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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the fiscal year ended December 31, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from                      to                      .
Commission file number 001-11290
NATIONAL RETAIL PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
 
Maryland
56-1431377
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
450 South Orange Avenue, Suite 900
Orlando, Florida 32801
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (407265-7348
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class:
Trading Symbol(s)
Name of exchange on which registered:
Common Stock, $0.01 par value
NNN
New York Stock Exchange
Depositary Shares, each representing one-hundredth of a share of 5.200% Series F Preferred Stock, $0.01 par value
NNN/PF
New York Stock Exchange
Securities registered pursuant to section 12(g) of the Act:
None
(Title of class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  x   No  ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act    Yes  ¨     No  x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x     No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x

Accelerated filer
Non-accelerated filer

Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes      No  x
At June 30, 2019, the aggregate market value of voting and non-voting common stock held by non-affiliates of the registrant was $8,616,156,714 based upon the last reported sale price on the New York Stock Exchange on June 28, 2019, the last business day of the registrant's most recently completed second fiscal quarter. The determination of affiliate status is solely for the purpose of this report and shall not be construed as an admission for the purposes of determining affiliate status.
The number of shares of common stock outstanding as of January 31, 2020 was 171,697,831.



DOCUMENTS INCORPORATED BY REFERENCE:
Registrant incorporates by reference into Part III (Items 10, 11, 12, 13 and 14) of this Annual Report on Form 10-K portions of National Retail Properties, Inc.’s definitive Proxy Statement for the 2020 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission (the “Commission”) pursuant to Regulation 14A. The definitive Proxy Statement will be filed with the Commission not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.



TABLE OF CONTENTS
 
 
 
PAGE      
REFERENCE
Part I
 
 
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
Part II
 
 
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
Part III
 
 
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
Part IV
 
 
Item 15.
Item 16.



PART I
Unless the context otherwise requires, references in this Annual Report on Form 10-K to the terms “registrant” or “NNN” or the “Company” refer to National Retail Properties, Inc. and all of its consolidated subsidiaries. NNN may elect to treat certain subsidiaries as taxable real estate investment trust subsidiaries, (“TRS”).
Forward-Looking Statements
Statements contained in this Annual Report on Form 10-K, including the documents that are incorporated by reference, that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Also, when NNN uses any of the words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” or similar expressions, NNN is making forward-looking statements. Although management believes that the expectations reflected in such forward-looking statements are based upon present expectations and reasonable assumptions, NNN’s actual results could differ materially from those set forth in the forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and NNN undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements:
Changes in financial and economic conditions may have an adverse impact on NNN, its tenants, and commercial real estate in general;
Loss of rent from tenants would reduce NNN’s cash flow;
A significant portion of NNN’s annual base rent is concentrated in specific industry classifications, tenants and geographic locations;
NNN may not be able to successfully execute its acquisition or development strategies;
NNN may not be able to dispose of properties consistent with its operating strategy;
Certain provisions of NNN’s leases or loan agreements may be unenforceable;
Competition from numerous other real estate investment trusts (“REIT”), commercial developers, real estate limited partnerships and other investors may impede NNN’s ability to grow;
NNN's loss of key management personnel could adversely affect performance and the value of its securities;
Uninsured losses may adversely affect NNN’s operating results and asset values;
NNN’s ability to fully control the management of its net-leased properties may be limited;
Vacant properties or bankrupt tenants could adversely affect NNN’s business or financial condition;
NNN’s failure to maintain effective internal control over financial reporting could have a material adverse effect on its business, operating results and the market value of NNN's securities;
Cybersecurity risks and cyber incidents could adversely affect NNN's business, disrupt operations and expose NNN to liabilities to tenants, employees, capital providers, and other third parties;
Future investment in international markets could subject NNN to additional risks;
NNN may suffer a loss in the event of a default or bankruptcy of a tenant or borrower;
Property ownership through joint ventures and partnerships could limit NNN’s control of those investments;
Acts of violence, terrorist attacks or war may affect the markets in which NNN operates and NNN’s results of operations;
Changes in accounting pronouncements could adversely impact NNN’s or NNN’s tenants’ reported financial performance;
NNN may be unable to obtain debt or equity capital on favorable terms, if at all;
The amount of debt NNN has and the restrictions imposed by that debt could adversely affect NNN’s business and financial condition;
NNN is obligated to comply with financial and other covenants in its debt instruments that could restrict its operating activities, and the failure to comply with such covenants could result in defaults that accelerate the payment of such debt;
The market value of NNN’s equity and debt securities is subject to various factors that may cause significant fluctuations or volatility;
NNN’s ability to pay dividends in the future is subject to many factors;
The phase-out of LIBOR could affect interest rates under NNN's variable rate debt;
Owning real estate and indirect interests in real estate carries inherent risks;
NNN’s real estate investments are illiquid;
NNN may be subject to known or unknown environmental liabilities and hazardous materials on Properties owned by NNN;

1


The cost of complying with changes in governmental laws and regulations may adversely affect NNN’s results of operations;
NNN’s failure to qualify as a REIT for federal income tax purposes could result in significant tax liability;
Even if NNN remains qualified as a REIT, NNN faces other tax liabilities that reduce operating results and cash flow;
Adverse legislative or regulatory tax changes could reduce NNN’s earnings and cash flow and the market value of NNN’s securities; and
Compliance with REIT requirements, including distribution requirements, may limit NNN’s flexibility and may negatively affect NNN’s operating decisions;
The share ownership restrictions of the Internal Revenue Code for REITs and the 9.8% share ownership limit in NNN’s charter may inhibit market activity in NNN’s shares of stock and restrict NNN’s business combination opportunities; and
Non-compliance with Title III of the Americans with Disabilities Act of 1990 could have an adverse effect on NNN's business and operating results.
In addition, NNN describes risks and uncertainties that could cause actual results and events to differ materially in “Risk Factors” (Part I, Item 1A of this Annual Report on Form 10-K), “Quantitative and Qualitative Disclosures about Market Risk” (Part II, Item 7A), and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” (Part II, Item 7).

Item 1.
Business
The Company
NNN, a Maryland corporation, is a fully integrated REIT formed in 1984. NNN's assets are primarily real estate assets. NNN's consolidated financial statements are included in Item 8 of this Annual Report on Form 10-K.
The common shares of National Retail Properties, Inc. are traded on the New York Stock Exchange (the "NYSE") under the ticker symbol "NNN." The Company has one series of preferred shares outstanding which is traded in the form of depositary shares: the depositary shares, each representing 1/100th of a share of 5.200% Series F Cumulative Redeemable Preferred Stock, par value $0.01 per share (“Series F Preferred Stock”), are traded on the NYSE under the symbol "NNN/PF."
Real Estate Assets
NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment ("Properties" or "Property Portfolio," or individually a "Property"). NNN owned 3,118 Properties with an aggregate gross leasable area of approximately 32,460,000 square feet, located in 48 states, with a weighted average remaining lease term of 11.2 years as of December 31, 2019. Approximately 99 percent of the Properties were leased as of December 31, 2019.
Competition
NNN faces active competition from many sources, both domestically and internationally, for net-lease investment opportunities in commercial properties. Competitors may be willing to accept rates of return, prices, lease terms, other transaction terms, or levels of risk that NNN finds unacceptable.
Employees
As of January 31, 2020, NNN employed 70 associates.
Business Strategies and Policies
The following is a discussion of NNN’s operating strategy and certain of its investment, financing and other policies. These strategies and policies have been set by management and the Board of Directors and, in general, may be amended or revised from time to time by management and the Board of Directors without a vote of NNN’s stockholders.

2


Operating Strategies
NNN’s strategy is to invest primarily in retail real estate that is typically well located within each local market for its tenants’ retail lines of trade. Management believes that these types of properties, generally leased pursuant to triple-net leases, provide attractive opportunities for stable current returns and the potential for increased returns and capital appreciation. Triple-net leases typically require the tenant to pay property operating expenses such as insurance, utilities, repairs, maintenance, capital expenditures and real estate taxes and assessments. Initial lease terms are generally 10 to 20 years.
NNN holds each Property until it determines that the sale of such Property is advantageous in view of NNN’s investment objectives. In deciding whether to sell a Property, factors NNN may consider include, but are not limited to, potential capital appreciation, net cash flow, tenant credit quality, tenant's line of trade, portfolio composition, market lease rates, local market conditions, future uses of the Property, potential use of sale proceeds and federal income tax considerations.
NNN’s management team focuses on certain key indicators to evaluate the financial condition and operating performance of NNN. These key indicators for NNN include items such as: the composition of the Property Portfolio (such as tenant, geographic and line of trade diversification), the occupancy rate of the Property Portfolio, certain financial performance ratios and profitability measures, industry trends, and industry performance compared to that of NNN.
NNN evaluates the creditworthiness of its current and prospective tenants. This evaluation may include reviewing available financial statements, store level financial performance, press releases, public credit ratings from major credit rating agencies, industry news publications and financial market data (debt and equity pricing). NNN may also evaluate the business and operations of its tenants, including past payment history and periodically meeting with senior management of certain tenants.
The operating strategies employed by NNN have allowed NNN to increase the annual dividend (paid quarterly) per common share for 30 consecutive years. NNN is one of only three publicly traded REITs to increase its annual dividend per common share for 30 or more consecutive years.
Investment in Real Estate or Interests in Real Estate
NNN’s management believes that single tenant, freestanding net lease retail properties will continue to provide attractive investment opportunities and that NNN is well suited to take advantage of these opportunities because of its experience in accessing capital markets, and its ability to source, underwrite and acquire such properties.
In evaluating a particular acquisition, management may consider a variety of factors, including but not limited to:
the location, visibility and accessibility of the property,
the geographic area and demographic characteristics of the community,
the local real estate market conditions, including potential for growth, redevelopment, market rents, and existing or potential competing properties or retailers,
the size, age and title status of the property,
the quality of construction and design and the current physical condition of the property,
the potential for, and current extent of, any environmental problems,
the purchase price,
the non-financial lease terms of the proposed acquisition,
the availability of funds or other consideration for the proposed acquisition and the cost thereof,
the compatibility of the property with NNN’s existing Property Portfolio,
the property-level operating history,
the financial and other characteristics of the existing tenant,
the tenant’s business plan, operating history and management team,
the tenant’s industry,
the terms of any lease,
the rent to be paid by the tenant,
any existing indebtedness encumbering the property which may be assumed in connection with acquiring or refinancing these investments, and
the merits relative to other opportunities.
NNN intends to engage in future investment activities in a manner that is consistent with the maintenance of its status as a REIT for federal income tax purposes. Additionally, NNN does not intend to engage in activities that will make NNN an investment company under the Investment Company Act of 1940, as amended.

3


Investments in Real Estate Mortgages and Securities of or Interests in Entities Engaged in Real Estate Activities
While NNN’s primary business objectives emphasize retail properties, NNN may invest in (i) a wide variety of property and tenant types, (ii) leases, mortgages and other types of real estate interests, (iii) loans secured by personal property, (iv) loans secured by partnership or membership interests in partnerships or limited liability companies, respectively, or (v) securities of other REITs, or other issuers, including for the purpose of exercising control over such entities.
Financing Strategy
NNN’s financing objective is to manage its capital structure effectively in order to provide sufficient capital to execute its operating strategies while servicing its debt requirements and providing value to its stockholders. NNN generally utilizes debt and equity security offerings, bank borrowings, proceeds from the sale of Properties, and to a lesser extent, internally generated funds to meet its capital needs.
NNN typically funds its short-term liquidity requirements including investments in additional properties with advances from its $900,000,000 unsecured revolving credit facility ("Credit Facility"). As of December 31, 2019, $133,600,000 was outstanding and $766,400,000 was available for future borrowings under the Credit Facility.
As of December 31, 2019, NNN’s ratio of total debt to total gross assets (before accumulated depreciation and amortization) was approximately 35 percent and the ratio of secured indebtedness to total gross assets was less than one percent. The ratio of total debt to total market capitalization was approximately 25 percent. Certain financial agreements contain covenants that limit NNN’s ability to incur additional debt under certain circumstances.
NNN anticipates it will be able to obtain additional financing for short-term and long-term liquidity requirements as further described in "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity." However, there can be no assurance that additional financing or capital will be available, or that the terms will be acceptable or advantageous to NNN.
The organizational documents of NNN do not limit the absolute amount or percentage of indebtedness that NNN may incur. Additionally, NNN may change its financing strategy at any time.
Strategies and Policy Changes
Any of NNN’s strategies or policies described above may be changed at any time by NNN without notice to or a vote of NNN’s stockholders.
Property Portfolio
As of December 31, 2019, NNN owned 3,118 Properties with an aggregate gross leasable area of approximately 32,460,000 square feet, located in 48 states, with a weighted average remaining lease term of 11.2 years. Approximately 99 percent of total Properties were leased as of December 31, 2019.
The following table summarizes the Property Portfolio as of December 31, 2019 (in thousands):
 
Size(1)
 
Total Dollars Invested(2)
High
 
Low
 
Average
 
High
 
Low
 
Average
Land
6,586

 
5

 
103

 
$
11,899

 
$
5

 
$
814

Building
179

 
1

 
11

 
45,286

 
19

 
1,938

(1) 
Approximate square feet.
(2) 
Costs vary depending upon size, improvements, local market conditions and other factors.

As of December 31, 2019, NNN has committed to fund construction on 19 Properties. The improvements on such Properties are estimated to be completed within 12 months. These construction commitments, as of December 31, 2019, are outlined in the table below (dollars in thousands):
Total commitment(1)
 
$
75,927

Less amount funded
 
44,368

Remaining commitment
 
$
31,559

(1)
Includes land, construction costs, tenant improvements, lease costs and capitalized interest.

4


Leases

The following is a summary of the general structure of the leases in the Property Portfolio, although the specific terms of each lease can vary significantly. Generally, the Property leases provide for initial terms of 10 to 20 years. As of December 31, 2019, the weighted average remaining lease term of the Property Portfolio was approximately 11.2 years. The Properties are generally leased under triple-net leases, which require the tenant to pay all property taxes and assessments, to maintain the interior and exterior of the property, and to carry property and liability insurance coverage. NNN's leases provide for annual base rental payments (generally payable in monthly installments) ranging from $6,000 to $3,714,000 (average of $215,000), and generally provide for increases in rent as a result of (i) increases in the Consumer Price Index ("CPI"), (ii) fixed increases, or, to a lesser extent, (iii) increases in the tenant’s sales volume.
Generally, NNN's leases provide the tenant with one or more multi-year renewal options subject to generally the same terms and conditions provided under the initial lease term. Some of the leases also provide that in the event NNN wishes to sell the Property subject to that lease, NNN first must offer the lessee the right to purchase the Property on the same terms and conditions as any offer which NNN intends to accept for the sale of the Property.
The following table summarizes the lease expirations, assuming none of the tenants exercise renewal options, of the Property Portfolio for each of the next 10 years and then thereafter in the aggregate as of December 31, 2019:
 
% of
Annual
Base
Rent(1)
 
# of
Properties
 
Gross
Leasable
Area(2)
 
 
 
% of
Annual
Base
Rent(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

 
Thereafter
 
58.3%
 
1,799
 
16,880,000

2025
5.3%
 
167
 
1,850,000

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

The following table summarizes the diversification of the Property Portfolio based on the top 10 lines of trade:
 
 
 
 
% of Annual Base Rent(1)
  
 
Top 10 Lines of Trade
 
2019
 
2018
 
2017
1.
 
Convenience stores
 
18.2%
 
18.0%
 
18.1%
2.
 
Restaurants - full service
 
11.1%
 
11.4%
 
12.1%
3.
 
Automotive service
 
9.6%
 
8.6%
 
6.9%
4.
 
Restaurants - limited service
 
8.8%
 
8.9%
 
7.6%
5.
 
Family entertainment centers
 
6.7%
 
7.1%
 
6.4%
6.
 
Health and fitness
 
5.2%
 
5.6%
 
5.6%
7.
 
Theaters
 
4.7%
 
5.0%
 
4.8%
8.
 
Recreational vehicle dealers, parts and accessories
 
3.4%
 
3.4%
 
3.4%
9.
 
Automotive parts
 
3.1%
 
3.4%
 
3.6%
10.
 
Equipment rental
 
2.6%
 
1.9%
 
2.0%
 
 
Other
 
26.6%
 
26.7%
 
29.5%
 
 
 
 
100.0%
 
100.0%
 
100.0%
(1) 
Based on annualized base rent for all leases in place as of December 31 of the respective year.

5


The following table summarizes the diversification of the Property Portfolio by state as of December 31, 2019:
 
 
State
 
# of
Properties
 
% of
Annual
Base Rent(1)
1.
 
Texas
 
502
 
17.6%
2.
 
Florida
 
230
 
8.8%
3.
 
Ohio
 
199
 
5.8%
4.
 
Illinois
 
142
 
5.0%
5.
 
Georgia
 
151
 
4.5%
6.
 
North Carolina
 
156
 
4.5%
7.
 
Indiana
 
146
 
4.0%
8.
 
Tennessee
 
142
 
3.8%
9.
 
Virginia
 
117
 
3.6%
10.
 
California
 
65
 
3.3%
 
 
Other
 
1,268
 
39.1%
 
 
 
 
3,118
 
100.0%
(1) 
Based on annualized base rent for all leases in place as of December 31, 2019.
As of December 31, 2019, NNN did not have any tenant that accounted for ten percent or more of its rental income.
Governmental Regulations Affecting Properties
Property Environmental Considerations.  Subject to a determination of the level of risk and potential cost of remediation, NNN may acquire a property where some level of environmental contamination may exist. Investments in real property create a potential for substantial environmental liability for the owner of such property from the presence or discharge of hazardous materials on the property or the improper disposal of hazardous materials emanating from the property, regardless of fault. In order to mitigate exposure to environmental liability, NNN maintains an environmental insurance policy which provides some coverage for substantially all of the Properties. As a part of its acquisition due diligence process, NNN obtains an environmental site assessment for each property. In such cases where NNN intends to acquire a property where some level of contamination may exist, NNN generally requires the seller or tenant to (i) remediate the problem, (ii) indemnify NNN for environmental liabilities, and/or (iii) agree to other arrangements deemed appropriate by NNN, including, under certain circumstances, the purchase of environmental insurance to address environmental conditions at the property. NNN may incur costs if the seller or tenant does not comply with these requirements.
As of February 4, 2020, NNN has 73 Properties currently under some level of environmental remediation and/or monitoring. In general, the responsible party (which may include the seller, a previous owner, the tenant or an adjacent or former land owner) is liable for the cost of the environmental remediation for each of these Properties.
Americans with Disabilities Act of 1990.  The Properties, as commercial facilities, are required to comply with Title III of the Americans with Disabilities Act of 1990 and similar state and local laws and regulations (collectively, the "ADA"). The tenants will typically have primary responsibility for complying with the ADA, but NNN may incur costs if the tenant does not comply. As of February 4, 2020, NNN has not been notified by any governmental authority of, nor is NNN’s management aware of, any non-compliance with the ADA that NNN’s management believes would have a material adverse effect on its business, financial position or results of operations.
Other Regulations.  State and local fire, life-safety and similar entities regulate the use of the Properties. NNN’s leases generally require each tenant to undertake primary responsibility for complying with regulations, but failure to comply could result in fines by governmental authorities, awards of damages to private litigants, or restrictions on the ability to conduct business on such properties.

6


Additional Information
NNN’s executive offices are located at 450 S. Orange Avenue, Suite 900, Orlando, Florida 32801, and its telephone number is (407) 265-7348.
NNN’s website is located at www.nnnreit.com. NNN intends to comply with the requirements of Item 5.05 of Form 8-K regarding amendments to and waivers under the code of business conduct and ethics applicable to its Chief Executive Officer, Principal Financial Officer and Principal Accounting Officer by providing such information on its website within four days after effecting any amendment to, or granting any waiver under, that code, and NNN will maintain such information on its website for at least twelve months. The information contained on NNN’s website does not constitute part of this Form 10-K.
On NNN’s website you can also obtain, free of charge, a copy of this Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act of 1934, as amended, as soon as reasonably practicable, after NNN files such material electronically with, or furnish it to, the Securities and Exchange Commission ("Commission" or "SEC"). The public may read and obtain a copy of any materials NNN files electronically with the Commission at www.sec.gov.
Additional information on NNN’s website includes the guiding policies adopted by NNN, which include NNN’s Corporate Governance Guidelines, Code of Business Conduct Policy and Whistleblower Policy, as well as NNN’s stance on corporate governance, social responsibility and environmental practices and impact.

Item 1A.
Risk Factors
Carefully consider the following risks and all of the other information set forth in this Annual Report on Form 10-K, including the consolidated financial statements and the notes thereto. If any of the events or developments described below were actually to occur, NNN’s business, financial condition or results of operations could be adversely affected.
Risks Related to NNN’s Business and Operations
Financial and economic conditions may have an adverse impact on NNN, its tenants, and commercial real estate in general.
Financial and economic conditions can be challenging and volatile and any worsening of such conditions, including any disruption in the capital markets, could adversely affect NNN’s business and results of operations. Such conditions could also affect the financial condition of NNN’s tenants, developers, borrowers, lenders or the institutions that hold NNN’s cash balances and short-term investments, which may expose NNN to increased risks of default by these parties.
There can be no assurance that actions of the United States Government, the Federal Reserve or other government and regulatory bodies attempting to stabilize the economy or financial markets will achieve their intended effect. Additionally, some of these actions may adversely affect financial institutions, capital providers, retailers, consumers, NNN’s financial condition, NNN's results of operations or the trading price of NNN’s shares.
Potential consequences of challenging and volatile financial and economic conditions include:
the financial condition of NNN’s tenants may be adversely affected, which may result in tenant defaults under the leases due to bankruptcy, lack of liquidity, operational failures or for other reasons,
the ability to raise equity capital or to raise equity capital or borrow on terms and conditions that NNN finds acceptable may be limited or unavailable, which could reduce NNN’s ability to pursue acquisition and development opportunities and refinance existing debt, reduce NNN’s returns from acquisition and development activities, reduce NNN’s ability to make cash distributions to its stockholders and increase NNN’s future interest expense,
the recognition of impairment charges on or reduced values of the Properties, may adversely affect NNN's results of operations,
reduced values of the Properties may limit NNN's ability to dispose of assets at attractive prices and reduce the availability of buyer financing, and
the value and liquidity of NNN’s short-term investments and cash deposits could be reduced as a result of (i) a deterioration of the financial condition of the institutions that hold NNN’s cash deposits or the institutions or assets in which NNN has made short-term investments, (ii) the dislocation of the markets for NNN’s short-term investments, (iii) increased volatility in market rates for such investments or (iv) other factors.

7


Loss of rent from tenants would reduce NNN’s cash flow.
NNN's tenants encounter significant macroeconomic, governmental and competitive forces. Adverse changes in consumer spending or consumer preferences for particular goods, services or store based retailing could severely impact their ability to pay rent. Shifts from in-store to online shopping could increase due to changing consumer shopping patterns as well as the increase in consumer adoption and use of mobile electronic devices. This expansion of e-commerce could have an adverse impact on NNN's tenants' ongoing viability and the size, type and location of space tenants lease in the future. NNN cannot predict with certainty what tenants will want or what the impact will be on market rents. The default, financial distress, bankruptcy or liquidation of one or more of NNN’s tenants could cause substantial vacancies in the Property Portfolio. Vacancies reduce NNN’s revenues, increase property expenses and could decrease the value of each vacant Property. Upon the expiration of a lease, the tenant may choose not to renew the lease and NNN may not be able to re-lease the vacant Property at a comparable lease rate. Furthermore, NNN may incur additional expenditures in connection with such renewal or re-leasing.
A significant portion of the source of the Property Portfolio annual base rent is concentrated in specific industry classifications, tenants and geographic locations.
As of December 31, 2019, approximately,
54.4% of the Property Portfolio annual base rent is generated from tenants in five retail lines of trade, including convenience stores (18.2%) and full-service and limited-service restaurants (19.9%),
21.0% of the Property Portfolio annual base rent is generated from five tenants, 7-Eleven (5.0%), Mister Car Wash (4.6%), Camping World (4.2%), LA Fitness (3.7%) and Flynn Restaurant Group (Taco Bell/Arby's) (3.5%), and
41.7% of the Property Portfolio annual base rent is generated from properties located in five states, including Texas (17.6%) and Florida (8.8%).
Any financial hardship and/or economic changes in these lines of trade, tenants or states could have an adverse effect on NNN’s results of operations.
NNN may not be able to successfully execute its acquisition or development strategies.
NNN may not be able to implement its investment strategies successfully. Additionally, NNN cannot assure that its Property Portfolio will expand at all, or if it will expand at any specified rate or to any specified size. In addition, investment in additional real estate assets is subject to a number of risks. Because NNN expects to invest in markets other than the ones in which its current Properties are located or properties which may be leased to tenants other than those to which NNN has historically leased properties, NNN will also be subject to the risks associated with investment in new markets, new lines of trade or with new tenants that may be relatively unfamiliar to NNN’s management team.
NNN’s development activities are subject to, without limitation, risks relating to the availability and timely receipt of zoning and other regulatory approvals, the cost and timely completion of construction (including risks from factors beyond NNN’s control, such as weather or labor conditions or material shortages), the risk of finding tenants for the properties and the ability to obtain both construction and permanent financing on favorable terms. These risks could result in substantial unanticipated delays or expenses and, under certain circumstances, could prevent completion of development activities once undertaken or provide a tenant the opportunity to delay rent commencement, reduce rent or terminate a lease. Any of these situations may delay or eliminate proceeds or cash flows NNN expects from these projects, which could have an adverse effect on NNN’s financial condition.
NNN may not be able to dispose of properties consistent with its operating strategy.
NNN may be unable to sell Properties targeted for disposition under favorable terms due to adverse market conditions or possible prohibitive tax liability. This may adversely affect, among other things, NNN’s ability to sell under favorable terms, execute its operating strategy, achieve target earnings or returns, retire or repay debt or pay dividends.
Certain provisions of NNN’s leases or loan agreements may be unenforceable.
NNN’s rights and obligations with respect to its leases, mortgage loans or other loans are governed by written agreements. A court could determine that one or more provisions of such an agreement are unenforceable, such as a particular remedy, a master lease covenant, a loan prepayment provision or a provision governing NNN’s security interest in the underlying collateral of a borrower or lessee. NNN could be adversely impacted if this were to happen with respect to an asset or group of assets.

