National Retail Properties (NNN) 8-K Third Quarter 2009 Operating Results

Exhibit 99.1

NEWS RELEASE
For information contact:
Kevin B. Habicht
Chief Financial Officer
(407) 265-7348	FOR IMMEDIATE RELEASE
	November 6, 2009

THIRD QUARTER 2009 OPERATING RESULTS

ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, November 6, 2009 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter ended September 30, 2009. Highlights include:

Operating Results:

• Revenues, net earnings and FFO available to common stockholders:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2009		2008		2009		2008
	(in thousands, except per share data)
Revenues	$	57,035	$	58,496	$	173,313	$	169,404
Net earnings available to common stockholders	$	20,747	$	27,070	$	71,111	$	85,182
Net earnings per common share (diluted)	$	0.26	$	0.37	$	0.89	$	1.16
FFO available to common stockholders	$	31,423	$	35,198	$	102,480	$	106,390
FFO per common share (diluted)	$	0.39	$	0.48	$	1.29	$	1.45

• NNN paid cash dividends to its common shareholders of $0.375 per share during the quarter and $1.125 for the nine months ended September 30, 2009.

• Investment Portfolio occupancy was 96.3% at September 30, 2009.

Investments and Dispositions for the quarter ended September 30, 2009:

• Investments:

• $9.7 million in the Investment Portfolio, including acquiring five properties with an aggregate 37,000 square feet of gross leasable area

• $487,000 of development funding in the Inventory Portfolio

• Dispositions:

• One Inventory property with net proceeds of $315,000

Investments and Dispositions for the nine months ended September 30, 2009:

• Investments

• $29.3 million in the Investment Portfolio, including acquiring five properties and development funding with an aggregate 268,000 square feet of gross leasable area

• $2.7 million of development funding in the Inventory Portfolio

• Dispositions

• Six Investment properties with an aggregate 107,000 square feet of gross leasable area, with net proceeds of $9.7 million, resulting in a gain of $1.6 million

• Three Inventory properties with net proceeds of $5.7 million

Capital transactions for the quarter ended September 30, 2009:

• Issued 1,907,811 shares of common stock generating $35,510,000 of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan

National Retail Properties announced 2010 FFO guidance of $1.51 to $1.58 per share. This guidance includes non-cash interest expense of approximately 7 cents per share due to changes required in accounting for convertible debt interest beginning in 2009, as well as an additional 8 cents per share for other non-cash items noted on page five of this press release. This guidance equates to net earnings before any gains or losses from the sale of investment properties of $1.00 to $1.07 per share plus $0.51 per share of expected real estate related depreciation and amortization. These projections are based on current plans, assumptions, and estimates and are subject to the risks and uncertainties more fully described in this press release and the company’s reports filed with the Securities and Exchange Commission.

Craig Macnab, Chief Executive Officer, commented: “We are well positioned for 2010 with exceptional balance sheet strength and a well-leased portfolio with current occupancy at 96.3%. We believe that there will be good acquisition opportunities in 2010, including some prospects currently under evaluation. Finally, we are delighted that our $1.50 per share cash dividend in 2009 marks the 20^th consecutive year of annual dividend increases.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2009, the company owned 1,004 Investment properties in 44 states with a gross leasable area of approximately 11.4 million square feet. NNN is one of only four publicly traded REITs and 156 publicly traded companies in America to have increased its annual dividends for 20 or more consecutive years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on November 6, 2009 at 2:00 p.m. EDT to review these results. The call can be accessed on National Retail Properties, Inc.’s web site live athttp://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 availability of capital, 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. Consequently, 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 unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended September 30, 2009. 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 and is used by the company as follows: net

2

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 real estate held for investment, and the company’s share of these items from the company’s unconsolidated partnerships.

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.

The company has determined that there are earnings from discontinued operations in each of its segments, real estate held for investment and real estate held for sale. All property dispositions from the company’s held for investment segment are classified as discontinued operations. In addition, certain properties in the company’s held for sale segment that have generated revenues before disposition are classified 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.

3

National Retail Properties, Inc.

