Inve

sto

r U

pd

ate

June

201

0

22

Safe

Har

bor

This

pre

sent

atio

n co

ntai

ns c

erta

in s

tate

men

ts th

at m

ight

be

cons

ider

ed to

be

forw

ard-

look

ing

stat

emen

ts u

nder

Fed

eral

Sec

uriti

es la

ws.

Pro

spec

tive

inve

stor

s ar

e ca

utio

ned

that

any

suc

h fo

rwar

d-lo

okin

g st

atem

ents

are

not

gu

aran

tees

of f

utur

e pe

rfor

man

ce, a

nd in

volv

e ris

ks a

nd u

ncer

tain

ties.

The

co

mpa

ny’s

act

ual f

utur

e re

sults

may

diff

er s

igni

fican

tly fr

om th

e m

atte

rs

disc

usse

d in

thes

e fo

rwar

d-lo

okin

g st

atem

ents

, and

we

may

not

rele

ase

revi

sion

s to

thes

e fo

rwar

d-lo

okin

g st

atem

ents

to re

flect

cha

nges

afte

r we’

ve

mad

e th

e st

atem

ents

. Fac

tors

and

risk

s th

at c

ould

cau

se a

ctua

l res

ults

to d

iffer

m

ater

ially

from

exp

ecta

tions

are

dis

clos

ed fr

om ti

me

to ti

me

in g

reat

er d

etai

l in

the

com

pany

’s fi

lings

with

the

SEC

as

wel

l as

com

pany

pre

ss re

leas

es.

33

44

NN

N’s

st

rong

ba

lanc

e sh

eet

and

uniq

ue

stra

tegy

ach

ieve

s so

lid e

arni

ngs

grow

th a

nd

low

vol

atili

ty.

This

has

res

ulte

d in

a l

ong

trac

k re

cord

of

succ

ess

at a

gre

at v

alue

.

5

Stro

ng B

alan

ce S

heet

5

Long

-Ter

m T

rack

Rec

ord

Sum

mar

y

Uni

que

Stra

tegy

6

NN

N’s

Trip

le N

et L

ease

Stra

tegy

Cre

ates

a S

olid

Fo

unda

tion

of H

ighl

y P

redi

ctab

le O

pera

ting

Inco

me

And

Its

Uni

que

Acq

uisi

tion

App

roac

h G

ener

ates

S

tead

y E

arni

ngs

Gro

wth

with

Les

s R

isk

Than

Dev

elop

men

t an

d O

ther

Acq

uisi

tion

App

roac

hes

6

77

Low

Ris

k N

et L

ease

Str

ateg

y

15-2

0 ye

ar te

rms,

12.

5 ye

ar w

eigh

ted

aver

age

rem

aini

ng le

ase

term

Onl

y 3.

8% o

f lea

ses

expi

re th

roug

h Y

E 2

011

and

only

11.

8% o

f le

ases

exp

ire th

roug

h Y

E 2

013

Tena

nts

resp

onsi

ble

for o

pera

ting

expe

nses

, tax

es a

nd c

apita

l ex

pend

iture

sN

o C

AM

leak

age

No

anch

or o

r co-

tena

ncy

issu

es fo

r ten

ants

to le

vera

ge in

to

redu

ced

rent

Leas

e ra

tes,

term

s an

d se

curit

y sp

ecifi

cally

neg

otia

ted:

