National Retail Properties (NNN) 8-K Third Quarter 2010 Operating Results

Exhibit 99.1

NEWS RELEASE For information contact: Kevin B. Habicht Chief Financial Officer
(407) 265-7348	FOR IMMEDIATE RELEASE November 4, 2010

THIRD QUARTER 2010 OPERATING RESULTS

ANNOUNCED BY NATIONAL RETAIL PROPERTIES, INC.

Orlando, Florida, November 4, 2010– National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and nine months ended September 30, 2010. Highlights include:

Operating Results:

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

	Quarter Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
	(in thousands, except per share data)
Revenues	$	56,656	$	57,121	$	169,676	$	173,385
Net earnings available to common stockholders	$	19,514	$	20,747	$	53,693	$	62,247
Net earnings per common share (diluted)	$	0.23	$	0.26	$	0.65	$	0.78
FFO available to common stockholders	$	29,634	$	31,401	$	84,337	$	93,035
FFO per common share (diluted)	$	0.36	$	0.39	$	1.02	$	1.17
AFFO available to common stockholders	$	32,597	$	33,322	$	96,870	$	106,829
AFFO per common share (diluted)	$	0.39	$	0.41	$	1.17	$	1.35

• NNN paid cash dividends to its common stockholders of $0.38 per share during the quarter and $1.13 for the nine months ended September 30, 2010.

• Investment Portfolio occupancy was 97.1% at September 30, 2010, as compared to 96.4% at December 31, 2009, and 96.3% at September 30, 2009.

Investments and Dispositions for the quarter ended September 30, 2010:

• Investments:

• $88.8 million in the Investment Portfolio, including acquiring 25 properties with an aggregate 351,000 square feet of gross leasable area

• Dispositions:

• Two Investment properties with an aggregate 9,000 square feet of gross leasable area, with net proceeds of $1.4 million, resulting in a gain of $635,000

450 S. Orange Ave., Suite 900 | Orlando, FL 32801
(800) NNN-REIT | www.nnnreit.com

Investments and Dispositions for the nine months ended September 30, 2010:

• Investments:

• $127.4 million in the Investment Portfolio, including acquiring 35 properties with an aggregate 449,000 square feet of gross leasable area

• Dispositions:

• 13 Investment properties with an aggregate 80,000 square feet of gross leasable area, with net proceeds of $12.8 million, resulting in a gain of $1.0 million

• Four Inventory properties with net proceeds of $42.8 million

Capital transactions for the quarter ended September 30, 2010:

• Issued 102,634 shares of common stock generating $2,389,000 of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan

National Retail Properties announced 2011 FFO guidance of $1.47 to $1.52 per share and estimated 2011 AFFO to be $1.62 to $1.67 per share. The guidance equates to net earnings before any impairment expense or any gains or losses from the sale of real estate of $0.95 to $0.99 per share plus $0.52 per share of expected real estate related depreciation and amortization. The guidance is based on current plans, assumptions, and estimates and is 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: “With our 2010 acquisition plan now bearing fruit, coupled with the continuing strength of our balance sheet and 97% leased portfolio, we are well positioned for growing per share results in 2011.”

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2010, the company owned 1,037 Investment Properties in 43 states with a gross leasable area of approximately 11.7 million square feet. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on November 4, 2010, at 10:30 a.m. ET to review these results. The call can be accessed on the National Retail Properties 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 preliminary and not final and there can be no assurance that the results will not vary from the final information for the quarter ended September 30, 2010. 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 real estate held for investment, and the company’s share of these items from the company’s unconsolidated partnerships.

2

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.

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 calculation used by other equity REITs and therefore may not be comparable to such other REITs. A reconciliation of net earnings to AFFO is included in this release.

