NEWS RELEASE
For information contact:
Kevin B. Habicht
Chief Financial Officer
(407) 265-7348 FOR IMMEDIATE RELEASE
February 11, 2014
2013 OPERATING RESULTS ANNOUNCED
BY NATIONAL RETAIL PROPERTIES, INC.
Orlando, Florida, February 11, 2014 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2013. Highlights include:
Operating Results:
| |
| • | Revenues and net earnings, FFO, Recurring FFO and AFFO available to common stockholders and diluted per share amounts: |
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| | (in thousands, except per share data) |
| Revenues | $ | 103,648 |
| | $ | 89,059 |
| | $ | 392,327 |
| | $ | 331,536 |
|
| | | | | | | | |
| Net earnings available to common stockholders | $ | 35,382 |
| | $ | 35,901 |
| | $ | 132,222 |
| | $ | 121,489 |
|
| Net earnings per common share | $ | 0.29 |
| | $ | 0.32 |
| | $ | 1.10 |
| | $ | 1.11 |
|
| | | | | | | | |
| FFO available to common stockholders | $ | 60,646 |
| | $ | 51,012 |
| | $ | 229,518 |
| | $ | 193,682 |
|
| FFO per common share | $ | 0.50 |
| | $ | 0.46 |
| | $ | 1.91 |
| | $ | 1.77 |
|
| | | | | | | | |
| Recurring FFO available to common stockholders | $ | 61,815 |
| | $ | 51,106 |
| | $ | 230,965 |
| | $ | 189,759 |
|
| Recurring FFO per common share | $ | 0.51 |
| | $ | 0.46 |
| | $ | 1.93 |
| | $ | 1.74 |
|
| | | | | | | | |
| AFFO available to common stockholders | $ | 63,603 |
| | $ | 54,182 |
| | $ | 238,917 |
| | $ | 200,839 |
|
| AFFO per common share | $ | 0.52 |
| | $ | 0.48 |
| | $ | 1.99 |
| | $ | 1.84 |
|
| |
| • | Portfolio occupancy was 98.2% at December 31, 2013, as compared to 98.1% at September 30, 2013, and 97.9% at December 31, 2012 |
2013 Highlights:
| |
| • | Increased annual Recurring FFO per share 10.9% |
| |
| • | Dividend yield at December 31, 2013 of 5.3% |
| |
| • | Dividends per share increased to $1.60 marking the 24th consecutive year of annual dividend increases - one of only four equity REITs and one of only 102 public companies with 24 or more consecutive annual dividend increases |
| |
| • | Maintained high occupancy levels at 98.2% with weighted average remaining lease term of 12 years |
| |
| • | Invested $629.9 million in 275 properties with an aggregate 1,652,000 square feet of gross leasable area at an initial cash yield of 7.8% |
| |
| • | Sold 35 properties for $61.0 million producing $5.4 million of gains on sale, net of income tax and noncontrolling interest at a cap rate of 7.5% |
2013 Highlights (continued):
| |
| • | Raised $886.0 million of new long term capital at attractive pricing |
| |
| ◦ | Raised $264.1 million in net proceeds from the issuance of 7,721,883 common shares |
| |
| ◦ | Raised $277.6 million in net proceeds from the issuance of 5.70% Series E preferred stock |
| |
| ◦ | Raised $344.3 million in net proceeds from the issuance of 3.30% senior unsecured notes due 2023 |
| |
| • | Settled $223.0 million principal amount of 5.125% convertible senior notes due 2028 |
| |
| • | Over 99% of properties are not encumbered with secured mortgage debt |
| |
| • | In January 2013, Fitch Ratings upgraded NNN’s unsecured debt rating to BBB+ |
| |
| • | In November 2013, Moody’s Investors Service upgraded NNN’s unsecured debt rating to Baa1 |
Investments and Dispositions for the quarter ended December 31, 2013:
| |
| ◦ | $59.6 million in property investments, including the acquisition of 14 properties with an aggregate 183,000 square feet of gross leasable area |
| |
| ◦ | 4 properties with net proceeds of $8.4 million producing $2.0 million of gains on sales, net of income tax |
Craig Macnab, Chief Executive Officer, commented: "Growing FFO and AFFO per share results 8% in 2013 while deleveraging an already strong balance sheet is the continuation of a trend during recent years. Over the past three years, we have been able to grow FFO and AFFO per share results more than 25% while funding 80% of our $2.1 billion of acquisitions with permanent capital consisting of equity and asset disposition proceeds. We are well positioned to deliver solid per share growth in 2014 and we are optimistic this will be our 25th consecutive year of increased dividends per share. We will continue to build value by allocating capital to the disciplined acquisition of well underwritten retail properties, focusing on increasing per share results as opposed to asset size goals and maintaining a conservative and flexible balance sheet."