Mar

ket f

acto

rsTe

nant

’s u

niqu

e cr

edit

post

ure

Ofte

n ba

sed

on te

nant

’s h

isto

rical

resu

lts in

the

loca

tion

88

Port

folio

Div

ersi

ficat

ion

$2.6

bill

ion

tota

l ass

ets

11.4

mill

ion

SF

GLA

/ ov

er 1

,014

pro

perti

es /

43 s

tate

s 27

5+ n

atio

nal o

r reg

iona

l ten

ants

in 3

4 in

dust

ry c

lass

ifica

tions

Top

indu

stry

con

cent

ratio

n -C

onve

nien

ce S

tore

s:To

tal i

ndus

try s

ales

hav

e gr

own

at a

CA

GR

of 1

9.6%

bet

wee

n 20

00 a

nd 2

007

The

num

ber o

f con

veni

ence

sto

re lo

catio

ns in

the

U.S

. fel

l onl

y .2

% in

200

9

desp

ite th

e se

vere

rece

ssio

nC

onve

nien

ce s

tore

s ac

coun

t for

4.3

% o

f all

U.S

. con

sum

er s

pend

ing

Hig

hly

soug

ht a

fter,

heav

ily tr

affic

ked

loca

tions

:S

igni

fican

t und

erly

ing

land

val

ue (t

ypic

ally

40

–50

% o

f acq

uisi

tion

pric

e)S

ites

can

be e

asily

re-te

nant

ed b

y ot

her o

pera

tors

or c

onve

rted

to o

ther

us

es (b

anks

, dru

g st

ores

, res

taur

ants

, etc

.)

Tena

nt b

ase

is c

once

ntra

ted

in li

nes

of tr

ade

with

the

grea

test

nu

mbe

r of p

lann

ed s

tore

ope

ning

s

99

Acq

uirin

g pr

oper

ties

dire

ctly

from

tena

nts

prod

uces

mor

e ef

ficie

nt

pric

ing

and

high

er in

itial

retu

rns

NN

N a

sses

ses

disc

rete

risk

s vs

.

Mor

e ris

ks/u

nkno

wns

in v

alue

-add

, dev

elop

men

t, or

Typi

cal l

ower

yie

ldin

g re

al e

stat

e in

vest

men

t

Eac

h de

al is

stru

ctur

ed b

ased

on

its u

niqu

e ch

arac

teris

tics:

Rea

l est

ate

attri

bute

s, te

nant

cor

pora

te c

redi

t ana

lysi

s, a

sset

(sto

re)

leve

l dat

a

NN

N’s

Acq

uisi

tions

App

roac

h ha

sM

ultip

le A

dvan

tage

s

10

Rea

l Est

ate

Att

rib

ute

sC

orp

ora

te

Cre

dit

Com

petit

ive

posi

tioni

ngM

anag

emen

t tea

m tr

ack

reco

rd /

visi

onC

redi

t ana

lysi

s / l

ever

age

prof

ileP

endi

ng m

atur

ities

Use

of t

rans

actio

n pr

ocee

dsFi

xed

char

ge a

nd re

nt

cove

rage

Pro

perty

loca

tion

Und

erly

ing

land

val

ueA

rea

dem

ogra

phic

sM

arke

t ren

t / s

imila

r tra

nsac

tion

com

para

bles

Loca

tion

of c

ompe

titor

sA

ltern

ativ

e us

eR

epla

cem

ent c

ost a

naly

sis

Loca

l mar

ket c

ondi

tions

Par

king

Acc

ess

Co-

tena

nts

Vis

ibilit

yTr

affic

cou

nts

Age

of i

mpr

ovem

ents

His

toric

al s

ales

and

pro

fitab

ility

Sal

es &

Pro

fit tr

ends

Rev

enue

driv

ers

and

mar

gins

Ren

t as

a %

of S

ales

Cor

p. G

& A

allo

catio

nR

ent c

over

age

Com

paris

on w

ith s

imila

r sto

res

Rem

aini

ng le

ase

term

New

est p

roto

type

Cap

ital m

arke

ts e

nviro

nmen

tC

urre

nt c

ondi

tions

in

tena

nts’

indu

stry

/ m

arke

t(s)

Loca

l and

nat

iona

l eco

nom

yN

NN

cos

t of c

apita

lC

ap ra

te tr

ends

Legi

slat

ive

risk

Tran

sact

ion

P

roce

eds

&

Term

s

NN

N A

ppro

ach

to N

et L

ease

Acq

uisi

tions

Ass

et-L

evel

P

erfo

rman

ceM

arke

t C

on

dit

ion

s

Due Diligence and Determination of Proceeds & Terms

10

1111

NN

N’s

Str

ateg

y R

esul

ts in

Hig

her O

ccup

ancy

NN

N’s

stra

tegy

del

iver

s m

ater

ially

hig

her o

ccup

ancy

and

less

vol

atili

ty th

an it

s R

EIT

pe

ers.

Thi

s ad

vant

age

has

been

mag

nifie

d in

the

curr

ent c

halle

ngin

g en

viro

nmen

t.