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,
	2010			2009			2010			2009
Income Statement Summary
Revenues:
Rental and earned income	$	53,576		$	53,092		$	159,391		$	160,442
Real estate expense reimbursement from tenants		1,682			1,881			5,052			6,283
Interest and other income from real estate transactions		600			1,102			2,528			3,560
Interest income on commercial mortgage residual interests		798			1,046			2,705			3,100
		56,656			57,121			169,676			173,385
Disposition of real estate, Inventory Portfolio:
Gross proceeds		—			353			5,600			353
Costs		—			(317	)		(4,959	)		(317	)
Gain		—			36			641			36
Retail operations:
Revenues		9,225			7,317			24,458			7,317
Operating expenses		(8,579	)		(7,550	)		(23,513	)		(7,575	)
Net		646			(233	)		945			(258	)
Operating expenses:
General and administrative		5,927			4,937			17,313			16,028
Real estate		2,985			3,398			9,630			9,925
Depreciation and amortization		11,897			11,247			35,662			34,071
Impairment - real state		—			—			—			1,064
Impairment - commercial mortgage residual interests valuation adjustment		—			—			3,848			—
Restructuring charges		—			—			—			731
		20,809			19,582			66,453			61,819
Other expenses (revenues):
Interest and other income		(332	)		(262	)		(1,170	)		(1,025	)
Interest expense		16,501			15,558			48,524			46,424
		16,169			15,296			47,354			45,399
Income tax (expense) benefit		(170	)		281			(497	)		1,184
Equity in earnings of unconsolidated affiliate		107			105			320			315
Gain (loss) on note receivable and property foreclosure		—			—			67			(7,816	)
Gain on extinguishment of debt		—			—			—			3,432
Earnings from continuing operations		20,261			22,432			57,345			63,060
Earnings (loss) from discontinued operations:
Real estate, Investment Portfolio, net of income tax expense		938			(34	)		1,542			4,359
Real estate, Inventory Portfolio, net of income tax expense		(5	)		398			256			416
		933			364			1,798			4,775
Earnings including noncontrolling interests		21,194			22,796			59,143			67,835
Loss (earnings) attributable to noncontrolling interests:
Continuing operations		(17	)		53			(363	)		(444	)
Discontinued operations		33			(406	)		2			(55	)
		16			(353	)		(361	)		(499	)
Net earnings attributable to NNN		21,210			22,443			58,782			67,336
Series C preferred stock dividends		(1,696	)		(1,696	)		(5,089	)		(5,089	)
Net earnings available to common stockholders	$	19,514		$	20,747		$	53,693		$	62,247

4

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

	Quarter Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Weighted average common shares outstanding:
Basic		82,779		80,344		82,639		79,232
Diluted		82,915		80,455		82,770		79,335
Net earnings per share available to common stockholders:
Basic:
Continuing operations	$	0.22	$	0.26	$	0.63	$	0.72
Discontinued operations		0.01		0.00		0.02		0.06
Net earnings	$	0.23	$	0.26	$	0.65	$	0.78
Diluted:
Continuing operations	$	0.22	$	0.26	$	0.63	$	0.72
Discontinued operations		0.01		0.00		0.02		0.06
Net earnings	$	0.23	$	0.26	$	0.65	$	0.78

5

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Funds From Operations (FFO) Reconciliation:
Net earnings available to common stockholders	$	19,514		$	20,747		$	53,693		$	62,247
Real estate depreciation and amortization:
Continuing operations		10,692			10,507			31,977			31,589
Discontinued operations		19			125			125			1,279
Joint venture real estate depreciation		44			44			133			133
Gain on disposition of real estate - Investment Portfolio		(635	)		—			(1,013	)		(1,633	)
Gain on disposition of real estate - Inventory Portfolio (TRS)		—			(22	)		(578	)		(580	)
Total FFO adjustments		10,120			10,654			30,644			30,788
FFO available to common stockholders	$	29,634		$	31,401		$	84,337		$	93,035
FFO per share:
Basic	$	0.36		$	0.39		$	1.02		$	1.17
Diluted	$	0.36		$	0.39		$	1.02		$	1.17
Adjusted Funds From Operations (AFFO) Reconciliation:
Net earnings available to common stockholders	$	19,514		$	20,747		$	53,693		$	62,247
Total FFO adjustments		10,120			10,654			30,644			30,788
FFO available to common stockholders		29,634			31,401			84,337			93,035
Straight-line accrued rent		(169	)		(640	)		(359	)		(1,528	)
Net capital lease rent adjustment		391			350			1,144			1,018
Below market rent amortization		(85	)		(93	)		(277	)		(981	)
Stock based compensation expense		1,450			1,016			4,026			3,152
Capitalized interest expense		(175	)		(163	)		(359	)		(1,080	)
Convertible debt interest expense		1,551			1,451			4,577			4,333
Impairment - property and intangible		—			—			—			1,064
Impairment - commercial mortgage residual interests valuation adjustment		—			—			3,848			—
(Gain) loss on note receivable and property foreclosures		—			—			(67	)		7,816
Total AFFO adjustments		2,963			1,921			12,533			13,794
AFFO available to common stockholders	$	32,597		$	33,322		$	96,870		$	106,829
AFFO per share:
Basic	$	0.39		$	0.41		$	1.17		$	1.35
Diluted	$	0.39		$	0.41		$	1.17		$	1.35
Other Information:
Percentage rent	$	197		$	317		$	381		$	583
Amortization of debt costs	$	1,157		$	668		$	3,436		$	2,256
Scheduled debt principal amortization (excluding maturities)	$	255		$	249		$	788		$	742
Non-real estate depreciation expense	$	54		$	74		$	266		$	227

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 or revenue generating inventory asset that was held for sale at September 30, 2010, as discontinued operations. The following is a summary of earnings from discontinued operations.

