Section 404 of the Sarbanes-Oxley Act of 2002 requires annual management assessments of the effectiveness of the Company’s  internal control over financial reporting. If NNN fails to maintain the adequacy of its internal control over financial reporting,  as such standards may be modified, supplemented or amended from time to time, NNN may not be able to ensure that it can  conclude on an ongoing basis that it has effective internal control over financial reporting in accordance with Section 404 of the  Sarbanes-Oxley Act of 2002. Moreover, effective internal control over financial reporting, particularly those related to revenue  recognition, are necessary for NNN to produce reliable financial reports and to maintain its qualification as a REIT and are  important in helping to prevent financial fraud. If NNN cannot provide reliable financial reports or prevent fraud, its business  and operating results could be harmed, REIT qualification could be jeopardized, investors could lose confidence in the  Company’s reported financial information, and the trading price of NNN’s shares could drop significantly. NNN’s ability to pay dividends may be impaired if any of the risks described in this section were to occur. In addition, payment  of NNN’s dividends depends upon NNN’s earnings, financial condition, maintenance of NNN’s REIT status and other factors  as NNN’s Board of Directors may deem relevant from time to time. Cyber incidents can result from deliberate attacks or unintentional events. These incidents can include, but are not limited to,  gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information, corrupting data,  or causing operational disruption. The result of these incidents could include, but are not limited to, disrupted operations,  misstated financial data, liability for stolen assets or information, increased cybersecurity protection costs, litigation and  reputational damage adversely affecting customer or investor confidence. These cyber incidents could negatively impact NNN,  NNN's tenants and/or the capital markets. NNN’s failure to maintain effective internal control over financial reporting could have a material adverse effect on its  business, operating results and share price. NNN’s ability to pay dividends in the future is subject to many factors. Cybersecurity risks and cyber incidents could adversely affect NNN's business and disrupt operations. Future investment in international markets could subject NNN to additional risks. Item 1B. Unresolved Staff Comments Item 2. Properties Item 3. Legal Proceedings Item 4. Mine Safety Disclosures If NNN expands its operating strategy to include investment in international markets, NNN could face additional risks,  including foreign currency exchange rate fluctuations, operational risks due to local economic and political conditions and laws  and policies of the U.S. affecting foreign investment.  None. Please refer to Item 1. “Business.” In the ordinary course of its business, NNN is a party to various legal actions that management believes are routine in nature  and incidental to the operation of the business of NNN. Management believes that the outcome of these proceedings will not  have a material adverse effect upon its operations, financial condition or liquidity. None.  14