Terrorist attacks or other acts of violence may negatively affect NNN’s operations. There can be no assurance that there will not  be terrorist attacks against businesses within the United States. These attacks may directly or indirectly impact NNN’s physical  facilities or the businesses or the financial condition of its tenants, developers, borrowers, lenders or financial institutions with  which NNN has a relationship. The United States is engaged in armed conflict, which could have an impact on these parties.  The consequences of armed conflict are unpredictable, and NNN may not be able to foresee events that could have an adverse  effect on its business or be insured for such. More generally, any of these events or threats of these events could cause consumer confidence and spending to decrease or  result in increased volatility in the United States and worldwide financial markets and economies. They also could result in, or  cause a deepening of, economic recession in the United States or abroad. Any of these occurrences could have an adverse  impact on NNN’s financial condition or results of operations. Acts of violence, terrorist attacks or war may affect the markets in which NNN operates and NNN’s results of operations. Vacant properties or bankrupt tenants could adversely affect NNN’s business or financial condition. The amount of debt NNN has and the restrictions imposed by that debt could adversely affect NNN’s business and financial  condition. As of December 31, 2013, NNN owned 33 vacant, un-leased Properties, which accounted for approximately two percent of  total Properties held in NNN’s Property Portfolio. NNN is actively marketing these properties for sale or lease but may not be  able to sell or lease these properties on favorable terms or at all. The lost revenues and increased property expenses resulting  from the rejection by any bankrupt tenant of any of their respective leases with NNN could have a material adverse effect on  the liquidity and results of operations of NNN if NNN is unable to re-lease the Properties at comparable rental rates and in a  timely manner. As of January 31, 2014, less than one percent of the total gross leasable area of NNN’s Property Portfolio was  leased to tenants that have filed a voluntary petition for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code and have the  right to reject or affirm their leases with NNN. As of December 31, 2013, NNN had total mortgage debt outstanding of approximately $9,475,000, total unsecured notes  payable of $1,514,184,000 and $46,400,000 outstanding on the Credit Facility. NNN’s organizational documents do not limit  the level or amount of debt that it may incur. If NNN incurs additional indebtedness and permits a higher degree of leverage,  debt service requirements would increase and could adversely affect NNN’s financial condition and results of operations, as  well as NNN’s ability to pay principal and interest on the outstanding indebtedness or cash dividends to its stockholders. In  addition, increased leverage could increase the risk that NNN may default on its debt obligations. The amount of debt outstanding at any time could have important consequences to NNN’s stockholders. For example, it could: NNN’s ability to make scheduled payments of principal or interest on its debt, or to retire or refinance such debt will depend  primarily on its future performance, which to a certain extent is subject to the creditworthiness of its tenants, competition, and  economic, financial, and other factors beyond its control. There can be no assurance that NNN’s business will continue to  generate sufficient cash flow from operations in the future to service its debt or meet its other cash needs. If NNN is unable to  generate sufficient cash flow from its business, it may be required to refinance all or a portion of its existing debt, sell assets or  obtain additional financing to meet its debt obligations and other cash needs. NNN cannot assure stockholders that any such refinancing, sale of assets or additional financing would be possible or, if  possible, on terms and conditions, including but not limited to the interest rate, which NNN would find acceptable or would not  result in a material decline in earnings.  11 •  require NNN to dedicate a substantial portion of its cash flow from operations to payments on its debt,  thereby reducing funds available for operations, real estate investments and other business opportunities that  may arise in the future, •  increase NNN’s vulnerability to general adverse economic and industry conditions, •  limit NNN’s ability to obtain any additional financing it may need in the future for working capital, debt  refinancing, capital expenditures, real estate investments, development or other general corporate purposes, •  make it difficult to satisfy NNN’s debt service requirements, •  limit NNN’s ability to pay dividends in cash on its outstanding common and preferred stock, •  limit NNN’s flexibility in planning for, or reacting to, changes in its business and the factors that affect the  profitability of its business, and •  limit NNN’s flexibility in conducting its business, which may place NNN at a disadvantage compared to  competitors with less debt or debt with less restrictive terms.