PR Newswire | Aug 3, 2021 08:31AM EDT

National Retail Properties, Inc.

08/03 07:30 CDT

Second Quarter 2021 Operating Results And Increased 2021 Guidance Announced By National Retail Properties, Inc. ORLANDO, Fla., Aug. 3, 2021

ORLANDO, Fla., Aug. 3, 2021 /PRNewswire/ -- National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced its operating results for the quarter and six months ended June 30, 2021. Highlights include:

Operating Results:

* Revenues and net earnings, FFO, Core FFO and AFFO available to common stockholders and diluted per share amounts:

Quarter Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

(in thousands, except per share data)

Revenues $179,011 $163,701 $358,789 $338,764



Net earnings available to $68,538 $41,780 $120,640 $102,473 common stockholders

Net earnings per $0.39 $0.24 $0.69 $0.60 common share



FFO available to common $122,862 $111,738 $222,683 $214,247 stockholders

FFO per common $0.70 $0.65 $1.27 $1.25 share



Core FFO available to $122,862 $111,738 $244,011 $230,926 common stockholders

Core FFO per $0.70 $0.65 $1.40 $1.35 common share



AFFO available to ^ ^ ^ ^ common $134,375(1)$83,240 (2)$267,908(1)$204,990(2)stockholders

AFFO per common $0.77 ^ $0.49 ^ $1.53 ^ $1.20 ^ share (1) (2) (1) (2)



^(1) Amounts include $8,323 and $17,706 of net straight-line accrued rent from rent deferral repayments from the COVID-19 rent deferral lease amendments for the quarter and six months ended June 30, 2021, respectively. Excluding such, AFFO per common share would have been $0.72 and $1.43 for thequarter and six months ended June 30, 2021, respectively.

^(2) Amounts exclude $30,223 of net straight-line accrued rent from rent deferral repayments from the COVID-19 rent deferral lease amendments. Including such, AFFO per common share would have been $0.66 and $1.37 for thequarter and six months ended June 30, 2020, respectively.

Second Quarter 2021 Highlights:

* As of July 28, 2021, NNN had collected approximately 99% of rent originally due for the quarter ended June 30, 2021, and approximately 99% of rent originally due in July 2021 * Maintained high occupancy levels at 98.3%, with a weighted average remaining lease term of 10.6 years, at June 30, 2021 as compared to 98.3% at March 31, 2021 and 98.5% at December 31, 2020 * Invested $102.9 million in property investments, including the acquisition of 29 properties with an aggregate 173,000 square feet of gross leasable area at an initial cash yield of 6.7% * Sold 15 properties for $22.9 million producing $4.2 million of gains on sales * Expanded line of credit borrowing capacity from $900 million to $1.1 billion, reduced pricing from LIBOR plus 87.5 basis points to LIBOR plus 77.5 basis points, and extended maturity to June 2025. * Ended the quarter with $249.6 million of cash and no amounts drawn on the $1.1 billion bank credit facility

First Half of 2021 Highlights:

* Invested $208.6 million in property investments, including the acquisition of 58 properties with an aggregate 528,000 square feet of gross leasable area at an initial cash yield of 6.5% * Sold 26 properties for $40.4 million producing $8.5 million of gains on sales * Raised $2.4 million net proceeds from the issuance of 61,430 common shares * Issued $450 million principal amount of 3.500% senior unsecured notes due 2051 * Redeemed $350 million principal amount of 3.300% senior unsecured notes due 2023 * Weighted average debt maturity increased to 13.0 years

NNN has entered into rent deferral lease amendments with certain tenants for an aggregate $51,799,000 and $4,758,000 of rent originally due for the years ended December 31, 2020 and December 31, 2021, respectively. The rent deferral lease amendments require the deferred rents to be repaid at a later time during the lease term. Approximately $3,259,000 of deferred rent was repaid in 2020 and approximately $21,151,000 of deferred rent was repaid in the six months ending June 30, 2021.

