreation		1		1		1		3		57		—	%(3)		1.9
Total		1,767		567		48		43,629	$	567,932		100.0	%

(1) Represents the average annual base rental income over the respective lease terms, including adjustments for rent concessions or abatements, if any.

(2) Calculated using the non-cancelable lease terms.

(3) Represents less than 0.1% of total annualized rental revenue.

21

Geographic Diversification

The following table shows certain information regarding the geographic diversification of the Company’s real estate portfolio, including consolidated joint ventures, as of June 30, 2013:

State	Number of Properties		% Leased			Rentable Square Feet (thousands)		Annualized Rental Revenue (1) (thousands)		% of Annualized Rental Revenue
Texas		187		99.3	%		6,446	$	95,967		16.9	%
Arizona		41		99.6	%		2,976		48,996		8.6	%
California		22		98.8	%		2,905		40,401		7.1	%
Florida		81		96.9	%		3,287		39,864		7.0	%
Illinois		46		98.2	%		1,548		30,851		5.4	%
Georgia		40		99.1	%		2,967		28,963		5.1	%
Michigan		43		94.2	%		1,690		21,840		3.8	%
New Jersey		14		100.0	%		894		20,450		3.6	%
Ohio		71		100.0	%		1,709		18,114		3.2	%
Virginia		23		97.4	%		1,336		18,024		3.2	%
South Carolina		27		100.0	%		2,148		16,885		3.0	%
Alabama		24		99.2	%		1,258		16,085		2.8	%
Tennessee		19		99.6	%		2,529		15,577		2.7	%
Massachusetts		10		100.0	%		1,222		14,332		2.5	%
North Carolina		33		100.0	%		1,498		13,215		2.3	%
Indiana		44		100.0	%		531		10,101		1.8	%
New York		6		100.0	%		640		9,677		1.7	%
Colorado		15		99.2	%		803		9,123		1.6	%
Louisiana		31		100.0	%		866		9,032		1.6	%
Pennsylvania		15		99.8	%		1,046		8,037		1.4	%
New Mexico		18		100.0	%		685		7,739		1.4	%
Nevada		17		100.0	%		699		7,428		1.3	%
Maryland		6		100.0	%		366		7,346		1.3	%
Oklahoma		20		100.0	%		386		6,918		1.2	%
Missouri		26		100.0	%		428		6,316		1.1	%
Wisconsin		16		99.7	%		381		5,905		1.0	%
Iowa		14		100.0	%		474		4,787		0.8	%
Kentucky		18		100.0	%		144		3,755		0.7	%
Nebraska		5		100.0	%		225		3,739		0.7	%
Maine		14		100.0	%		282		3,325		0.6	%
Mississippi		11		100.0	%		258		2,899		0.5	%
Arkansas		13		100.0	%		246		2,671		0.5	%
Minnesota		8		100.0	%		116		2,649		0.5	%
Kansas		7		100.0	%		205		2,602		0.5	%
Connecticut		1		100.0	%		70		2,511		0.4	%
Oregon		1		100.0	%		213		2,489		0.4	%
New Hampshire		4		100.0	%		126		2,023		0.4	%
Alaska		2		100.0	%		92		1,615		0.3	%

22

Geographic Diversification (Continued)

State	Number of Properties		% Leased			Rentable Square Feet (thousands)		Annualized Rental Revenue(1) (thousands)		% of Annualized Rental Revenue
Rhode Island		1		100.0	%		52	$	1,010		0.2	%
Washington		6		100.0	%		40		939		0.2	%
North Dakota		1		100.0	%		70		926		0.2	%
Delaware		2		100.0	%		35		624		0.1	%
Idaho		2		100.0	%		24		498		0.1	%
Utah		2		100.0	%		63		496		0.1	%
South Dakota		2		100.0	%		22		491		0.1	%
West Virginia		1		100.0	%		11		302		0.1	%
Montana		1		100.0	%		16		261		—	%(2)
Vermont		3		100.0	%		7		134		—	%(2)
Total		1,014		99.1	%		44,035	$	567,932		100.0	%

(1) Represents the average annual base rental income over the respective lease terms, including adjustments for rent concessions or abatements, if any.

