DEAR  FELLOW  NNN SHAREHOLDERS I am delighted to report that National Retail Properties (NNN) completed another strong year of operational  performance. With our fortress-like balance sheet and our well-occupied portfolio we are very well positioned  for the future.  Our excellent financial results in 2013 allowed us to raise our dividend for the 24th  consecutive year.  This long-term dividend growth track record places us in an elite group of just over 100 U.S.  public companies. Our strategy  to build long-term shareholder value  has not wavered over the last several years. Our team  continues to focus on the following three primary goals: We have generated  an average annual total return to NNN shareholders of 12.3% over the past 20 years  outperforming virtually all of the major equity indices.  We are optimistic we will continue to generate  shareholder returns that outperform the major indices. However, the headwinds that all companies are facing are  likely to lead to lower multi-year total returns than achieved in the past 20 years.  One of the challenges facing all companies like NNN is that interest rates will increase from the artificially low rates  we are currently experiencing. We mitigate this risk by using long-term fixed rate debt and by maintaining a modest  amount of leverage. 2 (as a percentage of base rent as of December 31, 2013)  LEASE EXPIRATIONS 55% 50%  45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 THEREAFTER • to generate consistent recurring annual FFO per share growth;  • to annually increase our dividend per share;  • to achieve these dual objectives while taking on below average balance sheet and portfolio risk.