NATIONAL RETAIL PROPERTIES, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) See accompanying notes to consolidated financial statements.  42 ASSETS December 31, 2013 December 31, 2012 Real estate portfolio: Accounted for using the operating method, net of accumulated depreciation and amortization $ 4,253,364 $ 3,794,044 Accounted for using the direct financing method 18,342 23,217 Real estate held for sale 15,344 17,546 Mortgages, notes and accrued interest receivable 17,119 27,770 Commercial mortgage residual interests 11,721 13,096 Cash and cash equivalents 1,485 2,076 Receivables, net of allowance of $2,822 and $855, respectively 4,107 3,112 Accrued rental income, net of allowance of $3,181 and $3,270, respectively 24,797 25,458 Debt costs, net of accumulated amortization of $20,213 and $17,965, respectively 12,877 12,781 Other assets 95,367 68,926 Total assets $ 4,454,523 $ 3,988,026 LIABILITIES AND EQUITY Liabilities: Line of credit payable $ 46,400 $ 174,200 Mortgages payable, including unamortized premium of $130 and $187, respectively 9,475 10,602 Notes payable – convertible, net of unamortized discount of $2,072 at December 31, 2012 — 236,500 Notes payable, net of unamortized discount of $10,816 and $9,338, respectively 1,514,184 1,165,662 Accrued interest payable 17,142 17,527 Other liabilities 89,037 85,950 Total liabilities 1,676,238 1,690,441 Commitments and contingencies Equity: Stockholders’ equity: Preferred stock, $0.01 par value. Authorized 15,000,000 shares Series E, 11,500,000 depositary shares issued and outstanding at December 31, 2013, at stated liquidation value of $25 per share 287,500 — Series D, 11,500,000 depositary shares issued and outstanding, at stated liquidation value of $25 per share 287,500 287,500 Common stock, $0.01 par value. Authorized 375,000,000 shares; 121,991,677 and 111,554,997 shares issued and outstanding, respectively 1,221 1,117 Excess stock, $0.01 par value. Authorized 390,000,000 shares; none issued or outstanding — — Capital in excess of par value 2,353,166 2,101,002 Retained earnings (loss) (147,837) (90,952) Accumulated other comprehensive income (loss) (4,505) (2,382) Total stockholders’ equity of NNN 2,777,045 2,296,285 Noncontrolling interests 1,240 1,300 Total equity 2,778,285 2,297,585 Total liabilities and equity $ 4,454,523 $ 3,988,026