Item7A. Quantitative and Qualitative Disclosures About Market Risk NNN is exposed to interest rate risk primarily as a result of its variable rate Credit Facility and its fixed rate debt which is used  to finance NNN’s development and acquisition activities, as well as for general corporate purposes. NNN’s interest rate risk  management objective is to limit the impact of interest rate changes on earnings and cash flows and to lower its overall  borrowing costs. To achieve its objectives, NNN borrows at both fixed and variable rates on its long-term debt. As of  December 31, 2013, NNN had no outstanding derivatives. The information in the table below summarizes NNN’s market risks associated with its debt obligations outstanding as of  December 31, 2013 and 2012. The table presents principal payments and related interest rates by year for debt obligations  outstanding as of December 31, 2013. The variable interest rates shown represent weighted average rate for the Credit Facility  for the year ended December 31, 2013. The table incorporates only those debt obligations that existed as of December 31, 2013,  and it does not consider those debt obligations or positions which could arise after this date. Moreover, because firm  commitments are not presented in the table below, the information presented therein has limited predictive value. As a result,  NNN’s ultimate realized gain or loss with respect to interest rate fluctuations will depend on the exposures that arise during the  period, NNN’s hedging strategies at that time and interest rates. If interest rates on NNN’s variable rate debt increased by one  percent, NNN’s interest expense would have increased by less than one percent for the year ended December 31, 2013. (1)  NNN's mortgages payable include unamortized premium. NNN is also exposed to market risks related to NNN’s Residuals. Factors that may impact the market value of the Residuals  include delinquencies, loan losses, prepayment speeds and interest rates. The Residuals, which are reported at market value  based upon an independent valuation, had a carrying value of $11,721,000 and $13,096,000 as of December 31, 2013 and 2012,  respectively. Unrealized gains and losses are reported as other comprehensive income in stockholders’ equity. Losses are  considered other than temporary and reported as a valuation impairment in earnings from operations if and when there has been  a change in the timing or amount of estimated cash flows that leads to a loss in value. (2)  Includes NNN’s notes payable and convertible notes payable, each net of unamortized discounts. NNN uses market prices quoted from  Bloomberg, a third party, which is a level one input, to determine the fair value. Debt Obligations (dollars in thousands) Variable Rate Debt Fixed Rate Debt Credit Facility Mortgages (1) Unsecured Debt (2) Debt Obligation Weighted Average Interest Rate Debt Obligation Weighted Average Interest Rate Debt Obligation Effective Interest Rate 2014 $ — — $ 1,158 6.90% $ 149,975 5.91% 2015 — — 1,207 6.86% 149,904 6.19% 2016 46,400 1.39% 6,842 5.95% — — 2017 — — 147 8.03% 249,596 6.92% 2018 — — 86 9.00% — — Thereafter — — 35 9.00% 964,709 4.29% Total $ 46,400 1.39% $ 9,475 6.32% $ 1,514,184 5.08% Fair Value: December 31, 2013 $ 46,400 $ 9,475 $ 1,555,672 December 31, 2012 $ 174,200 $ 10,602 $ 1,585,756  39