8


Competition from numerous other REITs, commercial developers, real estate limited partnerships and other investors may impede NNN’s ability to grow.
NNN may not complete suitable property acquisitions or developments on advantageous terms, if at all, due to competition for such properties with others engaged in real estate investment activities or lack of properties for sale on terms deemed acceptable to NNN. NNN’s inability to successfully acquire or develop new properties may affect NNN’s ability to achieve anticipated return on investment or realize its investment strategy, which could have an adverse effect on its results of operations.
NNN's loss of key management personnel could adversely affect performance and the value of its securities.
NNN is dependent on the efforts of its key management. Competition for senior management personnel can be intense and NNN may not be able to retain its key management. Although NNN believes qualified replacements could be found for any departures of key management, the loss of their services could adversely affect NNN's performance and the value of its securities.
Uninsured losses may adversely affect NNN’s operating results and asset values.
The Properties are generally covered by comprehensive liability, fire, and extended insurance coverage. NNN believes that the insurance carried on its Properties is adequate and in accordance with industry standards. There are, however, types of losses (such as from hurricanes, floods, earthquakes or other types of natural disasters or wars or other acts of violence) which may be uninsurable, self-insured by tenants, or the cost of insuring against these losses may not be economically justifiable in the opinion of tenants or NNN. If an uninsured loss occurs or a loss exceeds policy limits, NNN could lose both its invested capital and anticipated revenues from the property, thereby reducing NNN’s cash flow and asset value.
NNN’s ability to fully control the management of its net-leased properties may be limited.
The tenants of net-leased properties are responsible for maintenance and other day-to-day management of the Properties. If a Property is not adequately maintained in accordance with the terms of the applicable lease, NNN may incur expenses for deferred maintenance expenditures or other liabilities when the lease expires. While NNN’s leases generally provide for recourse against the tenant in these instances, a bankrupt or financially troubled tenant may be more likely to defer maintenance and it may be more difficult to enforce remedies against such a tenant. Although NNN endeavors to monitor compliance by tenants with their lease obligations, NNN may not always be able to ascertain or forestall deterioration in the condition of a property or the financial circumstances of a tenant.
Vacant properties or bankrupt tenants could adversely affect NNN’s business or financial condition.
As of December 31, 2019, NNN owned 32 vacant, un-leased Properties, which accounted for approximately one percent of total Properties held in the Property Portfolio. NNN is actively marketing these Properties for sale or lease but may not be able to sell or lease these Properties on favorable terms or at all. The lost revenues and increased property expenses resulting from the rejection by any bankrupt tenant of any of their respective leases with NNN could have a material adverse effect on the liquidity and results of operations of NNN if NNN is unable to re-lease the Properties at comparable rental rates and in a timely manner. As of February 10, 2020, less than two percent of total Properties, and less than one percent of aggregate gross leasable area held in the Property Portfolio, was leased to two tenants that are currently in bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. As a result, these tenants have the right to reject or affirm their leases with NNN.
NNN’s failure to maintain effective internal control over financial reporting could have a material adverse effect on its business, operating results and the market value of NNN's securities.
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, the company's access to capital could be impaired, and the trading price of NNN’s shares could drop significantly.

9


Cybersecurity risks and cyber incidents could adversely affect NNN's business, disrupt operations and expose NNN to liabilities to tenants, employees, capital providers, and other third parties.
NNN uses information technology and other computer resources to carry out important operational activities and to maintain its business records. As part of NNN’s normal business activities, NNN collects and stores certain personal identifying and confidential information relating to its tenants, employees, vendors and suppliers, and maintains operational and financial information related to NNN’s business. NNN has implemented systems and processes intended to address ongoing and evolving cybersecurity risks, secure its information technology, applications and computer systems, and prevent unauthorized access to or loss of sensitive, confidential and personal data. Although NNN and its service providers employ what NNN believes are adequate security, disaster recovery and other preventative and corrective measures, NNN’s security measures, taken as a whole, may not be sufficient for all possible situations and may be vulnerable to, among other things, fraud, hacking, employee error, system error, and faulty password management.

NNN’s ability to conduct its business may be impaired if its information technology resources, including its websites or e-mail systems, are compromised, degraded, damaged or fail, whether due to a virus or other harmful circumstance, fraud, intentional penetration or disruption of its information technology resources by:
a third party,
natural disaster,
a failure of hardware or software due to a design or programmatic flaw,
a failure of hardware or software security controls,
telecommunications system failure,
service provider error or failure,
fraudulent transactions,
intentional or unintentional personnel actions, or
lost connectivity to NNN’s networked resources.
A significant and extended disruption could damage NNN’s business or reputation and cause:
loss of revenues or tenant relationships,
unintended and/or unauthorized public disclosure or the misappropriation of proprietary, personal identifying and confidential information, and
NNN to incur significant expenses to address and remediate or otherwise resolve these kinds of issues.
The release of confidential information may also lead to litigation or other proceedings against NNN by affected individuals, business partners and/or regulators, and the outcome of such proceedings, which could include losses, penalties, fines, injunctions, expenses and charges recorded against NNN’s earnings and cause NNN reputational harm, could have a material and adverse effect on NNN’s business, financial position or results of operations.

In addition, the costs of maintaining adequate protection against data security threats, based on considerations of their evolution, increasing sophistication, pervasiveness and frequency and/or government-mandated standards or obligations regarding protective efforts, could be material to NNN’s financial position or results of operations in a particular period or over various periods.
Future investment in international markets could subject NNN to additional risks.
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.
NNN may suffer a loss in the event of a default or bankruptcy of a borrower.
As of December 31, 2019, NNN had no outstanding mortgages and notes receivable. If a borrower defaults on a mortgage or other loan made by NNN, and does not have sufficient assets to satisfy the loan, NNN may suffer a loss of principal and interest. In the event of the bankruptcy of a borrower, NNN may not be able to recover against all or any of the assets of the borrower, or the collateral may not be sufficient to satisfy the balance due on the loan. In addition, certain of NNN’s loans may be subordinate to other debt of a borrower. These investments are typically loans secured by a borrower’s pledge of its ownership interests in the entity that owns the real estate or other assets and are typically subordinated to senior loans encumbering the underlying real estate or assets. Subordinated positions are generally subject to a higher risk of nonpayment of principal and interest than the more senior loans. If a borrower defaults on the debt senior to NNN’s loan, or in the event of the bankruptcy of a borrower, NNN’s loan will be satisfied only after the borrower’s senior creditors’ claims are satisfied.

10


Where debt senior to NNN’s loans exists, the presence of intercreditor arrangements may limit NNN’s ability to amend loan documents, assign the loans, accept prepayments, exercise remedies and control decisions made in bankruptcy proceedings relating to borrowers. Bankruptcy proceedings and litigation can significantly increase the time needed for NNN to acquire underlying collateral, if any, in the event of a default, during which time the collateral may decline in value. In addition, there are significant costs and delays associated with the foreclosure process.
Property ownership through joint ventures and partnerships could limit NNN’s control of those investments.
Joint ventures or partnerships involve risks not otherwise present for direct investments by NNN. It is possible that NNN’s co-venturers or partners may have different interests or goals than NNN at any time and they may take actions contrary to NNN’s requests, policies or objectives, including NNN’s policy with respect to maintaining its qualification as a REIT. Other risks of joint venture or partnership investments include impasses on decisions because in some instances no single co-venturer or partner has full control over the joint venture or partnership, respectively, or the co-venturer or partner may become insolvent, bankrupt or otherwise unable to contribute to the joint venture or partnership, respectively. Further, disputes may develop with a co-venturer or partner over decisions affecting the property, joint venture or partnership that may result in litigation, arbitration or some other form of dispute resolution.
Acts of violence, terrorist attacks or war may affect the markets in which NNN operates and NNN’s results of operations.
Terrorist attacks or other acts of violence may negatively affect NNN’s operations. There can be no assurance that there will not be terrorist attacks against businesses within the United States. These attacks may directly or indirectly impact NNN’s physical facilities or the businesses or the financial condition of its tenants, developers, borrowers, lenders or financial institutions with which NNN has a relationship. The United States is engaged in armed conflict, which could have an impact on these parties. The consequences of armed conflict are unpredictable, and NNN may not be able to foresee events that could have an adverse effect on its business or be insured for such.
More generally, any of these events or threats of these events could cause consumer confidence and spending to decrease or result in increased volatility in the United States and worldwide financial markets and economies. They also could result in, or cause a deepening of, economic recession in the United States or abroad. Any of these occurrences could have an adverse impact on NNN’s financial condition or results of operations.
Changes in accounting pronouncements could adversely impact NNN’s or NNN’s tenants’ reported financial performance.
Accounting policies and methods are fundamental to how NNN records and reports its financial condition and results of operations. From time to time the Financial Accounting Standards Board (“FASB”) and the Commission, who create and interpret appropriate accounting standards, may change the financial accounting and reporting standards or their interpretation and application of these standards that govern the preparation of NNN’s financial statements. These changes could have a material impact on NNN’s reported financial condition and results of operations. In some cases, NNN could be required to apply a new or revised standard retroactively, resulting in restating prior period financial statements. Similarly, these changes could have a material impact on NNN’s tenants’ reported financial condition or results of operations and affect their preferences regarding leasing real estate.
Risks Related to Financing NNN’s Business
NNN may be unable to obtain debt or equity capital on favorable terms, if at all.
NNN may be unable to obtain capital on favorable terms, if at all, to further its business objectives or meet its existing obligations. Nearly all of NNN’s debt, including the Credit Facility, is subject to balloon principal payments due at maturity. These maturities range between 2022 and 2048. NNN's ability to make these scheduled principal payments may be adversely impacted by NNN’s inability to extend or refinance the Credit Facility, the inability to dispose of assets at an attractive price or the inability to obtain additional debt or equity capital. Capital that may be available may be materially more expensive or available under terms that are materially more restrictive which would have an adverse impact on NNN’s business, financial condition and results of operations.

11


The amount of debt NNN has and the restrictions imposed by that debt could adversely affect NNN’s business and financial condition.
As of December 31, 2019, NNN had outstanding debt, including mortgages payable of $12,059,000, total unsecured notes payable of $2,842,698,000 and $133,600,000 was outstanding on the Credit Facility. NNN’s organizational documents do not limit the level or amount of debt that it may incur. If NNN incurs additional indebtedness and permits a higher degree of leverage, debt service requirements would increase and could adversely affect NNN’s financial condition and results of operations, as well as NNN’s ability to pay principal and interest on the outstanding indebtedness or cash dividends to its stockholders. In addition, increased leverage could increase the risk that NNN may default on its debt obligations.
The amount of debt outstanding at any time could have important consequences to NNN’s stockholders. For example, it could:
require NNN to dedicate a substantial portion of its cash flow from operations to payments on its debt, thereby reducing funds available for operations, real estate investments and other business opportunities that may arise in the future,
increase NNN’s vulnerability to general adverse economic and industry conditions,
limit NNN’s ability to obtain any additional financing it may need in the future for working capital, debt refinancing, capital expenditures, real estate investments, development or other general corporate purposes,
make it difficult to satisfy NNN’s debt service requirements,
limit NNN’s ability to pay dividends in cash on its outstanding common and preferred stock,
limit NNN’s flexibility in planning for, or reacting to, changes in its business and the factors that affect the profitability of its business, and
limit NNN’s flexibility in conducting its business, which may place NNN at a disadvantage compared to competitors with less debt or debt with less restrictive terms.
NNN’s ability to make scheduled payments of principal or interest on its debt, or to retire or refinance such debt will depend primarily on its future performance, which to a certain extent is subject to the creditworthiness of its tenants, competition, and economic, financial, and other factors beyond its control. There can be no assurance that NNN’s business will continue to generate sufficient cash flow from operations in the future to service its debt or meet its other cash needs. If NNN is unable to generate sufficient cash flow from its business, it may be required to refinance all or a portion of its existing debt, sell assets or obtain additional financing to meet its debt obligations and other cash needs.
NNN cannot assure stockholders that any such refinancing, sale of assets or additional financing would be possible or, if possible, on terms and conditions, including but not limited to the interest rate, which NNN would find acceptable or would not result in a material decline in earnings.

NNN is obligated to comply with financial and other covenants in its debt instruments that could restrict its operating activities, and the failure to comply with such covenants could result in defaults that accelerate the payment of such debt.
As of December 31, 2019, NNN had approximately $2,988,357,000 of outstanding indebtedness, of which approximately $12,059,000 was secured indebtedness. NNN’s unsecured debt instruments contain various restrictive covenants which include, among others, provisions restricting NNN’s ability to:
incur or guarantee additional debt,
make certain distributions, investments and other restricted payments,
enter into transactions with certain affiliates,
create certain liens,
consolidate, merge or sell NNN’s assets, and
pre-pay debt.
NNN’s secured debt instruments generally contain customary covenants, including, among others, provisions:
requiring the maintenance of the property securing the debt,
restricting its ability to sell, assign or further encumber the properties securing the debt,
restricting its ability to incur additional debt on the property securing the debt,
restricting modifications to property improvements,
restricting its ability to amend or modify existing leases on the property securing the debt, and
establishing certain prepayment restrictions.
In addition, NNN’s debt instruments may contain cross-default provisions, in which case a default of NNN under one debt instrument will be a default of NNN under multiple or all debt instruments of NNN.

12


NNN’s ability to meet some of its debt covenants, including covenants related to the condition of the property or payment of real estate taxes, may be dependent on the performance by NNN’s tenants under their leases.
In addition, certain covenants in NNN’s debt instruments, including its Credit Facility, require NNN, among other things, to:
limit certain leverage ratios,
maintain certain minimum interest and debt service coverage ratios, and
limit investments in certain types of assets.
NNN’s failure to comply with certain of its debt covenants could result in defaults that accelerate the payment under such debt and limit the dividends paid to NNN’s common and preferred stockholders which would likely have a material adverse impact on NNN’s financial condition and results of operations. In addition, these defaults could impair its access to the debt and equity markets.
The market value of NNN’s equity and debt securities is subject to various factors that may cause significant fluctuations or volatility.
As with other publicly traded securities, the market price of NNN’s equity and debt securities depends on various factors, which may change from time-to-time and/or may be unrelated to NNN’s financial condition, operating performance or prospects that may cause significant fluctuations or volatility in such prices. These factors, among others, include:
general economic and financial market conditions,
level and trend of interest rates,
changes in government taxation or regulatory policies,
NNN’s ability to access the capital markets to raise additional capital,
the issuance of additional equity or debt securities,
changes in NNN’s funds from operations or earnings estimates,
changes in NNN’s debt ratings or analyst ratings,
NNN’s financial condition and performance,
market perception of NNN compared to other REITs, and
market perception of REITs compared to other investment sectors.
NNN’s ability to pay dividends in the future is subject to many factors.
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.
The phase-out of LIBOR could affect interest rates under NNN's variable rate debt.
LIBOR is used as a reference rate for NNN’s revolving Credit Facility. On July 27, 2017, the United Kingdom's Financial Conduct Authority announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. It is unclear if LIBOR will cease to exist at that time, if a new method of calculating LIBOR will be established, or if an alternative reference rate will be established. The Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee which identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative to U.S. dollar LIBOR in derivatives and other financial contracts. NNN is not able to predict when LIBOR will cease to be available or if SOFR, or another alternative rate reference rate, attains market traction as a LIBOR replacement. If LIBOR ceases to exist, NNN will need to agree upon a benchmark replacement index with the bank, and as such the interest rate on its Credit Facility may change. The new rate may not be as favorable as those in effect prior to any LIBOR phase-out. Furthermore, the transition process may result in delays in funding, higher interest expense, additional expenses, and increased volatility in markets for instruments that currently rely on LIBOR, all of which could negatively impact NNN's cash flow.

13


General Real Estate Risks
Owning real estate and indirect interests in real estate carries inherent risks.
NNN’s economic performance and the value of its real estate assets are subject to the risk that if the Properties do not generate revenues sufficient to meet its operating expenses, including debt service, NNN’s cash flow and ability to pay distributions to its stockholders will be adversely affected. As a real estate company, NNN is susceptible to the following real estate industry risks, which are beyond its control:
changes in national, regional and local economic conditions and outlook,
decreases in consumer spending and retail sales or adverse changes in consumer preferences for particular goods, services or store based retailing,
economic downturns in the areas where the Properties are located,
adverse changes in local real estate market conditions, such as an oversupply of space, reduction in demand for space, loss of a large employer, intense competition for tenants, or a demographic change,
changes in tenant or consumer preferences that reduce the attractiveness of the Properties to tenants,
changes in zoning, regulatory restrictions, or tax laws, and
changes in interest rates or availability of financing.
All of these factors could result in decreases in market rental rates and increases in vacancy rates, which could adversely affect NNN’s results of operations.
NNN’s real estate investments are illiquid.
Because real estate investments are relatively illiquid, NNN’s ability to adjust the portfolio promptly in response to economic or other conditions is limited. Certain significant expenditures generally do not change in response to economic or other conditions, including: (i) debt service (if any), (ii) real estate taxes, and (iii) operating and maintenance costs. This combination of variable revenue and relatively fixed expenditures may result, under certain market conditions, in reduced earnings and could have an adverse effect on NNN’s financial condition.
NNN may be subject to known or unknown environmental liabilities and hazardous materials on Properties owned by NNN.
There may be known or unknown environmental liabilities associated with Properties owned or acquired in the future by NNN. Certain particular uses of some Properties may also have a heightened risk of environmental liability because of the hazardous materials used in performing services on those Properties, such as convenience stores with underground petroleum storage tanks or auto parts and auto service businesses using petroleum products, paint and machine solvents. Some of the Properties may contain asbestos or asbestos-containing materials, or may contain or may develop mold or other bio-contaminants. Asbestos-containing materials must be handled, managed and removed in accordance with applicable governmental laws, rules and regulations. Mold and other bio-contaminants can produce airborne toxins, may cause a variety of health issues in individuals and must be remediated in accordance with applicable governmental laws, rules and regulations.
As part of its due diligence process, NNN generally obtains an environmental site assessment for each Property it acquires. In cases where NNN intends to acquire real estate where evidence of some level of known contamination may exist, NNN generally requires the seller or tenant to (i) remediate the contamination in accordance with applicable laws, rules and regulations, (ii) indemnify NNN for environmental liabilities, and/or (iii) agree to other arrangements deemed appropriate by NNN, including, under certain circumstances, the purchase of environmental insurance. Although sellers or tenants may be contractually responsible for remediating hazardous materials on a property and may be responsible for indemnifying NNN for any liability resulting from the use of a Property and for any failure to comply with any applicable environmental laws, rules or regulations, NNN has no assurance that sellers, tenants or any other responsible party shall be able to meet their remediation and indemnity obligations to NNN. A tenant, seller or any other responsible party may not have the financial ability to meet its remediation and indemnity obligations to NNN when required. Furthermore, NNN may have strict liability to governmental agencies or third parties as a result of the existence of hazardous materials on Properties, whether or not NNN knew about or caused such hazardous materials to exist.
As of February 4, 2020, NNN has 73 Properties currently under some level of environmental remediation and/or monitoring. In general, the responsible party (which may include the seller, a previous owner, the tenant or an adjacent or former land owner) is liable for the cost of the environmental remediation for each of these Properties.
If NNN is responsible for hazardous materials located on its Properties, NNN’s liability may include investigation and remediation costs, property damage to third parties, personal injury to third parties, and governmental fines and

14


penalties. Furthermore, the presence of hazardous materials on a Property may adversely impact the Property value or NNN’s ability to sell the Property. Significant environmental liability could impact NNN’s results of operations, ability to make distributions to stockholders, and its ability to meet its debt obligations.
In order to mitigate exposure to environmental liability, NNN maintains an environmental insurance policy which provides some coverage for substantially all of its Properties. However, the policy is subject to exclusions and limitations and does not cover all of the Properties owned by NNN. For those Properties covered under the policy, insurance may not fully compensate NNN for any environmental liability. NNN has no assurance that the insurer on its environmental insurance policy will be able to meet its obligations under the policy. NNN may not desire to renew the environmental insurance policy in place upon expiration or a replacement policy may not be available at a reasonable cost, if at all.
Risks Related to Government Regulations and Tax Matters
Costs of complying with changes in governmental laws and regulations may adversely affect NNN’s results of operations.
NNN cannot predict what laws or regulations will be enacted in the future, how future laws or regulations will be administered or interpreted, or how future laws or regulations will affect NNN, its Properties or its tenants, including, but not limited to environmental laws and regulations. Compliance with new laws or regulations, or stricter interpretation of existing laws, may require NNN, its tenants, or consumers to incur significant expenditures, impose significant liability, restrict or prohibit business activities and could cause a material adverse effect on NNN’s results of operation.
NNN’s failure to qualify as a REIT for federal income tax purposes could result in significant tax liability.
NNN intends to operate in a manner that will allow NNN to continue to qualify as a REIT. NNN believes it has been organized as, and its past and present operations qualify NNN as a REIT. However, the Internal Revenue Service (“IRS”) could successfully assert that NNN is not qualified as such. In addition, NNN may not remain qualified as a REIT in the future. Qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended (the “Code”) for which there are only limited judicial or administrative interpretations and involves the determination of various factual matters and circumstances not entirely within NNN’s control. Furthermore, new tax legislation, administrative guidance or court decisions, in each instance potentially with retroactive effect, could make it more difficult or impossible for NNN to qualify as a REIT or avoid significant tax liability.
If NNN fails to qualify as a REIT, it would not be allowed a deduction for dividends paid to stockholders in computing taxable income and would become subject to federal income tax at regular corporate rates. In this event, NNN could be subject to potentially significant tax liabilities and penalties. Unless entitled to relief under certain statutory provisions, NNN would also be disqualified from treatment as a REIT for the four taxable years following the year during which the qualification was lost.
Even if NNN remains qualified as a REIT, NNN faces other tax liabilities that reduce operating results and cash flow.
Even if NNN remains qualified for taxation as a REIT, NNN is subject to certain federal, state and local taxes on its income and assets, including taxes on any undistributed income, tax on income from some activities conducted as a result of a foreclosure, and state or local income, property and transfer taxes. Any increase of these taxes would decrease earnings and cash available for distribution to stockholders. In addition, in order to meet certain REIT qualification requirements, NNN may elect to own some of its assets in a TRS.
Adverse legislative or regulatory tax changes could reduce NNN’s earnings and cash flow and the market value of NNN’s securities.
At any time, the federal and state income tax laws or the administrative interpretations of those laws may change. Any such changes may have current and retroactive effects, and could adversely affect NNN or its stockholders. Legislation could cause shares in non-REIT entities to be a more attractive investment to individual investors than shares in REITs, and could have an adverse effect on the value of NNN’s securities.

15


Compliance with REIT requirements, including distribution requirements, may limit NNN’s flexibility and may negatively affect NNN’s operating decisions.
To maintain its status as a REIT for U.S. federal income tax purposes, NNN must meet certain requirements on an on-going basis, including requirements regarding its sources of income, the nature and diversification of its assets, the amounts NNN distributes to its stockholders and the ownership of its shares. NNN may also be required to make distributions to its stockholders when it does not have funds readily available for distribution or at times when NNN’s funds are otherwise needed to fund expenditures or debt service requirements. NNN generally will not be subject to federal income taxes on amounts distributed to stockholders, so long as it distributes 100 percent of its REIT taxable income and meets certain other requirements for qualifying as a REIT. For each of the years in the three-year period ended December 31, 2019, NNN believes it has qualified as a REIT. Notwithstanding NNN’s qualification for taxation as a REIT, NNN is subject to certain state income, franchise and excise taxes.
The share ownership restrictions of the Internal Revenue Code for REITs and the 9.8% share ownership limit in NNN’s charter may inhibit market activity in NNN’s shares of stock and restrict NNN’s business combination opportunities.
In order to qualify as a REIT, five or fewer individuals, as defined in the Internal Revenue Code, may not own, actually or constructively, more than 50% in value of NNN’s issued and outstanding shares of stock at any time during the last half of each taxable year, other than the first year for which a REIT election is made. Attribution rules in the Internal Revenue Code determine if any individual or entity actually or constructively owns NNN’s shares of stock under this requirement. Additionally, at least 100 persons must beneficially own NNN’s shares of stock during at least 335 days of a taxable year for each taxable year, other than the first year for which a REIT election is made. To help insure that NNN meets these tests, among other purposes, NNN’s charter restricts the acquisition and ownership of NNN’s shares of stock.
NNN’s charter, with certain exceptions, authorizes NNN’s Board of Directors to take such actions as are necessary and desirable to preserve NNN’s qualification as a REIT while NNN so qualifies. Unless exempted by the Board of Directors, for so long as NNN qualifies as a REIT, NNN’s charter prohibits, among other limitations on ownership and transfer of shares of NNN’s stock, any person from beneficially or constructively owning (applying certain attribution rules under the Internal Revenue Code) more than 9.8% in value of the aggregate of NNN’s outstanding shares of stock and more than 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of NNN’s shares of stock. The Board of Directors, in its sole discretion and upon receipt of certain representations and undertakings, may exempt a person (prospectively or retrospectively) from the ownership limits. However, the Board of Directors may not, among other limitations, grant an exemption from these ownership restrictions to any proposed transferee whose ownership, direct or indirect, in excess of the 9.8% ownership limit would result in the termination of NNN’s qualification as a REIT. These restrictions on transferability and ownership will not apply, however, if the Board of Directors determines that it is no longer in NNN’s best interest to continue to qualify as a REIT or that compliance with the restrictions is no longer required in order for us to continue to so qualify as a REIT. These ownership limits could delay or prevent a transaction or a change in control that might involve a premium price for our Common Stock or otherwise be in the best interest of NNN’s stockholders.
Non-compliance with Title III of the Americans with Disabilities Act of 1990 could have an adverse effect on NNN's business and operating results.
The Properties, as commercial facilities, are required to comply with the ADA. NNN's tenants will typically have primary responsibility for complying with the ADA, but NNN may incur costs if the tenant does not comply.


16


Item 1B.
Unresolved Staff Comments
None.

Item 2.
Properties
Please refer to Item 1. “Business.”

Item 3.
Legal Proceedings
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 does not believe that any of these proceedings are material.

Item 4.
Mine Safety Disclosures

None.


17


PART II

Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information.
The common stock of NNN currently is traded on the NYSE under the symbol “NNN.”
Performance Graphs.
Set forth below is a line graph comparing the cumulative total stockholder return on NNN’s common stock, based on the market price of the common stock and assuming reinvestment of dividends, with the FTSE National Association of Real Estate Investment Trusts Equity Index (“FNER”) and the S&P 500 Index (“S&P”) for the five-year period commencing December 31, 2014 and ending December 31, 2019. The graph assumes an investment of $100 on December 31, 2014.

Comparison to Five-Year Cumulative Total Return
CHART-B8384A0B092D5767B14.JPG


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Set forth below is a line graph comparing the cumulative total stockholder return on NNN’s common stock, based on the market price of the common stock and assuming reinvestment of dividends, with the FTSE National Association of Real Estate Investment Trusts Equity Index (“FNER”) and the S&P 500 Index (“S&P”) for the fifteen-year period commencing December 31, 2004 and ending December 31, 2019. The graph assumes an investment of $100 on December 31, 2004.
Comparison to Fifteen-Year Cumulative Total Return
CHART-2844853E5ACB5FE09CF.JPG
Dividends.
NNN intends to pay regular quarterly dividends to its stockholders, although all future distributions will be declared and paid at the discretion of the Board of Directors and will depend upon cash generated by operating activities, NNN’s financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Code and such other factors as the Board of Directors deems relevant.
In January 2020, NNN declared dividends payable to its stockholders of $88,148,000, or $0.515 per share, of common stock.
Holders.
On January 31, 2020, there were 1,679 registered holders of record of NNN's common stock. Many of NNN's shares of common stock are held by brokers and institutions on behalf of stockholders, NNN is unable to estimate the total number of stockholders represented by these record holders.
Securities Authorized for Issuance Under Equity Compensation Plans.
None.
Sale of Unregistered Securities.
None.
Issuer Purchases of Equity Securities.
None.

