EX-99.2 3 ex992-12312019.htm EXHIBIT 99.2 Exhibit
Exhibit 99.2





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ANNUAL SUPPLEMENTAL DATA


As of December 31, 2019



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TABLE OF CONTENTS
 
PAGE REFERENCE
Financial Summary
 
Income Statement Summary
Funds From Operations (FFO)
Core Funds From Operation
Adjusted Funds From Operations (AFFO)
Other Information
Balance Sheet
Debt Summary
Credit Metrics
Credit Facility and Note Covenants
Long-Term Dividend History
Transaction Summary
 
Property Acquisitions
Property Dispositions
Property Portfolio
 
Lease Expirations
Top 20 Lines of Trade
Top 10 States
Portfolio By Region
Top Tenants
Same Store Rental Income
Leasing Data
Other Property Portfolio Data
Earnings Guidance

Statements in this supplemental that are not strictly historical are “forward-looking” statements. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated," or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the company's tenants, the availability of capital, risks related to the company's status as a REIT and the profitability of the company’s taxable subsidiary. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the company’s Securities and Exchange Commission (the “Commission”) filings, including, but not limited to, the company’s Annual Report on Form 10-K. Copies of each filing may be obtained from the company or the Commission. Such forward-looking statements should be regarded solely as reflections of the company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. National Retail Properties, Inc. undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.



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INCOME STATEMENT SUMMARY
(in thousands, except per share data)
(unaudited)
 
 
 
 
 
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
 
Rental income
 
$
173,163

 
$
158,827

 
$
669,009

 
$
621,399

Interest and other income from real estate transactions
 
213

 
149

 
1,478

 
1,262

 
 
173,376

 
158,976

 
670,487

 
622,661

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
General and administrative
 
10,127

 
8,267

 
37,651

 
34,248

Real estate
 
7,258

 
7,649

 
27,656

 
25,099

Depreciation and amortization
 
48,102

 
44,117

 
188,871

 
174,398

Impairment losses – real estate, net of recoveries
 
10,868

 
18,494

 
31,992

 
28,211

Retirement severance costs
 
—

 
270

 
—

 
1,013

 
 
76,355

 
78,797

 
286,170

 
262,969

 
 
 
 
 
 
 
 
 
Gain on disposition of real estate
 
6,955

 
8,020

 
32,463

 
65,070

Earnings from operations
 
103,976

 
88,199

 
416,780

 
424,762

 
 
 
 
 
 
 
 
 
Other expenses (revenues):
 
 
 
 
 
 
 
 
Interest and other income
 
(200
)
 
(1,553
)
 
(3,112
)
 
(1,810
)
Interest expense
 
30,307

 
34,940

 
120,023

 
115,847

Leasing transaction costs
 
83

 
—

 
261

 
—

Loss on early extinguishment of debt
 
—

 
18,240

 
—

 
18,240

 
 
30,190

 
51,627

 
117,172

 
132,277

 
 
 
 
 
 
 
 
 
Net earnings
 
73,786

 
36,572

 
299,608

 
292,485

Earnings attributable to noncontrolling interests
 
—

 
(10
)
 
(428
)
 
(38
)
Net earnings attributable to NNN
 
$
73,786

 
$
36,562

 
$
299,180

 
$
292,447

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1

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INCOME STATEMENT SUMMARY
(in thousands, except per share data)
(unaudited)
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Net earnings attributable to NNN
 
$
73,786

 
$
36,562

 
$
299,180

 
$
292,447

Series E preferred stock dividends
 
(911
)
 
(4,097
)
 
(13,201
)
 
(16,387
)
Series F preferred stock dividends
 
(4,485
)
 
(4,485
)
 
(17,940
)
 
(17,940
)
Excess of redemption value over carrying value of preferred shares redeemed
 
(9,856
)
 
—

 
(9,856
)
 
—

Net earnings available to common stockholders
 
$
58,534

 
$
27,980

 
$
258,183

 
$
258,120

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
170,763

 
159,193

 
164,688

 
155,745

Diluted
 
171,175

 
159,772

 
165,084

 
156,296

 
 
 
 
 
 
 
 
 
Net earnings per share available to common stockholders:
 
 
 
 
 
 
 