National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2013, the company owned 1,860 properties in 47 states with a gross leasable area of approximately 20.4 million square feet. For more information on the company, visit www.nnnreit.com.
Management will hold a conference call on February 11, 2014, at 10:30 a.m. ET to review these results. The call can be accessed on the National Retail Properties web site live at http://www.nnnreit.com. For those unable to listen to the live broadcast, a replay will be available on the company’s web site. In addition, a summary of any earnings guidance given on the call will be posted to the company’s web site.
Statements in this press release that are not strictly historical are “forward-looking” statements. Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of our tenants, the availability of capital, risks related to our status as a REIT and the profitability of the company’s taxable subsidiary. Additional information concerning these and other factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company’s Securities and Exchange Commission (“SEC”) filings, including, but not limited to, the company’s Annual Report on Form 10-K. Copies of each filing may be obtained from the company or the SEC. Such forward-looking statements should be regarded solely as reflections of the company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. National Retail Properties undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.
The reported results are preliminary and not final and there can be no assurance that the results will not vary from the final information filed on Form 10-K with the SEC for the year ended December 31, 2013. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.
Funds From Operations, commonly referred to as FFO, is a relative non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and is used by the company as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses) on the disposition of certain assets, the company’s share of these items from the company’s unconsolidated partnerships and any impairment charges on a depreciable real estate asset.
FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as
an indication of the company’s performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. The company’s computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to FFO, as defined by NAREIT, is included in the financial information accompanying this release. AFFO should not be considered an alternative to net earnings, as an indication of the company's performance or to cash flow as a measure of liquidity or ability to make distributions.
Adjusted Funds From Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO further adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. Management considers AFFO a useful supplemental measure of the company’s performance. The company’s computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net earnings (computed in accordance with GAAP) to AFFO is included in the financial information accompanying this release.
The company has earnings from discontinued operations. The company classified the revenues and expenses related to properties which generated revenue and were sold or generated revenue and were held for sale as of December 31, 2013, as discontinued operations. The results of operations for prior periods for these properties now classified as discontinued operations have been restated to reflect the results in earnings from discontinued operations for comparability purposes. These adjustments resulted in a decrease in the company's reported total revenues and total and per share earnings from continuing operations and an increase in the company's earnings from discontinued operations. However; the company's total and per share FFO and net earnings available to common stockholders are not affected.
