EX-12 2 nnn-20171231xexhibit12.htm EXHIBIT 12 Exhibit
NATIONAL RETAIL PROPERTIES, INC. AND SUBSIDIARIES
EXHIBIT 12

CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES



The following table sets forth the Company's consolidated ratios of earnings to fixed charges for the periods as shown (dollars in thousands).

 
 
2017 (1)
 
2016
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations before income from equity investees
 
$
265,371

 
$
239,506

 
$
208,386

 
$
191,289

 
$
155,631

 
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges (excluding capitalized interest)
 
108,930

 
96,168

 
89,973

 
85,514

 
85,912

Distributed income from equity investees
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Pretax earnings from operations, as adjusted
 
$
374,301

 
$
335,674

 
$
298,359

 
$
276,803

 
$
241,543

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest on indebtedness
 
$
101,811

 
$
89,057

 
$
84,080

 
$
80,370

 
$
79,175

Capitalized interest
 
2,435

 
1,738

 
2,383

 
1,628

 
1,369

Amortization of net discount relating to indebtedness
 
1,702

 
1,246

 
1,100

 
1,238

 
3,188

Amortization of interest rate hedges
 
1,932

 
2,802

 
1,902

 
1,129

 
438

Amortization of deferred charges
 
3,485

 
3,063

 
2,891

 
2,777

 
3,111

 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
$
111,365

 
$
97,906

 
$
92,356

 
$
87,142

 
$
87,281

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
3.36

 
3.43

 
3.23

 
3.18

 
2.77

 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
$
111,365

 
$
97,906

 
$
92,356

 
$
87,142

 
$
87,281

Preferred stock dividends
 
37,925

 
38,623

 
35,434

 
35,434

 
27,923

 
 
 
 
 
 
 
 
 
 
 
Combined fixed charges and preferred stock dividends
 
$
149,290

 
$
136,529

 
$
127,790

 
$
122,576

 
$
115,204

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preferred stock dividends
 
2.51

 
2.46

 
2.33

 
2.26

 
2.10


(1) Excluding the effect of $7,845 in retirement severance costs, ratio of earnings to fixed charges would have been 3.43x and the ratio of earnings to combined fixed charges and preferred stock dividends would have been 2.56x. Retirement severance costs relate primarily to Craig Macnab's retirement as CEO on April 28, 2017.