 
Basic
 
$
0.34

 
$
0.17

 
$
1.56

 
$
1.65

Diluted
 
$
0.34

 
$
0.17

 
$
1.56

 
$
1.65



2

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FUNDS FROM OPERATIONS (FFO)
(in thousands, except per share data)
(unaudited)
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Net earnings available to common stockholders
 
$
58,534

 
$
27,980

 
$
258,183

 
$
258,120

Real estate depreciation and amortization:
 
47,998

 
44,037

 
188,537

 
174,076

Gain on disposition of real estate, net of noncontrolling interests
 
(6,955
)
 
(8,020
)
 
(32,051
)
 
(65,070
)
Impairment losses – depreciable real estate, net of recoveries
 
10,868

 
18,494

 
31,992

 
28,211

Total FFO adjustments
 
51,911

 
54,511

 
188,478

 
137,217

FFO available to common stockholders
 
$
110,445

 
$
82,491

 
$
446,661

 
$
395,337

 
 
 
 
 
 
 
 
 
FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.65

 
$
0.52

 
$
2.71

 
$
2.54

Diluted
 
$
0.65

 
$
0.52

 
$
2.71

 
$
2.53


CORE FUNDS FROM OPERATIONS
(in thousands, except per share data)
(unaudited)
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Net earnings available to common stockholders
 
$
58,534

 
$
27,980

 
$
258,183

 
$
258,120

Total FFO adjustments
 
51,911

 
54,511

 
188,478

 
137,217

FFO available to common stockholders
 
110,445

 
82,491

 
446,661

 
395,337

 
 
 
 
 
 
 
 
 
Excess of redemption value over carrying value of preferred
share redemption
 
9,856

 
—

 
9,856

 
—

Retirement severance costs
 
—

 
270

 
—

 
1,013

Gain on sale of equity investments
 
—

 
—

 
(1,331
)
 
—

Loss on early extinguishment of debt
 
—

 
18,240

 
—

 
18,240

Total Core FFO adjustments
 
9,856

 
18,510

 
8,525

 
19,253

Core FFO available to common stockholders
 
$
120,301

 
$
101,001

 
$
455,186

 
$
414,590

 
 
 
 
 
 
 
 
 
Core FFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.70

 
$
0.63

 
$
2.76

 
$
2.66

Diluted
 
$
0.70

 
$
0.63

 
$
2.76

 
$
2.65



3

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ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(in thousands, except per share data)
(unaudited)
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Net earnings available to common stockholders
 
$
58,534

 
$
27,980

 
$
258,183

 
$
258,120

Total FFO adjustments
 
51,911

 
54,511

 
188,478

 
137,217

Total Core FFO adjustments
 
9,856

 
18,510

 
8,525

 
19,253

Core FFO available to common stockholders
 
120,301

 
101,001

 
455,186

 
414,590

 
 
 
 
 
 
 
 
 
Straight-line accrued rent
 
(631
)
 
124

 
(2,333
)
 
(747
)
Net capital lease rent adjustment
 
94

 
220

 
602

 
874

Below market rent amortization
 
(189
)
 
(288
)
 
(768
)
 
(2,622
)
Stock based compensation expense
 
2,932

 
2,641

 
10,737

 
9,282

Capitalized interest expense
 
(302
)
 
(175
)
 
(1,099
)
 
(2,675
)
Total AFFO adjustments
 
1,904

 
2,522

 
7,139

 
4,112

AFFO available to common stockholders
 
$
122,205

 
$
103,523

 
$
462,325

 
$
418,702

 
 
 
 
 
 
 
 
 
AFFO per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.72

 
$
0.65

 
$
2.81

 
$
2.69

Diluted
 
$
0.71

 
$
0.65

 
$
2.80

 
$
2.68



4

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OTHER INFORMATION
(in thousands)
(unaudited)
 
 
Quarter Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Rental income from operating leases(1)
 
$
167,805

 
$
152,915

 
$
650,112

 
$
602,131

Earned income from direct financing leases(1)
 
$
174

 
$
226

 
$
798

 
$
923

Percentage rent(1)
 
$
260

 
$
543

 
$
1,310

 
$
1,561

 
 
 
 
 
 
 
 
 
Real estate expense reimbursement from tenants(1)
 
$
4,924

 
$
5,143

 
$
16,789

 
$
16,784

Real estate expenses
 
$
(7,258
)
 