(2) Represents less than 0.1% of total annualized rental revenue.

23

Lease Expirations

The following table shows certain information regarding the lease expirations of the Company’s real estate portfolio, including consolidated joint ventures, as of June 30, 2013, during each of the next ten years and thereafter, assuming no exercise of renewal options:

Lease Expiration Year	Number of Leases Expiring		Leased Square Feet (thousands)		% of Leased Square Feet			Annualized Rental Revenue(1) (thousands)		% of Annualized Rental Revenue
2013		32		93		0.2	%	$	1,731		0.3	%
2014		69		289		0.7	%		5,286		0.9	%
2015		89		446		1.0	%		7,089		1.2	%
2016		125		1,164		2.7	%		15,795		2.8	%
2017		141		1,013		2.3	%		14,541		2.6	%
2018		156		2,115		4.8	%		27,919		4.9	%
2019		97		2,255		5.2	%		27,347		4.8	%
2020		57		1,169		2.7	%		14,694		2.6	%
2021		85		2,919		6.7	%		36,030		6.3	%
2022		72		2,737		6.3	%		23,094		4.1	%
Thereafter		844		29,429		67.4	%		394,406		69.5	%
Totals		1,767		43,629		100.0	%	$	567,932		100.0	%

(1) Represents the average annual base rental income over the respective lease terms, including adjustments for rent concessions or abatements, if any.

24

Multi-Tenant Property Summary

The following table shows certain information regarding the Company’s multi-tenant property investments, including consolidated joint ventures, as of June 30, 2013:

Property	Location	Type	Rentable Square Feet (thousands)		Occupancy			Purchase Price (thousands)		Annualized Rental Revenue(1) (thousands)		Major Tenants
Atascocita Commons	Humble, TX	Power Center		318		98.6	%	$	56,500	$	4,605	Kohl’s, TJ Maxx, Ross, Palais Royal, Office Depot, Petco
Bellview Plaza	Pensacola, FL	Grocery		84		100.0	%		8,200		833	Publix, Planet Fitness
Big Lots & Tractor Supply	Northport, AL	Anchored		58		100.0	%		3,314		253	Big Lots, Tractor Supply
Breakfast Pointe	Panama Beach City, FL	Grocery		96		98.9	%		16,000		1,341	Publix, Office Depot
Camp Creek Marketplace	East Point, GA	Power Center		426		97.0	%		76,350		6,355	BJ’s Wholesale Club, Marshall’s, Ross, TJ Maxx, Barnes & Noble, Staples, Petsmart, Old Navy
Century Town Center	Vero Beach, FL	Power Center		106		92.4	%		14,775		1,362	Marshall’s
Cleveland Towne Center	Cleveland, TN	Power Center		154		92.8	%		17,650		1,732	Ross, Bed Bath & Beyond, Michael’s, Electronic Express, Books-A-Million
Crossroads Marketplace	Warner Robbins, GA	Anchored		78		98.5	%		11,250		1,029	Best Buy, Bed Bath & Beyond
CVS & Huntington Bank	Northville, MI	Anchored		16		100.0	%		3,797		292	CVS
CVS & Noble Roman	Mishawaka, IN	Anchored		12		100.0	%		4,611		366	CVS
CVS & Tres Amigos	Ringgold, GA	Anchored		15		100.0	%		3,990		323	CVS
Del Monte Plaza	Reno, NV	Grocery		83		100.0	%		18,300		1,514	Whole Foods, Sierra Trading Post
Denver West Plaza	Lakewood, CO	Anchored		71		91.5	%		14,000		1,215	Best Buy, Office Depot
Dimond Crossing	Anchorage, AK	Anchored		85		100.0	%		14,376		1,348	Petsmart, Bed Bath & Beyond
East Valley Center(2)	Saginaw, MI	Power Center		122		66.6	%		4,366		539	Burlington Coat Factory
Eastland Center	West Covina, CA	Power Center		811		97.3	%		145,900		10,217	Target, Wal-Mart, Burlington Coat Factory, Albertson’s, Dick’s Sporting Goods, Bed Bath & Beyond, Ashley Furniture, Marshall’s, Ross, CVS, Office Depot, DSW, Petsmart
Evans Exchange(2)	Evans, GA	Power Center		66		97.5	%		13,356		1,172	Home Depot, Food Lion
Evans Exchange(2)	Evans, GA	Power Center		131		100.0	%		6,044		524	Home Depot, Food Lion
Fairlane Green	Allen Park, MI	Power Center		273		98.3	%		47,000		4,769	TJ Maxx, Bed Bath & Beyond, Barnes & Noble, Michael’s, Old Navy
Falcon Valley	Lenexa, KS	Grocery		77		100.0	%		12,500		1,016	Price Chopper
Folsum Gateway II	Folsum, CA	Power Center		115		96.8	%		36,000		2,860	Bed Bath & Beyond, Petsmart, DSW
Glynn Isles	Brunswick, GA	Power Center		192		94.7	%		38,000		2,801	Dick’s Sporting Goods, Ross, Petsmart, Michael’s, Office Depot
Greenway Commons	Houston, TX	Power Center		253		97.4	%		68,250		4,596	Costco, L.A. Fitness
Highlands Ranch	Highland Ranch, CO	Anchored		51		100.0	%		6,346		553	Ross, Staples
Hillside Town Center	Chicago, IL	Power Center		167		92.0	%		26,945		2,463	Ross, Home Goods, Michael’s, Staples
Hobby Lobby Center	Greenville, SC	Anchored		70		100.0	%		6,300		593	Hobby Lobby
Indian Lakes Crossing	Virginia Beach, VA	Grocery		71		95.8	%		14,200		1,069	Harris Teeter