19


Item 6.
Selected Financial Data
The following table sets forth selected, historical, consolidated financial data for NNN and should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements of and the related notes included elsewhere in this Annual Report on Form 10-K.
Historical Financial Highlights
(dollars in thousands, except per share data)
 
 
2019
 
2018
 
2017
 
2016
 
2015
Gross revenues(1)
$
673,599

 
$
624,471

 
$
585,255

 
$
533,817

 
$
483,025

Earnings from continuing operations
299,608

 
292,485

 
265,371

 
239,506

 
197,961

Net earnings
299,608

 
292,485

 
265,371

 
239,506

 
197,961

Net earnings attributable to NNN
299,180

 
292,447

 
264,973

 
239,500

 
197,836

Total assets
7,434,867

 
7,103,438

 
6,560,534

 
6,334,151

 
5,460,044

Total debt
2,988,357

 
2,851,395

 
2,580,207

 
2,311,689

 
1,975,944

Total stockholders’ equity of NNN
4,331,675

 
4,154,250

 
3,840,593

 
3,916,799

 
3,342,134

Cash dividends declared to:
 
 
 
 
 
 
 
 
 
Common stockholders
333,692

 
303,164

 
277,120

 
257,007

 
228,699

Series D preferred stockholders

 

 
3,598

 
19,047

 
19,047

Series E preferred stockholders
13,201

 
16,387

 
16,387

 
16,387

 
16,387

Series F preferred stockholders
17,940

 
17,940

 
17,940

 
3,189

 

Weighted average common shares:
 
 
 
 
 
 
 
 
 
Basic
164,688,498

 
155,744,601

 
149,111,188

 
144,176,224

 
133,998,674

Diluted
165,083,679

 
156,295,619

 
149,432,641

 
144,660,633

 
134,489,416

Earnings from continuing operations per share and net earnings per share:
 
 
 
 
 
 
 
 
 
Basic
1.56

 
1.65

 
1.45

 
1.39

 
1.21

Diluted
1.56

 
1.65

 
1.45

 
1.38

 
1.20

Cash dividends declared per share to:
 
 
 
 
 
 
 
 
 
Common stockholders
2.03

 
1.95

 
1.86

 
1.78

 
1.71

Series D preferred depositary stockholders

 

 
0.312847

 
1.656250

 
1.656250

Series E preferred depositary stockholders
1.147917

 
1.425000

 
1.425000

 
1.425000

 
1.425000

Series F preferred depositary stockholders
1.300000

 
1.300000

 
1.300000

 
0.231111

 

 
 
 
 
 
 
 
 
 
 
Other data:
 
 
 
 
 
 
 
 
 
Cash flows provided by (used in):
 
 
 
 
 
 
 
 
 
Operating activities
$
501,727

 
$
471,909

 
$
421,557

 
$
415,337

 
$
341,095

Investing activities
(619,408
)
 
(609,371
)
 
(625,557
)
 
(779,943
)
 
(644,544
)
Financing activities
4,526

 
250,365

 
(89,176
)
 
644,886

 
307,105

Funds from operations – available to common stockholders(2)
446,661

 
395,337

 
359,179

 
330,544

 
289,193

(1) 
Gross revenues include the aggregate of total revenue and interest and other income found on the Consolidated Statements of Income and Comprehensive Income.
(2) 
The National Association of Real Estate Investment Trusts (“NAREIT”) developed Funds from Operations (“FFO”) as a relative non-U.S. generally accepted accounting principles (“GAAP”) financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by NAREIT and is used by NNN as follows: net earnings (computed in accordance with GAAP) plus depreciation and amortization of assets unique to the real estate industry, excluding gains (or including losses), any applicable taxes and noncontrolling interests on the disposition of certain assets, any impairment charges on a depreciable real estate asset and NNN’s share of these items from NNN’s unconsolidated partnerships and joint ventures.

20


Funds From Operations (FFO) Reconciliation
FFO is generally considered by industry analysts to be an appropriate measure of operating performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of NNN’s operating performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of operating performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as an operating performance measure. NNN’s computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs.
The following table reconciles FFO to the most directly comparable GAAP measure, net earnings for the years ended December 31:
 
2019
 
2018
 
2017
 
2016
 
2015
Reconciliation of funds from operations:
 
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
$
258,183

 
$
258,120

 
$
217,193

 
$
200,877

 
$
162,402

Real estate depreciation and amortization
188,537

 
174,076

 
173,404

 
148,779

 
134,380

Gain on disposition of real estate, net of income tax expense and noncontrolling interests
(32,051
)
 
(65,070
)
 
(36,258
)
 
(27,137
)
 
(10,397
)
Impairment losses – depreciable real estate, net of recoveries and income tax expense
31,992

 
28,211

 
4,840

 
8,025

 
2,808

FFO available to common stockholders
$
446,661

 
$
395,337

 
$
359,179

 
$
330,544

 
$
289,193



21


Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
This section generally discusses 2019 and 2018 items and year-to-year comparisons between 2019 and 2018. Discussions of 2017 items and year-to-year comparisons between 2018 and 2017 that are not included in this annual report on Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (the "Commission") on February 12, 2019.
The term "NNN" or the "Company" refers to National Retail Properties, Inc. and all of its consolidated subsidiaries. NNN may elect to treat certain subsidiaries as taxable real estate investment trust subsidiaries, ("TRS").
Forward-Looking Statements
The following discussion and analysis should be read in conjunction with "Item 6. Selected Financial Data," and the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. NNN makes statements in this section that are forward-looking statements within the meaning of the federal securities laws. For a complete discussion of forward-looking statements, see the section in this report entitled “Forward-Looking Statements.” Certain risks may cause NNN’s actual results, performance or achievements to differ materially from those expressed or implied by the following discussion. For a discussion of such risk factors, see “Item 1A. Risk Factors.”
Overview
NNN, a Maryland corporation, is a fully integrated real estate investment trust ("REIT") formed in 1984. NNN's assets are primarily real estate assets. NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment ("Properties," or "Property Portfolio," or individually a "Property").
NNN owned 3,118 Properties with an aggregate gross leasable area of approximately 32,460,000 square feet, located in 48 states, with a weighted average remaining lease term of 11.2 years as of December 31, 2019. Approximately 99 percent of the Properties were leased as of December 31, 2019.
NNN’s management team focuses on certain key indicators to evaluate the financial condition and operating performance of NNN. The key indicators for NNN include items such as: the composition of the Property Portfolio (such as tenant, geographic and line of trade diversification), the occupancy rate of the Property Portfolio, certain financial performance ratios and profitability measures, industry trends and industry performance compared to that of NNN.
NNN evaluates the creditworthiness of its current and prospective tenants. This evaluation may include reviewing available financial statements, store level financial performance, press releases, public credit ratings from major credit rating agencies, industry news publications and financial market data (debt and equity pricing). NNN may also evaluate the business and operations of its tenants, including past payment history and periodically meeting with senior management of certain tenants.
NNN continues to maintain its diversification by tenant, geography and tenant’s line of trade. NNN’s largest lines of trade concentrations are the convenience store and restaurant (including full and limited service) sectors. These sectors represent a large part of the freestanding retail property marketplace and NNN’s management believes these sectors present attractive investment opportunities. The Property Portfolio is geographically concentrated in the south and southeast United States, which are regions of historically above-average population growth. Given these concentrations, any financial hardship within these sectors or geographic regions could have a material adverse effect on the financial condition and operating performance of NNN.
As of December 31, 2019, 2018 and 2017, the Property Portfolio has remained at least 98 percent leased. As of December 31, 2019, the average remaining lease term of the Property Portfolio was 11.2 years, which was consistent with the past three years. High occupancy levels coupled with a net lease structure, provides enhanced probability of maintaining operating earnings.

22


Critical Accounting Policies and Estimates
The preparation of NNN’s consolidated financial statements in conformance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses as well as other disclosures in the financial statements. On an ongoing basis, management evaluates its estimates and assumptions; however, actual results may differ from these estimates and assumptions, which in turn could have a material impact on NNN’s financial statements. A summary of NNN’s accounting policies and procedures are included in Note 1 of NNN’s consolidated financial statements. Management believes the following critical accounting policies, among others, affect its more significant estimates and assumptions used in the preparation of NNN’s consolidated financial statements.
Real Estate Portfolio.  NNN records the acquisition of real estate at cost, including acquisition and closing costs. The cost of properties developed or funded by NNN includes direct and indirect costs of construction, property taxes, interest and other miscellaneous costs incurred during the development period until the project is substantially complete and available for occupancy.
Purchase Accounting for Acquisition of Real Estate.  In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") guidance on business combinations, consideration for the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements and, if applicable, to identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and value of in-place leases, as applicable, based on their respective fair values.
Lease Accounting. Effective January 1, 2019, NNN adopted FASB Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," ("ASC 842") using the modified retrospective approach in which the cumulative effect of applying the new standard was recognized at the date of initial application with an immaterial positive adjustment to NNN’s opening balance of accumulated deficit. The modified retrospective approach provides a method for recording existing leases upon adoption which in comparative periods approximates the results of a full retrospective approach. NNN elected the package of practical expedients permitted under the transition guidance (which included: (i) an entity need not reassess whether any expired or existing contracts are or contain leases, (ii) an entity need not reassess the lease classification for any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases), the land easement practical expedient to carry forward existing accounting treatment on existing land easements, and the lease and non-lease component combined practical expedient.
NNN estimates the collectability of its accounts receivable related to rents, expense reimbursements and other revenues. NNN analyzes accounts receivable and historical bad debt levels, tenant credit-worthiness and current economic trends when evaluating the probable collection. At the point NNN deems the collection of lease payments not probable, a bad debt is recognized for any outstanding receivable and any related accrued rent and, subsequently, any lease revenue is only recognized when cash receipts are received.
Adoption of the new standard resulted in the recording of right-of-use ("ROU") assets and operating lease liabilities of approximately $7,735,000 and $10,155,000 respectively, as of January 1, 2019. Additional disclosures are included in Note 3 – Right-Of-Use Assets and Operating Lease Liabilities. The consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while comparative periods presented are not adjusted and continue to be reported in accordance with NNN's historical accounting policy. ASC 842 did not materially impact NNN’s financial position or results of operations and had no impact on cash flows.
Real Estate – Held For Sale. Real estate held for sale is not depreciated and is recorded at the lower of cost or fair value, less costs to sell.
Impairment – Real Estate.  Based upon certain events or changes in circumstances, management periodically assesses its Properties for possible impairment whenever the carrying value of the asset, including accrued rental income, may not be recoverable through operations. Events or circumstances that may occur include significant changes in real estate market conditions or the ability of NNN to re-lease or sell properties that are currently vacant or become vacant in a reasonable period of time. Management evaluates whether an impairment in carrying value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), and the residual value of the real estate, with the carrying value of the individual asset. The future undiscounted cash flows are primarily driven by estimated future market rents. If an impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its estimated fair value.

23


Revenue Recognition.  Rental revenues for properties under construction commence upon completion of construction of the leased asset and delivery of the leased asset to the tenant. Rental revenues for non-development real estate assets are recognized when earned in accordance with the FASB guidance included in Leases, based on the terms of the lease of the leased asset. Lease termination fees are recognized when collected subsequent to the related lease that is cancelled and NNN no longer has continuing involvement with the former tenant with respect to that property.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606). The core principle of ASU 2014-09, is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain contracts are excluded from ASU 2014-09, including lease contracts within the scope of the FASB guidance included in Leases (Topic 842). NNN determined the key revenue stream impacted by ASU 2014-09 is gain on disposition of real estate reported on the Consolidated Statements of Income and Comprehensive Income. NNN evaluates any separate contracts or performance obligations to determine proper timing and/or amount of revenue recognition, as well as, transaction price allocation.
New Accounting Pronouncements.  Refer to Note 1 of the December 31, 2019, Consolidated Financial Statements for a summary and the anticipated impact of each accounting pronouncement on NNN's financial position or results of operations.

Results of Operations
Property Analysis
General.  The following table summarizes the Property Portfolio as of December 31:
 
2019
 
2018
 
2017
Properties Owned:
 
 
 
 
 
Number
3,118

 
2,969

 
2,764

Total gross leasable area (square feet)
32,460,000

 
30,487,000

 
29,093,000

Properties:
 
 
 
 
 
Leased and unimproved land
3,086

 
2,917

 
2,740

Percent of Properties – leased and unimproved land
99
%
 
98
%
 
99
%
Weighted average remaining lease term (years)
11.2

 
11.5

 
11.5

Total gross leasable area (square feet) – leased
31,818,000

 
29,439,000

 
28,703,000


The following table summarizes the lease expirations, assuming none of the tenants exercise renewal options, of the Property Portfolio for each of the next 10 years and then thereafter in the aggregate as of December 31, 2019:
 
 
% of
Annual
Base Rent(1)
 
# of
Properties
 
Gross
Leasable
Area(2)
 
 
 
% of
Annual
Base Rent(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

 
Thereafter
 
58.3%
 
1,799
 
16,880,000

2025
 
5.3%
 
167
 
1,850,000

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

24


The following table summarizes the diversification of the Property Portfolio based on the top 10 lines of trade:
 
 
 
 
% of Annual Base Rent(1)
 
 
Top 10 Lines of Trade
 
2019
 
2018
 
2017
1.
 
Convenience stores
 
18.2%
 
18.0%
 
18.1%
2.
 
Restaurants - full service
 
11.1%
 
11.4%
 
12.1%
3.
 
Automotive service
 
9.6%
 
8.6%
 
6.9%
4.
 
Restaurants - limited service
 
8.8%
 
8.9%
 
7.6%
5.
 
Family entertainment centers
 
6.7%
 
7.1%
 
6.4%
6.
 
Health and fitness
 
5.2%
 
5.6%
 
5.6%
7.
 
Theaters
 
4.7%
 
5.0%
 
4.8%
8.
 
Recreational vehicle dealers, parts and accessories
 
3.4%
 
3.4%
 
3.4%
9.
 
Automotive parts
 
3.1%
 
3.4%
 
3.6%
10.
 
Equipment rental
 
2.6%
 
1.9%
 
2.0%
 
 
Other
 
26.6%
 
26.7%
 
29.5%
 
 
 
 
100.0%
 
100.0%
 
100.0%
(1) 
Based on annualized base rent for all leases in place as of December 31 of the respective year.
The following table summarizes the diversification of the Property Portfolio by state as of December 31, 2019:
 
 
State
 
# of Properties     
 
% of Annual Base Rent(1)
1.
 
Texas
 
502
 
17.6%
2.
 
Florida
 
230
 
8.8%
3.
 
Ohio
 
199
 
5.8%
4.
 
Illinois
 
142
 
5.0%
5.
 
Georgia
 
151
 
4.5%
6.
 
North Carolina
 
156
 
4.5%
7.
 
Indiana
 
146
 
4.0%
8.
 
Tennessee
 
142
 
3.8%
9.
 
Virginia
 
117
 
3.6%
10.
 
California
 
65
 
3.3%
 
 
Other
 
1,268
 
39.1%
 
 
 
 
3,118
 
100.0%
(1) 
Based on annualized base rent for all leases in place as of December 31, 2019.

Property Acquisitions.  The following table summarizes the Property acquisitions for each of the years ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017
Acquisitions:
 
 
 
 
 
Number of Properties
210

 
265

 
276

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

 
2,167,000

 
2,243,000

Initial cash yield
6.9
%
 
6.8
%
 
6.9
%
Total dollars invested(1)
$
752,497

 
$
715,572

 
$
754,892

(1) 
Includes dollars invested in projects under construction or tenant improvements for each respective year.
NNN typically funds Property acquisitions either through borrowings under NNN's unsecured revolving credit facility (the "Credit Facility") or by issuing its debt or equity securities in the capital markets.

25


Property Dispositions.  The following table summarizes the Properties sold by NNN for each of the years ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017
Number of properties
59

 
61

 
48

Gross leasable area (square feet)
1,113,000

 
686,000

 
346,000

Net sales proceeds
$
126,194

 
$
147,646

 
$
96,757

Gain on disposition of real estate
$
32,463

 
$
65,070

 
$
36,655

Cap rate
5.9
%
 
5.1
%
 
6.0
%
NNN typically uses the proceeds from a Property disposition to either pay down the Credit Facility or reinvest in real estate.
Analysis of Revenue
General.  NNN’s total revenues have increased for the year ended December 31, 2019, as compared to the same periods ended in 2018 and 2017. This increase is primarily due to the increase in rental income from Property acquisitions (See "Results of Operations – Property Analysis – Property Acquisitions"). NNN anticipates increases in rental income will continue to come from additional Property acquisitions and increases in rents pursuant to existing lease terms.
The following summarizes NNN's revenues for each of the years ended December 31 (dollars in thousands):
 
 
 
2019
 
2018
 
2017
 
2019
Versus
2018
Percent
 
2018
Versus
2017
Percent
 
 
 
 
Rental Revenues(1)
 
$
652,220

 
$
604,615

 
$
568,083

 
7.9
%
 
6.4
 %
 
Real estate expense reimbursement from tenants
 
16,789

 
16,784

 
15,512

 

 
8.2
 %
 
Rental income
 
669,009

 
621,399

 
583,595

 
7.7
%
 
6.5
 %
 
Interest and other income from real estate transactions
 
1,478

 
1,262

 
1,338

 
17.1
%
 
(5.7
)%
 
Total revenues
 
$
670,487

 
$
622,661

 
$
584,933

 
7.7
%
 
6.4
 %
(1) 
Includes rental income from operating leases, earned income from direct financing leases and percentage rent ("Rental Revenues").
Comparison of Revenues – 2019 versus 2018
Rental Income.   Rental income increased for the year ended December 31, 2019, as compared to the same period in 2018 primarily due to Property acquisitions:
(i)
a partial year of Rental Revenue from 210 Properties with aggregate gross leasable area of approximately 3,164,000 square feet acquired in 2019, and
(ii)
a full year of Rental Revenue from 265 Properties with a gross leasable area of approximately 2,167,000 square feet acquired in 2018.
Comparison of Revenues – 2018 versus 2017
Refer to “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of NNN's Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Commission on February 12, 2019, for a detailed comparison of revenues for the years ended December 31, 2018 versus December 31, 2017.




26


Analysis of Expenses
General.  Operating expenses increased primarily due to the increase in depreciation expense resulting from the continued growth of NNN's Property Portfolio during the year ended December 31, 2019, as compared to the same period in 2018. The following summarizes NNN’s expenses for the year ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017
 
2019
Versus
2018
Percent
 
2018
Versus
2017
Percent
General and administrative
$
37,651

 
$
34,248

 
$
33,805

 
9.9
 %
 
1.3
 %
Real estate
27,656

 
25,099

 
23,105

 
10.2
 %
 
8.6
 %
Depreciation and amortization
188,871

 
174,398

 
173,720

 
8.3
 %
 
0.4
 %
Impairment losses – real estate and other charges, net of recoveries
31,992

 
28,211

 
8,955

 
13.4
 %
 
215.0
 %
Retirement severance costs

 
1,013

 
7,845

 
(100.0
)%
 
(87.1
)%
Total operating expenses
$
286,170

 
$
262,969

 
$
247,430

 
8.8
 %
 
6.3
 %
 
 
 
 
 
 
 
 
 
 
Interest and other income
$
(3,112
)
 
$
(1,810
)
 
$
(322
)
 
71.9
 %
 
462.1
 %
Interest expense
120,023

 
115,847

 
109,109

 
3.6
 %
 
6.2
 %
Leasing transaction costs
261

 

 

 
N/C (1)

 

Loss on early extinguishment of debt

 
18,240

 

 
(100.0
)%
 
N/C (1)

Total other expenses (revenues)
$
117,172

 
$
132,277

 
$
108,787

 
(11.4
)%
 
21.6
 %
 
 
 
 
 
 
 
 
 
 
As a percentage of total revenues:
 
 
 
 
 
 
 
 
 
General and administrative
5.6
%
 
5.5
%
 
5.8
%
 
 
 
 
Real estate
4.1
%
 
4.0
%
 
4.0
%
 
 
 
 
 (1) Not calculable ("N/C")
Comparison of Expenses – 2019 versus 2018
General and Administrative Expenses.  General and administrative expenses increased in amount and remained relatively flat as a percentage of total revenues for the year ended December 31, 2019, as compared to the same period in 2018. The increase in general and administrative expenses for the year ended December 31, 2019, is primarily attributable to an increase in compensation costs.
Real Estate.  Real estate expenses increased in amount and remained relatively flat as a percentage of revenues for the year ended December 31, 2019, as compared to the same period in 2018. NNN focuses on real estate expenses, net of reimbursements from tenants. NNN's net real estate expenses for the years ended December 31, 2019 and 2018 were $10,867,000 and $8,315,000, respectively. The increase is primarily attributable to expenses from certain properties that became vacant during the years ended December 31, 2019 and 2018.
Depreciation and Amortization.  Depreciation and amortization expenses increased in amount for the year ended December 31, 2019, as compared to the same period in 2018. The increase in expenses is primarily due to the acquisition of 210 Properties with an aggregate gross leasable area of approximately 3,164,000 square feet in 2019 and 265 Properties with an aggregate gross leasable area of approximately 2,167,000 square feet in 2018.
Impairment Losses – Real Estate and Other Charges, Net of Recoveries.  NNN reviews long-lived assets for impairment whenever certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Events or circumstances that may occur include changes in real estate market conditions, the ability of NNN to re-lease properties that are currently vacant or become vacant, and the ability to sell properties at a price that exceeds NNN's carrying value. Management evaluates whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), and the residual value of the real estate, with the carrying cost of the individual asset. If an impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its fair value. During the years ended December 31, 2019 and 2018, NNN recorded $31,992,000 and $28,211,000, respectively, of real estate impairments.

27


Interest Expense. Interest expense increased for the year ended December 31, 2019, compared to the same period in 2018. The increase is attributable to an increase in outstanding debt, including the following activity related to NNN's notes payable (dollars in thousands):
Transaction
 
Effective Date
 
Principal
 
Stated Interest Rate
 
Original Maturity
Issuance 2028 Notes
 
September 2018
 
$
400,000

 
4.300
%
 
October 2028
Issuance 2048 Notes
 
September 2018
 
300,000

 
4.800
%
 
October 2048
Redemption 2021 Notes
 
October 2018
 
(300,000
)
 
5.500
%
 
July 2021
The increase in interest expense for 2019 is partially offset by a decrease of $97,529,000 in the weighted average outstanding balance on the Credit Facility, from $121,587,000 at December 31, 2018 to $24,058,000 at December 31, 2019.
Loss on Early Extinguishment of Debt.  In October 2018, NNN redeemed the $300,000,000 5.500% notes payable that were due in July 2021. The notes were redeemed at a price equal to 100% of the principal amount, plus (i) a make-whole amount of $18,240,000, and (ii) all accrued and unpaid interest.
Comparison of Expenses – 2018 versus 2017
Refer to “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of NNN's Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Commission on February 12, 2019, for a detailed comparison of expenses for the years ended December 31, 2018 versus December 31, 2017.

Impact of Inflation
NNN’s leases typically contain provisions to mitigate the adverse impact of inflation on NNN’s results of operations. Tenant leases generally provide for limited increases in rent as a result of fixed increases, increases in the CPI, and/or, to a lesser extent, increases in the tenant’s sales volume. During times when inflation is greater than increases in rent, rent increases will not keep up with the rate of inflation.
Properties are leased to tenants under long-term, net leases which typically require the tenant to pay certain operating expenses for a Property, thus, NNN’s exposure to inflation is reduced with respect to these expenses. Inflation may have an adverse impact on NNN’s tenants.

Liquidity
General.  NNN’s demand for funds has been and will continue to be primarily for (i) payment of operating expenses and cash dividends; (ii) Property acquisitions and development; (iii) capital expenditures; (iv) payment of principal and interest on its outstanding indebtedness; and (v) other investments.
NNN expects to meet short-term liquidity requirements through cash provided from operations and NNN’s Credit Facility. As of December 31, 2019, $133,600,000 was outstanding and $766,400,000 was available for future borrowings under the Credit Facility. NNN anticipates its long-term capital needs will be funded by the Credit Facility, cash provided from operations, the issuance of long-term debt or the issuance of common or preferred equity or other instruments convertible into or exchangeable for common or preferred equity. However, there can be no assurance that additional financing or capital will be available, or that the terms will be acceptable or advantageous to NNN.

28


Cash and Cash Equivalents.  NNN's cash and cash equivalents includes the aggregate of cash and cash equivalents and restricted cash and cash held in escrow from the Consolidated Balance Sheets. NNN did not have restricted cash or cash held in escrow as of December 31, 2019, 2018 and 2017. The table below summarizes NNN’s cash flows for each of the years ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017
Cash and cash equivalents:
 
 
 
 
 
Provided by operating activities
$
501,727

 
$
471,909

 
$
421,557

Used in investing activities
(619,408
)
 
(609,371
)
 
(625,557
)
Provided by (used in) financing activities
4,526

 
250,365

 
(89,176
)
Increase (decrease)
(113,155
)
 
112,903

 
(293,176
)
Net cash at beginning of year
114,267

 
1,364

 
294,540

Net cash at end of year
$
1,112

 
$
114,267

 
$
1,364

Cash provided by operating activities represents cash received primarily from Rental Revenues and interest income less cash used for general and administrative expenses. NNN’s cash flow from operating activities has been sufficient to pay the distributions for each period presented. The change in cash provided by operations for the years ended December 31, 2019, 2018 and 2017, is primarily the result of changes in revenues and expenses as discussed in “Results of Operations.” Cash generated from operations is expected to fluctuate in the future.
Changes in cash for investing activities are primarily attributable to acquisitions and dispositions of Properties. NNN typically uses proceeds from its Credit Facility to fund the acquisition of its Properties.
NNN’s financing activities for the year ended December 31, 2019, included the following significant transactions:
(i) Issuance of common stock resulted in the following net proceeds:
$379,410,000 from the issuance of 7,000,000 shares of common stock in September,
$19,442,000 from the issuance of 362,918 shares of common stock in connection with the Dividend Reinvestment and Stock Purchase Plan (“DRIP”), and
$125,905,000 from the issuance of 2,344,022 shares of common stock in connection with the at-the-market ("ATM") equity program.
(ii) Dividends paid:
$13,201,000 to holders of the depositary shares of NNN’s 5.700% Series E Cumulative Redeemable Preferred Stock (the "Series E Preferred Stock"),
$17,940,000 to holders of the depositary shares of NNN’s 5.200% Series F Cumulative Redeemable Preferred Stock (the "Series F Preferred Stock"), and
$333,692,000 to common stockholders.
Financing Strategy.  NNN’s financing objective is to manage its capital structure effectively in order to provide sufficient capital to execute its operating strategy while servicing its debt requirements, maintaining its investment grade credit rating, staggering debt maturities and providing value to NNN’s stockholders. NNN generally utilizes debt and equity security offerings, bank borrowings, proceeds from the disposition of certain properties, and to a lesser extent, internally generated funds to meet its capital needs.
NNN typically funds its short-term liquidity requirements, including investments in additional Properties, with cash from its Credit Facility. As of December 31, 2019, $133,600,000 was outstanding and $766,400,000 was available for future borrowings under the Credit Facility.
As of December 31, 2019, NNN’s ratio of total debt to total gross assets (before accumulated depreciation and amortization) was approximately 35 percent and the ratio of secured indebtedness to total gross assets was less than one percent. The ratio of total debt to total market capitalization was approximately 25 percent. Certain financial agreements to which NNN is a party contain covenants that limit NNN’s ability to incur additional debt under certain circumstances. The organizational documents of NNN do not limit the absolute amount or percentage of indebtedness that NNN may incur. Additionally, NNN may change its financing strategy.

29


Contractual Obligations and Commercial Commitments.  The information in the following table summarizes NNN’s contractual obligations and commercial commitments outstanding as of December 31, 2019. The table presents principal cash flows by year-end of the expected maturity for debt obligations and commercial commitments outstanding as of December 31, 2019.
 