(In thousands, except per share data)

(unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Income Statement Summary
Revenues:
Rental and earned income	$	53,015		$	54,638		$	160,381		$	156,516
Real estate expense reimbursement from tenants		1,872			1,421			6,272			4,398
Interest and other income from real estate transactions		1,102			1,313			3,560			4,839
Interest income on commercial mortgage residual interests		1,046			1,124			3,100			3,651
		57,035			58,496			173,313			169,404
Disposition of real estate, Inventory Portfolio:
Gross proceeds		353			—			353			4,900
Costs		(317	)		—			(317	)		(4,879	)
Gain		36			—			36			21
Retail operations:
Revenues		7,317			—			7,317			—
Operating expenses		(7,550	)		—			(7,575	)		—
Net		(233	)		—			(258	)		—
Operating expenses:
General and administrative		4,937			5,242			16,027			18,842
Real estate		3,494			2,326			10,208			6,952
Depreciation and amortization		11,350			11,443			34,374			32,096
Impairment – real estate		—			—			1,064			—
Impairment – commercial mortgage residual interests valuation adjustment		—			—			—			758
Restructuring costs		—			—			731			—
		19,781			19,011			62,404			58,648
Other expenses (revenues):
Interest and other income		(262	)		(818	)		(1,025	)		(3,047	)
Interest expense		15,618			16,329			46,484			48,796
Loss on interest rate hedge		—			—			—			804
		15,356			15,511			45,459			46,553
Income tax benefit		504			1,653			1,586			6,002
Equity in earnings of unconsolidated affiliate		105			100			315			280
Gain on note receivable foreclosure		—			—			1,048			—
Gain on extinguishment of debt		—			—			3,432			—
Earnings from continuing operations		22,310			25,727			71,609			70,506
Earnings from discontinued operations:
Real estate, Investment Portfolio		(70	)		2,962			4,076			12,820
Real estate, Inventory Portfolio, net of income tax expense		556			202			1,014			9,580
Earnings including noncontrolling interests		22,796			28,891			76,699			92,906
Loss (earnings) attributable to noncontrolling interests:
Continuing operations		(152	)		(117	)		(502	)		465
Discontinued operations		(201	)		(8	)		3			(3,100	)
		(353	)		(125	)		(499	)		(2,635	)
Net earnings attributable to National Retail Properties, Inc.		22,443			28,766			76,200			90,271
Series C preferred stock dividends		(1,696	)		(1,696	)		(5,089	)		(5,089	)
Net earnings available to common stockholders – basic and diluted	$	20,747		$	27,070		$	71,111		$	85,182

4

National Retail Properties, Inc.

(In thousands, except per share data)

(unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Weighted average common shares outstanding:
Basic		80,344			73,717			79,232			73,041
Diluted		80,455			73,818			79,335			73,141
Net earnings per share available to common stockholders:
Basic:
Continuing operations	$	0.25		$	0.33		$	0.83		$	0.90
Discontinued operations		0.01			0.04			0.06			0.26
Net earnings	$	0.26		$	0.37		$	0.89		$	1.16
Diluted:
Continuing operations	$	0.25		$	0.33		$	0.83		$	0.90
Discontinued operations		0.01			0.04			0.06			0.26
Net earnings	$	0.26		$	0.37		$	0.89		$	1.16
Supplemental Information:
Selected Non-Cash Income Statement Items:
Straight-line rent	$	(640	)	$	151		$	(1,528	)	$	(978	)
Net capital lease rent adjustment	$	350		$	296		$	1,018		$	899
Above (below) market rent amortization	$	(93	)	$	(245	)	$	(981	)	$	(547	)
Stock based compensation expense	$	1,016		$	916		$	3,152		$	2,388
Impairment – real estate	$	—		$	3,930		$	1,064		$	4,097
Impairment – mortgage residual interests	$	—		$	—		$	—		$	758
Amortization of debt costs	$	668		$	768		$	2,256		$	2,164
Capitalized interest expense	$	(163	)	$	(436	)	$	(1,080	)	$	(1,408	)
Convertible debt interest expense	$	1,451		$	1,538		$	4,333		$	3,973
Non-real estate depreciation expense	$	74		$	65		$	227		$	200
Other Information:
Percentage rent	$	317		$	202		$	583		$	563
Net Inventory Portfolio gain on dispositions (TRS)	$	22		$	2,807		$	580		$	9,358
Scheduled debt principal amortization (excluding maturities)	$	249		$	298		$	742		$	882