25

Multi-Tenant Property Summary – (Continued)

Property	Location	Type	Rentable Square Feet (thousands)		Occupancy			Purchase Price (thousands)		Annualized Rental Revenue(1) (thousands)		Major Tenants
Kingman Gateway	Kingman, AZ	Anchored		49		100.0	%	$	4,756	$	433	Ross, Petsmart
Kingsbury Center	Chicago, IL	Anchored		54		100.0	%		26,400		1,632	Buy Buy Baby, Petsmart
Kohl’s & Academy Sports	Hixson, TN	Power Center		131		100.0	%		10,769		896	Kohl’s, Academy Sports
Kohl’s Plaza	Napa, CA	Anchored		76		97.2	%		19,825		1,695	Kohl’s
Kyle Marketplace	Kyle, TX	Grocery		218		98.6	%		45,000		3,481	HEB! Plus
Lakeshore Crossing	Gainesville, GA	Power Center		123		100.0	%		9,000		695	Lowe’s
Midtowne Park	Anderson, SC	Power Center		167		100.0	%		25,600		1,940	Kohl’s, Dick’s Sporting Goods, Staples
Mueller Regional Retail District	Austin, TX	Power Center		348		95.9	%		67,250		5,775	Home Depot, Best Buy, Marshall’s, Chair King, Bed Bath & Beyond, Petsmart, Staples
Nature Coast Commons	Spring Hill, FL	Power Center		225		83.2	%		29,000		2,837	Sports Authority, Best Buy, Ross, Office Depot, Petsmart
Northpoint Shopping Center	Cape Coral, FL	Power Center		113		70.3	%		10,000		1,040	Bed Bath & Beyond, AC Moore, Petsmart
Oxford Exchange	Oxford, AL	Power Center		334		97.1	%		45,500		3,898	Hobby Lobby, Dick’s Sporting Goods, Ross, TJ Maxx, Bed Bath & Beyond, Petsmart, Best Buy, Office Max
Petco & Portrait Innovations	Lake Charles, LA	Anchored		18		100.0	%		3,901		363	Petco
Petsmart & Bevmo	Redding, CA	Anchored		45		100.0	%		5,788		530	Petsmart, Bevmo
Petsmart & Hallmark	Cincinnati, OH	Anchored		34		100.0	%		5,042		426	Petsmart
Petsmart & Travis Credit Union	Mercad, CA	Anchored		31		100.0	%		5,369		460	Petsmart
Pick ‘N Save Center	Wauwatosa, WI	Grocery		70		98.4	%		16,191		1,330	Pick N Save
Pinehurst Square	Bismarck, ND	Anchored		70		100.0	%		10,250		926	Best Buy, Petsmart
Prairie Market	Oswego, IL	Grocery		113		95.6	%		25,100		2,448	Aldi, Petsmart
Red Oak Village	San Marcos, TX	Power Center		177		98.2	%		22,500		1,974	Ross, Best Buy, Marshall’s, Bed Bath & Beyond, Petsmart
Riverside Centre	St. Augustine, FL	Anchored		62		100.0	%		4,725		482	Hobby Lobby
San Tan Marketplace	Gilbert, AZ	Power Center		284		98.3	%		54,780		4,284	Jo-Ann’s Fabric, Big Lots, Bed Bath & Beyond, Marshall’s, DSW, Office Max, Downeast Home & Clothing, Old Navy
Santa Rosa Commons	Pace, FL	Grocery		140		100.0	%		25,450		2,024	Publix, TJ Maxx, Petsmart
Shelby Corners	Utica, MI	Anchored		77		91.9	%		4,255		478	Chrismas Tree Shops, Buy Buy Baby
Sherwood Retail Center	Sherwood, AR	Power Center		119		100.0	%		5,825		601	Gander Mountain, Tractor Supply, Hobby Lobby