National Retail Properties, Inc. (in thousands, except per share data) (unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | | Year Ended |
| | | December 31, | | December 31, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| Income Statement Summary | | | | | | | | |
| | | | | | | | | |
| Revenues: | | | | | | | | |
Rental and earned income | | $ | 98,868 |
| | $ | 84,458 |
| | $ | 375,460 |
| | $ | 315,037 |
|
| Real estate expense reimbursement from tenants | | 3,907 |
| | 3,564 |
| | 13,110 |
| | 11,587 |
|
| Interest and other income from real estate transactions | | 372 |
| | 428 |
| | 1,467 |
| | 2,239 |
|
| Interest income on commercial mortgage residual interests | | 501 |
| | 609 |
| | 2,290 |
| | 2,673 |
|
| | | 103,648 |
| | 89,059 |
| | 392,327 |
| | 331,536 |
|
| | | | | | | | | |
| Retail operations: | | | | | | | | |
| Revenues | | — |
| | — |
| | — |
| | 19,008 |
|
| Operating expenses | | — |
| | — |
| | — |
| | (18,542 | ) |
| Net | | — |
| | — |
| | — |
|
| 466 |
|
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| General and administrative | | 7,367 |
| | 8,905 |
| | 32,576 |
| | 32,187 |
|
| Real estate | | 5,519 |
| | 4,661 |
| | 18,100 |
| | 17,041 |
|
| Depreciation and amortization | | 27,172 |
| | 20,185 |
| | 99,246 |
| | 73,707 |
|
| Impairment – commercial mortgage residual interests valuation | | 1,169 |
| | 94 |
| | 1,185 |
| | 2,812 |
|
| Impairment losses and other charges, net of recoveries | | — |
| | — |
| | 1,972 |
| | 3,088 |
|
| | | 41,227 |
| | 33,845 |
| | 153,079 |
| | 128,835 |
|
| | | | | | | | | |
| Other expenses (revenues): | | | | | | | | |
| Interest and other income | | (60 | ) | | (318 | ) | | (1,493 | ) | | (2,232 | ) |
| Interest expense | | 20,074 |
| | 20,767 |
| | 85,283 |
| | 83,192 |
|
| | | 20,014 |
| | 20,449 |
| | 83,790 |
| | 80,960 |
|
| | | | | | | | | |
| Gain on disposition of real estate | | 173 |
| | — |
| | 173 |
| | — |
|
| Income tax benefit (expense) | | (254 | ) | | (221 | ) | | (618 | ) | | 6,947 |
|
| Equity in earnings of unconsolidated affiliate | | — |
| | — |
| | — |
| | 4,074 |
|
| | | | | | | | | |
| Earnings from continuing operations | | 42,326 |
| | 34,544 |
| | 155,013 |
| | 133,228 |
|
| | | | | | | | | |
| Earnings from discontinued operations, net of income tax expense | | 1,908 |
| | 6,103 |
| | 5,072 |
| | 8,709 |
|
| | | | | | | | | |
| Earnings including noncontrolling interests | | 44,234 |
| | 40,647 |
| | 160,085 |
| | 141,937 |
|
| | | | | | | | | |
| Loss (earnings) attributable to noncontrolling interests: | | | | | | | | |
| Continuing operations | | 10 |
| | 34 |
| | 286 |
| | 107 |
|
| Discontinued operations | | (3 | ) | | (18 | ) | | (226 | ) | | (29 | ) |
| | | 7 |
| | 16 |
| | 60 |
| | 78 |
|
| | | | | | | | | |
| Net earnings attributable to NNN | | 44,241 |
| | 40,663 |
| | 160,145 |
| | 142,015 |
|
| Series C preferred stock dividends | | — |
| | — |
| | — |
| | (1,979 | ) |