Sour

ce:

SNL

Fina

ncia

l

1212

Hig

hly

prod

uctiv

e pr

oprie

tary

ww

w.n

nn10

31.c

omw

ebsi

te e

nabl

es p

rope

rty s

ales

at

prem

ium

reta

il pr

icin

g, a

t vol

umes

far a

bove

oth

er tr

iple

-net

sel

lers

:S

tand

ardi

zes

dow

nloa

dabl

e du

e di

ligen

ce in

form

atio

n an

d co

ntra

cts

Tech

nolo

gica

lly s

ophi

stic

ated

but

use

r frie

ndly

Low

cos

t to

mai

ntai

n

Sin

ce 2

005,

sol

d 30

5 pr

oper

ties

gene

ratin

g ne

t pro

ceed

s ov

er $

1.1

billi

on

Dis

posi

tion

expe

rtise

pro

vide

s ab

ility

to s

ell p

rope

rties

:Th

at d

o no

t mee

t hol

d cr

iteria

To b

ette

r con

trol t

enan

t and

line

of t

rade

con

cent

ratio

ns

Mak

ing

NN

N a

mor

e at

tract

ive

buye

r

Enh

ance

s ac

quis

ition

s re

turn

s vi

a hi

gher

effe

ctiv

e ca

p ra

te o

n re

tain

ed p

rope

rties

Cap

ital r

ecyc

ling

enha

nces

retu

rns:

Ove

r pas

t 4 y

ears

, ret

ail d

ispo

sitio

ns o

f 118

pro

perti

es o

ut o

f 7 a

cqui

sitio

n po

rtfol

ios

incr

ease

d ca

p ra

te o

n $2

39 m

illio

n ne

t acq

uisi

tions

by

near

ly 1

00 b

ps fr

om7.

95%

to 8

.9%

Pro

per

ties

NO

I C

ost

/ (P

roce

eds)

C

ap R

ate

Acq

uisi

tions

223

39,5

97

498,

354

7.95

%D

ispo

sitio

ns(1

18)

(18,

323)

(259

,352

)

7.06

%N

et A

cqui

sitio

ns10

521

,274

23

9,00

2

8.

90%

NN

N’s

Pro

ven

Dis

posi

tion

Plat

form

–St

reng

then

s Po

rtfo

lio Q

ualit

y an

d Lo

ng-T

erm

Ear

ning

s by

Rei

nves

ting

at H

ighe

r Ret

urns

1313

Trip

le N

et v

s. G

ross

Lea

se R

etur

n Pr

ofile

Year

NN

N p

rodu

ces

high

er in

itial

retu

rn w

ith lo

wer

vol

atili

ty th

an ty

pica

l gro

ss

leas

e in

vest

men

ts

5.00%

6.00%

7.00%

8.00%

9.00%

10.00

%

11.00

%

12.00

%

13.00

%

12

34

56

78

910

1112

1314

15

Net L

ease

(1.5%

NOI

Grow

th)

Gros

s Lea

se (2

.5% N

OI G

rowth)

Gros

s Lea

se (w

/volat

ility)

Cap Rate (Return)

1414

Long

-Ter

m T

rack

Rec

ord

Sum

mar

y

Stro

ng B

alan

ce S

heet

Uni

que

Stra

tegy

1515

Stro

ng B

alan

ce S

heet

–R

isk

Man

agem

ent i

s a

Cor

e C

ompe

tenc

yIn

vest

men

t-gra

de d

ebt r

atin

g (B

BB

/ B

BB

-/ B

aa2)

sup

porte

d by

sec

tor

lead

ing

leve

rage

ratio

s

99%

of a

sset

s un

encu

mbe

red

-onl

y $3

0 m

illion

of s

ecur

ed d

ebt

Wel

l-lad

dere

d de

bt m

atur

ities

with

onl

y:$2

1 m

illion

mat

urin

g in

201

0;$2

30 m

illion

mat

urin

g th

roug

h 20

12; a

ndN

o m

ore

than

$25

0 m

illion

mat

urin

g in

any

one

yea

r.$4

00 m

illion

cre

dit l

ine

-$0

draw

nM

atur

es N

ovem

ber 2

012

Pric

ed a

t LIB

OR

+ 2

80 b

ps$1

00 m

illion

acc

ordi

on fe

atur

e

Sour

ce fo

r REI

T In

dust

ry:

