Discontinued Operations Impact of Inflation Liquidity  28 NNN expects to meet short term liquidity requirements through cash provided from operations and NNN’s Credit Facility. As  of December 31, 2013, $46,400,000 was outstanding and $453,600,000 was available for future borrowings under the Credit  Facility. NNN anticipates its long term capital needs will be funded by the Credit Facility, cash provided from operations, the  issuance of long-term debt or the issuance of common or preferred equity or other instruments convertible into or exchangeable  for common or preferred equity. However, there can be no assurance that additional financing or capital will be available, or  that the terms will be acceptable or advantageous to NNN. General . NNN’s demand for funds has been and will continue to be primarily for (i) payment of operating expenses and cash  dividends; (ii) property acquisitions and development; (iii) origination of mortgages and notes receivable; (iv) capital  expenditures; (v) payment of principal and interest on its outstanding indebtedness; and (vi) other investments. Properties are leased to tenants under long-term, net leases which typically require the tenant to pay certain operating expenses  for a property, thus, NNN’s exposure to inflation is reduced with respect to these expenses. Inflation may have an adverse  impact on NNN’s tenants. NNN’s leases typically contain provisions to mitigate the adverse impact of inflation on NNN’s results of operations. Tenant  leases generally provide for limited increases in rent as a result of fixed increases, increases in the consumer price index, and/ or, to a lesser extent, increases in the tenant’s sales volume. During times when inflation is greater than increases in rent, rent  increases will not keep up with the rate of inflation. Impairment Losses and Other Charges.  NNN periodically assesses its real estate for possible impairment whenever certain  events or changes in circumstances indicate that the carrying amount of the asset, including accrued rental income, may not be  recoverable through operations. Events or circumstances that may occur include significant changes in real estate market  conditions and the ability of NNN to re-lease or sell properties that are vacant or become vacant. Management evaluates  whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest  charges), including the residual value of the real estate, with the carrying cost of the individual asset. If an impairment is  indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its fair value. During the  years ended December 31, 2013, 2012 and 2011, NNN recognized real estate impairments on discontinued operations of  $2,149,000, $7,054,000 and $431,000, respectively. NNN periodically sells Properties and may reinvest the sales proceeds to purchase additional properties or pay down debt.  NNN evaluates its ability to pay dividends to stockholders by considering the combined effect of income from continuing and  discontinued operations. Earnings (Loss).  NNN classified as discontinued operations the revenues and expenses related to its revenue generating  Properties that were sold and any revenue generating Properties that were held for sale at December 31, 2013. The following  table summarizes the earnings from discontinued operations for the years ended December 31 (dollars in thousands): 2013 2012 2011 # of Sold Properties Gain Earnings # of Sold Properties Gain Earnings # of Sold Properties Gain Earnings Properties 35 $ 6,272 $ 5,072 34 $ 10,956 $ 8,709 8 $ 424 $ 7,676 Noncontrolling interests — (152) (226) — — (29) — — (100) 35 $ 6,120 $ 4,846 34 $ 10,956 $ 8,680 8 $ 424 $ 7,576