Expected Maturity Date (dollars in thousands)
 
Total
 
2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
Long-term debt(1) 
$
2,886,837

 
$
596

 
$
630

 
$
325,664

 
$
359,947

 
$
350,000

 
$
1,850,000

Long-term debt – interest(2)
991,971

 
112,365

 
112,331

 
109,724

 
91,520

 
80,456

 
485,575

Credit Facility
133,600

 

 

 
133,600

 

 

 

Headquarters office lease
4,233

 
773

 
788

 
804

 
821

 
837

 
210

Ground leases
8,446

 
564

 
573

 
582

 
582

 
601

 
5,544

Total contractual cash obligations
$
4,025,087

 
$
114,298

 
$
114,322

 
$
570,374

 
$
452,870

 
$
431,894

 
$
2,341,329

(1) 
Includes only principal amounts outstanding under mortgages payable and notes payable and excludes unamortized mortgage
premiums, note discounts and note costs.
(2) 
Interest calculation based on stated rate of the principal amount.
In addition to the contractual obligations outlined above, NNN has committed to fund construction on 19 Properties. The improvements on such Properties are estimated to be completed within 12 months. These construction commitments, at December 31, 2019, are outlined in the table below (dollars in thousands):
Total commitment(1)
 
$
75,927

Less amount funded
 
44,368

Remaining commitment
 
$
31,559

(1)
Includes land, construction costs, tenant improvements, lease costs and capitalized interest
As of December 31, 2019, NNN did not have any other material contractual cash obligations, such as purchase obligations, financing lease obligations or other long-term liabilities other than those reflected in the table. In addition to items reflected in the table, NNN has issued preferred stock with cumulative preferential cash distributions, as described below under “Dividends.”
Management anticipates satisfying these obligations with a combination of NNN’s cash provided from operations, current capital resources on hand, its Credit Facility, debt or equity financings and asset dispositions.
Generally the Properties are leased under long-term triple net leases, which require the tenant to pay all property taxes and assessments, to maintain the interior and exterior of the Property, and to carry property and liability insurance coverage. Therefore, management anticipates that capital demands to meet obligations with respect to these Properties will be modest for the foreseeable future and can be met with funds from operations and working capital. Certain Properties are subject to leases under which NNN retains responsibility for specific costs and expenses associated with the Property. Management anticipates the costs associated with these Properties, NNN's vacant Properties or those Properties that become vacant will also be met with funds from operations and working capital. NNN may be required to borrow under its Credit Facility or use other sources of capital in the event of significant capital expenditures or major repairs.
The lost revenues and increased property expenses resulting from vacant Properties or uncollectibility of lease revenues could have a material adverse effect on the liquidity and results of operations if NNN is unable to re-lease the Properties at comparable rental rates and in a timely manner. As of December 31, 2019, NNN owned 32 vacant, un-leased Properties which accounted for approximately one percent of total Properties held in the Property Portfolio. Additionally, as of February 10, 2020, less than two percent of total Properties, and less than one percent of aggregate gross leasable area held in the Property Portfolio, was leased to two tenants that are currently in bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. As a result, these tenants have the right to reject or affirm their leases with NNN.
NNN generally monitors the financial performance of its significant tenants on an ongoing basis.
Dividends.  NNN has made an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), and related regulations and intends to continue to operate so as to remain qualified as a REIT for federal income tax purposes. NNN generally will not be subject to federal income tax on income that it distributes to its stockholders, provided that it distributes 100 percent of its REIT taxable income and meets certain other requirements

30


for qualifying as a REIT. If NNN fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four years following the year during which qualification is lost. Such an event could materially adversely affect NNN’s income and ability to pay dividends. NNN believes it has been structured as, and its past and present operations qualify NNN as, a REIT.
One of NNN’s primary objectives is to distribute a substantial portion of its funds available from operations to its stockholders in the form of dividends, while retaining sufficient cash for reserves and working capital purposes and maintaining its status as a REIT.
The following table outlines the dividends declared and paid for NNN's common stock for the years ended December 31 (dollars in thousands, except per share data):
 
2019
 
2018
 
2017
Dividends
$
333,692

 
$
303,164

 
$
277,120

Per share
2.030

 
1.950

 
1.860

The following presents the characterizations for tax purposes of such common stock dividends for the years ended December 31:
 
2019
 
2018
 
2017
Ordinary dividends
$
1.762899

 
86.8423
%
(1) 
$
1.658604

 
85.0566
%
(1) 
$
1.559781

 
83.8592
%
Capital gain

 
%
 
0.015534

 
0.7966
%
 
0.035041

 
1.8839
%
Unrecaptured Section 1250 Gain

 
%
 
0.042818

 
2.1958
%
 
0.012194

 
0.6556
%
Nontaxable distributions
0.267101

 
13.1577
%
 
0.233044

 
11.9510
%
 
0.252984

 
13.6013
%
 
$
2.030000

 
100.0000
%
 
$
1.950000

 
100.0000
%
 
$
1.860000

 
100.0000
%
(1) 
Eligible for the 20% qualified business income deduction under section 199A of the Code that was amended by the Tax Cuts and Jobs Act signed into law on December 22, 2017, ("TCJA").
On January 15, 2020, NNN declared a dividend of $0.515 per share, payable February 14, 2020, to its common stockholders of record as of January 31, 2020.
Holders of NNN’s preferred stock issuances are entitled to receive, when and as authorized by the Board of Directors, cumulative preferential cash distributions based on the stated rate and liquidation preference per annum. The following table outlines the dividends declared and paid for NNN's preferred stock for the years ended December 31 (dollars in thousands, except per share data):
 
 
2019
 
2018
 
2017
Series D Preferred Stock(1):
 
 
 
 
 
 
Dividends
$

 
$

 
$
3,598

 
Per share

 

 
0.312847

 
 
 
 
 
 
 
Series E Preferred Stock(2):
 
 
 
 
 
 
Dividends
13,201

 
16,387

 
16,387

 
Per share
1.147917

 
1.425000

 
1.425000

 
 
 
 
 
 
 
Series F Preferred Stock(3):
 
 
 
 
 
 
Dividends
17,940

 
17,940

 
17,940

 
Per share
1.300000

 
1.300000

 
1.300000

(1) The Series D Preferred Stock was redeemed in February 2017. The dividends paid in 2017 include accumulated and unpaid dividends through, but not including, the redemption date.
(2)   The Series E Preferred Stock was redeemed in October 2019. The dividends paid in 2019 include accumulated and unpaid dividends through, but not including, the redemption date.
(3)   The Series F Preferred Stock was issued in October 2016 and has no maturity date and will remain outstanding unless redeemed by NNN. The earliest redemption date for the Series F Preferred Stock is October 2021.

31


The following presents the characterizations for tax purposes of such preferred stock dividends for the years ended December 31:
 
 
Ordinary Dividends
 
Capital Gain
 
Unrecaptured Section 1250 Gain
 
Totals
2019
 
 
 
 
 
 
 
 
Percentage of Total
 
100.0000
%
(3) 

 

 
100.0000
%
 
 
 
 
 
 
 
 
 
Series E (2)
 
$
1.147917

 
$

 
$

 
$
1.147917

Series F
 
$
1.300000

 
$

 
$

 
$
1.300000

 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
Percentage of Total
 
96.6015
%
(3) 
0.9047
%
 
2.4938
%
 
100.0000
%
 
 
 
 
 
 
 
 
 
Series E
 
$
1.376571

 
$
0.012892

 
$
0.035537

 
$
1.425000

Series F
 
$
1.255820

 
$
0.011761

 
$
0.032419

 
$
1.300000

 
 
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
Percentage of Total
 
97.0607
%
 
2.1804
%
 
0.7589
%
 
100.0000
%
 
 
 
 
 
 
 
 
 
Series D (1)
 
$
0.303652

 
$
0.006821

 
$
0.002374

 
$
0.312847

Series E
 
$
1.383115

 
$
0.031071

 
$
0.010814

 
$
1.425000

Series F
 
$
1.261789

 
$
0.028345

 
$
0.009866

 
$
1.300000

(1) The Series D Preferred Stock was redeemed in February 2017. The dividends paid in 2017 included
     accumulated and unpaid dividends through, but not including, the redemption date.
(2) The Series E Preferred Stock was redeemed in October 2019. The dividends paid in 2019 included
     accumulated and unpaid dividends through, but not including, the redemption date.
(3)  Eligible for the 20% qualified business income deduction under section 199A of the Code as amended by the
     TCJA.

Capital Resources
Generally, cash needs for Property acquisitions, debt payments, capital expenditures, development and other investments have been funded by equity and debt offerings, bank borrowings, the sale of Properties and, to a lesser extent, by internally generated funds. Cash needs for operating and interest expenses and dividends have generally been funded by internally generated funds. If available, future sources of capital include proceeds from the public or private offering of NNN’s debt or equity securities, secured or unsecured borrowings from banks or other lenders, proceeds from the sale of Properties, as well as undistributed funds from operations.

Debt
The following is a summary of NNN’s total outstanding debt as of December 31 (dollars in thousands):
 
2019
 
Percentage
of Total
 
2018
 
Percentage
of Total
Line of credit payable
$
133,600

 
4.5
%
 
$

 
%
Mortgages payable
12,059

 
0.4
%
 
12,694

 
0.4
%
Notes payable
2,842,698

 
95.1
%
 
2,838,701

 
99.6
%
Total outstanding debt
$
2,988,357

 
100.0
%
 
$
2,851,395

 
100.0
%

Indebtedness.  NNN expects to use indebtedness primarily for property acquisitions and development of single-tenant retail properties, either directly or through investment interests. Additionally, indebtedness may be used to refinance existing indebtedness.

32


Line of Credit Payable. In October 2017, NNN amended its credit agreement to increase the borrowing capacity under its Credit Facility from $650,000,000 to $900,000,000 and amend certain other terms under the former Credit Facility. The Credit Facility had a weighted average outstanding balance of $24,058,000 and a weighted average interest rate of 2.8% for the year ended December 31, 2019. The Credit Facility matures January 2022, unless the Company exercises its option to extend maturity to January 2023. As of December 31, 2019, the Credit Facility bears interest at LIBOR plus 87.5 basis points; however, such interest rate may change pursuant to a tiered interest rate structure based on NNN's debt rating. The Credit Facility also includes an accordion feature for NNN to increase the facility size up to $1,600,000,000, subject to lender approval. As of December 31, 2019, $133,600,000 was outstanding and $766,400,000 was available for future borrowings under the Credit Facility.
In accordance with the terms of the Credit Facility, NNN is required to meet certain restrictive financial covenants, which, among other things, require NNN to maintain certain (i) leverage ratios, (ii) debt service coverage, (iii) cash flow coverage, and (iv) investment limitations. At December 31, 2019, NNN was in compliance with those covenants. In the event that NNN violates any of these restrictive financial covenants, it could cause the indebtedness under the Credit Facility to be accelerated and may impair NNN’s access to the debt and equity markets and limit NNN’s ability to pay dividends to its common and preferred stockholders, each of which would likely have a material adverse impact on NNN’s financial condition and results of operations.

Mortgages Payable.   As of December 31, 2019 and 2018, NNN had mortgages payable, including unamortized premium and net of unamortized debt costs, of $12,059,000 and $12,694,000 respectively. The mortgages payable had an interest rate of 5.23% and matures July 2023. The loan is secured by a first lien on five of the Properties and the carrying value of the assets was $19,944,000 as of December 31, 2019.
Notes Payable.  Each of NNN’s outstanding series of unsecured notes is summarized in the table below (dollars in thousands):
Notes(1)
 
Issue Date
 
Principal
 
Discount(2)
 
Net
Price
 
Stated
Rate
 
Effective
Rate(3)
 
Maturity
Date
2022
 
August 2012
 
$
325,000

 
$
4,989

 
$
320,011

 
3.800%
 
3.985%
 
October 2022
2023
 
April 2013
 
350,000

 
2,594

 
347,406

 
3.300%
 
3.388%
 
April 2023
2024
 
May 2014
 
350,000

 
707

 
349,293

 
3.900%
 
3.924%
 
June 2024
2025
 
October 2015
 
400,000

 
964

 
399,036

 
4.000%
 
4.029%
 
November 2025
2026
 
December 2016
 
350,000

 
3,860

 
346,140

 
3.600%
 
3.733%
 
December 2026
2027
 
September 2017
 
400,000

 
1,628

 
398,372

 
3.500%
 
3.548%
 
October 2027
2028
 
September 2018
 
400,000

 
2,848

 
397,152

 
4.300%
 
4.388%
 
October 2028
2048
 
September 2018
 
300,000

 
4,239

 
295,761

 
4.800%
 
4.890%
 
October 2048
(1) 
The proceeds from the note issuance were used to pay down outstanding indebtedness of NNN’s Credit Facility, fund future property acquisitions and for general corporate purposes. Proceeds from the issuance of the 2028 Notes and the 2048 Notes were also used to redeem all of the $300,000 5.500% notes payable that were due 2021.
(2) 
The note discounts are amortized to interest expense over the respective term of each debt obligation using the effective interest method.
(3) 
Includes the effects of the discount at issuance.

33


NNN entered into forward starting swaps which were hedging the risk of changes in forecasted interest payments on the forecasted issuance of long-term debt. Upon the issuance of a series of unsecured notes, NNN terminated such derivatives as outlined in the following table (dollars in thousands):
Notes
 
Terminated
 
Description
 
Aggregate Notional Amount
 
Liability (Asset) Fair Value When Terminated (1)
 
Fair Value Deferred In Other Comprehensive Income(2)
2023
 
April 2013
 
Four forward starting swaps
 
$
240,000

 
$
3,156

 
$
3,141

2024
 
May 2014
 
Three forward starting swaps
 
225,000

 
6,312

 
6,312

2025
 
October 2015
 
Four forward starting swaps
 
300,000

 
13,369

 
13,369

2026
 
December 2016
 
Two forward starting swaps
 
180,000

 
(13,352
)
 
(13,345
)
2027
 
September 2017
 
Two forward starting swaps
 
250,000

 
7,690

 
7,688

2028
 
September 2018
 
Two forward starting swaps
 
250,000

 
(4,080
)
 
(4,080
)
(1) 
The deferred liability (asset) is being amortized over the term of the respective notes using the effective interest method.
(2) 
The amount reported in accumulated other comprehensive income will be reclassified to interest expense as interest payments are made on the related notes payable.
Each series of notes represents senior, unsecured obligations of NNN and is subordinated to all secured indebtedness of NNN. The notes are redeemable at the option of NNN, in whole or in part, at a redemption price equal to the sum of (i) the principal amount of the notes being redeemed plus all accrued and unpaid interest thereon through the redemption date, and (ii) the make-whole amount, if any, as defined in the applicable supplemental indenture relating to the notes.
In connection with the outstanding note offerings, NNN incurred debt issuance costs totaling $26,932,000 consisting primarily of underwriting discounts and commissions, legal and accounting fees, rating agency fees and printing expenses. Debt issuance costs for all note issuances have been deferred and are being amortized over the term of the respective notes using the effective interest method.
In October 2018, NNN redeemed the $300,000,000 5.500% notes payable that were due in July 2021. The notes were redeemed at a price equal to 100% of the principal amount, plus (i) a make-whole amount of $18,240,000, and (ii) all accrued and unpaid interest.
In accordance with the terms of the indentures, pursuant to which NNN’s notes have been issued, NNN is required to meet certain restrictive financial covenants, which, among other things, require NNN to maintain (i) certain leverage ratios, and (ii) certain interest coverage. At December 31, 2019, NNN was in compliance with those covenants. NNN’s failure to comply with certain of its debt covenants could result in defaults that accelerate the payment under such debt and limit the dividends paid to NNN’s common and preferred stockholders which would likely have a material adverse impact on NNN’s financial condition and results of operations. In addition, these defaults could impair its access to the debt and equity markets.
During the year ended December 31, 2019, NNN entered into three forward starting swaps with a total notional amount of $200,000,000 to hedge the risk of changes in the interest-related cash outflows associated with the potential issuance of long-term debt. The outstanding forward swaps were designated as cash flow hedges, and as of December 31, 2019, had a fair value of $5,524,000 included in other liabilities and accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. These derivative financial instruments were still outstanding as of December 31, 2019.


34


Debt and Equity Securities
NNN has used, and expects to use in the future, issuances of debt and equity securities primarily to pay down its outstanding indebtedness and to finance acquisitions. In February 2018, NNN filed a shelf registration statement with the Commission which was automatically effective and permits the issuance by NNN of an indeterminate amount of debt and equity securities.
A description of NNN’s outstanding series of publicly held notes is found under “Debt – Notes Payable” above.
NNN completed the following underwritten public offering of cumulative redeemable preferred stock that is still outstanding ("Preferred Stock Shares") (dollars in thousands, except per share data):
Series
 
Dividend Rate(1)
 
Issued
 
Depositary Shares Outstanding(2)
 
Gross Proceeds
 
Stock Issuance Costs(3)
 
Dividend Per Depositary Share
 
Earliest Redemption Date
Series F(4)
 
5.200
%
 
October 2016
 
13,800,000

 
$
345,000

 
$
10,897

 
$
1.300000

 
October 2021
(1)   Holders are entitled to receive, when and as authorized by the Board of Directors, cumulative preferential cash dividends.
(2)   Representing 1/100th of a preferred share. Series F issuance included 1,800,000 depositary shares in connection with the underwriters' over-allotment.
(3)   Consisting primarily of underwriting commissions and fees, rating agency fees, legal and accounting fees and printing expenses.
(4)   NNN used the net proceeds from the offering to repay outstanding indebtedness under its Credit Facility, fund property acquisitions and for general corporate purposes.
The Preferred Stock Shares underlying the depositary shares rank senior to NNN’s common stock with respect to dividend rights and rights upon liquidation, dissolution or winding up of NNN. The Preferred Stock Shares have no maturity date and will remain outstanding unless redeemed. In addition, upon a change of control, as defined in the articles supplementary fixing the rights and preferences of the Preferred Stock Shares, NNN may redeem the Preferred Stock Shares underlying the depositary shares at a redemption price of $2,500.00 per share (or $25.00 per depositary share), plus all accumulated and unpaid dividends, and in limited circumstances the holders of depositary shares may convert some or all of their Preferred Stock Shares into shares of NNN's common stock at conversion rates provided in the related articles supplementary. As of February 11, 2020, the Series F Preferred Stock Shares were not redeemable.
In October 2019, NNN redeemed all outstanding depositary shares (11,500,000) representing interests in its 5.700% Series E Preferred Stock. The Series E Preferred Stock was redeemed at $25.00 per depositary share, plus all accrued and unpaid dividends through, but not including, the redemption date, for an aggregate redemption price of $25.079167 per depositary share. The excess carrying amount of preferred stock redeemed over the cash paid to redeem the preferred stock was $9,856,000 of issuance costs.
Common Stock Issuances. In September 2019, NNN filed a prospectus supplement to the prospectus contained in its February 2018 shelf registration statement and issued 7,000,000 shares of common stock at a price of $56.50 per share and received net proceeds of $379,410,000. In connection with this offering, NNN incurred stock issuance costs totaling approximately $16,090,000, consisting primarily of underwriters' fees and commissions, legal and accounting fees and printing expenses. NNN used the net proceeds from this offering to redeem the Series E Preferred Stock, repay outstanding indebtedness under the Credit Facility, to fund property acquisitions, and for general corporate purposes.

35


Dividend Reinvestment and Stock Purchase Plan. In February 2018, NNN filed a shelf registration statement with the Commission for its DRIP which permits the issuance by NNN of 10,000,000 shares of common stock. NNN's DRIP provides an economical and convenient way for current stockholders and other interested new investors to invest in NNN's common stock. The following outlines the common stock issuances pursuant to the DRIP for the years ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017
Shares of common stock
362,918

 
311,048

 
229,696

Net proceeds
$
19,442

 
$
13,264

 
$
9,391

At-The-Market Offerings. NNN has established an ATM which allows NNN to sell shares of common stock from time to time. The following table outlines NNN's active ATM programs for the three years ended December 31, 2019:
 
2018 ATM
 
2016 ATM
Established date
February 2018

 
March 2016

Termination date
February 2021

 
February 2018

Total allowable shares
12,000,000

 
12,000,000

Total shares issued as of December 31, 2019
9,722,185

 
10,044,656

The following table outlines the common stock issuances pursuant to NNN's ATM equity programs for the years ended December 31 (dollars in thousands, except per share data):
 
2019
 
2018
 
2017
Shares of common stock
2,344,022

 
7,378,163

 
5,821,366

Average price per share (net)
$
53.71

 
$
44.48

 
$
41.88

Net proceeds
$
125,905

 
$
328,196

 
$
243,822

Stock issuance costs(1)
$
1,431

 
$
3,821

 
$
3,782

(1) Stock issuance costs consist primarily of underwriters' fees and commissions, and legal and
accounting fees.

36



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, 2019, NNN had three forward starting swaps with a total notional amount of $200,000,000 to hedge the risk of changes in the interest-related cash outflows associated with the potential issuance of long-term debt.
The information in the table below summarizes NNN’s market risks associated with its debt obligations outstanding as of December 31, 2019 and 2018. The table presents principal payments and related interest rates by year for debt obligations outstanding as of December 31, 2019. The variable interest rate shown represents the weighted average rate for the Credit Facility for the year ended December 31, 2019. The table incorporates only those debt obligations that existed as of December 31, 2019, and it does not consider those debt obligations or positions which could arise after this date and therefore 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, 2019.
 
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
2020
$

 
 
$
682

 
5.23%
 
$

 
 
2021

 
 
716

 
5.23%
 

 
 
2022
133,600

 
2.79%
 
750

 
5.23%
 
323,426

 
3.99%
 
2023

 
 
9,968

 
5.23%
 
349,049

 
3.39%
 
2024

 
 

 
 
349,653

 
3.92%
 
Thereafter

 
 

 
 
1,838,540

 
4.09%
(3) 
Total
$
133,600

 
2.79%
 
$
12,116

 
5.23%
 
$
2,860,668

 
3.97%
 
Fair Value:
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
$
133,600

 
 
 
$
12,116

 
 
 
$
3,074,538

 
 
 
December 31, 2018
$

 
 
 
$
12,768

 
 
 
$
2,813,583

 
 
 

(1) 
NNN's mortgages payable represent principal payments by year and include unamortized premiums and exclude debt costs.
(2) 
Includes NNN’s notes payable, each exclude debt costs and are net of unamortized discounts. NNN uses market prices quoted from Bloomberg, a third party, which is a Level 1 input, to determine the fair value.
(3) 
Weighted average effective interest rate for periods after 2024.




37


Item 8.  Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of National Retail Properties, Inc.
Opinion on Internal Control over Financial Reporting
We have audited National Retail Properties, Inc. and subsidiaries’ internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, National Retail Properties, Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2019 and 2018, the related consolidated statements of income and comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2019, and the related notes and financial statement schedules listed in the Index at Item15(a) and our report dated February 11, 2020 expressed an unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP

Orlando, Florida
February 11, 2020


38


Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of National Retail Properties, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of National Retail Properties, Inc. and Subsidiaries (the Company) as of December 31, 2019 and 2018, the related consolidated statements of income and comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2019, and the related notes and financial statement schedules listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 11, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.




39


 
Valuation of Real Estate Acquisitions
Description of the Matter
As discussed in Note 1 of the consolidated financial statements, real estate asset acquisitions require allocation of consideration to the acquired tangible assets, consisting of land, building and tenant improvements and, if applicable, to identified intangible assets and liabilities, based on their respective fair values. For the year ended December 31, 2019, the Company completed $668 million of real estate acquisitions accounted for as asset acquisitions.

Auditing management’s measurement of fair values and allocation of consideration to the acquired tangible assets was complex and involved subjectivity. In particular, the fair value estimates are sensitive to significant assumptions, such as establishing a range of relevant market assumptions for land, building and rent, and estimating where within that range the acquired property falls. Establishing the market assumptions for land, building and rent include identifying the relevant properties in the established range most comparable to the acquired property. The position within the range is a judgmental assumption that relies upon ranking comparable properties’ attributes from most similar to least similar.
How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s valuation of real estate acquisitions process. For example, we tested controls over the review and selection of inputs and assumptions used in the valuation estimates and the review of the final allocation of value among the tangible assets acquired.

To test the estimated fair values of the Company’s acquired tangible assets, we performed audit procedures that included, among others, reading the purchase agreements, assessing management’s valuation techniques and testing the completeness and accuracy of the underlying data used by the Company in its analysis. For certain acquisitions, we involved our real estate valuation specialists to evaluate management’s concluded ranges of values by benchmarking against comparable properties. We also compared certain of management’s assumptions to current and comparable industry information for land, building, building improvements and market rents.
 
Impairment of Held and Used Real Estate Assets
Description of the Matter
At December 31, 2019 held and used real estate assets were $7,290 million. As discussed in Notes 1 and 2 of the consolidated financial statements, the Company assesses held and used real estate assets for impairment when certain events or changes in circumstances indicate the carrying amount of the asset may not be recoverable through operations. When assessing for impairment, the Company performs a recoverability test by comparing the undiscounted future cash flows of the real estate asset to the net carrying value. If the undiscounted cash flows are less than the net carrying value, the Company will estimate the real estate assets’ fair value. The estimated fair value is compared to the net carrying value to determine whether the asset is impaired.

Auditing management’s evaluation of held and used real estate assets for impairment was complex and involved subjectivity due to the significant estimation required to determine the undiscounted future cash flows of held and used assets where impairment indicators were determined to be present. In particular, future cash flow estimates were sensitive to the assumptions made by management regarding future market rents, which are affected by expectations about future market and economic conditions.




40


How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s impairment of held and used real estate assets process. For example, we tested controls over management’s review of the market rent assumption.

To test the Company’s impairment assessment over held and used real estate assets, our audit procedures included, among others, assessing the methodologies used by management, testing the market rent assumption used to develop the estimates of future cash flows, and testing the completeness and accuracy of the underlying data used by the Company in its analysis.  We evaluated the historical accuracy of the Company’s estimates by performing a historical look back on market rent assumptions. We involved our real estate valuation specialists to assist in evaluating certain market rent assumptions used by management.


/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2006.

Orlando, Florida
February 11, 2020


41

NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)



ASSETS
December 31, 2019
 
December 31, 2018
Real estate portfolio:
 
 
 
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 AND EQUITY
 
 
 
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

Commitments and contingencies (Note 18)


 


Equity:
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock, $0.01 par value. Authorized 15,000,000 shares
 
 
 
5.700% Series E, 115,000 shares issued and outstanding, at December 31, 2018, at stated liquidation value of $2,500 per share

 
287,500

5.200% Series F, 138,000 shares issued and outstanding, at stated liquidation value of $2,500 per share
345,000

 
345,000

Common stock, $0.01 par value. Authorized 375,000,000 shares; 171,694,209 and 161,503,585 shares issued and outstanding, respectively
1,718

 
1,616

Capital in excess of par value
4,495,314

 
3,950,055

Accumulated deficit
(499,229
)
 
(424,225
)
Accumulated other comprehensive income (loss)
(11,128
)
 
(5,696
)
Total 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

See accompanying notes to consolidated financial statements.

42

NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(dollars in thousands, except per share data)


 
Year Ended December 31,
  
2019
 
2018
 
2017
Revenues:
 
 
 
 
 
Rental income
$
669,009

 
$
621,399

 
$
583,595

Interest and other income from real estate transactions
1,478

 
1,262

 
1,338

 
670,487

 
622,661

 
584,933

Operating expenses:
 
 
 
 
 
General and administrative
37,651

 
34,248

 
33,805

Real estate
27,656

 
25,099

 
23,105

Depreciation and amortization
188,871

 
174,398

 
173,720

Impairment losses – real estate and other charges, net of recoveries
31,992

 
28,211

 
8,955

Retirement severance costs

 
1,013

 
7,845

 
286,170

 
262,969

 
247,430

Gain on disposition of real estate
32,463

 
65,070

 
36,655

Earnings from operations
416,780

 
424,762

 
374,158

Other expenses (revenues):
 
 
 
 
 
Interest and other income
(3,112
)
 
(1,810
)
 
(322
)
Interest expense
120,023

 
115,847

 
109,109

Leasing transaction costs
261

 

 

Loss on early extinguishment of debt

 
18,240

 

 
117,172

 
132,277

 
108,787

Net earnings
299,608

 
292,485

 
265,371

Earnings attributable to noncontrolling interests
(428
)
 
(38
)
 
(398
)
Net earnings attributable to NNN
$
299,180

 
$
292,447

 
$
264,973

 
See accompanying notes to consolidated financial statements. 