Citi

Inve

stm

ent R

esea

rch;

NN

N

1616

Wel

l-Lad

dere

d D

ebt M

atur

ities

($ in millions)

Not

e: A

ssum

es P

ut O

ptio

ns E

xerc

ised

on

Con

vert

ible

Not

es in

201

1 an

d 20

13

2010

2011

2

012

20

13

201

4

2015

2

016

20

17

201

820

19

17

Cre

dit M

etric

s Su

mm

ary

2005

2006

2007

2008

2009

March 

2010

Total liabilities / Total assets (gross book)

49.2%

40.6%

42.5%

39.5%

36.8%

37.1%

Market Cap Leverage

43.0%

35.2%

38.6%

43.4%

35.7%

34.3%

Debt / EBITDA

6.21

4.69

5.62

4.64

4.80

4.89

EBITDA / Interest expense (cash)

3.38

3.08

3.28

3.37

3.35

3.19

EBITDA / Fixed charges (cash)

2.72

2.67

2.86

3.00

2.97

2.83

Unencum

bered assets / Total assets (gross book)

80%

94%

97%

98%

98%

98%

Bank line usage (millions)

162

$     

28$        

130

$           

27$             

‐$                

‐$            

Bank line availability  (millions)

138

$     

272

$      

270

$           

374

$           

400

$           

400

$        

Capital Raised:

Common equity (millions), net

52$       

91$        

298

$           

123

$           

67$             

10$          

Preferred equity (millions), net

‐$         

89$        

‐$                

‐$                

‐$                

‐$            

Unsecured notes (millions), gross

171

$     

173

$      

250

$           

234

$           

‐$                

‐$            

Secured debt (millions), gross

33$       

‐$          

‐$                

‐$                

‐$                

‐$            

Property dispositions net proceeds

119

$     

434

$      

306

$           

213

$           

22$             

8$            

18

Sour

ce:

SNL

Fina

ncia

l 18

REI

T In

dust

ry D

ebt t

o To

tal M

arke

t Cap

italiz

atio

n(As of March 31, 2010) 

1919

REI

T In

dust

ry F

ixed

Cha

rge

Cov

erag

e(As of Q4 2009) 

Sour

ce:

Citi

grou

p G

loba

l Mar

kets

2020

Long

-Ter

m T

rack

Rec

ord

Sum

mar

y

Stro

ng B

alan

ce S

heet

Uni

que

Stra

tegy

2121

Long

-Ter

m D

ivid

end

His

tory

20 c

onse

cutiv

e ye

ars

of d

ivid

end

incr

ease

s –

Long

er th

an 9

7% o

f all

publ

ic R

EIT

s an

d 98

% o

f all

publ

ic c

ompa

nies

Dividends Per Share

Payout Ratio

2222

NN

N C

onsi

sten

tly O

utpe

rfor

ms

the

REI

T In

dust

ry a

nd th

e M

ajor

Indi

ces

NN

N O

utpe

rfor

ms

1 Ye

ar3

Year

s5

Year

s10

Ye

ars

15

Year

s

(NN

N =

$22

.83

at 0

3/31

/10)

Nat

iona

l Ret

ail P

rope

rtie

s (N

NN

)55

.0%

5.3%

11.6

%16

.7%

13.0

%

Indi

ces

NAR

EIT

Equi

ty R

EIT

Inde

x (F

NER

TR)

106.

7%-1

0.6%

3.8%

11.4

%10

.5%

Mor

gan

Stan

ley

REI

T In

dex

(RM

S G

)11

0.5%

-10.

9%3.

8%11

.2%

10.3

%

S&P

500

Inde

x (S

PX)

49.6

%-4

.2%

1.9%

-0.7

%7.

7%

Nas

daq

(CC

MP)

58.3

%0.

6%4.

6%-5

.7%

8.0%

S&P

600

(SM

L)63

.9%

-3.2

%3.

5%6.

