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ORLANDO, Fla., May 1 /PRNewswire-FirstCall/ — National Retail Properties, Inc. , a real estate investment trust, today announced operating results for the quarter ended March 31, 2008, including a 37.5ACIORFIPROCENTE increase in revenues and a 4.1ACIORFIPROCENTE increase in Funds From Operations (”FFO”) per share compared to the same period for 2007. Highlights include: Operating Results: —————— * Revenues and net earnings and FFO available to common stockholders: Quarter Ended March 31, 2008 2007 ——– ——– (in thousands, except per share data) Revenues $ 55,200 $ 40,134 Net earnings available to common stockholders $ 31,357 $ 25,008 Net earnings per common share (diluted) $ 0.43 $ 0.41 FFO available to common stockholders $ 36,974 $ 29,610 FFO per common share (diluted) $ 0.51 $ 0.49 * Investment Portfolio occupancy was 97.9ACIORFIPROCENTE at March 31, 2008. Investments and Dispositions for the quarter ended March 31, 2008: —————————————————————— * Investments: — $150.6 million in the Investment Portfolio, including acquiring 27 properties with an aggregate 390,000 square feet of gross leasable area — $22.8 million in the Inventory Portfolio, including acquiring 5 properties and funding $1.2 million of development * Dispositions: — 4 Investment properties with an aggregate 38,000 square feet of gross leasable area, with net proceeds of $10.3 million, resulting in a gain of $3.9 million — 8 Inventory properties with net proceeds of $71.8 million Capital transactions for the quarter ended March 31, 2008: ———————————————————- * Issued 269,678 shares of common stock generating $5.9 million of net proceeds pursuant to the Dividend Reinvestment and Stock Purchase Plan * Issued $234 million of 5.125ACIORFIPROCENTE convertible senior notes due in 2028 (with 2013 put option) * Repayment in full of $100 million of 7.125ACIORFIPROCENTE notes due March 2008 * Repayment in full of $12 million of 10.0ACIORFIPROCENTE OAMI secured note payable due 2008National Retail also announced increased 2008 FFO guidance of $1.97 to $2.02 per share, which represents a 5ACIORFIPROCENTE to 8ACIORFIPROCENTE increase over 2007 results. This equates to earnings before any gains or losses from the sale of investment properties of $1.54 to $1.59 per share plus $0.43 per share of expected real estate related depreciation and amortization. This guidance is based on current plans and assumptions and 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, “This is a great start to what we see as another record year for NNN. Our portfolio and balance sheet are in good shape and the competitive environment for acquisitions is notably better than in recent years.”National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of March 31, 2008, the company owned 931 Investment properties in 44 states with a gross leasable area of approximately 11 million square feet. For more information on the company, visit .Management will hold a conference call on May 1 at 2:00 p.m. EDT to review these results. The call can be accessed on National Retail’s web site live at . 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 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.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 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. National Retail Properties, Inc. (in thousands, except per share data) (unaudited) Income Statement Summary Quarter Ended March 31, 2008 2007 ———— ———– Revenues: Rental and earned income $ 51,031 $ 36,438 Real estate expense reimbursement from tenants 1,578 1,251 Interest and other income from real estate transactions 1,235 1,201 Interest income on commercial mortgage residual interests 1,356 1,244 ———— ———– 55,200 40,134 ———— ———– Disposition of real estate, Inventory Portfolio: Gross proceeds 4,900 825 Costs (4,879) (493) ———— ———– Gain 21 332 ———— ———– Operating expenses: General and administrative 7,560 6,321 Real estate 2,439 1,845 Depreciation and amortization 10,157 6,795 Impairment - commercial mortgage residual interests valuation 758 - ———— ———– 20,914 14,961 ———— ———– Other expenses (revenues): Interest and other income (1,221) (1,303) Interest expense 15,366 11,101 Loss on interest rate hedge 804 - ———— ———– 14,949 9,798 ———— ———– Income tax benefit 2,652 2,793 Minority interest 1,016 189 Equity in earnings of unconsolidated affiliates 79 - ———— ———– Earnings from continuing operations 23,105 18,689 Earnings from discontinued operations: Real estate, Investment Portfolio 4,999 4,257 Real estate, Inventory Portfolio, net of income tax expense and minority interest 4,949 3,758 ———— ———– 9,948 8,015 ———— ———– Net earnings 33,053 26,704 Series C Preferred Stock dividends (1,696) (1,696) ———— ———– Net earnings available to common stockholders - basic and diluted $ 31,357 $ 25,008 ============ =========== National Retail Properties, Inc. (in thousands, except per share data) (unaudited) Quarter Ended March 31, 2008 2007 ———— ———– Weighted average common shares outstanding: Basic 72,315 60,333 ============ =========== Diluted 72,447 60,472 ============ =========== Net earnings per share available to common stockholders: Basic: Continuing operations $ 0.29 $ 0.28 Discontinued operations 0.14 0.13 ———— ———– Net earnings $ 0.43 $ 0.41 ============ =========== Diluted: Continuing operations $ 0.29 $ 0.28 Discontinued operations 0.14 0.13 ———— ———– Net earnings $ 0.43 $ 0.41 ============ =========== Supplemental Information: Percentage rent $ 58 $ 458 ============ =========== Earned income from direct financing leases $ 886 $ 1,822 Decrease in real estate classified as direct financing leases (1,199) (2,462) ———— ———– Net direct financing lease adjustment (313) (640) Accrued rental income (straight-line) 579 691 ———— ———– Net lease accounting adjustments $ 266 $ 51 ============ =========== Net Inventory Portfolio gain on disposition (TRS) $ 5,633 $ 4,669 ============ =========== Capitalized interest $ 531 $ 618 ============ =========== Scheduled debt principal amortization (excluding maturities) $ 291 $ 450 ============ =========== National Retail Properties, Inc. (in thousands, except per share data) (unaudited) Quarter Ended March 31, 2008 2007 ———– ———- Reconciliation of net earnings to FFO and FFO available to common stockholders: Net earnings $ 33,053 $ 26,704 Real estate depreciation and amortization: Continuing operations 9,426 6,212 Discontinued operations 25 153 Joint venture real estate depreciation 43 - Gain on disposition of real estate Investment Portfolio (3,877) (1,763) ———– ———- FFO 38,670 31,306 Series C Preferred Stock dividends (1,696) (1,696) ———– ———- FFO available to common stockholders - basic and diluted $ 36,974 $ 29,610 =========== ========== FFO per share: Basic $ 0.51 $ 0.49 =========== ========== Diluted $ 0.51 $ 0.49 =========== ========== Quarter Ended March 31, 2008 2007 —————— ——————- # of # of Real Estate Disposition Summary Properties Gain Properties Gain ——————————- ———- ——- ———- ——- Reconciliation of gain on disposition between continuing and discontinued operations: Continuing operations 1 $ 21 1 $ 332 Discontinued operations: Investment Portfolio 4 3,877 5 1,763 Inventory Portfolio 7 9,128 22 4,337 Minority interest, Inventory Portfolio - (3,516) - - ———- ——- ———- ——- 12 $ 9,510 28 $ 6,432 ========== ======= ========== ======= Reconciliation of gain on disposition by type: Inventory Portfolio: Development 4 $ 8,284 5 $ 1,796 Exchange 4 865 18 2,873 Minority interest, Development - (3,516 ) - - ———- ——- ———- ——- Total Inventory gain (TRS) 8 5,633 23 4,669 Investment Portfolio 4 3,877 5 1,763 ———- ——- ———- ——- 12 $ 9,510 28 $ 6,432 ========== ======= ========== ======= National Retail Properties, Inc. (in thousands) (unaudited) Earnings from Discontinued Operations: ————————————– In accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (”SFAS No. 144″), the company has classified its investment assets sold and leasehold interests expired subsequent to December 31, 2001, the effective date of SFAS No. 144, as discontinued