| Series D preferred stock dividends | | (4,762 | ) | | (4,762 | ) | | (19,047 | ) | | (15,449 | ) |
| Series E preferred stock dividends | | (4,097 | ) | | — |
| | (8,876 | ) | | — |
|
| Excess of redemption value over carrying value of Series C preferred shares redeemed | | — |
| | — |
| | — |
| | (3,098 | ) |
| Net earnings available to common stockholders | | $ | 35,382 |
| | $ | 35,901 |
| | $ | 132,222 |
| | $ | 121,489 |
|
| | | | | | | | | |
National Retail Properties, Inc. (in thousands, except per share data) (unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | | Year Ended |
| | | December 31, | | December 31, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | | 121,118 |
| | 109,393 |
| | 118,204 |
| | 106,965 |
|
| Diluted | | 121,309 |
| | 112,013 |
| | 119,865 |
| | 109,118 |
|
| | | | | | | | | |
| Net earnings per share available to common stockholders: | | | | | | | | |
| Basic: | | | | | | | | |
| Continuing operations | | $ | 0.27 |
| | $ | 0.27 |
| | $ | 1.07 |
| | $ | 1.05 |
|
| Discontinued operations | | 0.02 |
| | 0.06 |
| | 0.04 |
| | 0.08 |
|
| Net earnings | | $ | 0.29 |
| | $ | 0.33 |
| | $ | 1.11 |
| | $ | 1.13 |
|
| | | | | | | | | |
| Diluted: | | | | | | | | |
| Continuing operations | | $ | 0.27 |
| | $ | 0.26 |
| | $ | 1.06 |
| | $ | 1.03 |
|
| Discontinued operations | | 0.02 |
| | 0.06 |
| | 0.04 |
| | 0.08 |
|
| Net earnings | | $ | 0.29 |
| | $ | 0.32 |
| | $ | 1.10 |
| | $ | 1.11 |
|
| | | | | | | | | |
| | | | | | | | | |
National Retail Properties, Inc. (in thousands, except per share data) (unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | | Year Ended |
| | | December 31, | | December 31, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| Funds From Operations (FFO) Reconciliation: | | | | | | | | |
| Net earnings available to common stockholders | | $ | 35,382 |
| | $ | 35,901 |
| | $ | 132,222 |
| | $ | 121,489 |
|
| Real estate depreciation and amortization: | | | | | | | | |
| Continuing operations | | 27,113 |
| | 20,128 |
| | 99,020 |
| | 73,586 |
|
| Discontinued operations | | 23 |
| | 224 |
| | 371 |
| | 1,480 |
|
| Joint venture real estate depreciation | | — |
| | — |
| | — |
| | 112 |
|
| Joint venture gain on disposition of real estate | | — |
| | — |
| | — |
| | (2,341 | ) |
| Gain on disposition of real estate, net of tax and noncontrolling interest | | (1,975 | ) | | (6,510 | ) | | (5,442 | ) | | (10,956 | ) |
| Impairment losses – real estate | | 103 |
| | 1,269 |
| | 3,347 |
| | 10,312 |
|
| Total FFO adjustments | | 25,264 |
| | 15,111 |
| | 97,296 |
| | 72,193 |
|
| FFO available to common stockholders | | $ | 60,646 |
| | $ | 51,012 |
| | $ | 229,518 |
| | $ | 193,682 |
|
| | | | | | | | | |
| FFO per share: | | | | | | | | |
| Basic | | $ | 0.50 |
| | $ | 0.47 |
| | $ | 1.94 |
| | $ | 1.81 |
|
| Diluted | | $ | 0.50 |
| | $ | 0.46 |
| | $ | 1.91 |
| | $ | 1.77 |
|
| | | | | | | | | |
| Recurring Funds from Operations Reconciliation: | | | | | | | | |
| Net earnings available to common stockholders | | $ | 35,382 |