6%10

.1%

2323

Long

-Ter

m T

rack

Rec

ord

Sum

mar

y

Stro

ng B

alan

ce S

heet

Uni

que

Stra

tegy

24

NN

N B

usin

ess

Mod

el S

umm

ary

Uni

que

Stra

tegy

Net

leas

e, s

ingl

e-te

nant

reta

il pr

oper

ties

Larg

e pr

oper

ty s

ub-s

ecto

r with

in re

tail

prop

erty

cat

egor

y –

bigg

er th

an m

all s

ecto

rLi

ttle

inst

itutio

nal i

nves

tor c

ompe

titio

n –

smal

l ind

ivid

ual a

sset

siz

e ($

2-4

mill

ion)

Hig

her i

nitia

l ret

urns

on

asse

t –ty

pica

lly 1

75 b

ps h

ighe

r tha

n co

reH

ighe

r occ

upan

cy le

vels

–na

tiona

l and

regi

onal

reta

iler t

enan

t foc

usLo

wer

pro

perty

exp

ense

risk

–tri

ple

net l

ease

sLo

wer

cap

ital e

xpen

ditu

res

and

tena

nt im

prov

emen

ts –

long

-term

leas

es

Ris

k m

anag

emen

tS

trong

acq

uisi

tion

unde

rwrit

ing

with

hig

h la

nd v

alue

sM

oder

ate

unse

cure

d de

bt le

vera

ge w

ith s

olid

cov

erag

es a

nd s

tagg

ered

deb

t mat

uriti

esA

ctiv

e as

set m

anag

emen

t and

cap

ital r

ecyc

ling

Pro

ven,

con

sist

ent l

ong-

term

resu

ltsH

ighe

r ini

tial r

etur

ns o

n as

sets

Low

er re

turn

vol

atili

ty o

ver t

ime

20 c

onse

cutiv

e ye

ars

of in

crea

sed

annu

al d

ivid

ends

Tota

l sha

reho

lder

retu

rns

exce

ed R

EIT

and

gen

eral

equ

ity a

vera

ges

over

3, 5

, 10

and

15 y

ears

2525

App

endi

x

26

NN

N’s

Mul

tiple

Doe

s N

ot R

efle

ct it

s U

niqu

e A

dvan

tage

of L

ow R

isk

/ Con

sist

ent G

row

th

Sour

ce:

SNL

Fina

ncia

l 26

2727

NN

N’s

Div

iden

d Y

ield

doe

s no

t ref

lect

its:

20 c

onse

cutiv

e ye

ars

of d

ivid

end

incr

ease

s w

ith a

fallin

gpa

yout

ratio

;S

uper

ior o

pera

ting

risk

prof

ile; a

ndIn

vest

men

t-gra

de d

ebt r

atin

g (B

BB

/ B

BB

-/ B

aa2)

and

sect

or le

adin

g le

vera

ge ra

tios.

REI

T In

dust

ry D

ivid

end

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ds

2828

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N A

ttrib

utes

Trip

le-n

et lo

ng-te

rm le

ase

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all p

rope

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pica

lly $

2 to

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5 m

illion

inve

stm

ent s

ize

Hig

h la

nd v

alue

per

ass

et

Net

leas

es re

duce

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atilit

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nt g

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rops

to b

otto

m li

ne

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e un

iver

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f inv

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men

ted

non-

inst

itutio

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ompe

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n; N

NN

is a

cle

ar le

ader

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ctur

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leas

ebac

k ac

quis

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s at

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at in

itial

cap

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s

Exc

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nt c

apita

l rec

yclin

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ck re

cord

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ng b

alan

ce s

heet

with

lim

ited

near

term

mat

uriti

es

Sol

id e

arni

ngs

prof

ile w

ith lo

wer

risk

20 c

onse

cutiv

e ye

ars

of in

crea

sed

divi

dend

s w

hile

redu

cing

pay

out r

atio

29

Div

ersi

ficat

ion

Red

uces

Ris

k(As a percentage of base rent –March 31, 2010) 

1,01

4 Pr

oper

ties

275+

Ten

ants

43 S

tate

s

Sout

h 23

.5%

Roc

ky

Mou

ntai

n 6.