Core FFO guidance for 2021 was increased from a range of $2.70 to $2.75 to a range of $2.75 to $2.80 per share. The 2021 AFFO is estimated to be $2.95 to $3.00 per share. The Core FFO guidance equates to net earnings of $1.60 to $1.65 per share, plus $1.15 per share of expected real estate depreciation and amortization and excludes any gains from the sale of real estate and any charges for impairments or loss on early extinguishment of debt. The guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Securities and Exchange Commission.

Jay Whitehurst, Chief Executive Officer, commented: "National Retail Properties produced another quarter of strong results, driven by continued high occupancy, impressive rent collections and solid acquisitions from relationship tenants, all supported by a low leverage, flexible balance sheet. In addition to our recently announced increase in the common stock dividend, thus making 2021 our 32nd consecutive year of increased annual dividends, we are pleased today to increase our guidance for 2021 Core FFO per share, reflecting a return to our pre-pandemic strategy to generate consistent mid-single digits per share growth on a multi-year basis. With almost $250M of cash in the bank and no material debt maturities until 2024, we are well positioned for the balance of 2021 and beyond."

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of June 30, 2021, the company owned 3,173 properties in 48 states with a gross leasable area of approximately 32.7 million square feet and with a weighted average remaining lease term of 10.6 years. For more information on the company, visit www.nnnreit.com.

Management will hold a conference call on August 3, 2021, 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. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated," or other similar words or expressions. 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, the potential impacts of the COVID-19 pandemic on the company's business operations, financial results and financial position and on the world economy, general economic conditions, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the company's tenants, the availability of capital, and, risks related to the company's status as a REIT. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the company's Securities and Exchange Commission (the "Commission") filings, including, but not limited to, the company's (i) Annual Report on Form 10-K for the year ended December 31, 2020 and (ii) Quarterly Report on Form 10-Q for the quarter and six months ended June 30, 2021. Copies of each filing may be obtained from the company or the Commission. 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, Inc. 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 ("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), any applicable taxes and noncontrolling interests 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.

Core Funds From Operations ("Core FFO") is a non-GAAP measure of operating performance that adjusts FFO to eliminate the impact of certain GAAP income and expense amounts that the company believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the REIT industry, and management believes that presentation of Core FFO provides investors with a potential metric to assist in their evaluation of the company's operating performance across multiple periods and in comparison to the operating performance of its peers because it removes the effect of unusual items that are not expected to impact the company's operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of the company's core business operations and is a factor in determining management compensation. Items included in calculating FFO that may be excluded in calculating Core FFO may include items like transaction related gains, income or expense, impairments on land or commercial mortgage residual interests, preferred stock redemption costs or other non-core amounts as they occur. The company's computation of Core FFO may differ from the methodology for calculating Core 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 Core FFO 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 adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. 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. 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.

National Retail Properties, Inc.

(in thousands, except per share data)

(unaudited)

Quarter Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Income Statement Summary

Revenues:

Rental income $ 178,004 $ 163,479 $ 357,202 $ 338,026

Interest and otherincome from real estate 1,007 222 1,587 738transactions

179,011 163,701 358,789 338,764

Operating expenses:

General and 11,868 9,395 23,616 19,495administrative

Real estate 6,619 6,323 14,344 13,959

Depreciation and 50,875 48,936 100,855 98,124amortization

Leasing transaction 22 - 60 36costs

Impairment losses - realestate, net of 7,735 21,854 9,866 27,367recoveries

77,119 86,508 148,741 158,981

Gain on disposition of 4,181 719 8,462 13,489real estate

Earnings from operations 106,073 77,912 218,510 193,272

Other expenses(revenues):

Interest and other (33) (106) (98) (271)income

Interest expense 33,085 31,753 67,672 ^ 65,423 ^ (1) (2)

Loss on early - - 21,328 16,679extinguishment of debt

33,052 31,647 88,902 81,831

Net earnings 73,021 46,265 129,608 111,441

Loss attributable to 2 - 2 2noncontrolling interests

Net earnings 73,023 46,265 129,610 111,443attributable to NNN

Series F preferred stock (4,485) (4,485) (8,970) (8,970)dividends

Net earnings available $ 68,538 $ 41,780 $ 120,640 $ 102,473to common stockholders

Weighted average commonshares outstanding:

Basic 174,611 171,389 174,600 171,214

Diluted 174,727 171,485 174,733 171,374

Net earnings per shareavailable to commonstockholders:

Basic $ 0.39 $ 0.24 $ 0.69 $ 0.60

Diluted $ 0.39 $ 0.24 $ 0.69 $ 0.60

^(1) Includes $2,078 in connection with the redemption of 3.30% seniorunsecured notes due 2023 for the six months ended June 30, 2021.