Shoppes at Port Arthur	Port Arthur, TX	Power Center		96		100.0	%		15,000		1,336	Ross, Best Buy, Petco
Shoppes at Sherbrooke	Lake Worth, FL	Anchored		58		98.1	%		10,500		1,009	L.A. Fitness
Shoppes at Sugarmill Woods	Homosassa, FL	Grocery		50		86.8	%		8,100		657	Publix
Silverado Plaza	Tucson, AZ	Grocery		77		98.7	%		9,250		746	Safeway
South Plains Crossing	Lubbock, TX	Power Center		146		98.3	%		16,350		1,502	Hobby Lobby, Spec’s
Stearns Crossing	Bartlett, IL	Grocery		96		90.4	%		12,375		1,145	Dominick’s

26

Multi-Tenant Property Summary – (Continued)

Property	Location	Type	Rentable Square Feet (thousands)		Occupancy			Purchase Price (thousands)		Annualized Rental Revenue(1) (thousands)			Major Tenants
Sunset Valley	Sunset Valley, TX	Power Center		150		94.6	%	$	35,500	$	3,148		Petsmart, Babies R Us, DSW
Telegraph Plaza (2)	Monroe, MI	Power Center		73		80.0	%		7,040		720		Kohl’s, TJ Maxx, Petsmart
Telegraph Plaza (2)	Monroe, MI	Power Center		69		100.0	%		5,860		501		Kohl’s, TJ Maxx, Petsmart
The Crossing	Killeen, TX	Anchored		61		100.0	%		9,000		944		Gold’s Gym, University of Phoenix
The Forum	Fort Myers, FL	Power Center		189		96.9	%		34,250		2,900		Ross, Best Buy, Bed Bath & Beyond, Staples, Books-A- Million, Petco
The Plaza	Queen Creek, AZ	Anchored		70		93.4	%		13,250		1,344		L.A. Fitness
Toys “R” Us Center	Parma, OH	Anchored		49		100.0	%		3,749		341		Toys R Us
University Plaza	Flagstaff, AZ	Grocery		165		100.0	%		17,165		1,907	��	Safeway, Ross, Bed Bath & Beyond, Petsmart
Valley Bend	Huntsville, AL	Power Center		416		100.0	%		72,530		5,861		Hobby Lobby, Dick’s Sporting Goods, Ross, Marshall’s, Huntsville Hospital, Barnes & Noble, Bed Bath & Beyond, Petsmart
Volusia Square	Daytona Beach, FL	Power Center		232		96.4	%		31,000		2,667		Hobby Lobby, HH Gregg, TJ Maxx, Home Depot
Waterside Marketplace	Chesterfield, MI	Power Center		250		88.1	%		26,500		3,066		Dick’s Sporting Goods, Best Buy, TJ Maxx, Bed Bath & Beyond, Old Navy
West Valley Center (2)	Saginaw, MI	Power Center		281		99.1	%		26,120		2,908		Dick’s Sporting Goods, TJ Maxx, Petsmart, Barnes & Noble, Babies R Us
White Oak Village	Richmond, VA	Power Center		433		93.6	%		68,000		6,409		J.C. Penney, Martin’s, K&G Fashion Superstore, Petsmart, Michael’s, Office Max
Whittwood Town Center	Whittier, CA	Power Center		785		98.9	%		83,500		6,068		Target, J.C. Penney, Sears, Kohl’s, Von’s, Petsmart, 24 Hour Fitness, Cost Plus
Widewater Commons	Uniontown, PA	Anchored		48		96.6	%		6,600		626		Petsmart
Winchester Station	Winchester, VA	Power Center		183		97.5	%		26,881		2,521		HH Gregg, Ross, Bed Bath & Beyond, Michael’s, Old Navy
Total				11,056		96.3	%	$	1,709,116	$	144,714