43

NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME – CONTINUED
(dollars in thousands, except per share data)

 
Year Ended December 31,
  
2019
 
2018
 
2017
Net earnings attributable to NNN
$
299,180

 
$
292,447

 
$
264,973

Series D preferred stock dividends

 

 
(3,598
)
Series E preferred stock dividends
(13,201
)
 
(16,387
)
 
(16,387
)
Series F preferred stock dividends
(17,940
)
 
(17,940
)
 
(17,940
)
Excess of redemption value over carrying value of preferred shares redeemed
(9,856
)
 

 
(9,855
)
Net earnings attributable to common stockholders
$
258,183

 
$
258,120

 
$
217,193

Net earnings per share of common stock:
 
 
 
 
 
Basic
$
1.56

 
$
1.65

 
$
1.45

Diluted
$
1.56

 
$
1.65

 
$
1.45

Weighted average number of common shares outstanding:
 
 
 
 
 
Basic
164,688,498

 
155,744,601

 
149,111,188

Diluted
165,083,679

 
156,295,619

 
149,432,641

Other comprehensive income:
 
 
 
 
 
Net earnings attributable to NNN
$
299,180

 
$
292,447

 
$
264,973

Amortization of interest rate hedges
1,307

 
3,664

 
1,932

Fair value of forward starting swaps
(5,524
)
 
4,080

 
(7,688
)
Valuation adjustments – available-for-sale securities
116

 
298

 
209

Realized gain – available-for-sale securities
(1,331
)
 

 

Comprehensive income attributable to NNN
$
293,748

 
$
300,489

 
$
259,426


See accompanying notes to consolidated financial statements.


44

NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
Years Ended December 31, 2019, 2018 and 2017
(dollars in thousands, except per share data)


 
Series D
Preferred
Stock
 
Series E
Preferred
Stock
 
Series F
Preferred
Stock
 
Common
Stock
 
Capital in
  Excess of  
Par Value
 
Retained
Earnings (Loss)
 
Accumulated
Other
Comprehensive  
Income (Loss)
 
Total
  Stockholders’  
Equity
 
  Noncontrolling  
Interests
 
Total
Equity
Balances at December 31, 2016
$
287,500

 
$
287,500

 
$
345,000

 
$
1,473

 
$
3,322,771

 
$
(319,254
)
 
$
(8,191
)
 
$
3,916,799

 
$
129

 
$
3,916,928

Net earnings

 

 

 

 

 
264,973

 

 
264,973

 
398

 
265,371

Dividends declared and paid:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$0.312847 per depositary share of Series D preferred stock

 

 

 

 

 
(3,598
)
 

 
(3,598
)
 

 
(3,598
)
$1.42500 per depositary share of Series E preferred stock

 

 

 

 

 
(16,387
)
 

 
(16,387
)
 

 
(16,387
)
$1.30000 per depositary share of Series F preferred stock

 

 

 

 

 
(17,940
)
 

 
(17,940
)
 

 
(17,940
)
$1.86 per share of common stock

 

 

 
2

 
8,825

 
(277,120
)
 

 
(268,293
)
 

 
(268,293
)
Redemption of 11,500,000 depositary shares of Series D preferred stock
(287,500
)
 

 

 

 
9,855

 
(9,855
)
 

 
(287,500
)
 

 
(287,500
)
Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35,456 shares – director compensation

 

 

 
1

 
1,175

 

 

 
1,176

 

 
1,176

13,695 shares – stock purchase plan

 

 

 

 
563

 

 

 
563

 

 
563

5,821,366 shares – ATM equity program

 

 

 
58

 
247,546

 

 

 
247,604

 

 
247,604

274,102 restricted shares – net of forfeitures and repurchases

 

 

 
3

 
(234
)
 

 

 
(231
)
 

 
(231
)
Stock issuance costs

 

 

 

 
(3,782
)
 

 

 
(3,782
)
 

 
(3,782
)
Amortization of deferred compensation

 

 

 

 
12,630

 

 

 
12,630

 

 
12,630

Amortization of interest rate hedges

 

 

 

 

 

 
1,932

 
1,932

 

 
1,932

Fair value of forward starting swaps

 

 

 

 

 

 
(7,688
)
 
(7,688
)
 

 
(7,688
)
Valuation adjustments – available-for-sale securities

 

 

 

 

 

 
209

 
209

 

 
209

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 
(84
)
 
(84
)
Noncontrolling interests

 

 

 

 
126

 

 

 
126

 
(126
)
 

Balances at December 31, 2017
$

 
$
287,500

 
$
345,000

 
$
1,537

 
$
3,599,475

 
$
(379,181
)
 
$
(13,738
)
 
$
3,840,593

 
$
317

 
$
3,840,910

See accompanying notes to consolidated financial statements.



45

NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY – CONTINUED
Years Ended December 31, 2019, 2018 and 2017
(dollars in thousands, except per share data)

 
Series D
Preferred
Stock
 
Series E
Preferred
Stock
 
Series F
Preferred
Stock
 
Common
Stock
 
Capital in
  Excess of  
Par Value
 
Retained
Earnings (Loss)
 
Accumulated
Other
Comprehensive  
Income (Loss)
 
Total
  Stockholders’  
Equity
 
  Noncontrolling  
Interests
 
Total
Equity
Balances at December 31, 2017
$

 
$
287,500

 
$
345,000

 
$
1,537

 
$
3,599,475

 
$
(379,181
)
 
$
(13,738
)
 
$
3,840,593

 
$
317

 
$
3,840,910

Net earnings

 

 

 

 

 
292,447

 

 
292,447

 
38

 
292,485

Dividends declared and paid:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$1.42500 per depositary share of Series E preferred stock

 

 

 

 

 
(16,387
)
 

 
(16,387
)
 

 
(16,387
)
$1.30000 per depositary share of Series F preferred stock

 

 

 

 

 
(17,940
)
 

 
(17,940
)
 

 
(17,940
)
$1.95 per share of common stock

 

 

 
3

 
12,960

 
(303,164
)
 

 
(290,201
)
 

 
(290,201
)
Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40,731 shares – director compensation

 

 

 

 
1,375

 

 

 
1,375

 

 
1,375

10,101 shares – stock purchase plan

 

 

 

 
426

 

 

 
426

 

 
426

7,378,163 shares – ATM equity program

 

 

 
74

 
331,944

 

 

 
332,018

 

 
332,018

221,484 restricted shares – net of forfeitures and repurchases

 

 

 
2

 
(91
)
 

 

 
(89
)
 

 
(89
)
Stock issuance costs

 

 

 

 
(3,947
)
 

 

 
(3,947
)
 

 
(3,947
)
Amortization of deferred compensation

 

 

 

 
7,913

 

 

 
7,913

 

 
7,913

Amortization of interest rate hedges

 

 

 

 

 

 
3,664

 
3,664

 

 
3,664

Fair value of forward starting swaps

 

 

 

 

 

 
4,080

 
4,080

 

 
4,080

Valuation adjustments – available-for-sale securities

 

 

 

 

 

 
298

 
298

 

 
298

Balances at December 31, 2018
$

 
$
287,500

 
$
345,000

 
$
1,616

 
$
3,950,055

 
$
(424,225
)
 
$
(5,696
)
 
$
4,154,250

 
$
355

 
$
4,154,605

See accompanying notes to consolidated financial statements.











46

NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY – CONTINUED
Years Ended December 31, 2019, 2018 and 2017
(dollars in thousands, except per share data)

 
Series D
Preferred
Stock
 
Series E
Preferred
Stock
 
Series F
Preferred
Stock
 
Common
Stock
 
Capital in
  Excess of  
Par Value
 
Retained
Earnings (Loss)
 
Accumulated
Other
Comprehensive  
Income (Loss)
 
Total
  Stockholders’  
Equity
 
  Noncontrolling  
Interests
 
Total
Equity
Balances at December 31, 2018
$

 
$
287,500

 
$
345,000

 
$
1,616

 
$
3,950,055

 
$
(424,225
)
 
$
(5,696
)
 
$
4,154,250

 
$
355

 
$
4,154,605

Net earnings

 

 

 

 

 
299,180

 

 
299,180

 
428

 
299,608

Dividends declared and paid:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$1.147917 per depositary share of Series E preferred stock

 

 

 

 

 
(13,201
)
 

 
(13,201
)
 

 
(13,201
)
$1.30000 per depositary share of Series F preferred stock

 

 

 

 

 
(17,940
)
 

 
(17,940
)
 

 
(17,940
)
$2.03 per share of common stock

 

 

 
4

 
19,069

 
(333,692
)
 

 
(314,619
)
 

 
(314,619
)
Redemption of 11,500,000 depositary shares of Series E preferred stock

 
(287,500
)
 

 

 
9,856

 
(9,856
)
 

 
(287,500
)
 

 
(287,500
)
Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28,287 shares – director compensation

 

 

 

 
1,294

 

 

 
1,294

 

 
1,294

6,986 shares – stock purchase plan

 

 

 

 
370

 

 

 
370

 

 
370

2,344,022 shares – ATM equity program

 

 

 
24

 
127,313

 

 

 
127,337

 

 
127,337

7,000,000 shares – equity offering

 

 

 
70

 
395,430

 

 

 
395,500

 

 
395,500

359,650 restricted shares – net of forfeitures

 

 

 
4

 
(4
)
 

 

 

 

 

Stock issuance costs

 

 

 

 
(17,521
)
 

 

 
(17,521
)
 

 
(17,521
)
Amortization of deferred compensation

 

 

 

 
9,452

 

 

 
9,452

 

 
9,452

Amortization of interest rate hedges

 

 

 

 

 

 
1,307

 
1,307

 

 
1,307

Fair value of forward starting swaps

 

 

 

 

 

 
(5,524
)
 
(5,524
)
 

 
(5,524
)
Valuation adjustments – available-for-sale securities

 

 

 

 

 

 
116

 
116

 

 
116

Realized gain – available-for-sale securities

 

 

 

 

 

 
(1,331
)
 
(1,331
)
 

 
(1,331
)
Other

 

 

 

 

 
505

 

 
505

 

 
505

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 
(776
)
 
(776
)
Balances at December 31, 2019
$

 
$

 
$
345,000

 
$
1,718

 
$
4,495,314

 
$
(499,229
)
 
$
(11,128
)
 
$
4,331,675

 
$
7

 
$
4,331,682

See accompanying notes to consolidated financial statements.

47

NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)


 
Year Ended December 31,
 
2019
 
2018
 
2017
Cash flows from operating activities:
 
 
 
 
 
Net earnings
$
299,608

 
$
292,485

 
$
265,371

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
188,871

 
174,398

 
173,720

Impairment losses – real estate and other charges, net of recoveries
31,992

 
28,211

 
4,953

Loss on early extinguishment of debt

 
18,240

 

Amortization of notes payable discount
1,739

 
3,263

 
1,788

Amortization of debt costs
3,731

 
4,611

 
3,502

Amortization of mortgages payable premium
(86
)
 
(85
)
 
(85
)
Amortization of interest rate hedges
1,307

 
3,664

 
1,932

Settlement of forward starting swaps

 
4,080

 
(7,688
)
Gain on disposition of real estate
(32,463
)
 
(65,070
)
 
(36,655
)
Performance incentive plan expense
11,547

 
10,417

 
14,223

Performance incentive plan payment
(775
)
 
(432
)
 
(862
)
Change in operating assets and liabilities, net of assets acquired and liabilities assumed:
 
 
 
 
 
Decrease in real estate leased to others using the direct financing method
602

 
874

 
884

Decrease (increase) in receivables
923

 
(203
)
 
(175
)
Increase in accrued rental income
(2,333
)
 
(747
)
 
(1,752
)
Decrease (increase) in other assets
(96
)
 
793

 
1,960

Increase (decrease) in accrued interest payable
(1,269
)
 
(792
)
 
646

Decrease in other liabilities
(1,379
)
 
(1,516
)
 
(90
)
Other
(192
)
 
(282
)
 
(115
)
Net cash provided by operating activities
501,727

 
471,909

 
421,557

Cash flows from investing activities:
 
 
 
 
 
Proceeds from the disposition of real estate
123,997

 
148,476

 
97,245

Additions to real estate:
 
 
 
 
 
Accounted for using the operating method
(747,521
)
 
(756,971
)
 
(721,893
)
Principal payments on mortgages and notes receivable
3,100

 

 
1,250

Other
1,016

 
(876
)
 
(2,159
)
Net cash used in investing activities
(619,408
)
 
(609,371
)
 
(625,557
)
 
See accompanying notes to consolidated financial statements.


48

NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS – CONTINUED
(dollars in thousands)


 
Year Ended December 31,
 
2019
 
2018
 
2017
Cash flows from financing activities:
 
 
 
 
 
Proceeds from line of credit payable
$
829,200

 
$
1,599,500

 
$
1,501,700

Repayment of line of credit payable
(695,600
)
 
(1,720,000
)
 
(1,381,200
)
Repayment of mortgages payable
(567
)
 
(538
)
 
(510
)
Proceeds from notes payable

 
692,913

 
398,372

Repayment of notes payable

 
(300,000
)
 
(250,000
)
Payment for early extinguishment of debt

 
(18,240
)
 

Payment of debt issuance costs
(157
)
 
(7,156
)
 
(7,837
)
Proceeds from issuance of common stock
542,280

 
345,324

 
256,764

Stock issuance costs
(17,521
)
 
(3,947
)
 
(3,836
)
Redemption of Series D preferred stock

 

 
(287,500
)
Redemption of Series E preferred stock
(287,500
)
 

 

Payment of Series D preferred stock dividends

 

 
(3,598
)
Payment of Series E preferred stock dividends
(13,201
)
 
(16,387
)
 
(16,387
)
Payment of Series F preferred stock dividends
(17,940
)
 
(17,940
)
 
(17,940
)
Payment of common stock dividends
(333,692
)
 
(303,164
)
 
(277,120
)
Noncontrolling interest distributions
(776
)
 

 
(84
)
Net cash provided by (used in) financing activities
4,526

 
250,365

 
(89,176
)
Net increase (decrease) in cash, cash equivalents and restricted cash
(113,155
)
 
112,903

 
(293,176
)
Cash, cash equivalents and restricted cash at beginning of year(1)
114,267

 
1,364

 
294,540

Cash, cash equivalents and restricted cash at end of year(1)
$
1,112

 
$
114,267

 
$
1,364

Supplemental disclosure of cash flow information:
 
 
 
 
 
Interest paid, net of amount capitalized
$
115,700

 
$
107,861

 
$
103,761

Taxes received
$

 
$

 
$
(15
)
Supplemental disclosure of noncash investing and financing activities:
 
 
 
 
 
Increase (decrease) in other comprehensive income
$
5,432

 
$
(8,042
)
 
$
5,547

Right-of-use assets recorded in connection with lease liabilities
$
8,224

 
$

 
$

Work in progress accrual balance
$
21,579

 
$
16,603

 
$
58,002

Mortgage receivable accepted in connection with real estate transactions
$
3,100

 
$

 
$

Change in lease classification (direct financing lease to operating lease)
$
1,246

 
$
565

 
$
696

Change in lease classification (operating lease to direct financing lease)
$

 
$
258

 
$

(1) 
Cash, cash equivalents and restricted cash is the aggregate of cash and cash equivalents and restricted cash and cash held in escrow from the Consolidated Balance Sheets. NNN did not have restricted cash or cash held in escrow as of December 31, 2019, 2018 and 2017.
 
See accompanying notes to consolidated financial statements.

49


NATIONAL RETAIL PROPERTIES, INC.
and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2019, 2018 and 2017

Note 1 – Organization and Summary of Significant Accounting Policies:
Organization and Nature of Business – National Retail Properties, Inc., a Maryland corporation, is a fully integrated real estate investment trust ("REIT") formed in 1984. The term "NNN" or the "Company" refers to National Retail Properties, Inc. and all of its consolidated subsidiaries. NNN may elect to treat certain subsidiaries as taxable REIT subsidiaries, ("TRS").
NNN's assets primarily include real estate assets. NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment ("Properties" or "Property Portfolio," or individually a "Property"). 
 
December 31, 2019
Property Portfolio:
 
Total properties
3,118

Gross leasable area (square feet)
32,460,000

States
48

Weighted average remaining lease term (years)
11.2


NNN's operations are reported within one operating segment in the consolidated financial statements and all properties are considered part of the Properties or Property Portfolio. As such, property counts and calculations involving property counts reflect all NNN properties.
Principles of Consolidation – NNN’s consolidated financial statements include the accounts of each of the respective majority owned and controlled affiliates, including transactions whereby NNN has been determined to be the primary beneficiary in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") guidance included in Consolidation. All significant intercompany account balances and transactions have been eliminated.
NNN consolidates certain joint venture development entities based upon either NNN being the primary beneficiary of the respective variable interest entity or NNN having a controlling interest over the respective entity. NNN eliminates significant intercompany balances and transactions and records a noncontrolling interest for its other partners’ ownership percentage.
Real Estate Portfolio – NNN records the acquisition of real estate at cost, including acquisition and closing costs. The cost of Properties developed or funded by NNN includes direct and indirect costs of construction, property taxes, interest and other miscellaneous costs incurred during the development period until the project is substantially complete and available for occupancy. For the years ended December 31, 2019, 2018 and 2017, NNN recorded $1,099,000, $2,675,000 and $2,435,000, respectively, in capitalized interest during development.
Purchase Accounting for Acquisition of Real Estate – In accordance with the FASB guidance on business combinations, consideration for the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements and, if applicable, to identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases, as applicable, based on their respective fair values.
The fair value estimate is sensitive to significant assumptions, such as establishing a range of relevant market assumptions for land, building and rent and where the acquired property falls within that range. These market assumptions for land, building and rent use the most relevant comparable properties for an acquisition. The final range relies upon ranking comparable properties' attributes from most similar to least similar.
The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land, building and tenant improvements based on the determination of their fair values.
In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value (using an interest rate which

50


reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease and the applicable option terms if it is probable that the tenant will exercise options. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the Company believes that it is likely that the tenant will renew the lease for an option term whereby the Company amortizes the value attributable to the renewal over the renewal period.
The aggregate value of other acquired intangible assets, consisting of in-place leases, is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates over (ii) the estimated fair value of the property as-if-vacant, determined as set forth above. The value of in-place leases exclusive of the value of above-market and below-market in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off in that period. The value of tenant relationships is reviewed on individual transactions to determine if future value was derived from the acquisition.
NNN's real estate is generally leased to tenants on a net lease basis, whereby the tenant is responsible for all operating expenses relating to the Property, including property taxes, insurance, maintenance, repairs and capital expenditures. The leases are accounted for using either the operating or the direct financing method. Such methods are described below:
Operating method – Properties with leases accounted for using the operating method are recorded at the cost of the real estate. Revenue is recognized as rentals are earned and expenses (including depreciation) are charged to operations as incurred. Buildings and improvements are depreciated on the straight-line method over their estimated useful lives. Leasehold interests are amortized on the straight-line method over the terms of their respective leases. When scheduled rentals vary during the lease term, income is recognized on a straight-line basis so as to produce a constant periodic rent over the term of the lease. Accrued rental income is the aggregate difference between the scheduled rents which vary during the lease term and the income recognized on a straight-line basis.
Direct financing method – Properties with leases accounted for using the direct financing method are recorded at their net investment (which at the inception of the lease generally represents the cost of the Property). Unearned income is deferred and amortized into income over the lease terms so as to produce a constant periodic rate of return on NNN’s net investment in the leases.
NNN completed $668,489,000 and $591,691,000 of real estate acquisitions during the year ended December 31, 2019 and 2018, respectively. Additionally, NNN invested $84,008,000 and $123,881,000 of work in progress - improvements during the year ended December 31, 2019 and 2018, respectively.
Lease Accounting – Effective January 1, 2019, NNN adopted FASB Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," ("ASC 842") using the modified retrospective approach in which the cumulative effect of applying the new standard was recognized at the date of initial application with a positive adjustment to NNN’s opening balance of accumulated deficit. The modified retrospective approach provides a method for recording existing leases upon adoption which in comparative periods approximates the results of a full retrospective approach. NNN elected the package of practical expedients permitted under the transition guidance (which included: (i) an entity need not reassess whether any expired or existing contracts are or contain leases, (ii) an entity need not reassess the lease classification for any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases), the land easement practical expedient to carry forward existing accounting treatment on existing land easements, and the lease and non-lease component combined practical expedient.
NNN estimates the collectability of its accounts receivable related to rents, expense reimbursements and other revenues. NNN analyzes accounts receivable and historical bad debt levels, tenant credit-worthiness and current economic trends when evaluating the probable collection. At the point NNN deems the collection of lease payments not probable, a bad debt is recognized for any outstanding receivable and any related accrued rent and, subsequently, any lease revenue is only recognized when cash receipts are received.
Adoption of the new standard resulted in the recording of right-of-use ("ROU") assets and operating lease liabilities of approximately $7,735,000 and $10,155,000 respectively, as of January 1, 2019. Additional disclosures are included in Note 3 – Right-Of-Use Assets and Operating Lease Liabilities. The consolidated financial statements for the year ended December 31, 2019, are presented under the new standard, while comparative periods presented are not adjusted and continue to be reported in accordance with NNN's historical accounting policy. ASC 842 did not materially impact NNN’s financial position or results of operations and had no impact on cash flows.

51


Real Estate – Held For Sale – Real estate held for sale is not depreciated and is recorded at the lower of cost or fair value, less cost to sell.
Real Estate Dispositions – When real estate is disposed of, the related cost, accumulated depreciation or amortization and any accrued rental income for operating leases and the net investment for direct financing leases are removed from the accounts, and gains and losses from the dispositions are reflected in income. Gains from the disposition of real estate are generally recognized using the full accrual method in accordance with the FASB guidance included in Real Estate Sales, provided that various criteria relating to the terms of the sale and any subsequent involvement by NNN with the real estate sold are met.
Impairment – Real Estate – Based upon certain events or changes in circumstances, management periodically assesses its Properties for possible impairment whenever the carrying value of the asset, including accrued rental income, may not be recoverable through operations. Events or circumstances that may occur include significant changes in real estate market conditions and the ability of NNN to re-lease or sell properties that are currently vacant or become vacant in a reasonable period of time. Management evaluates whether an impairment in carrying value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), and the residual value of the real estate, with the carrying value of the individual asset. The future undiscounted cash flows are primarily driven by estimated future market rents. If an impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its estimated fair value.
Cash and Cash Equivalents – NNN considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash and money market accounts. Cash equivalents are stated at cost plus accrued interest, which approximates fair value.
Cash accounts maintained on behalf of NNN in demand deposits at commercial banks and money market funds may exceed federally insured levels or may be held in accounts without any federal insurance or any other insurance or guarantee. However, NNN has not experienced any losses in such accounts.
Restricted Cash and Cash Held in Escrow – Restricted cash and cash held in escrow include (i) cash proceeds from the sale of assets held by qualified intermediaries in anticipation of the acquisition of replacement properties in tax-free exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended (the "Code"), (ii) cash that has been placed in escrow for the future funding of construction commitments, or (iii) cash that is not immediately available to NNN. 
Valuation of Trade Receivables – NNN estimates the collectibility of its accounts receivable related to rents, expense reimbursements and other revenues. NNN analyzes accounts receivable and historical bad debt levels, tenant credit-worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims.
Debt Costs – Line of Credit Payable Debt costs incurred in connection with NNN’s $900,000,000 line of credit have been deferred and are being amortized to interest expense over the term of the loan commitment using the straight-line method, which approximates the effective interest method. NNN has recorded debt costs associated with the line of credit as an asset, in debt costs on the Consolidated Balance Sheets.
Debt Costs – Mortgages Payable Debt costs incurred in connection with NNN’s mortgages payable have been deferred and are being amortized over the term of the respective loan commitment using the straight-line method, which approximates the effective interest method. These costs of $147,000 at December 31, 2019 and 2018, are included in mortgages payable on the Consolidated Balance Sheets net of accumulated amortization of $90,000 and $73,000, respectively.
Debt Costs – Notes Payable Debt costs incurred in connection with the issuance of NNN’s notes payable have been deferred and are being amortized to interest expense over the term of the respective debt obligation using the effective interest method. These costs of $26,932,000 at December 31, 2019 and 2018 are included in notes payable on the Consolidated Balance Sheets net of accumulated amortization of $8,962,000 and $6,705,000, respectively.

Revenue Recognition – Rental revenues for properties under construction commence upon completion of construction of the leased asset and delivery of the leased asset to the tenant. Rental revenues for non-development real estate assets are recognized when earned in accordance with the FASB guidance included in Leases, based on the terms of the lease of the leased asset. Lease termination fees are recognized when collected subsequent to the related lease that is cancelled and NNN no longer has continuing involvement with the former tenant with respect to that property.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606). The core principle of ASU 2014-09, is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in

52


an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain contracts are excluded from ASU 2014-09, including lease contracts within the scope of the FASB guidance included in Leases (Topic 842). NNN adopted ASU 2014-09 on January 1, 2018, and applied the cumulative catch-up transition method. Through the evaluation and implementation process, NNN determined the key revenue stream impacted by ASU 2014-09 is gain on disposition of real estate reported on the Consolidated Statements of Income and Comprehensive Income. Prior to the adoption of ASU 2014-09, NNN recognized revenue at the time of closing (i.e., transfer of asset). Following the adoption of ASU 2014-09, NNN evaluates any separate contracts or performance obligations to determine proper timing and/or amount of revenue recognition, as well as, transaction price allocation.
Earnings Per Share – Earnings per share have been computed pursuant to the FASB guidance included in Earnings Per Share. The guidance requires classification of the Company’s unvested restricted share units which contain rights to receive nonforfeitable dividends, as participating securities requiring the two-class method of computing earnings per share. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period. The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per common share using the two-class method for the years ended December 31 (dollars in thousands): 
 
2019
 
2018
 
2017
Basic and Diluted Earnings:
 
 
 
 
 
Net earnings attributable to NNN
$
299,180

 
$
292,447

 
$
264,973

Less: Series D preferred stock dividends

 

 
(3,598
)
Less: Series E preferred stock dividends
(13,201
)
 
(16,387
)
 
(16,387
)
Less: Series F preferred stock dividends
(17,940
)
 
(17,940
)
 
(17,940
)
Less: Excess of redemption value over carrying value of preferred shares redeemed
(9,856
)
 

 
(9,855
)
Net earnings available to common stockholders
258,183

 
258,120

 
217,193

Less: Earnings allocated to unvested restricted shares
(601
)
 
(548
)
 
(531
)
Net earnings used in basic and diluted earnings per share
$
257,582

 
$
257,572

 
$
216,662

 
 
 
 
 
 
Basic and Diluted Weighted Average Shares Outstanding:
 
 
 
 
 
Weighted average number of shares outstanding
165,499,707

 
156,490,901

 
149,840,116

Less: Unvested restricted shares
(295,773
)
 
(280,633
)
 
(285,585
)
Less: Unvested contingent restricted shares
(515,436
)
 
(465,667
)
 
(443,343
)
Weighted average number of shares outstanding used in basic earnings per share
164,688,498

 
155,744,601

 
149,111,188

Other dilutive securities
395,181

 
551,018

 
321,453

Weighted average number of shares outstanding used in diluted earnings per share
165,083,679

 
156,295,619

 
149,432,641


Income Taxes – NNN has made an election to be taxed as a REIT under Sections 856 through 860 of the Code, and related regulations. NNN generally will not be subject to federal income taxes on amounts distributed to stockholders, providing it distributes 100 percent of its REIT taxable income and meets certain other requirements for qualifying as a REIT. For each of the years in the three-year period ended December 31, 2019, NNN believes it has qualified as a REIT. Notwithstanding NNN’s qualification for taxation as a REIT, NNN is subject to certain state income, franchise and excise taxes.
NNN may elect to treat certain subsidiaries as taxable REIT subsidiaries pursuant to the provisions of the REIT Modernization Act. A taxable REIT subsidiary is able to engage in activities resulting in income that previously would have been disqualified from being eligible REIT income under the federal income tax regulations. As a result, certain activities of NNN which occur within its TRS entities are subject to federal and state income taxes (See Note 11). All provisions for federal income taxes in the accompanying consolidated financial statements are attributable to NNN’s taxable REIT subsidiaries.
Income taxes are accounted for under the asset and liability method as required by the FASB guidance included in Income Taxes. Deferred tax assets and liabilities are recognized for the temporary differences based on estimated future tax

53


consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Fair Value Measurement – NNN’s estimates of fair value of financial and non-financial assets and liabilities are based on the framework established in the fair value accounting guidance. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. The guidance describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels:
Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities.
Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques.
Accumulated Other Comprehensive Income (Loss) – The following table outlines the changes in accumulated other comprehensive income (loss) (dollars in thousands):
 
Gain or Loss on Cash Flow Hedges(1)
 
Gains and Losses on Available-for-Sale Securities
 
Total
Beginning balance, December 31, 2017
$
(14,655
)
 
$
917

 
$
(13,738
)
 
 
 
 
 
 
Other comprehensive income
4,080

 
298

 
4,378

Reclassifications from accumulated other comprehensive income to net earnings
3,664

(2) 

 
3,664

Net current period other comprehensive income
7,744

 
298

 
8,042

Ending balance, December 31, 2018
(6,911
)
 
1,215

 
(5,696
)
 
 
 
 
 
 
Other comprehensive income (loss)
(5,524
)
 
116

 
(5,408
)
Reclassifications from accumulated other comprehensive income to net earnings
1,307

(2) 
(1,331
)
 
(24
)
Net current period other comprehensive income (loss)
(4,217
)
 
(1,215
)
 
(5,432
)
Ending balance, December 31, 2019
$
(11,128
)
 
$

 
$
(11,128
)
(1) 
Additional disclosure is included in Note 12 – Derivatives.
(2) 
Reclassifications out of other comprehensive income (loss) are recorded in interest expense on the Consolidated Statements of Income and Comprehensive Income. There is no income tax expense (benefit) resulting from this reclassification.
New Accounting Pronouncements – In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," ("ASU 2016-13"), effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. NNN is currently evaluating to determine the potential impact, if any, the adoption of ASU 2016-13 will have on NNN's financial position or results of operations.
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” ("ASU 2019-12"), effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The amendments simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by

54


clarifying and amending existing guidance. NNN is currently evaluating to determine the potential impact the adoption of ASU 2019-12 will have on NNN's financial position or results of operations.
Use of Estimates – Additional critical accounting policies of NNN include management’s estimates and assumptions relating to the reporting of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities are required to prepare the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Significant accounting policies include management’s estimates of the useful lives used in calculating depreciation expense relating to real estate assets purchase accounting for acquisition of real estate subject to a lease, and the recoverability of the carrying value of long-lived assets. Actual results could differ from those estimates.
Reclassification – Certain items in the prior year's consolidated financial statements and notes to consolidated financial statements have been reclassified to conform to the 2019 presentation.
NNN adopted certain practical expedients in ASC 842 which allows the presentation of all income earned pursuant to tenant leases to be included in rental income reported on the Consolidated Statements of Income and Comprehensive Income.