	Quarter Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Earnings from Discontinued Operations—Investment Portfolio:
Revenues:
Rental and earned income	$	440		$	281		$	840		$	4,476
Real estate expense reimbursement from tenants		4			3			16			120
Interest and other income from real estate transactions		—			—			19			1
Interest and other income from non-real estate		—			3			—			5
		444			287			875			4,602
Expenses:
General and administrative		15			—			7			3
Real estate		107			198			200			594
Depreciation and amortization		19			125			125			1,279
		141			323			332			1,876
Gain on disposition of real estate		635			—			1,013			1,633
Income tax benefit (expense)		—			2			(14	)		—
Earnings (loss) from discontinued operations attributable to NNN	$	938		$	(34	)	$	1,542		$	4,359
Earnings from Discontinued Operations—Inventory Portfolio:
Revenues:
Rental income	$	500		$	1,524		$	2,868		$	3,756
Real estate expense reimbursement from tenants		113			191			1,254			1,307
Interest and other income from real estate transactions		13			47			509			104
Interest and other income from non-real estate		—			—			2			—
		626			1,762			4,633			5,167
Disposition of real estate:
Gross proceeds		—			—			37,470			5,402
Costs		—			—			(37,170	)		(4,844	)
Gain		—			—			300			558
Expenses:
General and administrative		10			21			66			86
Real estate		197			307			1,618			1,938
Depreciation and amortization		22			61			137			259
Interest		385			980			2,271			2,805
		614			1,369			4,092			5,088
Income tax (expense) benefit		(17	)		5			(585	)		(221	)
Earnings (loss) from discontinued operations including noncontrolling interests		(5	)		398			256			416
Loss (earnings) attributable to noncontrolling interests		33			(406	)		2			(55	)
Earnings (loss) from discontinued operations attributable to NNN	$	28		$	(8	)	$	258		$	361

7

National Retail Properties, Inc.

(in thousands)

(unaudited)

	Quarter Ended September 30,									Nine Months Ended September 30,
	2010				2009					2010					2009
	# of Properties		Gain		# of Properties		Gain			# of Properties		Gain			# of Properties		Gain
Real Estate Disposition Summary
Reconciliation of gain on disposition between continuing and discontinued operations:
Continuing operations		—	$	—		1	$	36			2	$	641			1	$	36
Discontinued operations:
Investment Portfolio		2		635		—		—			13		1,013			6		1,633
Inventory Portfolio		—		—		—		—			2		300			2		558
Noncontrolling interest, Inventory Portfolio		—		—		—		(14	)		—		(363	)		—		(14	)
		2	$	635		1	$	22			17	$	1,591			9	$	2,213
Reconciliation of gain on disposition by type:
Inventory Portfolio:
Development		—	$	—		1	$	36			4	$	941			2	$	582
Exchange		—		—		—		—			—		—			1		12
Noncontrolling interest, Development		—		—		—		(14	)		—		(363	)		—		(14	)
Total Inventory gain (TRS)		—		—		1		22			4		578			3		580
Investment Portfolio		2		635		—		—			13		1,013			6		1,633
		2	$	635		1	$	22			17	$	1,591			9	$	2,213

8

National Retail Properties, Inc.

(in thousands)

(unaudited)

	September 30, 2010		December 31, 2009
Balance Sheet Summary
Assets:
Cash and cash equivalents	$	4,009	$	15,225
Receivables, net of allowance		1,049		1,946
Investment in unconsolidated affiliate		4,553		4,703
Mortgages, notes and accrued interest receivable		38,583		41,976
Real estate, Investment Portfolio:
Accounted for using the operating method, net of accumulated depreciation and amortization		2,406,985		2,328,576
Accounted for using the direct financing method		30,173		31,317
Real estate, Inventory Portfolio, held for sale		31,995		72,423
Commercial mortgage residual interests		15,278		20,153
Accrued rental income, net of allowance		25,870		25,745
Other assets		51,260		48,898
Total assets	$	2,609,755	$	2,590,962
Liabilities:
Line of credit payable	$	37,100	$	—
Mortgages payable		24,532		25,290
Notes payable—convertible		347,957		343,380
Notes payable, net of unamortized discount		598,833		618,676
Other liabilities		58,607		36,754
Total liabilities		1,067,029		1,024,100
Stockholders’ equity of NNN		1,541,446		1,564,240
Noncontrolling interests		1,280		2,622
Total equity		1,542,726		1,566,862
Total liabilities and equity	$	2,609,755	$	2,590,962
Common shares outstanding		83,481		82,428
Gross leasable area, Investment Portfolio (square feet)		11,741		11,373