$
(7,649
)
 
$
(27,656
)
 
$
(25,099
)
Real estate expenses, net of tenant reimbursements
 
$
(2,334
)
 
$
(2,506
)
 
$
(10,867
)
 
$
(8,315
)
 
 
 
 
 
 
 
 
 
Amortization of debt costs
 
$
944

 
$
1,917

 
$
3,731

 
$
4,611

Scheduled debt principal amortization (excluding maturities)
 
$
145

 
$
138

 
$
567

 
$
538

Non-real estate depreciation expense
 
$
108

 
$
83

 
$
346

 
$
332

(1) 
The condensed consolidated financial statements for the quarter and year ended December 31, 2019 and 2018 are presented under the new accounting standard, ASU 2016-02, "Leases (Topic 842)."  For the quarter and year ended December 31, 2019, the aggregate of such amounts is $173,163 and $669,009, respectively, classified as rental income on the income statement summary. For the quarter and year ended December 31, 2018, the aggregate of such amounts is $158,827 and $621,399, respectively.



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BALANCE SHEET
(in thousands)
(unaudited)
 
 
 
December 31, 2019
 
December 31, 2018
Assets:
 
 
 
 
Real estate:
 
 
 
 
Accounted for using the operating method, net of accumulated depreciation and amortization
 
$
7,290,025

 
$
6,845,446

Accounted for using the direct financing method
 
4,204

 
8,069

Real estate held for sale
 
7,010

 
21,917

Cash and cash equivalents
 
1,112

 
114,267

Receivables, net of allowance of $506 and $2,273, respectively
 
2,874

 
3,797

Accrued rental income, net of allowance of $1,842
 
28,897

 
25,387

Debt costs, net of accumulated amortization of $15,574 and $14,118, respectively
 
2,783

 
4,081

Other assets
 
97,962

 
80,474

Total assets
 
$
7,434,867

 
$
7,103,438

 
 
 
 
 
Liabilities:
 
 
 
 
Line of credit payable
 
$
133,600

 
$
—

Mortgages payable, including unamortized premium and net of unamortized debt costs
 
12,059

 
12,694

Notes payable, net of unamortized discount and unamortized debt costs
 
2,842,698

 
2,838,701

Accrued interest payable
 
18,250

 
19,519

Other liabilities
 
96,578

 
77,919

Total liabilities
 
3,103,185

 
2,948,833

 
 
 
 
 
Stockholders’ equity of NNN
 
4,331,675

 
4,154,250

Noncontrolling interests
 
7

 
355

Total equity
 
4,331,682

 
4,154,605

 
 
 
 
 
Total liabilities and equity
 
$
7,434,867

 
$
7,103,438

 
 
 
 
 
Common shares outstanding
 
171,694

 
161,504

 
 
 
 
 
Gross leasable area, Property Portfolio (square feet)
 
32,460

 
30,487




6

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DEBT SUMMARY
(in thousands)
As of December 31, 2019
Unsecured Debt
 
Principal
 
Principal, Net of Unamortized Discount
 
Stated Rate
 
Effective Rate
 
Maturity Date
Line of credit payable
 
$
133,600

 
$
133,600

 
L + 87.5 bps
 
2.788%
 
January 2022
 
 
 
 
 
 
 
 
 
 
 
Unsecured notes payable:
 
 
 
 
 
 
 
 
 
 
2022
 
325,000

 
323,426

 
3.800%
 
3.985%
 
October 2022
2023
 
350,000

 
349,049

 
3.300%
 
3.388%
 
April 2023
2024
 
350,000

 
349,653

 
3.900%
 
3.924%
 
June 2024
2025
 
400,000

 
399,391

 
4.000%
 
4.029%
 
November 2025
2026
 
350,000

 
347,169

 
3.600%
 
3.733%
 
December 2026
2027
 
400,000

 
398,693

 
3.500%
 
3.548%
 
October 2027
2028
 
400,000

 
397,445

 
4.300%
 
4.388%
 
October 2028
2048
 
300,000

 
295,842

 
4.800%
 
4.890%
 
October 2048
Total
 
2,875,000

 
2,860,668

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total unsecured debt
 
$
3,008,600

 
$
2,994,268

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt costs
 
$
(26,932
)
 
 
 