Note 2 – Real Estate:
Real Estate – Portfolio
Leases – The following outlines key information for NNN’s leases at December 31, 2019:
Lease classification:
 
Operating
3,143

Direct financing
6

Weighted average remaining lease term (years)
11.2


The following is a summary of the general structure of the leases in the Property Portfolio, although the specific terms of each lease can vary significantly. Generally, the Property leases provide for initial terms of 10 to 20 years. The Properties are generally leased under net leases, pursuant to which the tenant typically bears responsibility for substantially all property costs and expenses associated with ongoing maintenance, repair, replacement and operation of the property, including utilities, property taxes and property and liability insurance. Certain Properties are subject to leases under which NNN retains responsibility for specific costs and expenses of the Property. NNN's leases provide for annual base rental payments (generally payable in monthly installments), and generally provide for limited increases in rent as a result of (i) increases in the Consumer Price Index ("CPI"), (ii) fixed increases, or, to a lesser extent, (iii) increases in the tenant’s sales volume.
Generally, NNN's leases provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions provided under the initial lease term, including rent increases. NNN’s lease term is based on the non-cancellable base term unless economic incentives make it reasonably certain that an option period to extend the lease will be exercised, in which event NNN includes the options. Some of the leases also provide that in the event NNN wishes to sell the Property subject to that lease, NNN first must offer the lessee the right to purchase the Property on the same terms and conditions as any offer which NNN intends to accept for the sale of the Property.
Real Estate Portfolio – Accounted for Using the Operating Method – Real estate subject to operating leases consisted of the following at December 31 (dollars in thousands):
 
2019
 
2018
Land and improvements (1)
$
2,492,984

 
$
2,369,014

Buildings and improvements
5,917,525

 
5,470,968

Leasehold interests
355

 
3,630

 
8,410,864

 
7,843,612

Less accumulated depreciation and amortization
(1,148,277
)
 
(1,006,183
)
 
7,262,587

 
6,837,429

Work in progress - improvements
27,438

 
8,017

 
$
7,290,025

 
$
6,845,446


(1) Includes $16,930 and $5,571 in land for Properties under construction as of December 31, 2019 and 2018, respectively.

55



NNN recognized the following revenues in rental income for the years ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017
Rental income from operating leases
$
650,112

 
$
602,131

 
$
565,405

Earned income from direct financing leases
798

 
923

 
978

Percentage rent
1,310

 
1,561

 
1,700

Real estate expense reimbursement from tenants
16,789

 
16,784

 
15,512

 
$
669,009

 
$
621,399

 
$
583,595



Some leases provide for a free rent term or scheduled rent increases throughout the lease term. Such amounts are recognized on a straight-line basis over the terms of the leases. For the years ended December 31, 2019, 2018 and 2017, NNN recognized $1,872,000, $309,000 and $1,411,000, respectively, of such income, net of reserves. At December 31, 2019 and 2018, the balance of accrued rental income was $28,897,000 and $25,387,000, respectively, net of allowance of $1,842,000.
The following is a schedule of undiscounted cash flows to be received on noncancellable operating leases as of December 31, 2019 (dollars in thousands):
2020
$
664,571

2021
648,405

2022
618,646

2023
590,642

2024
569,865

Thereafter
4,458,973

 
$
7,551,102



Since lease renewal periods are exercisable at the option of the tenant, the above table only presents undiscounted cash flows due during the current lease terms. In addition, this table does not include amounts for potential variable rent increases that are based on the CPI or future contingent rents which may be received on the leases based on a percentage of the tenant’s sales volume.
Real Estate Portfolio – Accounted for Using the Direct Financing Method – The following lists the components of net investment in direct financing leases at December 31 (dollars in thousands):
 
2019
 
2018
Minimum lease payments to be received
$
9,356

 
$
10,899

Estimated unguaranteed residual values
1,227

 
4,395

Less unearned income
(6,379
)
 
(7,225
)
Net investment in direct financing leases
$
4,204

 
$
8,069



The following is a schedule of undiscounted cash flows to be received on direct financing leases held for investment as of December 31, 2019 (dollars in thousands):
2020
$
900

2021
920

2022
897

2023
895

2024
896

Thereafter
4,848

 
$
9,356


Since lease renewal periods are exercisable at the option of the tenant, the above table only presents undiscounted cash flows due during the current lease terms. In addition, this table does not include amounts for potential variable rent increases that

56


are based on the CPI or future contingent rents which may be received on the leases based on a percentage of the tenant’s sales volume.
Real Estate – Intangibles
In accordance with purchase accounting for the acquisition of real estate subject to a lease, NNN has recorded intangible assets and lease liabilities that consisted of the following at December 31 (dollars in thousands):
 
 
2019
 
2018
Intangible lease assets (included in other assets):
 
 
 
 
Above-market in-place leases
 
$
15,754

 
$
15,175

Less: accumulated amortization
 
(9,897
)
 
(9,239
)
Above-market in-place leases, net
 
$
5,857

 
$
5,936

 
 
 
 
 
In-place leases
 
$
119,846

 
$
104,871

Less: accumulated amortization
 
(64,918
)
 
(60,797
)
In-place leases, net
 
$
54,928

 
$
44,074

 
 
 
 
 
Intangible lease liabilities (included in other liabilities):
 
 
 
 
Below-market in-place leases
 
$
41,767

 
$
41,554

Less: accumulated amortization
 
(26,135
)
 
(25,258
)
Below-market in-place leases, net
 
$
15,632

 
$
16,296



The amounts amortized as a net increase to rental income for capitalized above-market and below-market leases for the years ended December 31, 2019, 2018 and 2017 were $768,000, $2,622,000 and $3,355,000, respectively. The value of in-place leases amortized to expense for the years ended December 31, 2019, 2018 and 2017 was $7,900,000, $9,209,000 and $18,841,000, respectively.
The following is a schedule of the amortization of acquired above-market and below-market in-place lease intangibles and the amortization of the in-place lease intangibles as of December 31, 2019 (dollars in thousands):
 
Above-Market and Below-Market In-Place Lease Intangibles(1)
 
In-Place Lease Intangibles(2)
2020
$
695

 
$
7,502

2021
590

 
6,800

2022
466

 
6,339

2023
383

 
5,833

2024
379

 
5,138

Thereafter
7,262

 
23,316

 
$
9,775

 
$
54,928

 
 
 
 
Weighted average amortization period (years)
18.0

 
10.3

(1) 
Recorded as a net increase to rental income.
(2) 
Amortized as an increase to amortization expense.

57


Real Estate – Held For Sale
On a quarterly basis, the Company evaluates its Properties for held for sale classification based on specific criteria as outlined in ASC 360, Property, Plant & Equipment, including management’s intent to commit to a plan to sell the asset. NNN anticipates the disposition of Properties classified as held for sale to occur within 12 months. As of December 31, 2019, NNN had seven of its Properties categorized as held for sale. NNN's real estate held for sale at December 31, 2018, included ten properties, three of which were sold in 2019. Real estate held for sale consisted of the following as of December 31 (dollars in thousands):
 
2019
 
2018
Land and improvements
$
4,996

 
$
13,597

Building and improvements
6,511

 
32,658

 
11,507

 
46,255

Less accumulated depreciation and amortization
(3,390
)
 
(10,088
)
Less impairment
(1,107
)
 
(14,250
)
 
$
7,010

 
$
21,917


Real Estate – Dispositions
The following table summarizes the Properties sold and the corresponding gain recognized on the disposition of Properties for the years ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017
# of Sold
Properties
 
Gain
 
# of Sold
Properties
 
Gain
 
# of Sold
Properties
 
Gain
Gain on disposition of real estate
59
 
$
32,463

 
61
 
$
65,070

 
48
 
$
36,655


Real Estate – Commitments
NNN has committed to fund construction on 19 Properties. The improvements on such Properties are estimated to be completed within 12 months. These construction commitments, at December 31, 2019, are outlined in the table below (dollars in thousands):
Total commitment(1)
 
$
75,927

Less amount funded
 
44,368

Remaining commitment
 
$
31,559

(1)
Includes land, construction costs, tenant improvements, lease costs and capitalized interest.
Real Estate – Impairments
Management periodically assesses its real estate for possible impairment whenever certain events or changes in circumstances indicate that the carrying amount of the asset, including accrued rental income, may not be recoverable through operations. Events or circumstances that may occur include significant changes in real estate market conditions and the ability of NNN to re-lease or sell properties that are vacant or become vacant in a reasonable period of time. Impairments are measured as the amount by which the current book value of the asset exceeds the estimated fair value of the asset. As a result of the Company’s review of long-lived assets, including identifiable intangible assets, NNN recognized real estate impairments, net of recoveries of $31,992,000, $28,211,000 and $4,953,000 for the year ended December 31, 2019, 2018 and 2017, respectively.
The valuation of impaired assets is determined using widely accepted valuation techniques including discounted cash flow analysis, income capitalization, analysis of recent comparable sales transactions, actual sales negotiations and bona fide purchase offers received from third parties, which are Level 3 inputs. NNN may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate.


58


Note 3 – Right-Of-Use Assets and Operating Lease Liabilities:

NNN is a lessee for three ground lease arrangements and for its headquarters office lease. NNN recognized a ROU asset (recorded in other assets on the Consolidated Balance Sheets) and an operating lease liability (recorded in other liabilities on the Consolidated Balance Sheets) for the present value of the minimum lease payments. ROU assets represent NNN’s right to use an underlying asset for the lease term and lease liabilities represent NNN’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. NNN’s lease term is based on the non-cancellable base term unless economic incentives make it reasonably certain that an option period to extend the lease will be exercised, in which event NNN includes the options.

NNN estimates an incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of the lease payments. NNN gives consideration to the Company's debt issuances, as well as, publicly available data for secured instruments with similar characteristics when calculating its incremental borrowing rates. A 50 basis point increase or decrease in the estimate of the incremental borrowing rate at January 1, 2019 (the date of adoption of ASC 842) would not have a material impact on NNN’s financial position. On an annual basis, NNN will evaluate its lessee portfolio and determine if its incremental borrowing rate should be reassessed.
NNN's lease agreements do not contain any residual value guarantees.

As of December 31, 2019, NNN has recorded the following (dollars in thousands):
 
Ground Leases
 
Headquarters Office Lease
Operating lease – ROU assets(1)
$
4,481

 
$
2,991

Operating lease – lease liabilities
(6,175
)
 
(3,629
)
 
 
 
 
Weighted average remaining lease term (years)
14.3

 
5.3

Weighted average discount rate
4.1
%
 
3.5
%
(1) 
ROU assets are shown net of accrued lease payments of $1,694 and $638, respectively.
The following is a schedule of the undiscounted cash flows to be paid as of December 31, 2019 (dollars in thousands):
 
Ground Leases
 
Headquarters Office Lease
2020
$
564

 
$
773

2021
573

 
788

2022
582

 
804

2023
582

 
821

2024
601

 
837

Thereafter
5,544

 
210

 
$
8,446

 
$
4,233




59


Note 4 – Line of Credit Payable:
In October 2017, NNN amended its credit agreement to increase the borrowing capacity under its unsecured revolving credit facility from $650,000,000 to $900,000,000 and amend certain other terms under the former revolving credit facility (as the context requires, the previous and new revolving credit facility, the "Credit Facility"). The Credit Facility had a weighted average outstanding balance of $24,058,000 and a weighted average interest rate of 2.8% for the year ended December 31, 2019. The Credit Facility matures January 2022, unless the Company exercises its option to extend maturity to January 2023. As of December 31, 2019, the Credit Facility bears interest at LIBOR plus 87.5 basis points; however, such interest rate may change pursuant to a tiered interest rate structure based on NNN's debt rating. The Credit Facility also includes an accordion feature to increase the facility size up to $1,600,000,000. As of December 31, 2019, $133,600,000 was outstanding and $766,400,000 was available for future borrowings under the Credit Facility.
In accordance with the terms of the Credit Facility, NNN is required to meet certain restrictive financial covenants which, among other things, require NNN to maintain certain (i) leverage ratios, (ii) debt service coverage, (iii) cash flow coverage, and (iv) investment and dividend limitations. At December 31, 2019, NNN was in compliance with those covenants.

Note 5 – Mortgages Payable:
The following table outlines the mortgages payable included in NNN’s consolidated financial statements (dollars in thousands):
Entered
 
Initial
Balance
 
Interest
Rate
 
Maturity(2)
 
Carrying
Value of
Encumbered
Asset(s)(3)
 
Outstanding Principal
Balance at December 31,
2019
 
2018
November 2014(1)
 
$
15,151

 
5.23%
 
July 2023
 
$
19,944

 
$
12,116

 
$
12,768

 
 
 
 
 
 
 
 
 
 
 
 
 
Debt costs
 
 
 
 
 
 
 
 
 
(147
)
 
(147
)
Accumulated amortization
 
 
 
 
 
 
 
90

 
73

Debt costs, net of accumulated amortization
 
 
 
(57
)
 
(74
)
Mortgages payable, including unamortized premium and net of unamortized debt costs
 
 
 
$
12,059

 
$
12,694

(1) 
Date entered represents the date that NNN acquired real estate subject to a mortgage securing a loan. Initial         balance and outstanding principal balance includes unamortized premium.
(2) 
Monthly payments include interest and principal; the balance is due at maturity.
(3) 
The loan is secured by a first mortgage lien on five of the Properties. The carrying values of the assets at     December 31, 2019.
The following outlines of the scheduled principal payments, including premium amortization of NNN’s mortgages payable as of December 31, 2019 (dollars in thousands):
2020
$
682

2021
716

2022
750

2023
9,968

 
$
12,116




60


Note 6 – Notes Payable:
Each of NNN’s outstanding series of unsecured notes is summarized in the table below (dollars in thousands):
Notes
 
Issue Date
 
Principal
 
Discount(1)
 
Net
Price
 
Stated
Rate
 
Effective
Rate(2)
 
Maturity
Date
2022
 
August 2012
 
$
325,000

 
$
4,989

 
$
320,011

 
3.800%
 
3.985%
 
October 2022(4)
2023(3)
 
April 2013
 
350,000

 
2,594

 
347,406

 
3.300%
 
3.388%
 
April 2023(4)
2024(3)
 
May 2014
 
350,000

 
707

 
349,293

 
3.900%
 
3.924%
 
June 2024(4)
2025(3)
 
October 2015
 
400,000

 
964

 
399,036

 
4.000%
 
4.029%
 
November 2025
2026(3)
 
December 2016
 
350,000

 
3,860

 
346,140

 
3.600%
 
3.733%
 
December 2026
2027(3)
 
September 2017
 
400,000

 
1,628

 
398,372

 
3.500%
 
3.548%
 
October 2027
2028(3)
 
September 2018
 
400,000

 
2,848

 
397,152

 
4.300%
 
4.388%
 
October 2028
2048
 
September 2018
 
300,000

 
4,239

 
295,761

 
4.800%
 
4.890%
 
October 2048

(1) 
The note discounts are amortized to interest expense over the respective term of each debt obligation using the effective interest method.
(2) 
Includes the effects of the discount at issuance.
(3) 
NNN entered into forward starting swaps which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt. Upon the issuance of a series of unsecured notes, NNN terminated such derivatives, and the resulting fair value was deferred in other comprehensive income. The deferred liability (asset) is being amortized over the term of the respective notes using the effective interest method. Additional disclosure is included in Note 12 – Derivatives.
(4) 
The aggregate principal balance of the unsecured note maturities for the next five years is $1,025,000.
Each series of the notes represents senior, unsecured obligations of NNN and is subordinated to all secured indebtedness of NNN. Each of the notes is redeemable at the option of NNN, in whole or in part, at a redemption price equal to the sum of (i) the principal amount of the notes being redeemed plus all accrued and unpaid interest thereon through the redemption date and (ii) the make-whole amount, if any, as defined in the applicable supplemental indenture relating to the notes.
In connection with the outstanding debt offerings, NNN incurred debt issuance costs totaling $26,932,000 consisting primarily of underwriting discounts and commissions, legal and accounting fees, rating agency fees and printing expenses. Debt issuance costs for all note issuances have been deferred and presented as a reduction to notes payable and are being amortized over the term of the respective notes using the effective interest method.
In October 2018, NNN redeemed the $300,000,000 5.500% notes payable that were due in July 2021. The notes were redeemed at a price equal to 100% of the principal amount, plus (i) a make-whole amount of $18,240,000, and (ii) all accrued and unpaid interest.
In accordance with the terms of the indenture, pursuant to which NNN’s notes have been issued, NNN is required to meet certain restrictive financial covenants, which, among other things, require NNN to maintain (i) certain leverage ratios and (ii) certain interest coverage. At December 31, 2019, NNN was in compliance with those covenants.

Note 7 – Preferred Stock:
NNN completed the following underwritten public offering of cumulative redeemable preferred stock that is still outstanding ("Preferred Stock Shares") (dollars in thousands, except per share data):
Series
 
Dividend Rate(1)
 
Issued
 
Depositary Shares Outstanding(2)
 
Gross Proceeds
 
Stock Issuance Costs(3)
 
Dividend Per Depositary Share
 
Earliest Redemption Date
Series F
 
5.200
%
 
October 2016
 
13,800,000

 
$
345,000

 
$
10,897

 
$
1.300000

 
October 2021
(1) 
Holders are entitled to receive, when and as authorized by the Board of Directors, cumulative preferential cash dividends.
(2) 
Representing 1/100th of a preferred share. Series F issuance included 1,800,000 depositary shares in connection with the underwriters' over-allotment.
(3) 
Consisting primarily of underwriting commissions and fees, rating agency fees, legal and accounting fees and printing expenses.
The Preferred Stock Shares underlying the depositary shares rank senior to NNN’s common stock with respect to dividend rights and rights upon liquidation, dissolution or winding up of NNN. The Preferred Stock Shares have no maturity date and

61


will remain outstanding unless redeemed. In addition, upon a change of control, as defined in the articles supplementary fixing the rights and preferences of the Preferred Stock Shares, NNN may redeem the Preferred Stock Shares underlying the depositary shares at a redemption price of $2,500.00 per share (or $25.00 per depositary share), plus all accumulated and unpaid dividends, and in limited circumstances the holders of depositary shares may convert some or all of their Preferred Stock Shares into shares of NNN's common stock at conversion rates provided in the related articles supplementary. As of February 11, 2020, the Series F Preferred Stock Shares were not redeemable.
In October 2019, NNN redeemed all outstanding depositary shares (11,500,000) representing interests in its 5.700% Series E Preferred Stock. The Series E Preferred Stock was redeemed at $25.00 per depositary share, plus all accrued and unpaid dividends through, but not including, the redemption date, for an aggregate redemption price of $25.079167 per depositary share. The excess carrying amount of preferred stock redeemed over the cash paid to redeem the preferred stock was $9,856,000 of issuance costs.

Note 8 – Common Stock:
In February 2018, NNN filed a shelf registration statement with the Securities and Exchange Commission ("Commission") which permits the issuance by NNN of an indeterminate amount of debt and equity securities.
In September 2019, NNN filed a prospectus supplement to the prospectus contained in its February 2018 shelf registration statement and issued 7,000,000 shares of common stock at a price of $56.50 per share and received net proceeds of $379,410,000. In connection with this offering, NNN incurred stock issuance costs totaling approximately $16,090,000, consisting primarily of underwriters' fees and commissions, legal and accounting fees and printing expenses.
Dividend Reinvestment and Stock Purchase Plan. In February 2018, NNN filed a shelf registration statement with the Commission for its Dividend Reinvestment and Stock Purchase Plan ("DRIP") which permits the issuance by NNN of 10,000,000 shares of common stock. The following outlines the common stock issuances pursuant to the DRIP for the year ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017
Shares of common stock
362,918

 
311,048

 
229,696

Net proceeds
$
19,442

 
$
13,264

 
$
9,391


At-The-Market Offerings. NNN has established an at-the-market equity program ("ATM") which allows NNN to sell shares of common stock from time to time. The following table outlines NNN's active ATM programs for the three years ended December 31, 2019:
 
2018 ATM
 
2016 ATM
Established date
February 2018

 
March 2016

Termination date
February 2021

 
February 2018

Total allowable shares
12,000,000

 
12,000,000

Total shares issued as of December 31, 2019
9,722,185

 
10,044,656


The following table outlines the common stock issuances pursuant to NNN's ATM equity programs for the years ended December 31 (dollars in thousands, except per share data):
 
2019
 
2018
 
2017
Shares of common stock
2,344,022

 
7,378,163

 
5,821,366

Average price per share (net)
$
53.71

 
$
44.48

 
$
41.88

Net proceeds
$
125,905

 
$
328,196

 
$
243,822

Stock issuance costs(1)
$
1,431

 
$
3,821

 
$
3,782

(1) Stock issuance costs consist primarily of underwriters' fees and commissions, and legal and accounting fees.


62


Note 9 – Employee Benefit Plan:
Effective January 1, 1998, NNN adopted a defined contribution retirement plan (the “Retirement Plan”) covering substantially all of the employees of NNN. The Retirement Plan permits participants to defer a portion of their compensation, as defined in the Retirement Plan, subject to limits established by the Code. NNN generally matches 60 percent of the first eight percent of a participant’s contributions. Additionally, NNN may make discretionary contributions. NNN’s contributions to the Retirement Plan for the years ended December 31, 2019, 2018 and 2017 totaled $541,000, $516,000 and $514,000, respectively.

Note 10 – Dividends:
The following table outlines the dividends declared and paid for NNN's common stock for the years ended December 31 (in thousands, except per share data):
 
2019
 
2018
 
2017
Dividends
$
333,692

 
$
303,164

 
$
277,120

Per share
2.030

 
1.950

 
1.860



On January 15, 2020, NNN declared a dividend of $0.515 per share, payable February 14, 2020, to its common stockholders of record as of January 31, 2020.

The following presents the characterization for tax purposes of common stock dividends per share paid to stockholders for the years ended December 31:
 
 
2019
 
2018
 
2017
Ordinary dividends
$
1.762899

(1) 
$
1.658604

(1) 
$
1.559781

Capital gain

 
0.015534

 
0.035041

Unrecaptured Section 1250 Gain

 
0.042818

 
0.012194

Nontaxable distributions
0.267101

 
0.233044

 
0.252984

 
$
2.030000

 
$
1.950000

 
$
1.860000


(1) 
Eligible for the 20% qualified business income deduction under section 199A of the Code that was amended by the Tax Cuts and Jobs Act signed into law on December 22, 2017 ("TCJA").
The following presents the characterization for tax purposes of Series D, E and F Preferred Stock dividends per share and dividends declared and paid to stockholders for the year ended December 31 (dollars in thousands, except per share data):

 
Series F(1)
 
Series E(2)
 
Series D(3)
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2017
Dividends declared and paid
$
17,940

 
$
17,940

 
$
17,940

 
$
13,201

 
$
16,387

 
$
16,387

 
$
3,598

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary dividends
$
1.300000

(4) 
$
1.255820

(4) 
$
1.261789

 
$
1.147917

(4) 
$
1.376571

(4) 
$
1.383115

 
$
0.303652

Capital gain

 
0.011761

 
0.028345

 

 
0.012892

 
0.031071

 
0.006821

Unrecaptured Section 1250 Gain

 
0.032419

 
0.009866

 

 
0.035537

 
0.010814

 
0.002374

Dividend paid per share
$
1.300000

 
$
1.300000

 
$
1.300000

 
$
1.147917

 
$
1.425000

 
$
1.425000

 
$
0.312847


(1) The Series F Preferred Stock was issued in October 2016 and has no maturity date and will remain outstanding unless redeemed by NNN. The earliest redemption date for the Series F Preferred Stock is October 2021.
(2) The Series E Preferred Stock was redeemed in October 2019. The dividends paid in 2019 include accumulated and unpaid dividends through, but not including, the redemption date.
(3) The Series D Preferred Stock was redeemed in February 2017. The dividends paid in 2017 include accumulated and unpaid dividends through, but not including, the redemption date.
(4) Eligible for the 20% qualified business income deduction under section 199A of the Code that was amended by the TCJA.

63



Note 11 – Income Taxes:
For income tax purposes, NNN may elect to treat certain subsidiaries as taxable REIT subsidiaries in which certain real estate activities may be conducted.
NNN currently has no TRS entities. The following information relates to former TRS entities.
The significant components of the net deferred income tax asset consist of the following at December 31 (dollars in thousands):
 
2019
 
2018
Deferred tax assets:
 
 
 
Net operating loss carryforward
$
3,899

 
$
3,899

Valuation allowance
(3,899
)
 
(3,858
)
Total deferred tax assets

 
41

 
 
 
 
Deferred tax liabilities:
 
 
 
Built-in gain

 
(41
)
Total deferred tax liabilities

 
(41
)
 
 
 
 
Net deferred tax asset
$

 
$


In assessing the ability to realize a deferred tax asset, management considers whether it is more likely than not that some portion or the entire deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The net operating loss carryforwards were generated by NNN’s former taxable REIT subsidiaries. The net operating loss carryforwards begin to expire in 2028. Management believes it is unlikely that NNN will realize all of the benefits of these deductible differences that existed as of December 31, 2019 and 2018.
The increase in the valuation allowance for the year ended December 31, 2019, was $41,000. There was no change in the valuation allowance for the year ended December 31, 2018.
For the years ended December 31, 2019, 2018 and 2017, there was no net income tax expense or benefit to NNN's former TRS entities. The total income tax benefit (expense) differs from the amount computed by applying the statutory federal tax rate to net earnings before taxes as follows for the years ended December 31 (dollars in thousands):
 
2019
 
2018
 
2017(1)
Loss carryforwards increase (decrease)
$

 
$

 
$
(2,019
)
Built-in gain tax liability
41

 

 
134

Valuation allowance (increase) decrease
(41
)
 

 
1,885

Total tax expense
$

 
$

 
$


(1) 
The changes for the year ended December 31, 2017, includes an amount attributable to the federal tax rate change within the TCJA. The net income statement effect of the federal rate change is zero.
FASB prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.
NNN, in accordance with FASB guidance included in Income Taxes, has analyzed its various federal and state filing positions. NNN believes that its income tax filing positions and deductions are well documented and supported. Additionally, NNN believes that its accruals for tax liabilities are adequate. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to the FASB guidance. In addition, NNN did not record a cumulative effect adjustment related to the adoption of the FASB guidance.