9

NNN Retail Properties Fund I LLC

(in thousands)

(unaudited)

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, 2010		December 31, 2009
Assets:
Cash and cash equivalents	$	976	$	829
Receivables		200		200
Real estate		72,391		73,279
Other assets		608		838
	$	74,175	$	75,146
Liabilities:
Notes payable	$	43,600	$	43,600
Other liabilities		1,317		1,427
Total liabilities		44,917		45,027
Members’ equity		29,258		30,119
Total liabilities and equity	$	74,175	$	75,146

	Quarter Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Revenues:
Rental income	$	1,565	$	1,565	$	4,695	$	4,695
Expenses:
General and administrative		73		75		257		255
Real estate		5		5		14		15
Depreciation and amortization		369		386		1,106		1,127
Interest		471		461		1,375		1,390
		918		927		2,752		2,787
Net earnings	$	647	$	638	$	1,943	$	1,908

10

National Retail Properties, Inc.

Investment Portfolio

Top 20 Lines of Trade

		As of September 30,
	Line of Trade	2010 (1)			2009 (2)
1.	Convenience stores		25.3	%		26.3	%
2.	Restaurants - full service		9.8	%		9.0	%
3.	Automotive parts		6.6	%		6.3	%
4.	Theaters		6.0	%		6.3	%
5.	Automotive service		5.4	%		5.7	%
6.	Drug stores		4.2	%		4.1	%
7.	Sporting goods		4.1	%		3.2	%
8.	Books		3.9	%		4.1	%
9.	Restaurants - limited service		3.1	%		3.5	%
10.	Grocery		2.8	%		2.9	%
11.	Furniture		2.6	%		2.5	%
12.	Consumer electronics		2.6	%		2.7	%
13.	Office supplies		2.4	%		2.6	%
14.	Travel plazas		2.4	%		2.4	%
15.	Health and fitness		1.8	%		1.5	%
16.	Beer, wine and liquor		1.3	%		1.8	%
17.	Family entertainment centers		1.3	%		1.6	%
18.	Equipment rental		1.3	%		1.2	%
19.	General merchandise		1.3	%		1.3	%
20.	Auto dealerships		1.3	%		1.3	%
	Other		10.5	%		9.7	%
	Total		100.0	%		100.0	%

Top 10 States

	State	% of  Total(1)				State	% of  Total(1)
1.	Texas		19.0	%	6.	Indiana		4.5	%
2.	Florida		9.6	%	7.	Ohio		4.1	%
3.	Illinois		7.0	%	8.	Pennsylvania		4.0	%
4.	North Carolina		6.0	%	9.	Tennessee		2.9	%
5.	Georgia		5.2	%	10.	Missouri		2.9	%

⁽¹⁾ Based on the annualized base rent for all leases in place as of September 30, 2010.

⁽²⁾ Based on the annualized base rent for all leases in place as of September 30, 2009.

11

National Retail Properties, Inc.

Investment Portfolio

Top Tenants

	Properties		% of  Total(1)
Pantry		96		8.6	%
Susser		86		8.4	%
AMC Theatre		15		5.7	%
Road Ranger		34		3.7	%
Mister Car Wash		40		3.5	%
Pull-A-Part		20		3.4	%
Pep Boys		17		3.1	%
Best Buy		7		2.5	%
Barnes & Noble		9		2.4	%
Logans Roadhouse		17		2.2	%
CVS		16		1.9	%

Lease Expirations

	% of Total(1)			# of Properties		Gross Leasable Area(2)			% of Total(1)			# of Properties		Gross Leasable Area(2)
2010		0.4	%		6		115,000	2016		2.0	%		16		352,000
2011		1.7	%		21		306,000	2017		4.1	%		28		682,000
2012		3.1	%		34		503,000	2018		2.7	%		24		345,000
2013		4.5	%		39		824,000	2019		4.1	%		41		618,000
2014		4.7	%		43		612,000	2020		3.7	%		52		418,000
2015		4.2	%		36		718,000	Thereafter		64.8	%		656		5,541,000

⁽¹⁾ Based on the annual base rent of $224,458,000, which is the annualized base rent for all leases in place as of September 30, 2010.

⁽²⁾ Square feet.

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