Comparison of Revenues from Continuing Operations – 2012 versus 2011 Analysis of Expenses from Continuing Operations Rental Income. Rental Income increased in amount and as a percent of the total revenues from continuing operations for the  year ended December 31, 2012 as compared to the same period in 2011. The increase for the year ended December 31, 2012, is  primarily due to a full year of rental income from the acquisition of 218 properties in continuing operations with a gross  leasable area of approximately 3,448,000 square feet in 2011 and a partial year of rental income from the acquisition of 232  properties in continuing operations with aggregate gross leasable area of approximately 2,955,000 during 2012. In addition, the  increase was partially offset by the decrease in lease termination fees. NNN recorded $661,000 as compared to $2,649,000 in  lease termination and rent settlement fees during the years ended December 31, 2012 and 2011, respectively. Real Estate Expense Reimbursement from Tenants. Real estate expense reimbursements from tenants increased for the year  ended December 31, 2012, as compared to the same period in 2011, but decreased as a percentage of total revenues from  continuing operations. The increase is primarily attributable to a full year of reimbursements from properties acquired in 2011  and a partial year of reimbursements from certain newly acquired properties in 2012.  General. Operating expenses from continuing operations increased primarily due to an increase in depreciation expense and an  increase in reimbursable real estate expenses, but was partially offset by a decrease in incentive compensation during the year  ended December 31, 2013, as compared to the same period in 2012. The following summarizes NNN’s expenses from  continuing operations (dollars in thousands): 2013 2012 2011 General and administrative $ 32,576 $ 32,187 $ 28,796 Real estate 18,100 17,041 16,997 Depreciation and amortization 99,246 73,707 56,466 Impairment – commercial mortgage residual interests valuation 1,185 2,812 1,024 Impairment losses and other charges, net of recoveries 1,972 3,088 (1,349) Total operating expenses $ 153,079 $ 128,835 $ 101,934 Interest and other income $ (1,493) $ (2,232) $ (1,593) Interest expense 85,283 83,192 75,532 Total other expenses (revenues) $ 83,790 $ 80,960 $ 73,939 Percentage of Total Operating Expenses Percentage of Revenues from Continuing Operations 2013 Versus 2012 Percent 2012 Versus 2011 Percent 2013 2012 2011 2013 2012 2011 General and administrative 21.3 % 25.0 % 28.2 % 8.3 % 9.7 % 11.1 % 1.2 % 11.8% Real estate 11.8 % 13.2 % 16.7 % 4.6 % 5.1 % 6.6 % 6.2 % 0.3% Depreciation and amortization 64.8 % 57.2 % 55.4 % 25.3 % 22.2 % 21.8 % 34.6 % 30.5% Impairment – commercial mortgage residual interests valuation 0.8 % 2.2 % 1.0 % 0.3 % 0.8 % 0.4 % (57.9)% 174.6% Impairment losses and other charges, net of recoveries 1.3 % 2.4 % (1.3)% 0.5 % 0.9 % (0.5)% (36.1)% 328.9% Total operating expenses 100.0 % 100.0 % 100.0 % 39.0 % 38.7 % 39.4 % 18.8 % 26.4% Interest and other income (1.8)% (2.8)% (2.2)% (0.4)% (0.7)% (0.6)% (33.1)% 40.1% Interest expense 101.8 % 102.8 % 102.2 % 21.7 % 25.1 % 29.2 % 2.5 % 10.1% Total other expenses (revenues) 100.0 % 100.0 % 100.0 % 21.3 % 24.4 % 28.6 % 3.5 % 9.5%  25