OUR  STRONG BALANCE SHEET We continue to adhere to our strategy of maintaining an investment grade balance sheet.  As of the end of the year our total debt-to-total gross book assets remained just less  than 33%. In the recent past, permanent capital has been both well-priced and plentiful  and we consciously chose to take advantage of this. In the short term, this had the effect of  lowering per share earnings growth. However, we are in great shape in the event we choose  to modestly increase leverage from our current position of strength. Importantly, over the last three years we have financed about 80% of our approximately  $2.1 billion of acquisitions with permanent capital – namely common and preferred equity –  or proceeds from asset sales. OUR CAPITAL STRUCTURE (as of December 31, 2013 – based on Total Gross Book Assets) SECURED DEBT 0.2% | $9.5 Million PREFERRED EQUITY  12.0% | $575.0 Million UNSECURED DEBT 32.7% | $1,560.6 Million COMMON EQUITY 55.1% | $2,629.7 Million Source: SNL Financial 12 NNN OCCUPANCY VS. REIT INDUSTRY AVERAGE 100% 95% 90% 85% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 NNN REIT INDUSTRY (Excluding Hotels  & Healthcare) 92.1% 97.0% 96.7% 93.0% 98.3% 96.9% 98.2% 97.4% 98.3% 97.9% 98.2% 93.5% 93.5% 92.8% 92.0% 90.5% 90.1% 90.8% 92.6% 92.0% 97.4% 96.4%