 
 
 
Accumulated amortization
 
8,962

 
 
 
 
 
 
Debt costs, net of accumulated amortization
 
(17,970
)
 
 
 
 
 
 
Notes payable, net of unamortized discount and unamortized debt costs (1)
 
$
2,842,698

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Unsecured notes payable have a weighted average interest rate of 4.0% and a weighted average maturity of 8.3 years
Mortgages Payable
 
Interest Rate
 
Maturity Date
 
Principal Balance
Mortgage(1)
 
5.230
%
 
July 2023
 
$
12,116

 
 
 
 
 
 

Debt costs
 
 
 
 
 
(147
)
Accumulated amortization
 
90

Debt costs, net of accumulated amortization
 
(57
)
Mortgages payable, including unamortized premium and net of unamortized debt costs
 
$
12,059

 
 
 
 
 
 
 
(1) Includes unamortized premium
 
 
chart-13518464e19b565385e.jpg

7

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CREDIT METRICS (1)
Ratings: Moody’s Baa1; S&P BBB+; Fitch BBB+
 
 
 
 
 
 
 
 
 
 
2015
 
2016
 
2017
 
2018
 
2019
Debt / Total assets (gross book)
33.2
%
 
30.2
%
 
35.3
%
 
34.6
%
 
35.3
%
Debt + preferred / Total assets (gross book)
42.9
%
 
43.9
%
 
44.0
%
 
42.6
%
 
39.3
%
Debt / EBITDA (last four quarters)
4.6

 
4.3

 
4.9

 
4.8

 
4.9

Debt + Pref Stock / EBITDA
5.9

 
6.2

 
6.1

 
5.9

 
5.5

EBITDA / Interest expense (cash)
4.6

 
4.8

 
4.7

 
4.8

 
5.0

EBITDA / Fixed charges (cash)
3.3

 
3.4

 
3.5

 
3.7

 
4.0

(1) Debt amounts used in calculation are net of cash balances.


CREDIT FACILITY AND NOTES COVENANTS
The following is a summary of key financial covenants for the company's unsecured credit facility and notes, as defined and calculated per the terms of the facility's credit agreement and the notes' governing documents, respectively, which are included in the company's filings with the Commission. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2019, the company believes it is in compliance with the covenants.
Unsecured Credit Facility Key Covenants
 
Required
 
December 31, 2019
Maximum leverage ratio
 
< 0.60
 
0.34
Minimum fixed charge coverage ratio
 
> 1.50
 
4.39
Maximum secured indebtedness ratio
 
< 0.40
 
0.001
Unencumbered asset value ratio
 
> 1.67
 
3.02
Unencumbered interest ratio
 
> 1.75
 
5.36
 
 
 
 
 
Unsecured Notes Key Covenants
 
Required
 
December 31, 2019
Limitation on incurrence of total debt
 
≤ 60%
 
34.80%
Limitation on incurrence of secured debt
 
≤ 40%
 
0.14%
Debt service coverage ratio
 
≥ 1.50
 
5.01
Maintenance of total unencumbered assets
 
≥ 150%
 
287.80%


8

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LONG-TERM DIVIDEND HISTORY

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9

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PROPERTY ACQUISITIONS
(dollars in thousands)
 
 
Year Ended December 31,
 
 
2019
 
2018
Total dollars invested
 
$
752,497

 
$
715,572

Number of Properties
 
210

 
265

Gross leasable area (square feet)
 
3,164,000

 
2,167,000

Cash cap rate
 
6.9
%
 
6.8
%



PROPERTY DISPOSITIONS
(dollars in thousands)
 
Year Ended December 31,
 
2019
 
2018
 
Occupied

Vacant

 
Total

 
Occupied

Vacant

 
Total

Number of properties
22

37

 
59

 
37

24

 
61

Gross leasable area (square feet)
318,000

795,000

 
1,113,000

 
552,000

134,000

 
686,000

Acquisition costs
$
70,590

$
105,312

 
$
175,902

 
$
90,384

$
31,366

 
$
121,750

Net book value
$
37,451

$
56,280

 
$
93,731

 
$
71,091

$
11,660

 
$
82,751

Net sale proceeds
$
58,396

$
67,798

 
$
126,194

 
$
133,804

$
13,842

 
$
147,646

Cash cap rate
5.9
%
—

 
5.9
%
 
5.1
%
—

 
5.1
%

10

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LEASE EXPIRATIONS
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable
Area (2)
 