operations. In addition, the company has classified any investment asset or revenue generating inventory asset that was held for sale at March 31, 2008, as discontinued operations. The following is a summary of earnings from discontinued operations. Quarter Ended March 31, 2008 2007 ———– ———– Earnings from Discontinued Operations - Investment Portfolio: ————————————— Revenues: Rental and earned income $ 290 $ 2,671 Real estate expense reimbursement from tenants 7 93 Interest and other income from real estate transactions 534 124 ———– ———– 831 2,888 ———– ———– Expenses: General and administrative (79) - Real estate (250) 148 Depreciation and amortization 24 153 Impairment - real estate 14 95 Interest - (2) ———– ———– (291) 394 ———– ———– Gain on disposition of real estate 3,877 1,763 ———– ———– Earnings from discontinued operations $ 4,999 $ 4,257 =========== =========== Earnings from Discontinued Operations - Inventory Portfolio: ————————————— Revenues: Rental income $ 3,360 $ 2,850 Real estate expense reimbursement from tenants 328 297 Interest and other income from real estate transactions 454 6 ———– ———– 4,142 3,153 ———– ———– Disposition of real estate: Gross proceeds 69,187 59,652 Costs (60,059) (55,315) ———– ———– Gain 9,128 4,337 ———– ———– Expenses: General and administrative 25 8 Real estate 546 431 Depreciation and amortization 44 20 Interest 998 816 ———– ———– 1,613 1,275 ———– ———– Income tax expense (3,028) (2,299) Minority interest (3,680) (158) ———– ———– Earnings from discontinued operations $ 4,949 $ 3,758 =========== =========== National Retail Properties, Inc. (in thousands) March 31, December 31, Balance Sheet Summary 2008 2007 ———— ———— (unaudited) (Note 1) Assets: Cash and cash equivalents $ 11,838 $ 27,499 Receivables, net of allowance 7,212 3,818 Investment in unconsolidated affiliate 4,958 4,139 Mortgages, notes and accrued interest receivable, net of allowance 113,891 73,162 Real estate, Investment Portfolio: Accounted for using the operating method, net of accumulated depreciation and amortization 2,195,701 2,055,846 Accounted for using the direct financing method 33,038 37,497 Real estate, Inventory Portfolio, held for sale 205,384 248,611 Commercial mortgage residual interests 22,617 24,340 Accrued rental income, net of allowance 24,855 24,652 Other assets 43,266 40,041 ———— ———— Total assets $ 2,662,760 $ 2,539,605 ============ ============ Liabilities: Line of credit payable $ 123,500 $ 129,800 Mortgages payable 27,189 27,480 Note payable - secured - 12,000 Notes payable - convertible 406,535 172,500 Notes payable, net of unamortized discount 618,340 718,290 Income tax liability 1,115 1,671 Other liabilities 60,045 68,245 ———— ———— Total liabilities 1,236,724 1,129,986 Minority interest 5,241 2,334 Stockholders’ equity 1,420,795 1,407,285 ———— ———— Total liabilities and equity $ 2,662,760 $ 2,539,605 ============ ============ Common shares outstanding 73,031 72,528 ============ ============ Gross leasable area, Investment Portfolio (square feet) 10,962 10,610 ============ ============ Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 10-K, as amenended. 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 $24 million since May 2005. The following summary represents the balances related to OAMI included in the company’s Balance Sheet and Income Statement Summary: March 31, December 31, 2008 2007 ————- ————- (unaudited) (Note 1) Assets: Cash and cash equivalents $ 533 $ 15,541 Receivables and other assets 29 1,417 Commercial mortgage residual interests 22,617 24,340 ————- ————- $ 23,179 $ 41,298 ============= ============= Liabilities: Notes payable - secured $ - $ 12,000 Income tax liability 6,353 6,768 Other liabilities 65 145 ————- ————- $ 6,418 $ 18,913 ============= ============= Minority interest $ 757 $ 1,895 ============= ============= Quarter Ended March 31, 2008 2007 ————- ————- (unaudited) (unaudited) Revenues: Interest income on commercial mortgage residual interests $ 1,356 $ 1,244 Interest and other income 191 702 ————- ————- 1,547 1,946 Expenses: General and administrative 78 125 Amortization 35 63 Impairment - commercial mortgage residual interests valuation 758 - Interest 200 613 ————- ————- 1,071 801 ————- ————- Income tax benefit 407 768 Minority interest (139) (282) ————- ————- Net earnings $ 744 $ 1,631 ============= ============= Note 1: Amounts are derived from audited consolidated financial statements included in the company’s Form 10-K, as amenended. 