^(2) Includes $2,291 in connection with the redemption of 3.80% seniorunsecured notes due 2022 for the six months ended June 30, 2020.

National Retail Properties, Inc. (in thousands, except per share data) (unaudited)



Quarter Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Funds From Operations (FFO) Reconciliation:

Net earnings available to $68,538 $41,780 $120,640$102,473common stockholders

Real estate depreciation and50,770 48,823 100,639 97,896 amortization

Gain on disposition of real (4,181) (719) (8,462) (13,489) estate

Impairment losses - depreciable real estate, net7,735 21,854 9,866 27,367 of recoveries

Total FFO adjustments 54,324 69,958 102,043 111,774

FFO available to common $122,862$111,738$222,683$214,247stockholders



FFO per common share:

Basic $0.70 $0.65 $1.28 $1.25

Diluted $0.70 $0.65 $1.27 $1.25



Core Funds From Operations (Core FFO) Reconciliation:

Net earnings available to $68,538 $41,780 $120,640$102,473common stockholders

Total FFO adjustments 54,324 69,958 102,043 111,774

FFO available to common 122,862 111,738 222,683 214,247 stockholders



Loss on early extinguishment- - 21,328 16,679 of debt

Total Core FFO adjustments - - 21,328 16,679

Core FFO available to common$122,862$111,738$244,011$230,926stockholders



Core FFO per common share:

Basic $0.70 $0.65 $1.40 $1.35

Diluted $0.70 $0.65 $1.40 $1.35



National Retail Properties, Inc. (in thousands, except per share data) (unaudited)



Quarter Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Adjusted Funds From Operations (AFFO) Reconciliation:

Net earnings available to $68,538 $41,780 $120,640 $102,473 common stockholders

Total FFO 54,324 69,958 102,043 111,774 adjustments

Total Core FFO - - 21,328 16,679 adjustments

Core FFO available to 122,862 111,738 244,011 230,926 common stockholders



Straight-line accrued rent, 7,359 (30,984) 15,692 (31,045) net of reserves

Net capital lease rent 95 22 185 83 adjustment

Below-market rent (112) (190) (274) (410) amortization

Stock based compensation 4,235 3,074 8,421 6,322 expense

Capitalized (64) (420) (127) (886) interest expense

Total AFFO 11,513 (28,498) 23,897 (25,936) adjustments

AFFO available ^ ^ ^ ^ to common $134,375(1)$83,240 (2)$267,908(1)$204,990(2)stockholders



AFFO per common share:

Basic $0.77 ^ $0.49 ^ $1.53 ^ $1.20 ^ (1) (2) (1) (2)

Diluted $0.77 ^ $0.49 ^ $1.53 ^ $1.20 ^ (1) (2) (1) (2)



Other Information:

Rental income from operating $173,371 $159,300 $346,954 $328,033 leases^(3)

Earned income from direct $157 $162 $315 $326 financing leases ^(3)

Percentage rent$231 $165 $335 $568 ^(3)



Real estate expense $4,245 $3,852 $9,598 $9,099 reimbursement from tenants^(3)

Real estate (6,620) (6,323) (14,345) (13,959) expenses

Real estate expenses, net of$(2,375) $(2,471) $(4,747) $(4,860) tenant reimbursements



Amortization of$1,042 $1,026 $2,882 ^ $2,842 ^ debt costs (4) (5)

Scheduled debt principal amortization $155 $147 $312 $294 (excluding maturities)

Non-real estate depreciation $108 $115 $222 $233 expense



Amounts include the net straight-line accrued rent impact of the rent^ deferral repayments from the COVID-19 rent deferral lease amendments of(1) $8,323 and $17,706 for the quarter and six months ended June 30, 2021, respectively. Excluding such, AFFO per common share would have been $0.72 and $1.43 for the quarter and six months ended June 30, 2021, respectively.