| | $ | 35,901 |
| | $ | 132,222 |
| | $ | 121,489 |
|
| Total FFO adjustments | | 25,264 |
| | 15,111 |
| | 97,296 |
| | 72,193 |
|
| FFO available to common stockholders | | 60,646 |
| | 51,012 |
| | 229,518 |
| | 193,682 |
|
| | | | | | | | | |
Excess of redemption value over carrying value of preferred share redemption | | — |
| | — |
| | — |
| | 3,098 |
|
| Impairment – commercial mortgage residual interests valuation | | 1,169 |
| | — |
| | 1,185 |
| | 2,812 |
|
| Impairment losses and other charges, net of recoveries | | — |
| | 94 |
| | 759 |
| | (198 | ) |
| Income tax benefit | | — |
| | — |
| | — |
| | (7,671 | ) |
| Joint venture disposition fee and promote income | | — |
| | — |
| | — |
| | (1,964 | ) |
| Notes receivable redemption income | | — |
| | — |
| | (497 | ) | | — |
|
| Total Recurring FFO adjustments | | 1,169 |
| | 94 |
| | 1,447 |
| | (3,923 | ) |
| Recurring FFO available to common stockholders | | $ | 61,815 |
| | $ | 51,106 |
| | $ | 230,965 |
| | $ | 189,759 |
|
| | | | | | | | | |
| Recurring FFO per share: | | | | | | | | |
| Basic | | $ | 0.51 |
| | $ | 0.47 |
| | $ | 1.95 |
| | $ | 1.77 |
|
| Diluted | | $ | 0.51 |
| | $ | 0.46 |
| | $ | 1.93 |
| | $ | 1.74 |
|
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
National Retail Properties, Inc. (in thousands, except per share data) (unaudited)
|
| | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | Quarter Ended | | Year Ended |
| | | December 31, | | December 31, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| Adjusted Funds From Operations (AFFO) Reconciliation: | | | | | | | | |
| Net earnings available to common stockholders | | $ | 35,382 |
| | $ | 35,901 |
| | $ | 132,222 |
| | $ | 121,489 |
|
| Total FFO adjustments | | 25,264 |
| | 15,111 |
| | 97,296 |
| | 72,193 |
|
| Total Recurring FFO adjustments | | 1,169 |
| | 94 |
| | 1,447 |
| | (3,923 | ) |
| Recurring FFO available to common stockholders | | 61,815 |
| | 51,106 |
| | 230,965 |
| | 189,759 |
|
| | | | | | | | | |
| Straight-line accrued rent | | 483 |
| | 160 |
| | 165 |
| | (897 | ) |
| Net capital lease rent adjustment | | 343 |
| | 402 |
| | 1,573 |
| | 1,623 |
|
| Below market rent amortization | | (613 | ) | | (627 | ) | | (2,445 | ) | | (2,492 | ) |
| Stock based compensation expense | | 1,934 |
| | 2,375 |
| | 7,459 |
| | 8,131 |
|
| Capitalized interest expense | | (359 | ) | | (336 | ) | | (1,369 | ) | | (1,540 | ) |
| Convertible debt interest expense (non-cash portion) | | — |
| | 1,102 |
| | 2,072 |
| | 4,291 |
|
| Joint venture disposition fee and promote income | | — |
| | — |
| | — |
| | 1,964 |
|
| Notes receivable redemption income | | — |
| | — |
| | 497 |
| | — |
|
| Total AFFO adjustments | | 1,788 |
| | 3,076 |
| | 7,952 |
| | 11,080 |
|
| AFFO available to common stockholders | | $ | 63,603 |
| | $ | 54,182 |
| | $ | 238,917 |
| | $ | 200,839 |
|
| | | | | | | | | |
| AFFO per share: | | | | | | | | |
| Basic | | $ | 0.53 |
| | $ | 0.50 |
| | $ | 2.02 |