5

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Reconciliation of net earnings to FFO and FFO available to common stockholders:
Net earnings attributable to National Retail Properties, Inc.	$	22,443		$	28,766		$	76,200		$	90,271
Real estate depreciation and amortization:
Continuing operations		10,608			10,610			31,892			29,704
Discontinued operations		24			118			977			602
Joint venture real estate depreciation		44			44			133			132
Gain on disposition of real estate Investment Portfolio		—			(2,644	)		(1,633	)		(9,230	)
FFO		33,119			36,894			107,569			111,479
Series C preferred stock dividends		(1,696	)		(1,696	)		(5,089	)		(5,089	)
FFO available to common stockholders – basic and diluted	$	31,423		$	35,198		$	102,480		$	106,390
FFO per share:
Basic	$	0.39		$	0.48		$	1.29		$	1.46
Diluted	$	0.39		$	0.48		$	1.29		$	1.45

Real Estate Disposition Summary

	Quarter Ended September 30,							Nine Months Ended September 30,
	2009				2008			2009				2008
	# of Properties	Gain			# of Properties	Gain		# of Properties	Gain			# of Properties	Gain
Reconciliation of gain on disposition between continuing and discontinued operations:
Continuing operations	1	$	36		—	$	—	1	$	36		1	$	21
Discontinued operations:
Investment Portfolio	—		—		6		2,644	6		1,633		17		9,230
Inventory Portfolio	—		—		9		2,807	2		558		23		12,643
Noncontrolling interest, Inventory Portfolio	—		(14	)	—		—	—		(14	)	—		(3,306	)
	1	$	22		15	$	5,451	9	$	2,213		41	$	18,588
Reconciliation of gain on disposition by type:
Inventory Portfolio:
Development	1	$	36		1	$	192	2	$	582		5	$	8,056
Exchange	—		—		8		2,615	1		12		19		4,608
Noncontrolling interest, Development	—		(14	)	—		—	—		(14	)	—		(3,306	)
Total Inventory gain (TRS)	1		22		9		2,807	3		580		24		9,358
Investment Portfolio	—		—		6		2,644	6		1,633		17		9,230
	1	$	22		15	$	5,451	9	$	2,213		41	$	18,588

6

National Retail Properties, Inc.

(in thousands)

(unaudited)

Earnings from Discontinued Operations:The company has classified its investment assets sold and leasehold interests expired as discontinued operations. In addition, the company has classified any investment asset or revenue generating inventory asset that was held for sale at September 30, 2009, as discontinued operations. The following is a summary of earnings from discontinued operations.

	Quarter Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Earnings from Discontinued Operations – Investment Portfolio:
Revenues:
Rental and earned income	$	32		$	527		$	3,572		$	3,776
Real estate expense reimbursement from tenants		2			42			103			109
Interest and other income from real estate transactions		3			—			5			421
		37			569			3,680			4,306
Expenses:
General and administrative		—			—			—			(79	)
Real estate		83			133			260			26
Depreciation and amortization		24			118			977			602
Impairment – real estate		—			—			—			167
		107			251			1,237			716
Gain on disposition of real estate		—			2,644			1,633			9,230
Earnings (loss) from discontinued operations attributable to National Retail Properties, Inc.	$	(70	)	$	2,962		$	4,076		$	12,820
Earnings from Discontinued Operations – Inventory Portfolio:
Revenues:
Rental income	$	1,851		$	2,648		$	4,722		$	8,882
Real estate expense reimbursement from tenants		201			301			1,335			857
Interest and other income from real estate transactions		47			109			104			540
		2,099			3,058			6,161			10,279
Disposition of real estate:
Gross proceeds		—			52,185			5,402			151,098
Costs		—			(49,378	)		(4,844	)		(138,455	)
Gain		—			2,807			558			12,643
Expenses:
General and administrative		21			23			89			72
Real estate		326			403			1,989			1,299
Depreciation and amortization		60			53			258			164
Impairment – real estate		—			3,930			—			3,930
Interest		919			1,136			2,746			3,912
		1,326			5,545			5,082			9,377
Income tax expense		(217	)		(118	)		(623	)		(3,965	)
Earnings from discontinued operations including noncontrolling interests		556			202			1,014			9,580
Loss (earnings) attributable to noncontrolling interests		(201	)		(8	)		3			(3,100	)
Earnings from discontinued operations attributable to National Retail Properties, Inc.	$	355		$	194		$	1,017		$	6,480

7

National Retail Properties, Inc.