^ Amounts exclude $30,223 of straight-line accrued rent from rent deferral(2) repayments from the COVID-19 rent deferral lease amendments. Including such, AFFO per common share would have been $0.66 and $1.37 for the quarter and six months ended June 30, 2020, respectively.

For the quarter and six months ended June 30, 2021, the aggregate of such^ amounts is $178,004 and $357,202, respectively, and is classified as rental(3) income on the income statement summary. For the quarter and six months ended June 30, 2020, the aggregate of such amounts is $163,479 and $338,026, respectively.

^ Includes $745 in connection with the redemption of the 3.30% senior(4) unsecured notes due 2023 for the six months ended June 30, 2021.

^ Includes $851 in connection with the redemption of the 3.80% senior(5) unsecured notes due 2022 for the six months ended June 30, 2020.

2021 Earnings Guidance:

Guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Commission.

2021 Guidance

Net earnings per common share excluding any gains on disposition of real estate, impairment charges $1.60 - $1.65 per share and loss on early extinguishment of debt

Real estate depreciation and amortization per $1.15 per share share

Core FFO per share $2.75 - $2.80 per share

AFFO per share^(1) $2.95 - $3.00 per share

General and administrative expenses $46 - $48 Million

Real estate expenses, net of tenant reimbursements$10 - $12 Million

Acquisition volume $400 - $500 Million

Disposition volume $80 - $100 Million

Estimates include the net straight-line accrued rent impact of the rent^ repayment from the COVID-19 rent deferral lease amendments of $24,953,000(1) for 2021. Absent such, AFFO per common share guidance would have been $2.81 - $2.86 per share for 2021.

National Retail Properties, Inc.

(in thousands)

(unaudited)

June 30, December 31, 2020 2021

Balance Sheet Summary

Assets:

Real estate portfolio $ 7,270,513 $ 7,212,655

Real estate held for sale 12,736 5,671

Cash and cash equivalents 249,558 267,236

Receivables, net of allowance of $779 and 3,613 4,338$835, respectively

Accrued rental income, net of allowance of 37,870 53,958$5,294 and $6,947, respectively

Debt costs, net of accumulated amortization of 8,508 1,917$18,243 and $17,294, respectively

Other assets 93,002 92,069

Total assets $ 7,675,800 $ 7,637,844

Liabilities:

Line of credit payable $ - $ -

Mortgages payable, including unamortized 11,049 11,395premium and net of unamortized debt cost

Notes payable, net of unamortized discount 3,299,218 3,209,527and unamortized debt costs

Accrued interest payable 21,816 19,401

Other liabilities 72,839 78,217

Total liabilities 3,404,922 3,318,540

Stockholders' equity of NNN 4,270,876 4,319,300

Noncontrolling interests 2 4

Total equity 4,270,878 4,319,304

Total liabilities and equity $ 7,675,800 $ 7,637,844

Common shares outstanding 175,599 175,233

Gross leasable area, Property Portfolio 32,664 32,461(square feet)

National Retail Properties, Inc. Debt Summary As of June 30, 2021 (in thousands) (unaudited)



Principal, Unsecured DebtPrincipal Net of Stated Rate Effective RateMaturity Date Unamortized Discount

Line of credit$- $- L + 77.5 bps- % June 2025 payable



Unsecured notes payable:

2024 350,000 349,763 3.900 % 3.924 % June 2024

2025 400,000 399,533 4.000 % 4.029 % November 2025

2026 350,000 347,719 3.600 % 3.733 % December 2026

2027 400,000 398,918 3.500 % 3.548 % October 2027

2028 400,000 397,815 4.300 % 4.388 % October 2028

2030 400,000 398,863 2.500 % 2.536 % April 2030

2048 300,000 295,946 4.800 % 4.890 % October 2048

2050 300,000 294,096 3.100 % 3.205 % April 2050

2051 450,000 441,641 3.500 % 3.602 % April 2051



Total 3,350,000 3,324,294



Total unsecured debt$3,350,000$3,324,294 ^(1)