| | $ | 1.88 |
|
| Diluted | | $ | 0.52 |
| | $ | 0.48 |
| | $ | 1.99 |
| | $ | 1.84 |
|
| | | | | | | | | |
| Other Information: | | | | | | | | |
| Percentage rent | | $ | 757 |
| | $ | 620 |
| | $ | 1,558 |
| | $ | 1,192 |
|
| Amortization of debt costs | | $ | 658 |
| | $ | 78 |
| | $ | 3,118 |
| | $ | 2,584 |
|
| Scheduled debt principal amortization (excluding maturities) | | $ | 275 |
| | $ | 256 |
| | $ | 1,070 |
| | $ | 1,187 |
|
| Non-real estate depreciation expense | | $ | 63 |
| | $ | 62 |
| | $ | 248 |
| | $ | 143 |
|
| Real estate acquisition costs (included in general and administrative expenses) | | $ | 35 |
| | $ | 30 |
| | $ | 1,694 |
| | $ | 375 |
|
National Retail Properties, Inc. (in thousands)
(unaudited)
|
| | | | | | | | | | | | | | | | |
Earnings from Discontinued Operations: NNN classified the revenues and expenses related to properties which were sold or were held for sale as of December 31, 2013 and generated revenue, as discontinued operations. The following is a summary of the earnings from discontinued operations. |
| | | | | | | | | |
| | | Quarter Ended | | Year Ended |
| | | December 31, | | December 31, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| | | | | | | | | |
| Revenues: | | | | | | | | |
| Rental and earned income | | $ | 363 |
| | $ | 1,354 |
| | $ | 2,822 |
| | $ | 7,693 |
|
| Real estate expense reimbursement from tenants | | 97 |
| | 60 |
| | 327 |
| | 383 |
|
| Interest and other income from real estate transactions | | 1 |
| | 5 |
| | 37 |
| | 17 |
|
| | | 461 |
| | 1,419 |
| | 3,186 |
| | 8,093 |
|
| | | | | | | | | |
| Expenses: | | | | | | | | |
| General and administrative | | 2 |
| | 13 |
| | 219 |
| | 20 |
|
| Real estate | | 122 |
| | 184 |
| | 600 |
| | 1,026 |
|
| Depreciation and amortization | | 23 |
| | 224 |
| | 371 |
| | 1,480 |
|
| Impairment losses and other charges | | 103 |
| | 1,269 |
| | 2,149 |
| | 7,026 |
|
| Interest | | 135 |
| | 180 |
| | 580 |
| | 732 |
|
| | | 385 |
| | 1,870 |
| | 3,919 |
| | 10,284 |
|
| | | | | | | | | |
| Gain on disposition of real estate | | 1,870 |
| | 6,510 |
| | 6,272 |
| | 10,956 |
|
| Income tax benefit (expense) | | (38 | ) | | 44 |
| | (467 | ) | | (56 | ) |
| | | | | | | | | |
| Earnings from discontinued operations including noncontrolling interests | | 1,908 |
| | 6,103 |
| | 5,072 |
| | 8,709 |
|
| Loss attributable to noncontrolling interests | | (3 | ) | | (18 | ) | | (226 | ) | | (29 | ) |
| Earnings from discontinued operations attributable to NNN | | $ | 1,905 |
| | $ | 6,085 |
| | $ | 4,846 |
| | $ | 8,680 |
|
National Retail Properties, Inc. (in thousands) (unaudited)
|
| | | | | | | | |
| | | December 31, 2013 | | December 31, 2012 |
| Balance Sheet Summary | | | | |
| | | | | |
| Assets: | | | | |
| Cash and cash equivalents | | $ | 1,485 |
| | $ | 2,076 |
|
| Receivables, net of allowance | | 4,107 |
| | 3,112 |
|
| Mortgages, notes and accrued interest receivable | | 17,119 |
| | 27,770 |
|
| Real estate: | | | | |
