OUR  LONGTERM  FOCUS  AND STRATEGY Our shareholder value creation strategy continues to include the following primary tactics:  NUMBER OF PROPERTIES 4 Our strategy has been very consistent for the last several years while several of our more direct competitors have  pursued the acquisition of a variety of disparate property types. We continue to believe that: a) retail properties offer  a more attractive risk return characteristic than office or industrial real estate; b) our size is more than sufficient to  provide us the benefits of a fully diversified portfolio as well as access to low cost capital; and, c) a focused portfolio  of higher yielding, well underwritten, retail properties allows for more consistent FFO per share growth. • Employ the most talented professionals in our industry and continue to develop our outstanding team  of associates. We are currently investing additional resources on this latter objective. • Maintain a strong balance sheet with conservative leverage and a staggered debt maturity schedule. This approach  has enabled us to maintain an enviable cost of capital. • Sell select locations and reinvest the proceeds into newer, higher yielding properties to improve the quality  and growth prospects of our core portfolio. • We are continuing to focus our acquisition efforts on well-managed non-investment grade tenants. Our initial  yields on these properties are attractive and the rental stream from these acquisitions grows over time.  By contrast, properties leased to investment-grade retail tenants command the highest prices and the rental  stream generally has zero growth over time! • Acquire carefully underwritten, net-lease retail properties in strong locations. While we remain selective and  disciplined in our acquisition activities, our annualized base rent has increased by 82% over the last four years. • Maintain a diversified and well-occupied net-leased retail portfolio. After thoughtful consideration, we are not  pursuing office and industrial properties as our experience shows that well-located retail locations generate  better shareholder returns. 2,000 1,750 1,500 1,250 1,000 750 500 2008 2009 2010 2011 2012 2013  1,037 1,212 1,422 1,622 1,860 1,034