(1) Represents the average annual base rental income over the respective lease terms, including adjustments for rent concessions or abatements, if any.

(2) The Company purchased multiple parcels at the same multi-tenant property in separate transactions.

27

Unconsolidated Joint Venture Investment Summary

The following table shows certain information regarding the Company’s interests in unconsolidated joint ventures, as of June 30, 2013 (in thousands):

Joint Venture	Partner	Cole Ownership %			Rentable Square  Feet (1)		Annualized Rental Revenue (1) (2)		Gross Asset Book Value (1)		Debt(1) (3)		Major Tenants
Cole/CoTops Portfolio LLC	Affiliate of Cofinance Group		80	%		702	$	5,935	$	42,894	$	24,639	Tops Market, Dollar Tree, Gander Mountain, Big Lots, BJ’s Wholesale Club
Cole/Mosaic JV South Elgin IL, LLC	Affiliate of Mosaic Properties and Development, LLC		50	%		232		2,916		30,081		20,400	Home Depot, Best Buy
Chandler Festival SPE, LLC	Propstra Chandler Trust & RED Development, LLC		45	%		359		4,706		40,083		25,894	Nordstrom Rack, Buy Buy Baby, Ross, TJ Maxx
Chandler Village Center, LLC (AZ)	Propstra Chandler Trust & RED Development, LLC		45	%		130		2,429		100,298		57,000	Sports Authority, Bed Bath & Beyond
Cole/LBA JV OF Pleasanton CA	Affiliate of LBA Realty		90	%		343		6,491		18,321		20,370	Clorox Companies
Chandler Gateway SPE, LLC	Propstra Chandler Trust & RED Development, LLC		45	%		260		1,680		35,062		29,128	Hobby Lobby
Cole/Faison JV Bethlehem GA, LLC	Faison-Winder Investors, LLC		90	%		280		3,151		16,386		18,536	Publix, Belk
Total Unconsolidated Joint Ventures						2,306	$	27,308	$	283,125	$	195,967
Cole Interest(4)						1,575	$	18,851	$	159,541	$	115,336

(1) Amounts represent information for total unconsolidated joint venture.

(2) Represents the average annual base rental income over the respective lease terms, including adjustments for rent concessions or abatements, if any.

(3) Debt amounts represent secured fixed and variable rates ranging from 2.09% to 6.25% and maturities ranging from July 2015 to July 2021, with a weighted average interest rate of 4.04% as of June 30, 2013 and a weighted average years to maturity of 3.8 years as of June 30, 2013.

(4) Amounts represent the Company’s interest in unconsolidated joint ventures as of June 30, 2013.