 
 
% of
Total(1)
 
# of
Properties
 
Gross Leasable Area (2)
2020
 
1.7
%
 
66

 
688,000

 
2026
 
4.5
%
 
174

 
1,672,000

2021
 
3.5
%
 
115

 
1,253,000

 
2027
 
7.1
%
 
194

 
2,582,000

2022
 
5.5
%
 
123

 
1,634,000

 
2028
 
4.5
%
 
153

 
1,158,000

2023
 
2.9
%
 
118

 
1,471,000

 
2029
 
3.0
%
 
75

 
1,030,000

2024
 
3.7
%
 
100

 
1,600,000

 
2030
 
3.7
%
 
101

 
1,137,000

2025
 
5.3
%
 
167

 
1,850,000

 
Thereafter
 
54.6
%
 
1,698

 
15,743,000

(1) 
Based on the annual base rent of $674,338,000, which is the annualized base rent for all leases in place as of December 31, 2019.
(2) 
Square feet.

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11

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TOP 20 LINES OF TRADE
 
 
 
 
As of December 31, 2019
 
As of December 31, 2018
 
 
Line of Trade
 
% of Total(1)
 
Properties
 
% of Total(2)
 
Properties
1.
 
Convenience stores
 
18.2
%
 
657

 
18.0
%
 
617

2.
 
Restaurants - full service
 
11.1
%
 
458

 
11.4
%
 
453

3.
 
Automotive service
 
9.6
%
 
358

 
8.6
%
 
291

4.
 
Restaurants - limited service
 
8.8
%
 
530

 
8.9
%
 
498

5.
 
Family entertainment centers
 
6.7
%
 
98

 
7.1
%
 
98

6.
 
Health and fitness
 
5.2
%
 
35

 
5.6
%
 
35

7.
 
Theaters
 
4.7
%
 
33

 
5.0
%
 
33

8.
 
Recreational vehicle dealers, parts and accessories
 
3.4
%
 
38

 
3.4
%
 
36

9.
 
Automotive parts
 
3.1
%
 
161

 
3.4
%
 
179

10.
 
Equipment rental
 
2.6
%
 
80

 
1.9
%
 
59

11.
 
Home improvement
 
2.6
%
 
48

 
2.2
%
 
38

12.
 
Wholesale clubs
 
2.5
%
 
11

 
2.3
%
 
9

13.
 
Medical service providers
 
2.1
%
 
84

 
2.2
%
 
84

14.
 
General merchandise
 
1.8
%
 
75

 
1.6
%
 
59

15.
 
Home furnishings
 
1.7
%
 
20

 
1.5
%
 
18

16.
 
Furniture
 
1.6
%
 
45

 
1.7
%
 
44

17.
 
Travel plazas
 
1.6
%
 
27

 
1.7
%
 
27

18.
 
Drug stores
 
1.6
%
 
36

 
1.8
%
 
37

19.
 
Consumer electronics
 
1.5
%
 
17

 
1.6
%
 
17

20.
 
Bank
 
1.3
%
 
59

 
1.6
%
 
70

 
 
Other
 
8.3
%
 
248

 
8.5
%
 
267

 
 
Total
 
100.0
%
 
3,118

 
100.0
%
 
2,969

(1) Based on the annualized base rent for all leases in place as of December 31, 2019.
(2) Based on the annualized base rent for all leases in place as of December 31, 2018.

TOP 10 STATES
 
State
 
% of Total(1)
 
Properties
 
 
State
 
% of Total(1)
 
Properties
1.
Texas
 
17.6
%
 
502

 
6.
North Carolina
 
4.5
%
 
156

2.
Florida
 
8.8
%
 
230

 
7.
Indiana
 
4.0
%
 
146

3.
Ohio
 
5.8
%
 
199

 
8.
Tennessee
 
3.8
%
 
142

4.
Illinois
 
5.0
%
 
142

 
9.
Virginia
 
3.6
%
 
117

5.
Georgia
 
4.5
%
 
151

 
10.
California
 
3.3
%
 
65

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Based on the annualized base rent for all leases in place as of December 31, 2019.
 