64


NNN has had no unrecognized tax benefits during any of the years presented. Further, no interest or penalties have been included since no reserves were recorded and no significant increases or decreases are expected to occur within the next 12 months. When applicable, such interest and penalties will be recorded in non-operating expenses. The periods that remain open under federal statute are 2016 through 2019. NNN also files in many states with varying open years under statute.

Note 12 – Derivatives:
In accordance with the guidance on derivatives and hedging, NNN records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.
NNN’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements or other identified risks. To accomplish this objective, NNN primarily uses treasury locks, forward starting swaps and interest rate swaps as part of its cash flow hedging strategy. Treasury locks and forward starting swaps are used to hedge forecasted debt issuances. Treasury locks designated as cash flow hedges lock in the yield/price of a treasury security. Forward starting swaps also lock the associated swap spread. Interest rate swaps designated as cash flow hedges are used to hedge the variable cash flows associated with floating rate debt and involve the receipt or payment of variable rate amounts in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying principal amount.
For derivatives designated as cash flow hedges, the change in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings.
NNN discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative expires or is sold, terminated, or exercised, the derivative is re-designated as a hedging instrument or management determines that designation of the derivative as a hedging instrument is no longer appropriate.
When hedge accounting is discontinued, NNN recognizes any changes in its fair value in earnings and continues to carry the derivative on the balance sheet or may choose to settle the derivative at that time with a cash payment or receipt. NNN records a cash settlement of forward starting swaps in the statement of cash flows as an operating activity.
The following table outlines NNN's terminated derivatives which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt (dollars in thousands):
Notes Payable
 
Terminated
 
Description
 
Aggregate Notional Amount
 
Liability (Asset) Fair Value When Terminated
 
Fair Value Deferred In Other Comprehensive Income(1)
2023
 
April 2013
 
Four forward starting swaps
 
$
240,000

 
$
3,156

 
$
3,141

2024
 
May 2014
 
Three forward starting swaps
 
225,000

 
6,312

 
6,312

2025
 
October 2015
 
Four forward starting swaps
 
300,000

 
13,369

 
13,369

2026
 
December 2016
 
Two forward starting swaps
 
180,000

 
(13,352
)
 
(13,345
)
2027
 
September 2017
 
Two forward starting swaps
 
250,000

 
7,690

 
7,688

2028
 
September 2018
 
Two forward starting swaps
 
250,000

 
(4,080
)
 
(4,080
)

(1) 
The amount reported in accumulated other comprehensive income will be reclassified to interest expense as interest payments are made on the related notes payable.
As of December 31, 2019, $5,604,000 remains in other comprehensive income related to NNN’s previously terminated interest rate hedges. During the years ended December 31, 2019, 2018 and 2017, NNN reclassified $1,307,000, $3,664,000 and $1,932,000, respectively, out of other comprehensive income as an increase to interest expense. Over the next 12 months, NNN estimates that an additional $1,365,000 will be reclassified as an increase in interest expense. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on NNN’s long-term debt.

65


During the year ended December 31, 2019, NNN entered into three forward starting swaps with a total notional amount of $200,000,000 to hedge the risk of changes in the interest-related cash outflows associated with the potential issuance of long-term debt. The outstanding forward swaps were designated as cash flow hedges, and as of December 31, 2019, had a fair value of $5,524,000 included in other liabilities and accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The fair value of the forward starting swaps were based on a Level 2 valuation. These derivative financial instruments were still outstanding as of December 31, 2019 and have a mandatory cash settlement date of April 15, 2020.
NNN does not use derivatives for trading or speculative purposes or currently have any derivatives that are not designated as hedges.

Note 13 – Performance Incentive Plan:
In May 2017, NNN filed a registration statement on Form S-8 with the Commission which permits the issuance of up to 1,800,000 shares of common stock pursuant to NNN’s 2017 Performance Incentive Plan (the “2017 Plan”). The 2017 Plan replaced NNN’s previous 2007 Performance Incentive Plan (the "2007 Plan"). The 2017 Plan allows NNN to award or grant to key employees, directors and persons performing consulting or advisory services for NNN or its affiliates, stock options, stock awards, stock appreciation rights, Phantom Stock Awards, Performance Awards and Leveraged Stock Purchase Awards, each as defined in the 2017 Plan.

There were no stock options outstanding or exercisable at December 31, 2019.

Pursuant to the 2017 Plan, NNN has granted and issued shares of restricted stock to certain officers and key associates of NNN. The following summarizes the restricted stock activity for the year ended December 31, 2019:
 
Number
of
Shares
 
Weighted
Average
Share Price
Non-vested restricted shares, January 1
781,564

 
$
39.97

Restricted shares granted
364,769

 
53.91

Restricted shares vested
(237,863
)
 
43.03

Restricted shares forfeited
(5,119
)
 
44.70

Non-vested restricted shares, December 31(1)
903,351

 
44.77


(1) 
Includes grants made in 2017 pursuant to the 2007 Plan to NNN's retired CEO. The performance criteria will be complete January 1, 2020.
Compensation expense for the restricted stock which is not contingent upon NNN’s performance goals is determined based upon the fair value at the date of grant and is recognized as the greater of the amount amortized over a straight-lined basis or the amount vested over the vesting periods. Vesting periods for officers and key associates of NNN range from three to five years and generally vest annually. NNN recognizes compensation expense on a straight-line basis for awards with only service conditions.
During the year ended December 31, 2019, NNN granted 144,345 performance-based shares subject to its total stockholder return after a three-year period relative to its peers. The fair value of these shares was determined at the grant date (for a fair value share price of $27.61). In addition, in 2019, NNN granted 48,116 performance-based shares subject to a three-year Core Funds From Operations growth metric. The performance-based shares were granted to certain executive officers and had a weighted average grant price of $53.70 per share. Once the respective performance criteria are met and the actual number of shares earned is determined, the shares vest immediately. Compensation expense is recognized over the requisite service period for both grants.

66


The following summarizes other grants made during the year ended December 31, 2019, pursuant to the 2017 Plan.
 
Number
of
Shares
 
Weighted
Average
  Share Price  
Other share grants under the 2017 Plan:
 
 
 
Directors’ fees
13,448

 
$
53.62

Deferred directors’ fees
14,679

 
53.34

 
28,127

 
53.47

Shares available under the 2017 Plan for grant, end of period
1,092,770

 
 


The total compensation expense for share-based payments for the years ended December 31, 2019, 2018 and 2017 totaled $10,737,000, $9,282,000 and $12,971,000, respectively. At December 31, 2019, NNN had $16,877,000 of unrecognized compensation cost related to non-vested share-based compensation arrangements under the 2017 Plan. This cost is expected to be recognized over a weighted average period of 2.3 years.

Note 14 – Fair Value of Financial Instruments:
NNN believes the carrying value of its Credit Facility approximates fair value based upon its nature, terms and variable interest rate. NNN believes that the carrying value of its mortgages payable at December 31, 2019 and 2018, approximate fair value based upon current market prices of comparable instruments (Level 3). At December 31, 2019 and 2018, the fair value of NNN’s notes payable net of unamortized discount and excluding debt costs, was $3,074,538,000 and $2,813,583,000, respectively, based upon quoted market prices, which is a Level 1 valuation since NNN's notes payable are publicly traded.

Note 15 – Quarterly Financial Data (unaudited):
The following table summarizes NNN’s quarterly financial data (dollars in thousands, except per share data):
2019
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
Revenues as originally reported
 
$
165,636

 
$
165,279

 
$
169,108

 
$
173,576

Net earnings
 
80,033

 
79,091

 
66,698

 
73,786

Net earnings attributable to NNN
 
80,023

 
78,678

 
66,693

 
73,786

Net earnings per share(1):
 
 
 
 
 
 
 
 
Basic
 
$
0.44

 
$
0.43

 
$
0.35

 
$
0.34

Diluted
 
0.44

 
0.43

 
0.35

 
0.34

 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
Revenues as originally reported
 
$
152,861

 
$
155,555

 
$
155,526

 
$
160,529

Net earnings
 
103,289

 
70,583

 
82,042

 
36,572

Net earnings attributable to NNN
 
103,280

 
70,573

 
82,032

 
36,562

Net earnings per share(1):
 
 
 
 
 
 
 
 
Basic
 
$
0.62

 
$
0.40

 
$
0.47

 
$
0.17

Diluted
 
0.62

 
0.40

 
0.47

 
0.17


(1) 
Calculated independently for each period and consequently, the sum of the quarters may differ from the annual amount.

Note 16 – Segment Information:

For the years ended December 31, 2019, 2018 and 2017, NNN’s operations are reported within one operating segment in the consolidated financial statements and all properties are part of the Properties or Property Portfolio.


67


Note 17 – Major Tenants:
As of December 31, 2019, NNN had no tenants that accounted for ten percent or more of its rental income.

Note 18 – Commitments and Contingencies:
A summary of NNN's commitments are included in Note 2 – Real Estate.
In the ordinary course of its business, NNN is a party to various other legal actions which management believes are routine in nature and incidental to the operation of the business of NNN. Management does not believe that any of these proceedings are material to NNN's consolidated financial statements.

Note 19 – Subsequent Events:
NNN reviewed all subsequent events and transactions that have occurred after December 31, 2019, the date of the consolidated balance sheet. There were no reportable subsequent events or transactions.

68


Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.

Item 9A.
Controls and Procedures
Process for Assessment and Evaluation of Disclosure Controls and Procedures and Internal Control over Financing Reporting.
NNN carried out an assessment as of December 31, 2019, of the effectiveness of the design and operation of its disclosure controls and procedures and its internal control over financial reporting. This assessment was done under the supervision and with the participation of management, including NNN’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer. Rules adopted by the Commission require NNN to present the conclusions of the Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer about the effectiveness of NNN’s disclosure controls and procedures and the conclusions of NNN’s management about the effectiveness of NNN’s internal control over financial reporting as of the end of the period covered by this annual report.
CEO and CFO Certifications.  Included as Exhibits 31.1 and 31.2 to this Annual Report on Form 10-K are forms of “Certification” of NNN’s Chief Executive Officer and Chief Financial Officer. The forms of Certification are required in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. This section of the Annual Report on Form 10-K that stockholders are currently reading is the information concerning the assessment referred to in the Section 302 certifications and this information should be read in conjunction with the Section 302 certifications for a more complete understanding of the topics presented.
Disclosure Controls and Procedures and Internal Control over Financial Reporting.  Disclosure controls and procedures are designed with the objective of providing reasonable assurance that information required to be disclosed in NNN’s reports filed or submitted under the Exchange Act, such as this Annual Report on Form 10-K, is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures are also designed with the objective of providing reasonable assurance that such information is accumulated and communicated to NNN’s management, including the Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, as appropriate, to allow timely decisions regarding required disclosure.
Internal control over financial reporting is a process designed by, or under the supervision of, NNN’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, and affected by NNN’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (“GAAP”) and includes those policies and procedures that:
pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of NNN’s assets;
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that NNN’s receipts and expenditures are being made in accordance with authorizations of management or the Board of Directors; and
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of NNN’s assets that could have a material adverse effect on NNN’s financial statements.
Scope of the Assessments.  The assessment by NNN’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer of NNN’s disclosure controls and procedures and the assessment by NNN’s management, including NNN’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, of NNN’s internal control over financial reporting included a review of procedures and discussions with NNN’s management and others at NNN. In the course of the assessments, NNN sought to identify data errors, control problems or acts of fraud and to confirm that appropriate corrective action, including process improvements, were being undertaken.
NNN’s internal control over financial reporting is also assessed on an ongoing basis by personnel in NNN’s Accounting department and by NNN’s internal auditors in connection with their internal audit activities. The overall goals of these various assessment activities are to monitor NNN’s disclosure controls and procedures and NNN’s internal control over financial reporting and to make modifications as necessary. NNN’s intent in this regard is that the disclosure controls and procedures and the internal control over financial reporting will be maintained and updated (including with improvements and corrections) as conditions warrant. Management also sought to deal with other control matters in the assessment, and in

69


each case if a problem was identified, management considered what revision, improvement and/or correction was necessary to be made in accordance with NNN’s on-going procedures. The assessments of NNN’s disclosure controls and procedures and NNN’s internal control over financial reporting is done on a quarterly basis so that the conclusions concerning effectiveness of those controls can be reported in NNN’s Quarterly Reports on Form 10-Q and Annual Report on Form 10-K.
Assessment of Effectiveness of Disclosure Controls and Procedures.
Based upon the assessments, NNN’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer have concluded that, as of December 31, 2019, NNN’s disclosure controls and procedures were effective.
Management’s Report on Internal Control over Financial Reporting.
Management, including NNN’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, are responsible for establishing and maintaining adequate internal control over financial reporting for NNN. Management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – 2013 Integrated Framework to assess the effectiveness of NNN’s internal control over financial reporting. Based upon the assessments, NNN’s Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2019, NNN’s internal control over financial reporting was effective.
Attestation Report of the Registered Public Accounting Firm.
Ernst & Young LLP, NNN’s independent registered public accounting firm, audited the financial statements included in this Annual Report on Form 10-K and in connection therewith has issued an attestation report on NNN’s effectiveness of internal control over financial reporting as of December 31, 2019, which appears in this Annual Report on Form 10-K.
Changes in Internal Control over Financial Reporting.
During the three months ended December 31, 2019, there were no changes in NNN’s internal control over financial reporting that materially affected, or are reasonably likely to materially affect, NNN’s internal control over financial reporting.
Limitations on the Effectiveness of Controls.
Management, including NNN’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, do not expect that NNN’s disclosure controls and procedures or NNN’s internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within NNN have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management’s override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Item 9B.
Other Information
None.


70


PART III

Item 10.
Directors, Executive Officers and Corporate Governance
Reference is made to the Registrant’s definitive proxy statement to be filed with the Commission pursuant to Regulation 14(a); information responsive to this Item is included in the Registrant's proxy statement including the information, without limitation, contained in the sections thereof captioned “Proposal I: Election of Directors – Nominees,” “Proposal I: Election of Directors – Executive Officers,” “Proposal I: Election of Directors – Code of Business Conduct and Insider Trading Policy” and “Security Ownership ”, and such information in such sections is incorporated herein by reference.

Item 11.
Executive Compensation
Reference is made to the Registrant’s definitive proxy statement to be filed with the Commission pursuant to Regulation 14(a); information responsive to this Item is included in the Registrant's proxy statement including the information, without limitation, contained in the sections thereof captioned “Proposal I: Election of Directors – Director Compensation,” “Executive Compensation” and “Compensation Committee Report”, and such information is incorporated herein by reference.

Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Reference is made to the Registrant’s definitive proxy statement to be filed with the Commission pursuant to Regulation 14(a); information responsive to this Item is included in the Registrant's proxy statement including the information, without limitation, contained in the sections thereof captioned "Executive Compensation – Equity Compensation Plan Information" and “Security Ownership”, and such information is incorporated herein by reference.

Item 13.
Certain Relationships and Related Transactions, and Director Independence
Reference is made to the Registrant’s definitive proxy statement to be filed with the Commission pursuant to Regulation 14(a); information responsive to this Item is included in the Registrant's proxy statement including the information, without limitation, contained in the section thereof captioned “Certain Relationships and Related Transactions” and such information is incorporated herein by reference.

Item 14.
Principal Accounting Fees and Services
Reference is made to the Registrant’s definitive proxy statement to be filed with the Commission pursuant to Regulation 14(a); information responsive to this Item is included in the Registrant's proxy statement including the information, without limitation, contained in the section thereof captioned “Audit Committee Report” and “Proposal III: Ratification of Ernst & Young LLP as the Independent Registered Public Accounting Firm”, and such information is incorporated herein by reference.


71


PART IV

Item 15.
Exhibits and Financial Statement Schedules

(a)
 
 
The following documents are filed as part of this report
 
 
 
 
 
 
 
 
(1)
 
Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)
 
Financial Statement Schedules
 
 
 
 
 
 
 
 
 
 
Schedule III – Real Estate and Accumulated Depreciation and Amortization and Notes as of December 31, 2019
 
 
 
 
 
 
 
 
 
 
Schedule IV – Mortgage Loans on Real Estate and Notes as of December 31, 2019
 
 
 
 
 
 
 
 
 
 
All other schedules are omitted because they are not applicable or because the required information is shown in the financial statements or the notes thereto.
 
 
 
 
 
 
 
 
(3)
 
Exhibits
 
     The following exhibits are filed as a part of this report.
 
3.
Articles of Incorporation and Bylaws
 
 
 
3.1
 
 
 
 
 
 
 
 
3.2
 
 
 
 
 
 
 
 
3.3
 
 
 
 
 
 
 
 
3.4
 
 
 
 
 
 
 
 
3.5
 
 
 
 
 
 
 
 
3.6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

72


 
4.
Instruments Defining the Rights of Security Holders, Including Indentures
 
 
 
 
 
 
 
 
4.1
Specimen Certificate of Common Stock, par value $0.01 per share, of the Registrant (filed as Exhibit 3.4 to the Registrant’s Registration Statement No. 1-11290 on Form 8-B filed with the Securities and Exchange Commission and incorporated herein by reference).
 
 
 
 
 
 
 
 
4.2
 
 
 
 
 
 
 
 
4.3
 
 
 
 
 
 
 
 
4.4
 
 
 
 
 
 
 
 
4.5
 
 
 
 
 
 
 
 
4.6
 
 
 
 
 
 
 
 
4.7
 
 
 
 
 
 
 
 
4.8
 
 
 
 
 
 
 
 
4.9
 
 
 
 
 
 
 
 
4.10
 
 
 
 
 
 
 
 
4.11
 
 
 
 
 
 
 
 
4.12
 
 
 
 
 
 
 
 
4.13
 
 
 
 
 
 
 
 
4.14
 
 
 
 
 

73


 
 
 
4.15
 
 
 
 
 
 
 
 
4.16
 
 
 
 
 
 
 
 
4.17
 
 
 
 
 
 
 
 
4.18
 
 
 
 
 
 
 
 
4.19
 
 
 
 
 
 
 
 
4.20
 
 
 
 
 
 
 
 
4.21
 
 
 
 
 
 
 
 
4.22
 
 
 
 
 
 
10.
Material Contracts
 
 
 
 
 
 
 
 
10.1*
 
 
 
 
 
 
 
 
10.2*
 
 
 
 
 
 
 
 
10.3*
 
 
 
 
 
 
 
 
10.4*
 
 
 
 
 
 
 
 
10.5*
 
 
 
 
 
 
 
 
10.6*
 
 
 
 
 
 
 
 
10.7*
 
 
 
 
 

74


 
 
 
10.8*
 
 
 
 
 
 
 
 
10.9*
 
 
 
 
 
 
 
 
10.10*
 
 
 
 
 
 
 
 
10.11*
 
 
 
 
 
 
 
 
10.12*
 
 
 
 
 
 
 
 
10.13*
 
 
 
 
 
 
 
 
10.14
 
 
 
 
 
 
 
 
10.15*
 
 
 
 
 
 
 
 
10.16*
 
 
 
 
 
 
 
 
10.17*
 
 
 
 
 
 
 
 
10.18
 
 
 
 
 
 
 
 
10.19*
 
 
 
 
 
 
 
 
10.20
 
 
 
 
 
 
 
 
10.21*
 
 
 
 
 

75


 
 
 
10.22*
 
 
 
 
 
 
 
 
10.23*
 
 
 
 
 
 
 
 
10.24*
 
 
 
 
 
 
 
 
10.25*
 
 
 
 
 
 
 
 
10.26*
 
 
 
 
 
 
 
 
10.27
 
 
 
 
 
 
 
 
10.28*
 
 
 
 
 
 
21.
 
 
 
 
 
 
23.
Consent of Independent Registered Public Accounting Firm
 
 
 
 
 
 
 
 
23.1
 
 
 
 
 
 
24.
Power of Attorney (included on signature page).
 
 
 
 
 
 
31.
Section 302 Certifications**
 
 
 
 
 
 
 
 
31.1
 
 
 
 
 
 
 
 
31.2
 
 
 
 
 
 
32.
Section 906 Certifications**
 
 
 
 
 
 
 
 
32.1
 
 
 
 
 
 
 
 
32.2
 
 
 
 
 
 
99.
Additional Exhibits
 
 
 
 
 
 
 
 
99.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

76


 
101.
Interactive Data File
 
 
 
 
 
 
 
 
101.1
The following materials from National Retail Properties, Inc. Annual Report on Form 10-K for the period ended December 31, 2019, are formatted in Extensible Business Reporting Language: (i) consolidated balance sheets, (ii) consolidated statements of comprehensive income, (iii) consolidated statements of stockholders' equity (iv) consolidated statements of cash flows, and (v) notes to consolidated financial statements.
 
 
 
 
 
 
104.
Cover Page Interactive Data File
 
 
 
 
 
 
 
 
104.1
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
 
 
 
 
 
 
*
Management contract or compensatory plan or arrangement.
 
 
 
 
 
 
**
In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.
Item 16. Form 10-K Summary
None.

77


SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 11th day of February 2020.
 
 
 
NATIONAL RETAIL PROPERTIES, INC.
 
 
 
By:
 /s/ Julian E. Whitehurst
 
 
Julian E. Whitehurst
 
 
Chief Executive Officer, President and Director
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints each of Julian E. Whitehurst, Kevin B. Habicht and Michelle L. Miller as his or her attorney-in-fact and agent, with full power of substitution and resubstitution for him or her in any and all capacities, to sign any or all amendments to this report and to file same, with exhibits thereto and other documents in connection therewith, granting unto such attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary in connection with such matters and hereby ratifying and confirming all that such attorney-in-fact and agent or his or her substitutes may do or cause to be done by virtue hereof.
 
Signature
 
Title
 
Date
 
 
 
 /s/ Julian E. Whitehurst
 
Chief Executive Officer, President and Director
 
February 11, 2020
Julian E. Whitehurst
 
 
 
 
 
 
/s/ Don DeFosset
 
Chairman of the Board
 
February 11, 2020
Don DeFosset
 
 
 
 
 
 
/s/ Pamela K. Beall
 
Director
 
February 11, 2020
Pamela K. Beall
 
 
 
 
 
 
 
 
/s/ Steven D. Cosler
 
Director
 
February 11, 2020
Steven D. Cosler
 
 
 
 
 
 
 
 
/s/ David M. Fick
 
Director
 
February 11, 2020
David M. Fick
 
 
 
 
 
 
/s/ Edward J. Fritsch
 
Director
 
February 11, 2020
Edward J. Fritsch
 
 
 
 
 
 
/s/ Betsy D. Holden
 
Director
 
February 11, 2020
Betsy D. Holden
 
 
 
 
 
 
 
 
/s/ Sam L. Susser
 
Director
 
February 11, 2020
Sam L. Susser
 
 
 
 
 
 
 
 
/s/ Kevin B. Habicht
 
Director, Chief Financial Officer (Principal Financial Officer),
Executive Vice President, Assistant Secretary and Treasurer
 
February 11, 2020
Kevin B. Habicht
 
 
 
 
 
 
 
 
/s/ Michelle L. Miller
 
Chief Accounting Officer (Principal Accounting Officer) and Executive Vice President
 
February 11, 2020
Michelle L. Miller
 
 
 
 
 
 
 
 


78

Table of Contents



NATIONAL RETAIL PROPERTIES, INC. AND SUBSIDIARIES
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
December 31, 2019
(Dollars in thousands)

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7-Eleven:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Tampa, FL
$

 
$
1,081

 
$
917

 
$

 
$

 
$
1,070

 
$
917

 
$
1,987

 
$
477

 
1999
 
12/98
(g)
40
    Austin, TX
$

   
259

 
1,361

 

   

   
259

 
1,361

 
1,620

 
442

 
1985
 
11/11
 
25
    Austin, TX
$

   
1,101

 
2,987

 

   

   
1,101

 
2,987

 
4,088

 
693

 
2006
 
11/11
 
35
    Austin, TX
$

   
900

 
3,571

 

   

   
900

 
3,571

 
4,471

 
829

 
2004
 
11/11
 
35
    Beaumont, TX
$

   
124

 
2,968

 

   

   
124

 
2,968

 
3,092

 
804

 
1996
 
11/11
 
30
    Beaumont, TX
$

   
239

 
2,031

 

   

   
239

 
2,031

 
2,270

 
471

 
2002
 
11/11
 
35
    Beaumont, TX
$

   
115

 
1,543

 

   

   
115

 
1,543

 
1,658

 
418

 
1996
 
11/11
 
30
    Bloomington, TX
$

   
38

 
3,093

 

   

   
38

 
3,093

 
3,131

 
1,005

 
1985
 
11/11
 
25
    Bryan, TX
$

   
479

 
3,561

 

   

   
479

 
3,561

 
4,040

 
965

 
2000
 
11/11
 
30
    Canyon Lake, TX
$

   
144

 
1,830

 

   

   
144

 
1,830

 
1,974

 
595

 
1977
 
11/11
 
25
    Cedar Park, TX
$

   
833

 
1,705

 

   

   
833

 
1,705

 
2,538

 
396

 
2002
 
11/11
 
35
    College Station, TX
$

   
393

 
3,342

 

   

   
393

 
3,342

 
3,735

 
905

 
2000
 
11/11
 
30
    Corpus Christi, TX
$

   
383

 
3,093

 

   

   
383

 
3,093

 
3,476

 
718

 
2006
 
11/11
 
35
    Edinburg, TX
$

   
431

 
2,193

 

   

   
431

 
2,193

 
2,624

 
594

 
1999
 
11/11
 
30
    Edna, TX
$

   
67

 
1,897

 

   

   
67

 
1,897

 
1,964

 
617

 
1976
 
11/11
 
25
    Kingsland, TX
$

   
153

 
2,691

 

   

   
153

 
2,691

 
2,844

 
875

 
1972
 
11/11
 
25
    Kingsville, TX
$

   
163

 
1,485

 

   

   
163

 
1,485

 
1,648

 
483

 
1990
 
11/11
 
25
    Laredo, TX
$

   
412

 
1,476

 

   

   
412

 
1,476

 
1,888

 
400

 
2001
 
11/11
 
30
    Palacios, TX
$

   
29

 
1,667

 

   

   
29

 
1,667

 
1,696

 
542

 
1984
 
11/11
 
25
    Pflugerville, TX
$

   
996

 
2,336

 

   

   
996

 
2,336

 
3,332

 
542

 
2002
 
11/11
 
35
    Rio Bravo, TX
$

   
355

 
1,351

 

   

   
355

 
1,351

 
1,706

 
314

 
2002
 
11/11
 
35
    Round Rock, TX
$

   
661

 
1,140

 

   

   
661

 
1,140

 
1,801

 
309

 
2000
 
11/11
 
30
    San Antonio, TX
$

   
441

 
1,313

 

   

   
441

 
1,313

 
1,754

 
356

 
1999
 
11/11
 
30
    Victoria, TX
$

   
431

 
2,298

 

   

   
431

 
2,298

 
2,729

 
623

 
1986
 
11/11
 
30
    Victoria, TX
$

   
259

 
2,346

 

   