28

Managed Programs

Offering Summary

The following table shows the Company’s Managed Programs offering summary, as of June 30, 2013:

Program(1)	Inception Date		Cole Ownership %(2)			Offering Price/NAV (3)		Current Annualized Distribution
Open Programs:
CCPT IV		7/27/2010		0.03	%	$	10.00		6.25	%
CCIT		4/6/2010		0.03	%	$	10.00		6.50	%
INAV		7/27/2010		0.51	%	$	16.56		5.35	% (4)
Closed Programs:
CCPT II(5)		9/29/2004		0.01	%	$	9.45		6.61	% (6)
Other programs(7)		Various		Various	(7)		Various		Various	(7)

(1) The Company is currently in the registration process for Cole Office & Industrial REIT (CCIT II), Inc. and Cole Credit Property Trust V, Inc.

(2) Calculated based on the outstanding shares owned at June 30, 2013.

(3) The Company generally calculates the NAV for CCPT, CCPT II and INAV, relying in part on an estimate of the fair market value of each of the respective REITs’ real estate portfolio provided by a third party, adjusted to give effect to the estimated fair value of mortgages encumbering the respective REITs’ assets as well as other adjustments. The NAVs are based on a number of variables, including individual tenant credits, lease terms, lending credit spreads and tenant defaults, among others.

(4) Calculated using a daily distribution of $0.002429042 per share and NAV of $16.56 per share.

(5) Merger between CCPT II and Spirit was completed subsequent to June 30, 2013.

(6) Calculated based on the current NAV of $9.45 per share.

(7) Includes CCPT and 1031 Programs. The Company has a 0.01% interest in CCPT and no interest in the 1031 Programs. CCPT has a current annualized distribution rate of 6.45%, based on the current NAV of $7.75 per share. The 1031 Programs have a weighted average current annualized distribution rate of 6.32%.

Fee Summary

The following table shows the Company’s Managed Programs fee summary information, as of June 30, 2013:

	Offering Fees						Transaction Fees						Management Fees
Program	Selling Commissions (1)			Dealer Manager Fees (2)			Acquisition Transactional Fees(3)			Financing Transactional Fees			Property Management Fees(4)		Asset Management / Advisory Fees		Performance Fees
Open Programs:
CCPT IV		7	%		2	%		2	%		—	%		—  %		0.65% - 0.75% (5)		15%(6)
CCIT		7	%		2	%		2	%		—	%		—  %		0.65% - 0.75%(5)		15%(6)
INAV		—	%		0.55	%		—	%		—	%		—  %		0.90% (7)		25%(8)
Closed Programs:
CCPT II(9)		N/A			N/A			2	%		1	%		2%,4%(10)		0.25%		(9)
Other programs (11)		N/A			N/A			Various			Various			Various		Various		Various

(1) The Company reallows 100% of selling commissions earned to participating broker-dealers.

(2) The Company may reallow all or a portion of its dealer manager fee to participating broker-dealers as a marketing and due diligence expense reimbursement.

(3) Percent taken on gross purchase price.

(4) Percent taken on gross revenues (leasing fees based on prevailing market rates with restrictions).

(5) Annualized fee based on the average monthly invested assets.

(6) Performance Fee paid only under the following events (i) if shares are listed on a national securities exchange; (ii) if the company is sold or the assets are liquidated; or (iii) termination of the advisory agreement.

(7) The Company has waived this fee.

(8) Performance Fee paid for any year in which the total return on stockholders’ capital exceeds 6% per annum on a calendar year basis.

(9) Merger between CCPT II and Spirit was completed subsequent to June 30, 2013. No performance fees were recorded with respect to the merger.

(10) Annualized fee for single-tenant and multi-tenant properties, respectively.

(11) Includes CCPT and 1031 Programs.

29

Managed Programs (Continued)

Program Summary

The following table shows the Company’s Managed Programs cumulative activity summary information, as of June 30, 2013:

Program	Capital Raised (1) (thousands)		Number of Properties		Assets Under Management (2) (thousands)		Total Debt Outstanding (thousands)
Open Programs:
CCPT IV	$	666,298		178	$	1,232,983	$	677,418
CCIT		598,879		35		916,491		431,410
INAV		42,148		20		54,103		16,775
Total Open Programs		1,307,325		233		2,203,577		1,125,603
Closed Programs:
CCPT II(3)		2,280,595		747		3,413,197		1,763,300
Other programs(4)		449,324		116		881,934		456,447
Total Closed Programs		2,729,919		863		4,295,131		2,219,747
Total	$	4,037,244		1,096	$	6,498,708	$	3,345,350

(1) Includes DRIP issued, excludes redemptions and discounts.