0%W

est

3.8%

Nor

thea

st

12.2

%So

uthe

ast

29.3

%

Mid

wes

t 25

.2%

30

Top

20 L

ines

of T

rade

Line

of T

rade

1.C

onve

nien

ce s

tore

s26

.5%

2.R

esta

uran

ts –

full

serv

ice

9.2%

3.Au

tom

otiv

e pa

rts6.

7%4.

Thea

ters

6.2%

5.Au

tom

otiv

e se

rvic

e5.

6%6.

Dru

g st

ores

4.4%

7.Bo

oks

4.1%

8.R

esta

uran

ts –

limite

d se

rvic

e3.

2%9.

Spor

ting

good

s3.

1%10

.G

roce

ry2.

9%11

.C

onsu

mer

ele

ctro

nics

2.7%

12.

Furn

iture

2.6%

13.

Offi

ce s

uppl

ies

2.5%

14.

Trav

el p

laza

s2.

5%15

.Be

er, w

ine

and

liquo

r2.

0%16

.H

ealth

and

fitn

ess

1.6%

17.

Equi

pmen

t ren

tal

1.4%

18.

Gen

eral

mer

chan

dise

1.3%

19.

Auto

dea

lers

hips

1.3%

20.

Fina

ncia

l ser

vice

s1.

2%O

ther

9.0%

Tota

l10

0.0%

(As a percentage of base rent –March 31, 2010)

31

Line

of T

rade

Con

cent

ratio

ns

19.5%

18.9%

16.8%

14.9%

14.1%

13.9%

11.1%

10.5%

26.7%

0.0%

5.0%

10.0

%

15.0

%

20.0

%

25.0

%

30.0

%

Con

veni

ence

Stor

esB

ooks

Res

taur

ants

Gov

ernm

ent

Dru

g St

ores

Gro

cery

Con

sum

erEl

ectr

onic

sSp

ortin

gG

oods

Off

ice

Supp

lies

(Concentrations over 10% as a percentage of base rent: 1996 

–Q1 2010)

03-3

1-10

Max

imum

Min

imum

32

Con

serv

ativ

e B

alan

ce S

heet

Man

agem

ent

Secu

red

debt

-$3

0.5

milli

on

Uns

ecur

ed d

ebt -

$1,0

11.3

milli

on

Pre

ferre

d eq

uity

-$9

2.0

milli

on

Com

mon

equ

ity -

$1,6

70.7

milli

on

Tota

l Cap

italiz

atio

n: $

2,80

4.4

mill

ion

Inte

rest

cov

erag

e ra

tio:

3.2x

Fixe

d ch

arge

cov

erag

e ra

tio:

2.8x

Uns

ecur

edD

ebt

36.0

%

Secu

red

Deb

t1.

1%

Pref

erre

dEq

uity

3.3%

Com

mon

Equi

ty59

.6%

(As of March 31, 2010 ‐total gross book assets)

33

Top

Tena

nts

Ren

t Cov

erag

eRa

n ge

1.4x

-- 5

.1x

Ave

rage

2.

7xW

eigh

ted

Ave

rage

2.7x

Fixe

d C

harg

e C

over

age

Ran g

e1.

3x --

4.0

xA

vera

ge2.

1xW

eigh

ted

Ave

rage

1.9x Pr

oper

ties

% B

ase

Ren

tPa

ntr y

96

9.0%

Suss

er

868.

7%K

eras

otes

The

atre

s16

6.2%

Road

Ran

ger

343.

9%M

iste

r Car

Was

h40

3.6%

Pull-

A-P

art

203.

5%Pe

p Bo

ys16

3.1%

Best

Bu y

72.

6%Ba

rnes

& N

oble

92.

5%Lo

gans

Roa

dhou

se17

2.3%

CV

S16

2.0%

34

Leas

e Ex

pira

tions

(As a percentage of base rent –March 31, 2010)

0%5%10%

15%

20%

25%

30%

35%

40%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Thereafter

Wei

ghte

d av

erag

e re

mai

ning

leas

e te

rm o

f 12

year

s

35

= N

NN

Top

10

Trad

e C

ateg

ory

Sou

rce:

RB

C C

apita

l Mar

kets

36 36

37

Nat

iona

l Ret

ail P

rope

rtie

s, In

c.(N

YSE:

NN

N)

800-

NN

N-R

EIT

ww

w.n

nnre

it.co

m

37