| Accounted for using the operating method, net of accumulated depreciation and amortization | | 4,253,364 |
| | 3,794,044 |
|
| Accounted for using the direct financing method | | 18,342 |
| | 23,217 |
|
| Real estate held for sale | | 15,344 |
| | 17,546 |
|
| Commercial mortgage residual interests | | 11,721 |
| | 13,096 |
|
| Accrued rental income, net of allowance | | 24,797 |
| | 25,458 |
|
| Debt costs, net of accumulated amortization | | 12,877 |
| | 12,781 |
|
| Other assets | | 95,367 |
| | 68,926 |
|
| Total assets | | $ | 4,454,523 |
| | $ | 3,988,026 |
|
| | | | | |
| Liabilities: | | | | |
| Line of credit payable | | $ | 46,400 |
| | $ | 174,200 |
|
| Mortgages payable, net of unamortized premium | | 9,475 |
| | 10,602 |
|
| Notes payable - convertible, net of unamortized discount | | — |
| | 236,500 |
|
| Notes payable, net of unamortized discount | | 1,514,184 |
| | 1,165,662 |
|
| Accrued interest payable | | 17,142 |
| | 17,527 |
|
| Other liabilities | | 89,037 |
| | 85,950 |
|
| Total liabilities | | 1,676,238 |
| | 1,690,441 |
|
| | | | | |
| Stockholders’ equity of NNN | | 2,777,045 |
| | 2,296,285 |
|
| Noncontrolling interests | | 1,240 |
| | 1,300 |
|
| Total equity | | 2,778,285 |
| | 2,297,585 |
|
| | | | | |
| Total liabilities and equity | | $ | 4,454,523 |
| | $ | 3,988,026 |
|
| | | | | |
| Common shares outstanding | | 121,992 |
| | 111,555 |
|
| | | | | |
| Gross leasable area, Property Portfolio (square feet) | | 20,402 |
| | 19,168 |
|
| | | | | |
|
| | | | | | | | | | | | | | |
National Retail Properties, Inc Debt Summary As of December 31, 2013 (in thousands) (unaudited) |
| Unsecured Debt | | Principal | | Principal, Net of Discount | | Stated Rate | | Effective Rate | | Maturity Date |
| Line of credit payable | | $ | 46,400 |
| | $ | 46,400 |
| | L + 107.5 bps | | - | | October 2016 |
| | | | | | | | | | | |
| Unsecured notes payable: | | | | | | | | | | |
| 2014 | | 150,000 |
| | 149,975 |
| | 6.25% | | 5.91% | | June 2014 |
| 2015 | | 150,000 |
| | 149,904 |
| | 6.15% | | 6.19% | | December 2015 |
| 2017 | | 250,000 |
| | 249,596 |
| | 6.88% | | 6.92% | | October 2017 |
| 2021 | | 300,000 |
| | 296,570 |
| | 5.50% | | 5.69% | | July 2021 |
| 2022 | | 325,000 |
| | 320,576 |
| | 3.80% | | 3.98% | | October 2022 |
| 2023 | | 350,000 |
| | 347,563 |
| | 3.30% | | 3.39% | | April 2023 |
| Total | | 1,525,000 |
| | 1,514,184 |
| | | | | | |
| | | | | | | | | | | |
| Total unsecured debt | | $ | 1,571,400 |
| | $ | 1,560,584 |
| | | | | | |
|
| | | | | | | | |
| Mortgages Payable | | Principal Balance | | Interest Rate | | Maturity Date |
Mortgage(1) | | $ | 6,457 |
| | 5.75% | | April 2016 |
| Mortgage | | 2,257 |
| | 6.90% | | January 2017 |
Mortgage(2) | | 761 |
| | 8.62% | | April 2014 - April 2019 |
| | | $ | 9,475 |
| | | | |
(1) Includes unamortized premium |
(2) Represents the total balance of five separate mortgage loans and their weighted average interest rate |
National Retail Properties, Inc.