(2) Represents total gross real estate and related assets net of gross intangible lease liabilities.

(3) Merger between CCPT II and Spirit was completed subsequent to June 30, 2013.

(4) Includes CCPT and 1031 Programs.

Program Activity Summary

The following table shows the Company’s Managed Programs activity summary information, for the period beginning on April 6, 2013 (the day after the merger with Cole Holdings) through June 30, 2013:

Program	Capital Raised (1) (thousands)		Number of Properties Acquired		Purchase Price (thousands)		New Debt (thousands)
Open Programs:
CCPT IV	$	212,263		56	$	529,803	$	300,596	(2)
CCIT		282,785		13		538,207		121,000
INAV		13,404		6		15,757		—
Total Open Programs		508,452		75		1,083,767		421,596
Closed Programs:
CCPT II(3)		—		—		—		—
Other programs(4)		—		2		4,959		—
Total Closed Programs		—		2		4,959		—
Total	$	508,452		77	$	1,088,726	$	421,596

(1) Includes DRIP issued, excludes redemptions and discounts.

(2) Includes $100.0 million increase in allowable borrowings pursuant to an amendment to the CCPT IV credit facility.

(3) Merger between CCPT II and Spirit was completed subsequent to June 30, 2013.

(4) Includes CCPT and 1031 Programs.

30

Managed Programs (Continued)

Revenue Summary

The following table shows the Company’s Managed Programs revenue information, for the period beginning on April 6, 2013 (the day after the merger with Cole Holdings) through June 30, 2013 (in thousands):

Program	Offering Related Revenue and Reimbursements		Transaction Service Revenue		Management Service Revenue and Reimbursements		Total Private Capital Management Revenue and Reimbursements
Open Programs:
CCPT IV	$	22,800	$	10,596	$	2,670	$	36,066
CCIT		28,871		10,764		1,706		41,341
INAV		147		—		75		222
Gross revenue - Open Programs		51,818		21,360		4,451		77,629
Less:
Reallowed revenue		38,962		—		—		38,962
Reimbursements		8,588		—		1,395		9,983
Adjusted revenue - Open Programs(1)		4,268		21,360		3,056		28,684
Closed Programs:
CCPT II(2)		—		—		4,451		4,451
Other programs(3)		—		149		414		563
Gross revenue - Closed Programs		—		149		4,865		5,014
Less:
Reimbursements		—		—		853		853
Adjusted revenue - Closed Programs (1)		—		149		4,012		4,161
Total adjusted revenue(1)	$	4,268	$	21,509	$	7,068	$	32,845

(1) Adjusted revenue is a non-GAAP measure. See the Terms and Definitions Section that begins on page 32 for a description of our non-GAAP measures.

(2) Merger between CCPT II and Spirit was completed subsequent to June 30, 2013.

(3) Includes CCPT and 1031 Programs.

31

Terms and Definitions

Non-GAAP Financial Disclosures

FFO and AFFO

Funds From Operations (“FFO”) is a non-GAAP financial performance measure defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and widely recognized by investors and analysts as one measure of operating performance of a real estate company. The FFO calculation excludes items such as real estate depreciation and amortization, gains and losses on the sale of depreciable real estate and impairments of depreciable real estate. Depreciation and amortization as applied in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, it is management’s view, and we believe the view of many industry investors and analysts, that the presentation of operating results for real estate companies by using the historical cost accounting method alone is insufficient. In addition, FFO excludes gains and losses from the sale of depreciable real estate and impairment charges on depreciable real estate, which we believe provides management and investors with a helpful additional measure of the performance of our real estate portfolio, as it allows for comparisons, year to year, that reflect the impact on operations from trends in items such as occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs. We compute FFO in accordance with NAREIT’s definition.