 



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PORTFOLIO BY REGION
As a percentage of annual base rent - December 31, 2019

chart-43fe25a3c0a95d7a940.jpg
TOP TENANTS
Creditworthy Retailers
▪
18% of annual base rent is from tenants with investment grade rated debt
▪
65% of annual base rent is from tenants that are publicly traded and/or have rated debt
▪
Top 25 tenants (58% of annual base rent) operate an average of 1,100 stores each

Top Tenants (≥2.0%)
 
Properties
 
% of Total (1)
7-Eleven
 
140

 
5.0
%
Mister Car Wash
 
116

 
4.6
%
Camping World
 
47

 
4.2
%
LA Fitness
 
30

 
3.7
%
Flynn Restaurant Group (Taco Bell/Arby's)
 
204

 
3.5
%
GPM Investments (Convenience Stores)
 
151

 
3.3
%
AMC Theatres
 
20

 
3.0
%
Couche-Tard (Pantry)
 
85

 
2.8
%
BJ's Wholesale Club
 
11

 
2.5
%
Sunoco
 
61

 
2.3
%
Chuck E. Cheese's
 
53

 
2.1
%
 
Rent Coverage (With Corp. Overhead)
 
Fixed Charge Coverage
Range
1.8x - 8.7x
 
1.3x - 5.3x
Average
3.5x
 
2.2x
Weighted average
3.7x
 
2.1x
 
 
 
 
(1) Based on the annual base rent of $674,338,000, which is the annualized base rent for all leases in place as of December 31, 2019.

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SAME STORE RENTAL INCOME
(dollars in thousands)

Same Store Rental Income – Properties (Cash Basis) (1)
 
 
Number of properties
2,615

 
Year ended December 31, 2019
$
562,307

 
Year ended December 31, 2018
$
561,578

 
Decrease (in dollars)
$
729

 
Change (percent)
0.1
%
 
(1)   Includes all properties owned for current and prior year period excluding any properties under development
      or re-development.

LEASING DATA
(dollars in thousands)
Year Ended December 31, 2019
 
Renewals With Same Tenant(1)
 
Vacancy
Re-lease To New Tenant
 
Re-leasing Totals
 
Number of leases
 
81

 
23

 
104

 
Prior cash rents
 
$
15,029

 
$
3,673

 
$
18,702

 
New cash rents
 
$
15,701

 
$
2,902

 
$
18,603

(2) 
New rents / prior rents
 
104.5
%
 
79.0
%
 
99.5
%
 
 
 
 
 
 
 
 
 
Tenant improvements
 
$
700

 
$
3,268

 
$
3,968

 

(1) 
Long-term renewal rate for the period of 2010 through 2019 was 84.3%.
(2) 
Represents 2.8% of total annualized base rent as of December 31, 2019.




14

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OTHER PROPERTY PORTFOLIO DATA
As of December 31, 2019
Tenant Financials
 
 
# of Properties
 
% of Annual Base Rent
Property Level Financial Information
 
2,622

 
80
%
Tenant Corporate Financials
 
2,431

 
78
%

Rent Increases
% of Annual Base Rent
 
Annual

 
Five Year

 
Other

 
Total

CPI – Based
34
%
 
45
%
 
1
%
 
80
%
Fixed Rate
3
%
 
11
%
 
1
%
 
15
%
No increases
—

 
—

 
5
%
 
5
%
 
37
%
 
56
%
 
7
%
 
100
%

Lease Structure
▪
92% of the company's annual base rent is from NNN leases
▪
95% of the company's annual base rent is from NNN leases and NN leases (with roof warranty)

EARNINGS GUIDANCE
Guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company's reports filed with the Securities and Exchange Commission.

 
 
2020 Guidance
  Net earnings per common share excluding any gains on disposition of real estate and impairment charges
 
$1.70 - $1.74 per share
  Real estate depreciation and amortization per share
 
$1.13 per share
Core FFO per share
 
$2.83 - $2.87 per share
  AFFO per share
 
$2.90 - $2.94 per share
  General and administrative expenses
 
$42.0 - $43.0 Million
  Real estate expenses, net of tenant reimbursements
 
$8.0 - $9.0 Million
  Acquisition volume
 
$550 - $650 Million
  Disposition volume
 
$80 - $120 Million


15