Property Portfolio
Top 20 Lines of Trade
|
| | | | | | | | |
| | | | | As of December 31, |
| | | Line of Trade | | 2013(1) | | 2012 (2) |
| 1. | | Convenience stores | | 19.7 | % | | 19.8 | % |
| 2. | | Restaurants - full service | | 9.7 | % | | 10.7 | % |
| 3. | | Automotive service | | 7.6 | % | | 7.6 | % |
| 4. | | Restaurants - limited service | | 5.5 | % | | 5.2 | % |
| 5. | | Automotive parts | | 5.1 | % | | 5.6 | % |
| 6. | | Theaters | | 4.5 | % | | 4.7 | % |
| 7. | | Health and fitness | | 4.3 | % | | 3.7 | % |
| 8. | | Banks | | 4.1 | % | | 0.2 | % |
| 9. | | Sporting goods | | 3.7 | % | | 4.0 | % |
| 10. | | Recreational vehicle dealers, parts and accessories | | 3.2 | % | | 2.7 | % |
| 11. | | Wholesale clubs | | 3.1 | % | | 3.4 | % |
| 12. | | Consumer electronics | | 2.7 | % | | 3.0 | % |
| 13. | | Drug stores | | 2.6 | % | | 3.0 | % |
| 14. | | Home improvement | | 2.5 | % | | 3.0 | % |
| 15. | | Family entertainment centers | | 2.3 | % | | 2.1 | % |
| 16. | | Travel plazas | | 2.1 | % | | 2.2 | % |
| 17. | | Home furnishings | | 1.6 | % | | 1.6 | % |
| 18. | | Medical service providers | | 1.6 | % | | 1.1 | % |
| 19. | | Books | | 1.6 | % | | 1.8 | % |
| 20. | | Grocery | | 1.5 | % | | 1.7 | % |
| | | Other | | 11.0 | % | | 12.9 | % |
| | | Total | | 100.0 | % | | 100.0 | % |
Top 10 States
|
| | | | | | | | | | | | |
| | State | | | % of Total(1) | | | State | | | % of Total(1) |
| 1. | Texas | | | 20.4 | % | | 6. | Virginia | | | 4.6 | % |
| 2. | Florida | | | 10.5 | % | | 7. | Indiana | | | 3.9 | % |
| 3. | Illinois | | | 5.3 | % | | 8. | California | | | 3.5 | % |
| 4. | Georgia | | | 4.8 | % | | 9. | Ohio | | | 3.4 | % |
| 5. | North Carolina | | | 4.7 | % | | 10. | Pennsylvania | | | 3.3 | % |
| |
(1) | Based on the annualized base rent for all leases in place as of December 31, 2013. |
| |
(2) | Based on the annualized base rent for all leases in place as of December 31, 2012. |
National Retail Properties, Inc.
Property Portfolio
Top Tenants (>2.0%)
|
| | | | | |
| | | | Properties | | % of Total (1) |
| | Susser Holdings | | 86 | | 5.0% |
| | Mister Car Wash | | 85 | | 4.9% |
| | Pantry | | 84 | | 4.4% |
| | 7-Eleven | | 68 | | 4.2% |
| | LA Fitness | | 20 | | 4.2% |
| | SunTrust | | 121 | | 3.9% |
| | AMC Theatre | | 15 | | 3.6% |
| | Camping World | | 24 | | 3.2% |
| | BJ's Wholesale Club | | 7 | | 3.1% |
| | Best Buy | | 19 | | 2.6% |
| | Gander Mountain | | 10 | | 2.3% |
| | Energy Transfer Partners (Sunoco) | | 38 | | 2.1% |
| | Road Ranger | | 27 | | 2.1% |
| | Pull-A-Part | | 20 | | 2.1% |
Lease Expirations(2)
|
| | | | | | | | | | | | | | | | |
| | | % of
Total(1) | | # of
Properties | | Gross Leasable
Area (3) | | | | % of
Total(1) | | # of
Properties | | Gross Leasable Area (3) |
| 2014 | | 1.4% | | 32 | | 434,000 |
| | 2020 | | 3.1% | | 97 | | 916,000 |
|
| 2015 | | 1.6% | | 32 | | 482,000 |
| | 2021 | | 4.6% | | 99 | | 918,000 |
|
| 2016 | | 1.7% | | 32 | | 567,000 |
| | 2022 | | 6.9% | | 92 | | 1,150,000 |
|
| 2017 | | 3.5% | | 46 | | 1,009,000 |
| | 2023 | | 3.3% | | 54 | | 962,000 |
|
| 2018 | | 8.3% | | 186 | | 1,957,000 |
| | 2024 | | 2.2% | | 33 | | 504,000 |
|
| 2019 | | 3.5% | | 57 | | 1,005,000 |
| | Thereafter | | 59.9% | | 1,059 | | 9,968,492 |
|
| |
(1) | Based on the annual base rent of $395,594,000, which is the annualized base rent for all leases in place as of December 31, 2013. |
| |
(2) | As of December 31, 2013, the weighted average remaining lease term is 12 years. |