Debt costs (33,178)

Accumulated amortization 8,102

Debt costs, net of (25,076) accumulated amortization

Notes payable, net of unamortized discount and $3,299,218 unamortized debt costs



^(1) Unsecured notes payable have a weighted average interest rate of 3.7% and a weighted average maturity of 13.0 years.

Mortgages Payable PrincipalInterest RateMaturity Date Balance

Mortgage^(1) $11,0805.230 % July 2023



Debt costs (147)

Accumulated amortization 116

Debt costs, net of accumulated (31) amortization

Mortgages payable, including unamortized premium and net of $11,049 unamortized debt costs

^(1) Includes unamortized premium





National Retail Properties, Inc.Debt Summary As of June 30, 2021

Credit Facility and Note Covenants

The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of June 30, 2021, the company believes it is in compliance with the covenants.

Unsecured Credit Facility Key Covenants RequiredJune 30, 2021

Maximum leverage ratio < 0.60 0.34

Minimum fixed charge coverage ratio > 1.50 4.27

Maximum secured indebtedness ratio < 0.40 0.001

Unencumbered asset value ratio > 1.67 2.96

Unencumbered interest ratio > 1.75 4.93



Unsecured Notes Key Covenants RequiredJune 30, 2021

Limitation on incurrence of total debt ? 60% 36.5%

Limitation on incurrence of secured debt? 40% 0.1%

Debt service coverage ratio ? 1.50 4.43

Maintenance of total unencumbered assets ? 150%274%

National Retail Properties, Inc.

Property Portfolio

Top 20 Lines of Trade

% of Rent As of June 30, Collections Quarter Ended Line of Trade 2021^(1) 2020^(2) June 30, 2021^(3)

1. Convenience stores 18.0 % 18.1 % 99.9 %

2. Automotive service 11.4 % 10.2 % 99.7 %

3. Restaurants - full service 9.9 % 10.6 % 93.9 %

4. Restaurants - limited service 9.2 % 8.8 % 99.7 %

5. Family entertainment centers 6.1 % 6.7 % 99.9 %

6. Health and fitness 5.2 % 5.2 % 99.3 %

7. Theaters 4.6 % 4.7 % 94.9 %

8. Recreational vehicle dealers, parts 3.5 % 3.5 % 100.0 % and accessories

9. Equipment rental 3.2 % 2.6 % 100.0 %

10. Automotive parts 3.1 % 3.1 % 100.0 %

11. Home improvement 2.6 % 2.6 % 100.0 %

12. Wholesale clubs 2.5 % 2.5 % 100.0 %

13. Medical service providers 2.2 % 2.1 % 98.6 %

14. General merchandise 1.7 % 1.7 % 98.7 %

15. Furniture 1.6 % 1.7 % 99.5 %

16. Consumer electronics 1.6 % 1.5 % 100.0 %

17. Home furnishings 1.6 % 1.6 % 100.0 %

18. Travel plazas 1.5 % 1.5 % 100.0 %

19. Drug stores 1.4 % 1.5 % 100.0 %

20. Bank 1.3 % 1.3 % 100.0 %

Other 7.8 % 8.5 % 98.6 %

Total 100.0 % 100.0 % 98.9 %

Top 10 States

State % of Total^(1) State % of Total^(1)

1. Texas 17.2 % 6. Georgia 4.3 %

2. Florida 8.9 % 7. Indiana 3.9 %

3. Ohio 5.6 % 8. Tennessee 3.6 %

4. Illinois 5.5 % 9. California 3.4 %

5. North Carolina 4.4 % 10. Virginia 3.3 %

As a percentage of annual base rent, which is the annualized base rent for all leases in place.

^(1) $689,364,000 as of June 30, 2021.