(in thousands)

Balance Sheet Summary	September 30, 2009		December 31, 2008
	(unaudited)		(Note 1)
Assets:
Cash and cash equivalents	$	23,251	$	2,626
Receivables, net of allowance		2,221		3,612
Investment in unconsolidated affiliate		4,732		4,927
Mortgages, notes and accrued interest receivable		43,100		60,472
Real estate, Investment Portfolio:
Accounted for using the operating method, net of accumulated depreciation and amortization		2,346,198		2,357,894
Accounted for using the direct financing method		31,677		31,240
Real estate, Inventory Portfolio, held for sale		98,580		101,106
Commercial mortgage residual interests		23,722		22,000
Accrued rental income, net of allowance		25,081		23,972
Other assets		53,042		41,622
Total assets	$	2,651,604	$	2,649,471
Liabilities:
Line of credit payable	$	—	$	26,500
Mortgages payable		25,548		26,290
Notes payable – convertible		341,904		356,122
Notes payable, net of unamortized discount		618,626		618,479
Other liabilities		54,344		53,134
Total liabilities		1,040,422		1,080,525
Stockholders’ equity of National Retail Properties, Inc.		1,608,329		1,566,860
Noncontrolling interests		2,853		2,086
Total equity		1,611,182		1,568,946
Total liabilities and equity	$	2,651,604	$	2,649,471
Common shares outstanding		82,010		78,415
Gross leasable area, Investment Portfolio (square feet)		11,412		11,251

Note 1: Includes adjustment based on the adoption of the new Financial Accounting Standards Board guidance on convertible debt instruments that may be settled in cash upon conversion.

8

Orange Avenue Mortgage Investments, Inc.

(in thousands)

In May 2005, the company acquired a 78.9 percent equity investment of OAMI for $9.4 million. The company’s 78.9 percent share of OAMI’s net cash flow has totaled over $27.3 million since May 2005. The following summary represents the balances related to OAMI included in the company’s Balance Sheet and Income Statement Summary:

	September 30, 2009		December 31, 2008
	(unaudited)		(Note 1)
Assets:
Cash and cash equivalents	$	255	$	405
Receivables and other assets		36		39
Commercial mortgage residual interests		23,722		22,000
	$	24,013	$	22,444
Liabilities:
Income tax liability	$	4,862	$	5,195
Other liabilities		50		49
	$	4,912	$	5,244
Noncontrolling interests	$	1,962	$	1,449

	Quarter Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues:
Interest income on commercial mortgage residual interests	$	1,046		$	1,124		$	3,100		$	3,651
Interest and other income		—			7			44			217
		1,046			1,131			3,144			3,868
Expenses:
General and administrative		79			58			213			205
Amortization		—			—			—			35
Impairment – commercial mortgage residual interests valuation		—			—			—			758
Interest		—			—			—			200
		79			58			213			1,198
Income tax benefit		117			457			332			1,247
Earnings including noncontrolling interests		1,084			1,530			3,263			3,917
Earnings attributable to noncontrolling interests		(114	)		(188	)		(336	)		(507	)
Net earnings attributable to National Retail Properties, Inc.	$	970		$	1,342		$	2,927		$	3,410

Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 8-K filed on June 24, 2009.

9

NNN Retail Properties Fund I LLC

(dollars in thousands)

In September 2007, the company entered into a joint venture, NNN Retail Properties Fund I LLC, with an affiliate of Crow Holdings Realty Partners IV, L.P. The company owns a 15 percent equity interest, and the following summary represents the Balance Sheet and Income Statement Summary for the joint venture. The company’s investment in the joint venture is included in the company’s Balance Sheet Summary under “Investment in unconsolidated affiliate.”