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 affiliates.” March 31, December 31, 2008 2007 ———– ———– (unaudited) Assets: Cash and cash equivalents $ 131 $ 30 Receivables 14 - Real estate 75,337 65,413 Other assets 1,239 921 ———– ———- $ 76,721 $ 66,364 =========== ========== Liabilities: Notes payable $ 43,600 $ 38,600 Other liabilities 65 180 ———– ———- Total liabilities 43,665 38,780 ———– ———- Members’ equity 33,056 27,584 ———– ———- Total liabilities and equity $ 76,721 $ 66,364 =========== ========== Quarter Ended March 31, 2008 (unaudited) Revenues: Rental income $ 1,497 ———– 1,497 Expenses: General and administrative 71 Real estate 5 Depreciation and amortization 353 Interest 597 ———– 1,026 Net earnings $ 471 =========== National Retail Properties, Inc. Investment Portfolio Top 20 Lines of Trade ——————— March 31, Line of Trade 2008(1) 2007(2) ———————————- ———- ——— 1. Convenience stores 23.0 ACIORFIPROCENTE 18.1 ACIORFIPROCENTE 2. Restaurants - full service 9.6 ACIORFIPROCENTE 12.1 ACIORFIPROCENTE 3. Automotive service 8.1 ACIORFIPROCENTE 0.2 ACIORFIPROCENTE 4. Theaters 6.4 ACIORFIPROCENTE - 5. Automotive parts 4.7 ACIORFIPROCENTE 1.5 ACIORFIPROCENTE 6. Drug stores 4.3 ACIORFIPROCENTE 8.0 ACIORFIPROCENTE 7. Books 4.1 ACIORFIPROCENTE 5.5 ACIORFIPROCENTE 8. Consumer electronics 4.1 ACIORFIPROCENTE 5.8 ACIORFIPROCENTE 9. Sporting goods 3.7 ACIORFIPROCENTE 7.1 ACIORFIPROCENTE 10. Restaurants - limited service 3.4 ACIORFIPROCENTE 4.8 ACIORFIPROCENTE 11. Travel plazas 2.9 ACIORFIPROCENTE 3.7 ACIORFIPROCENTE 12. Grocery 2.8 ACIORFIPROCENTE 5.5 ACIORFIPROCENTE 13. Furniture 2.8 ACIORFIPROCENTE 4.1 ACIORFIPROCENTE 14. Office supplies 2.6 ACIORFIPROCENTE 3.7 ACIORFIPROCENTE 15. Family entertainment centers 2.0 ACIORFIPROCENTE - 16. Auto dealerships 2.0 ACIORFIPROCENTE 2.0 ACIORFIPROCENTE 17. Beer, wine and liquor 2.0 ACIORFIPROCENTE 2.1 ACIORFIPROCENTE 18. General merchandise 1.6 ACIORFIPROCENTE 2.6 ACIORFIPROCENTE 19. Home furnishings 1.4 ACIORFIPROCENTE 1.8 ACIORFIPROCENTE 20. Craft, fabric and novelty 1.4 ACIORFIPROCENTE 1.8 ACIORFIPROCENTE Other 7.1 ACIORFIPROCENTE 9.6 ACIORFIPROCENTE ———- ——— Total 100.0 ACIORFIPROCENTE 100.0 ACIORFIPROCENTE ========== ========= Top 10 States ————- State ACIORFIPROCENTE of State ACIORFIPROCENTE of Total(1) Total(1) ————————- ————————- 1. Texas 19.2 ACIORFIPROCENTE 6. Georgia 4.7 ACIORFIPROCENTE 2. Florida 10.8 ACIORFIPROCENTE 7. Pennsylvania 4.5 ACIORFIPROCENTE 3. Illinois 7.1 ACIORFIPROCENTE 8. Indiana 4.3 ACIORFIPROCENTE 4. North Carolina 6.3 ACIORFIPROCENTE 9. Colorado 3.2 ACIORFIPROCENTE 5. California 5.3 ACIORFIPROCENTE 10. Ohio 3.2 ACIORFIPROCENTE Lease Expirations —————– Gross Gross ACIORFIPROCENTE of # of Leasable ACIORFIPROCENTE of # of Leasable Total(1) Properties Area(3) Total(1) Properties Area(3) ——- ——- ——- ——- ——- ——- 2008 0.5ACIORFIPROCENTE 11 182,000 2014 4.5ACIORFIPROCENTE 31 510,000 2009 1.5ACIORFIPROCENTE 23 427,000 2015 2.7ACIORFIPROCENTE 20 469,000 2010 2.9ACIORFIPROCENTE 38 401,000 2016 1.9ACIORFIPROCENTE 14 240,000 2011 2.1ACIORFIPROCENTE 21 336,000 2017 4.7ACIORFIPROCENTE 26 663,000 2012 3.7ACIORFIPROCENTE 33 549,000 2018 4.0ACIORFIPROCENTE 32 500,000 2013 4.2ACIORFIPROCENTE 34 753,000 Thereafter 67.3ACIORFIPROCENTE 628 5,622,000 (1) Based on annual base rent of $209,409,000, which is the annualized base rent for all leases in place as of March 31, 2008. (2) Based on annual base rent of $154,809,000, which is the annualized base rent for all leases in place as of March 31, 2007. (3) Square feet.National Retail Properties, Inc.

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