In addition to FFO, we use Adjusted Funds From Operations (“AFFO”) as a non-GAAP supplemental financial performance measure to evaluate the operating performance of our real estate portfolio. AFFO, as defined by our company, excludes from FFO merger and acquisition related costs, amortization and write off of deferred financing costs, straight-line rent adjustments, above and below market lease intangibles amortization, realized loss on derivatives and debt prepayment fees, gain on sale of marketable securities, other amortization or accretion, other gains, adjustments for discontinued operations and our proportionate share of adjustments for unconsolidated joint ventures, all of which are required to be expensed or recorded as additions to revenue or other income in accordance with GAAP. In evaluating the performance of our portfolio over time, management employs business models and analyses that differentiate the costs to acquire investments from the investments’ revenues and expenses. Management believes that excluding the items noted above from AFFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time, including after the Company ceases to acquire properties on a frequent and regular basis. AFFO also allows for a comparison of the performance of our portfolio with other REITs that are not currently engaging in acquisitions and mergers, as well as a comparison of our performance with that of other REITs, as AFFO, or an equivalent measure, is routinely reported by other REITs, and we believe often used by analysts and investors for comparison purposes.

For all of these reasons, we believe FFO and AFFO, in addition to net income and cash flows from operating activities, as defined by GAAP, are helpful supplemental performance measures and useful in understanding the various ways in which our management evaluates the performance of our real estate portfolio over time. However, not all REITs calculate FFO and AFFO the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to net income or to cash flows from operating activities, and are not intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs.

EBITDA and Normalized EBITDA

Normalized EBITDA as disclosed represents EBITDA, or earnings before interest, taxes, depreciation and amortization, modified to include other adjustments to GAAP net income for merger expenses which are considered non-recurring and gain/losses in real estate, foreign exchange and derivatives which are not considered fundamental attributes of our business plans and do not affect our overall long-term operating performance. We exclude these items from Normalized EBITDA as they are not the primary drivers in our decision making process. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short term fluctuations in net income but have no impact on cash flows. We believe that Normalized EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments, although it does not represent net income that is computed in accordance with GAAP. Therefore, Normalized EBITDA should not be considered as an alternative to net income or as an indicator of our financial performance. We use Normalized EBITDA as one measure of our operating performance when we formulate corporate goals and evaluate the effectiveness of our strategies. Normalized EBITDA may not be comparable to similarly titled measures of other companies.

32

Terms and Definitions (Continued)

Adjusted G&A

Adjusted G&A is a non-GAAP financial measure that represents general and administrative expense on a GAAP basis adjusted for both non-recurring items, including listing and tender offer expenses, and recurring items, including management service fee-related expenses. We believe that Adjusted G&A is useful to investors and analysts as a supplemental measure of expenses, and we use it to evaluate the profitability of our overall operations. Adjusted G&A should not be considered as an alternative to general and administrative expense computed on a GAAP basis as a measure of our profitability. Adjusted G&A may not be comparable to similarly titled measures of other companies.

Adjusted Revenues

Adjusted Revenues is a non-GAAP financial measure that represents revenue on a GAAP basis adjusted to eliminate revenue recorded as reimbursement revenue in accordance with GAAP, of certain expenses, which are included in reallowed fees and commissions and general and administrative expenses. We believe that excluding the items noted above from revenue provides investors with supplemental performance information that is consistent with the performance models and analysis used by management. Adjusted Revenues should not be considered as an alternative to revenue or cash flows from operating activities computed on a GAAP basis as a measure of our profitability. Adjusted Revenues may not be comparable to similarly titled measures of other companies.

Lease Yield

Lease yield is calculated as the average annual rental income, adjusted for any rent concessions or abatements, for the in-place leases over the non-cancellable lease term at the respective property divided by the property purchase price, exclusive of acquisition costs. In general, our properties are subject to long-term triple net or double net leases, and the future costs associated with the double net leases are unpredictable and may reduce the yield.

33