	September 30, 2009		December 31, 2008
	(unaudited)
Assets:
Cash and cash equivalents	$	825	$	833
Receivables		200		202
Real estate		73,575		74,463
Other assets		884		1,135
	$	75,484	$	76,633
Liabilities:
Notes payable	$	43,600	$	43,600
Other liabilities		1,696		1,677
Total liabilities		45,296		45,277
Members’ equity		30,188		31,356
Total liabilities and equity	$	75,484	$	76,633

	Quarter Ended September 30,				Nine Months Ended September 30,
	2009		2008		2009		2008
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues:
Rental income	$	1,565	$	1,565	$	4,695	$	4,627
Expenses:
General and administrative		75		67		255		205
Real estate		5		5		15		14
Depreciation and amortization		386		362		1,127		1,077
Interest		461		528		1,390		1,647
		927		962		2,787		2,943
Net earnings	$	638	$	603	$	1,908	$	1,684

10

National Retail Properties, Inc.

Investment Portfolio

Top 20 Lines of Trade

		As of September 30,
	Line of Trade	2009 (1)		2008 (2)
1.	Convenience stores	26.3	%	25.5	%
2.	Restaurants - full service	9.0	%	8.8	%
3.	Theaters	6.3	%	6.2	%
4.	Automotive parts	6.3	%	4.8	%
5.	Automotive service	5.7	%	8.1	%
6.	Drug stores	4.1	%	4.0	%
7.	Books	4.1	%	4.0	%
8.	Restaurants - limited service	3.5	%	3.4	%
9.	Sporting goods	3.2	%	3.2	%
10.	Grocery	2.9	%	2.7	%
11.	Consumer electronics	2.7	%	3.7	%
12.	Office supplies	2.6	%	2.5	%
13.	Furniture	2.5	%	2.5	%
14.	Travel plazas	2.4	%	2.4	%
15.	Beer, wine and liquor	1.8	%	1.7	%
16.	Family entertainment centers	1.6	%	3.0	%
17.	Health and fitness	1.5	%	0.1	%
18.	General merchandise	1.3	%	1.6	%
19.	Auto dealerships	1.3	%	1.3	%
20.	Financial services	1.2	%	1.2	%
	Other	9.7	%	9.3	%
	Total	100.0	%	100.0	%

Top 10 States

	State	% of Total(1)			State	% of Total(1)
1.	Texas	20.1	%	6.	Indiana	4.4	%
2.	Florida	10.0	%	7.	Ohio	4.1	%
3.	Illinois	7.0	%	8.	Pennsylvania	3.9	%
4.	North Carolina	6.3	%	9.	Tennessee	3.0	%
5.	Georgia	5.6	%	10.	Arizona	2.8	%

⁽¹⁾ Based on annual base rent of $211,601,000, which is the annualized base rent for all leases in place as of September 30, 2009.

⁽²⁾ Based on annual base rent of $216,782,000, which is the annualized base rent for all leases in place as of September 30, 2008.

11

National Retail Properties, Inc.

Investment Portfolio

Top Tenants

	Properties	% Base Rent(1)
Pantry	96	9.1%
Susser	86	8.7%
Kerasotes Theatres	16	6.3%
Road Ranger	34	4.0%
Mister Car Wash	40	3.7%
Pull-A-Part	20	3.5%
Pep Boys	14	2.8%
Best Buy	7	2.6%
Barnes & Noble	9	2.5%
Logans Roadhouse	17	2.3%
CVS	16	2.0%
OfficeMax	12	2.0%

Lease Expirations

	% of Total(1)		# of Properties	Gross Leasable Area(2)		% of Total(1)		# of Properties	Gross Leasable Area(2)
2009	0.3	%	8	154,000	2015	3.0	%	20	518,000
2010	2.3	%	33	314,000	2016	1.7	%	13	240,000
2011	2.1	%	21	391,000	2017	4.0	%	25	674,000
2012	3.4	%	34	482,000	2018	2.9	%	23	343,000
2013	4.7	%	39	848,000	2019	4.2	%	41	628,000
2014	5.6	%	43	671,000	Thereafter	65.8	%	655	5,317,000

⁽¹⁾ Based on annual base rent of $211,601,000, which is the annualized base rent for all leases in place as of September 30, 2009.

⁽²⁾ Square feet.

12