^(2) $676,538,000 as of June 30, 2020.

^(3) Rent collections received as of July 28, 2021, excluding the repayment of amounts previously deferred according to the rent deferral lease amendments.

National Retail Properties, Inc.

Property Portfolio

Top 20 Tenants

Properties % of Total^(1)

1. 7-Eleven 139 5.0 %

2. Mister Car Wash 120 4.7 %

3. Camping World 47 4.3 %

4. LA Fitness 30 3.8 %

5. GPM Investments (Convenience Stores) 153 3.3 %

6. Flynn Restaurant Group (Taco Bell/Arby's) 204 3.2 %

7. AMC Theatre 20 3.0 %

8. Couche Tard (Pantry) 83 2.7 %

9. BJ's Wholesale Club 11 2.5 %

10. Sunoco 59 2.2 %

11. Mavis Tire Express Services 123 2.1 %

12. Main Event 18 1.8 %

13. Frisch's Restaurants 73 1.8 %

14. Fikes (Convenience Stores) 56 1.6 %

15. Chuck E. Cheese's 53 1.6 %

16. Best Buy 16 1.5 %

17. Bob Evans 106 1.5 %

18. Life Time Fitness 3 1.4 %

19. Dave & Buster's 11 1.4 %

20. Ahern Rentals 35 1.4 %

Lease Expirations^(2)

% of # of Gross Leasable % of # of Gross Leasable Area^(3) Total^(1) Properties Area^(3) Total^(1) Properties

2021 0.9 % 29 410,000 2027 6.5 % 179 2,638,000

2022 4.9 % 115 1,404,000 2028 4.7 % 156 1,178,000

2023 2.7 % 113 1,401,000 2029 3.0 % 74 1,041,000

2024 3.4 % 93 1,455,000 2030 3.7 % 105 1,185,000

2025 6.2 % 197 2,087,000 2031 8.8 % 198 2,966,000

2026 5.6 % 212 2,122,000 Thereafter 49.6 % 1,646 14,070,000

^ Based on the annual base rent of $689,364,000, which is the annualized base(1) rent for all leases in place as of June 30, 2021.

^ As of June 30, 2021, the weighted average remaining lease term is 10.6(2) years.

^(3) Square feet.

National Retail Properties, Inc.

Rent Deferral Lease Amendments

(in thousands)

The following table outlines the rent deferred and corresponding recapturepayback by quarter of the rent deferral lease amendments executed as ofJune 30, 2021 (dollars in thousands):

Deferred Scheduled Repayment

Accrual Cash Total % of Total Accrual Cash Total % of Total Cumulative Basis Basis Basis Basis Total

2020 $ 33,602 $ 18,197 $ 51,799 91.6 % $ 3,239 $ 20 $ 3,259 5.8 % 5.8 %

2021 Q1 678 2,018 2,696 4.8 % 10,061 674 10,735 19.0 % 24.8 %

Q2 278 750 1,028 1.8 % 8,601 1,815 10,416 18.4 % 43.2 %

Q3 34 750 784 1.4 % 4,330 1,804 6,134 10.8 % 54.0 %

Q4 - 250 250 0.4 % 2,951 1,804 4,755 8.4 % 62.4 %

990 3,768 4,758 8.4 % 25,943 6,097 32,040 56.6 % 62.4 %

2022 Q1 - - - - 1,780 2,223 4,003 7.1 % 69.5 %

Q2 - - - - 1,729 2,223 3,952 7.0 % 76.5 %

Q3 - - - - 1,201 2,223 3,424 6.0 % 82.5 %

Q4 - - - - 681 2,223 2,904 5.1 % 87.6 %

- - - - 5,391 8,892 14,283 25.2 % 87.6 %

2023 - - - - 19 3,092 3,111 5.4 % 93.0 %

2024 - - - - - 1,932 1,932 3.5 % 96.5 %

2025 - - - - - 1,932 1,932 3.5 % 100.0 %

$ 34,592 $ 21,965 $ 56,557 $ 34,592 $ 21,965 $ 56,557

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SOURCE National Retail Properties, Inc.