   
259

 
2,346

 
2,605

 
636

 
1984
 
11/11
 
30
    West Orange, TX

   
220

 
2,088

 

   

   
220

 
2,088

 
2,308

 
565

 
1993
 
11/11
 
30
    Winnie, TX

   
115

 
4,566

 

   

   
115

 
4,566

 
4,681

 
1,060

 
2002
 
11/11
 
35
    Austin, TX

   
612

 
2,775

 

   

   
612

 
2,775

 
3,387

 
744

 
1999
 
12/11
 
30
    Austin, TX

   
1,215

 
4,524

 

   

   
1,215

 
4,524

 
5,739

 
1,039

 
2004
 
12/11
 
35
    Austin, TX

   
488

 
2,163

 

   

   
488

 
2,163

 
2,651

 
580

 
2000
 
12/11
 
30
    Austin, TX

   
938

 
1,436

 

   

   
938

 
1,436

 
2,374

 
385

 
1998
 
12/11
 
30
    Austin, TX

   
756

 
2,870

 

   

   
756

 
2,870

 
3,626

 
769

 
1999
 
12/11
 
30
    Austin, TX

   
679

 
1,905

 

   

   
679

 
1,905

 
2,584

 
511

 
1999
 
12/11
 
30
    Austin, TX

   
775

 
4,677

 

   

   
775

 
4,677

 
5,452

 
1,254

 
1996
 
12/11
 
30
    Austin, TX

   
880

 
1,790

 

   

   
880

 
1,790

 
2,670

 
480

 
1998
 
12/11
 
30
    Austin, TX

   
689

 
1,732

 

   

   
689

 
1,732

 
2,421

 
464

 
1999
 
12/11
 
30
    Austin, TX

   
612

 
3,061

 

   

   
612

 
3,061

 
3,673

 
821

 
1999
 
12/11
 
30
    Austin, TX

   
861

 
3,004

 

   

   
861

 
3,004

 
3,865

 
805

 
2001
 
12/11
 
30
    Cedar Park, TX

   
536

 
1,914

 

   

   
536

 
1,914

 
2,450

 
513

 
1999
 
12/11
 
30
    San Antonio, TX

   
909

 
1,359

 

   

   
904

 
1,359

 
2,263

 
364

 
1999
 
12/11
 
30
    San Antonio, TX

   
631

 
2,851

 

   

   
631

 
2,851

 
3,482

 
764

 
1999
 
12/11
 
30
    San Antonio, TX

   
766

 
1,474

 

   

   
766

 
1,474

 
2,240

 
395

 
1999
 
12/11
 
30
    San Antonio, TX

   
412

 
2,010

 

   

   
412

 
2,010

 
2,422

 
539

 
1999
 
12/11
 
30
    San Antonio, TX

   
545

 
3,148

 

   

   
545

 
3,148

 
3,693

 
844

 
1999
 
12/11
 
30
    San Antonio, TX

   
947

 
2,535

 

   

   
947

 
2,535

 
3,482

 
680

 
1999
 
12/11
 
30
    San Antonio, TX

   
411

 
2,555

 

   

   
411

 
2,555

 
2,966

 
685

 
1999
 
12/11
 
30
    San Antonio, TX

   
517

 
2,670

 

   

   
517

 
2,670

 
3,187

 
716

 
1999
 
12/11
 
30
    San Antonio, TX

   
899

 
2,593

 

   

   
899

 
2,593

 
3,492

 
596

 
2002
 
12/11
 
35
    San Antonio, TX

   
985

 
3,253

 

   

   
976

 
3,253

 
4,229

 
872

 
1999
 
12/11
 
30
    San Antonio, TX

   
919

 
2,344

 

   

   
919

 
2,344

 
3,263

 
539

 
2002
 
12/11
 
35
    San Antonio, TX

   
679

 
2,937

 

   

   
679

 
2,937

 
3,616

 
787

 
1999
 
12/11
 
30
    San Antonio, TX

   
469

 
2,727

 

   

   
469

 
2,727

 
3,196

 
731

 
1998
 
12/11
 
30
    San Antonio, TX

   
632

 
1,991

 

   

   
632

 
1,991

 
2,623

 
534

 
2001
 
12/11
 
30
    San Antonio, TX

   
603

 
2,048

 

   

   
598

 
2,048

 
2,646

 
549

 
1999
 
12/11
 
30
    Universal City, TX

   
699

 
1,675

 

   

   
699

 
1,675

 
2,374

 
449

 
2001
 
12/11
 
30
    Belpre, OH

   
408

 
759

 

   

   
408

 
759

 
1,167

 
166

 
1990
 
07/14
 
25
    Charleston, WV

   
689

 
974

 

   

   
689

 
974

 
1,663

 
177

 
1970
 
07/14
 
30
    Charleston, WV

   
549

 
729

 

   

   
549

 
729

 
1,278

 
133

 
1995
 
07/14
 
30
    Clarksburg, WV

   
390

 
613

 

   

   
390

 
613

 
1,003

 
134

 
1978
 
07/14
 
25
    Mannington, WV

   
218

 
745

 

   

   
218

 
745

 
963

 
136

 
1996
 
07/14
 
30
    N. Belle Vernon, PA

   
438

 
1,165

 

   

   
438

 
1,165

 
1,603

 
254

 
1996
 
07/14
 
25
    New Castle, PA

   
292

 
617

 

   

   
292

 
617

 
909

 
112

 
1983
 
07/14
 
30
    Parkersburg, WV

   
298

 
782

 

   

   
298

 
782

 
1,080

 
171

 
1988
 
07/14
 
25
    Parkersburg, WV

   
422

 
739

 

   

   
422

 
739

 
1,161

 
134

 
1985
 
07/14
 
30
    Weston, WV

   
114

 
583

 

   

   
114

 
583

 
697

 
106

 
1995
 
07/14
 
30
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
7-Eleven (Susser/Stripes):


   


 


 


   


   


 


 


 


 
 
 
 
 

    Brownsville, TX

   
1,392

 
1,444

 

   

   
1,392

 
1,444

 
2,836

 
507

 
2005
 
12/05
 
40
    Brownsville, TX

   
2,530

 
1,125

 

   

   
2,530

 
1,125

 
3,655

 
395

 
1990
 
12/05
 
40
    Brownsville, TX

   
1,039

 
1,145

 

   

   
1,039

 
1,145

 
2,184

 
402

 
2004
 
12/05
 
40
    Brownsville, TX

   
2,033

 
1,288

 

   

   
2,033

 
1,288

 
3,321

 
452

 
1995
 
12/05
 
40
    Brownsville, TX

   
1,015

 
1,308

 

   

   
1,015

 
1,308

 
2,323

 
459

 
2003
 
12/05
 
40
    Brownsville, TX

   
933

 
699

 

   

   
933

 
699

 
1,632

 
245

 
1999
 
12/05
 
40
    Brownsville, TX

 
1,843

 
1,419

 

 

 
1,843

 
1,419

 
3,262

 
498

 
2000
 
12/05
 
40
    Brownsville, TX

 
2,915

 
1,800

 

 

 
2,915

 
1,800

 
4,715

 
632

 
2000
 
12/05
 
40
    Brownsville, TX

   
1,279

 
1,015

 

   

   
1,279

 
1,015

 
2,294

 
356

 
1990
 
12/05
 
40
    Brownsville, TX

   
2,417

 
1,828

 

   

   
2,417

 
1,828

 
4,245

 
642

 
2000
 
12/05
 
40
    Brownsville, TX

   
1,182

 
1,105

 

   

   
1,182

 
1,105

 
2,287

 
388

 
2000
 
12/05
 
40
    Corpus Christi, TX

   
1,385

 
1,419

 

   

   
1,385

 
1,419

 
2,804

 
498

 
1982
 
12/05
 
40
    Corpus Christi, TX

   
1,400

 
1,531

 

   

   
1,400

 
1,531

 
2,931

 
537

 
1984
 
12/05
 
40
    Corpus Christi, TX

   
703

 
1,037

 

   

   
703

 
1,037

 
1,740

 
364

 
1986
 
12/05
 
40
    Corpus Christi, TX

   
1,308

 
2,151

 

   

   
1,308

 
2,151

 
3,459

 
755

 
1995
 
12/05
 
40
    Corpus Christi, TX

   
853

 
1,416

 

   

   
853

 
1,416

 
2,269

 
497

 
2005
 
12/05
 
40
    Donna, TX

   
1,004

 
1,127

 

   

   
1,004

 
1,127

 
2,131

 
395

 
1995
 
12/05
 
40
    Edinburg, TX

   
1,317

 
1,624

 

   

   
1,317

 
1,624

 
2,941

 
570

 
1999
 
12/05
 
40
    Edinburg, TX

   
970

 
1,286

 

   

   
970

 
1,286

 
2,256

 
451

 
2003
 
12/05
 
40
    Falfurias, TX

   
4,244

 
4,458

 

   

   
4,213

 
4,458

 
8,671

 
1,565

 
2002
 
12/05
 
40
    Freer, TX

   
1,151

 
1,158

 

   

   
1,151

 
1,158

 
2,309

 
407

 
1984
 
12/05
 
40
    George West, TX

   
1,243

 
695

 

   

   
1,243

 
695

 
1,938

 
244

 
1996
 
12/05
 
40
    Harlingen, TX

   
754

 
1,152

 

   

   
754

 
1,152

 
1,906

 
405

 
1999
 
12/05
 
40
    Harlingen, TX

   
906

 
953

 

   

   
906

 
953

 
1,859

 
334

 
1991
 
12/05
 
40
    Harlingen, TX

   
755

 
601

 

   

   
755

 
601

 
1,356

 
211

 
1987
 
12/05
 
40
    La Feria, TX

   
900

 
1,347

 

   

   
900

 
1,347

 
2,247

 
473

 
1988
 
12/05
 
40
    Laredo, TX

   
1,495

 
1,400

 

   

   
1,495

 
1,400

 
2,895

 
492

 
1993
 
12/05
 
40
    Laredo, TX

   
736

 
670

 

   

   
736

 
670

 
1,406

 
235

 
1984
 
12/05
 
40
    Laredo, TX

   
675

 
533

 

   

   
675

 
533

 
1,208

 
187

 
1993
 
12/05
 
40
    Laredo, TX

   
841

 
739

 

   

   
841

 
739

 
1,580

 
259

 
2001
 
12/05
 
40
    Laredo, TX

   
1,553

 
1,775

 

   

   
1,553

 
1,775

 
3,328

 
623

 
2000
 
12/05
 
40
    Los Indios, TX

   
1,387

 
1,457

 

   

   
1,387

 
1,457

 
2,844

 
511

 
2005
 
12/05
 
40
    McAllen, TX

   
987

 
893

 

   

   
987

 
893

 
1,880

 
314

 
1999
 
12/05
 
40
    McAllen, TX

   
975

 
1,030

 

   

   
975

 
1,030

 
2,005

 
361

 
2003
 
12/05
 
40
    Mission, TX

   
880

 
1,101

 

   

   
880

 
1,101

 
1,981

 
387

 
1999
 
12/05
 
40
    Mission, TX

   
1,125

 
1,213

 

   

   
1,125

 
1,213

 
2,338

 
426

 
2003
 
12/05
 
40
    Olmito, TX

   
3,688

 
2,880

 

   

   
3,688

 
2,880

 
6,568

 
1,011

 
2002
 
12/05
 
40
    Pharr, TX

   
784

 
805

 

   

   
784

 
805

 
1,589

 
282

 
2000
 
12/05
 
40
    Pharr, TX

   
982

 
1,178

 

   

   
982

 
1,178

 
2,160

 
414

 
1988
 
12/05
 
40
    Pharr, TX

   
2,426

 
1,881

 

   

   
2,426

 
1,881

 
4,307

 
660

 
2003
 
12/05
 
40
    Port Isabel, TX

   
2,062

 
1,299

 

   

   
2,062

 
1,299

 
3,361

 
456

 
1994
 
12/05
 
40
    Portland, TX

   
656

 
915

 

   

   
656

 
915

 
1,571

 
321

 
1983
 
12/05
 
40
    Progreso, TX

   
1,769

 
1,811

 

   

   
1,769

 
1,811

 
3,580

 
636

 
1999
 
12/05
 
40
    Riviera, TX

   
2,351

 
2,158

 

   

   
2,351

 
2,158

 
4,509

 
758

 
2005
 
12/05
 
40
    San Benito, TX

   
791

 
1,857

 

   

   
791

 
1,857

 
2,648

 
652

 
1994
 
12/05
 
40
    San Benito, TX

   
1,103

 
1,586

 

   

   
1,103

 
1,586

 
2,689

 
557

 
2005
 
12/05
 
40
    San Juan, TX

   
1,424

 
1,546

 

   

   
1,424

 
1,546

 
2,970

 
543

 
2004
 
12/05
 
40
    San Juan, TX

   
1,124

 
1,172

 

   

   
1,124

 
1,172

 
2,296

 
411

 
1996
 
12/05
 
40
    South Padre Island, TX

   
1,367

 
1,389

 

   

   
1,367

 
1,389

 
2,756

 
488

 
1988
 
12/05
 
40
    Palmview, TX

   
835

 
1,372

 

   

   
835

 
1,372

 
2,207

 
453

 
2005
 
10/06
 
40
    Harlingen, TX

   
638

 
1,807

 

   

   
638

 
1,807

 
2,445

 
589

 
2006
 
12/06
 
40
    Rio Grande City, TX

   
1,871

 
1,612

 

   

   
1,871

 
1,612

 
3,483

 
526

 
2006
 
12/06
 
40
    San Juan, TX

   
816

 
1,434

 

   

   
816

 
1,434

 
2,250

 
468

 
2006
 
12/06
 
40
    Zapata, TX

   
1,333

 
1,773

 

   

   
1,333

 
1,773

 
3,106

 
578

 
2006
 
12/06
 
40
    Orange Grove, TX

   
1,767

 
1,838

 

   

   
1,767

 
1,838

 
3,605

 
584

 
2007
 
04/07
 
40
    Harlingen, TX

   
408

 
826

 

   

   
408

 
826

 
1,234

 
334

 
1982
 
11/07
 
30
    Laredo, TX

   
584

 
958

 

   

   
584

 
958

 
1,542

 
387

 
1981
 
11/07
 
30
    Laredo, TX

   
468

 
728

 

   

   
468

 
728

 
1,196

 
294

 
1973
 
11/07
 
30
    Laredo, TX

   
448

 
734

 

   

   
448

 
734

 
1,182

 
297

 
1981
 
11/07
 
30
    Laredo, TX

   
698

 
1,169

 

   

   
698

 
1,169

 
1,867

 
472

 
1981
 
11/07
 
30
    Laredo, TX

   
348

 
1,168

 

   

   
348

 
1,168

 
1,516

 
472

 
1983
 
11/07
 
30
    San Benito, TX

   
420

 
1,135

 

   

   
420

 
1,135

 
1,555

 
459

 
1985
 
11/07
 
30
    Del Rio, TX

   
1,565

 
758

 

   

   
1,565

 
758

 
2,323

 
230

 
1996
 
11/07
 
40
    Kerrville, TX

   
640

 
1,616

 

   

   
640

 
1,616

 
2,256

 
490

 
1996
 
11/07
 
40
    Pharr, TX

   
573

 
1,229

 

   

   
573

 
1,229

 
1,802

 
370

 
2000
 
12/07
 
40
    Harlingen, TX

   
277

 
808

 

   

   
277

 
808

 
1,085

 
322

 
1983
 
01/08
 
30
    Laredo, TX

   
325

 
816

 

   

   
325

 
816

 
1,141

 
325

 
1983
 
01/08
 
30
    McAllen, TX

   
643

 
1,776

 

   

   
643

 
1,776

 
2,419

 
708

 
1980
 
01/08
 
30
    Port Isabel, TX

   
299

 
855

 

   

   
299

 
855

 
1,154

 
341

 
1983
 
01/08
 
30
    Brownsville, TX

   
843

 
1,429

 

   

   
843

 
1,429

 
2,272

 
415

 
2007
 
05/08
 
40
    Edinburg, TX

   
834

 
1,787

 

   

   
834

 
1,787

 
2,621

 
519

 
2007
 
05/08
 
40
    La Villa, TX

   
710

 
2,166

 

   

   
710

 
2,166

 
2,876

 
629

 
2007
 
05/08
 
40
    Laredo, TX

   
879

 
1,593

 

   

   
879

 
1,593

 
2,472

 
463

 
2007
 
05/08
 
40
    Laredo, TX

   
1,183

 
1,934

 

   

   
1,183

 
1,934

 
3,117

 
562

 
2007
 
05/08
 
40
    McAllen, TX

   
1,270

 
2,383

 

   

   
1,270

 
2,383

 
3,653

 
923

 
1986
 
05/08
 
30
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Aaron's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Memphis, TN

   
416

 

 
1,320

   

   
416

 
1,320

 
1,736

 
697

 
1998
 
12/97
(g)
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Abra Auto Body:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Belmont, NC

   
785

 
2,375

 

   

   
785

 
2,375

 
3,160

 
44

 
1970
 
07/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Academy:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Franklin, TN

   
1,807

 
2,108

 

   

   
1,589

 
2,108

 
3,697

 
1,022

 
1999
 
06/05
 
30
    Baton Rouge, LA

   
1,511

 
4,861

 

   

   
1,511

 
4,861

 
6,372

 
478

 
2003
 
07/17
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Ace Hardware and Lighting:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Bourbonnais, IL

   
298

 
1,329

 

   

   
298

 
1,329

 
1,627

 
656

 
1997
 
11/98
 
37
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


See accompanying report of independent registered public accounting firm.
F-1



 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Action Gypsum Supply:


   


 


 


   


   


 


 


 


 
 
 
 
 
 
    Carrollton, TX

   
478

 
535

 

   

   
478

 
535

 
1,013

 
201

 
1981
 
12/04
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Advance Auto Parts:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Miami, FL

   
867

 

 
1,035

   

   
867

 
1,035

 
1,902

 
376

 
2005
 
12/04
(g)
40
    Abbeville, LA

   
23

 
148

 

   

   
23

 
148

 
171

 
67

 
1970
 
12/10
 
20
    Abbotsford, WI

   
56

 
163

 

   

   
56

 
163

 
219

 
59

 
1984
 
12/10
 
25
    Addison, IL

   
76

 
314

 

   

   
76

 
314

 
390

 
113

 
1971
 
12/10
 
25
    Alsip, IL

   
57

 
323

 

   

   
57

 
323

 
380

 
146

 
1972
 
12/10
 
20
    Antigo, WI

   
96

 
294

 

   

   
96

 
294

 
390

 
89

 
1998
 
12/10
 
30
    Arden, NC

   
42

 
281

 

   

   
42

 
281

 
323

 
102

 
1989
 
12/10
 
25
    Bangor, ME

   
51

 
339

 

   

   
51

 
339

 
390

 
123

 
1985
 
12/10
 
25
    Bartlett, TN

   
40

 
293

 

   

   
40

 
293

 
333

 
106

 
1989
 
12/10
 
25
    Bay City, MI

   
106

 
521

 

   

   
106

 
521

 
627

 
314

 
1920
 
12/10
 
15
    Brunswick, ME

   
41

 
254

 

   

   
41

 
254

 
295

 
92

 
1985
 
12/10
 
25
    Bucksport, ME

   
19

 
114

 

   

   
19

 
114

 
133

 
52

 
1976
 
12/10
 
20
    Carol Stream, IL

   
103

 
515

 

   

   
103

 
515

 
618

 
233

 
1960
 
12/10
 
20
    Chicago, IL

   
83

 
383

 

   

   
83

 
383

 
466

 
138

 
1987
 
12/10
 
25
    Chippewa Falls, WI

   
33

 
328

 

   

   
33

 
328

 
361

 
99

 
1996
 
12/10
 
30
    Devils Lake, ND

   
38

 
276

 

   

   
38

 
276

 
314

 
83

 
1999
 
12/10
 
30
    Dodge City, KS

   
43

 
166

 

   

   
43

 
166

 
209

 
100

 
 1948
 
12/10
 
15
    Eau Claire, WI

   
33

 
204

 

   

   
33

 
204

 
237

 
92

 
 1956
 
12/10
 
20
    Elgin, IL

   
88

 
311

 

   

   
88

 
311

 
399

 
141

 
1965
 
12/10
 
20
    Escanaba, MI

   
40

 
283

 

   

   
40

 
283

 
323

 
102

 
1982
 
12/10
 
25
    Gainesville, FL

   
47

 
362

 

   

   
47

 
362

 
409

 
218

 
1957
 
12/10
 
15
    Greenville, OH

   
63

 
193

 

   

   
63

 
193

 
256

 
117

 
1910
 
12/10
 
15
    Hayward, WI

   
57

 
333

 

   

   
57

 
333

 
390

 
120

 
1980
 
12/10
 
25
    Houlton, ME

   
38

 
219

 

   

   
38

 
219

 
257

 
198

 
1915
 
12/10
 
10
    Irving, TX

   
182

 
208

 

   

   
182

 
208

 
390

 
94

 
1984
 
12/10
 
20
    Kennedale, TX

   
88

 
283

 

   

   
88

 
283

 
371

 
128

 
1959
 
12/10
 
20
    Laurel, MS

   
74

 
202

 

   

   
74

 
202

 
276

 
121

 
1959
 
12/10
 
15
    Madison, TN

   
78

 
179

 

   

   
78

 
179

 
257

 
65

 
1988
 
12/10
 
25
    Madison, WI

   
57

 
409

 

   

   
57

 
409

 
466

 
148

 
1973
 
12/10
 
25
    Marshfield, WI

   
60

 
282

 

   

   
60

 
282

 
342

 
128

 
1940
 
12/10
 
20


See accompanying report of independent registered public accounting firm.
F-2


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Medford, WI

   
37

 
229

 

   

   
37

 
229

 
266

 
83

 
1988
 
12/10
 
25
    Midland, TX

   
36

 
212

 

   

   
36

 
212

 
248

 
128

 
1960
 
12/10
 
15
    Montello, WI

   
26

 
173

 

   

   
26

 
173

 
199

 
52

 
1997
 
12/10
 
30
    Neillsville, WI

   
26

 
145

 

   

   
26

 
145

 
171

 
52

 
1979
 
12/10
 
25
    Ocala, FL

   
78

 
416

 

   

   
78

 
416

 
494

 
251

 
1971
 
12/10
 
15
    Phillips, WI

   
23

 
177

 

   

   
23

 
177

 
200

 
53

 
1992
 
12/10
 
30
    Rhinelander, WI

   
28

 
115

 

   

   
28

 
115

 
143

 
52

 
1958
 
12/10
 
20
    River Falls, WI

   
42

 
234

 

   

   
42

 
234

 
276

 
106

 
1976
 
12/10
 
20
    Rockford, IL

   
61

 
376

 

   

   
61

 
376

 
437

 
136

 
1962
 
12/10
 
25
    Schofield, WI

   
41

 
425

 

   

   
41

 
425

 
466

 
192

 
1968
 
12/10
 
20
    Spokane, WA (n)

   
93

 
373

 

   

   
93

 
373

 
466

 
169

 
1972
 
12/10
 
20
    Spokane, WA

   
66

 
201

 

   

   
66

 
201

 
267

 
91

 
1965
 
12/10
 
20
    St. Peter, MN

   
17

 
259

 

   

   
15

 
259

 
274

 
78

 
1999
 
12/10
 
30
    Stayton, OR

   
88

 
312

 

   

   
88

 
312

 
400

 
94

 
1994
 
12/10
 
30
    Stevens Point, WI

   
61

 
405

 

   

   
61

 
405

 
466

 
146

 
1975
 
12/10
 
25
    Thornton, CO

   
414

 
536

 

   

   
414

 
536

 
950

 
162

 
1996
 
12/10
 
30
    Troy, AL

   
15

 
52

 

   

   
15

 
52

 
67

 
31

 
1966
 
12/10
 
15
    Wausau, WI

   
52

 
300

 

   

   
52

 
300

 
352

 
108

 
1989
 
12/10
 
25
    Wautoma, WI

   
18

 
106

 

   

   
18

 
106

 
124

 
48

 
1959
 
12/10
 
20
    West Columbia, SC

   
41

 
159

 

   

   
41

 
159

 
200

 
72

 
1962
 
12/10
 
20
    West Memphis, AR

   
58

 
294

 

   

   
58

 
294

 
352

 
106

 
1987
 
12/10
 
25
    Windom, MN (n)

   
5

 
137

 

   

   
5

 
137

 
142

 
62

 
1950
 
12/10
 
20
    Wisconsin Rapids, WI

   
41

 
215

 

   

   
41

 
215

 
256

 
97

 
1975
 
12/10
 
20
    Yakima, WA

   
50

 
321

 

   

   
50

 
321

 
371

 
145

 
1965
 
12/10
 
20
    Aurora, IL

   
641

 
226

 

   

   
641

 
226

 
867

 
100

 
1971
 
02/11
 
20
    Eagle River, WI

   
99

 
52

 

   

   
99

 
52

 
151

 
23

 
1978
 
02/11
 
20
    Lexington, KY

   
85

 
226

 

   

   
85

 
226

 
311

 
67

 
1991
 
02/11
 
30
    Mobile, AL

   
75

 
197

 

   

   
75

 
197

 
272

 
83

 
1975
 
07/11
 
20
    Fairmont, MN

   
98

 
166

 

   

   
98

 
166

 
264

 
66

 
1978
 
01/12
 
20
    Sycamore, IL

   
49

 
476

 

   

   
49

 
476

 
525

 
189

 
1924
 
01/12
 
20
    Orchard Park, NY

   
353

 

 
725

   

   
267

 
725

 
992

 
113

 
2013
 
05/13
(m)
40
    Morrisville, NC

   
127

 
332

 

   

   
127

 
332

 
459

 
88

 
1992
 
05/13
 
25
    Salt Lake City, UT

   
571

 
697

 

   

   
571

 
697

 
1,268

 
231

 
1951
 
05/13
 
20
    Crestview, FL

   
158

 
463

 

   

   
158

 
463

 
621

 
97

 
2003
 
09/13
 
30


See accompanying report of independent registered public accounting firm.
F-3


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Depew, NY

   
309

 

 
821

   

   
309

 
821

 
1,130

 
115

 
2014
 
10/13
(m)
40
    Sherman, TX

   
183

 

 
657

   

   
183

 
657

 
840

 
106

 
2005
 
01/14
(o)
35
    Richmond, VA

   
193

 
1,268

 

   

   
193

 
1,268

 
1,461

 
248

 
2008
 
02/14
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Adventure Landing:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Jacksonville Beach, FL

   
3,615

 
5,636

 

   

   
3,615

 
5,636

 
9,251

 
2,492

 
1995
 
04/11
 
30
    Jacksonville, FL

   
721

 
861

 

   

   
721

 
861

 
1,582

 
509

 
1983
 
04/11
 
25
    Raleigh, NC

   
1,841

 
3,124

 

   

   
1,841

 
3,124

 
4,965

 
1,365

 
1989
 
04/11
 
25
    St. Augustine, FL

   
797

 
289

 

   

   
797

 
289

 
1,086

 
232

 
1999
 
04/11
 
30
    Tonawanda, NY

   
205

 
927

 

   

   
205

 
927

 
1,132

 
538

 
1991
 
04/11
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Affordable Care:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Asheville, NC

   
467

 
576

 

   

   
467

 
576

 
1,043

 
105

 
2005
 
07/14
 
30
    Conover, NC

   
187

 
623

 

   

   
187

 
623

 
810

 
113

 
2002
 
07/14
 
30
    Poland, OH

   
231

 
650

 

   

   
231

 
650

 
881

 
142

 
2001
 
07/14
 
25
    Wilmington, NC

   
398

 
565

 

   

   
398

 
565

 
963

 
103

 
2002
 
07/14
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Ahern Rentals:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Albuquerque, NM

   
1,588

 
2,423

 

   

   
1,588

 
2,423

 
4,011

 
53

 
1972
 
06/19
 
25
    Arlington, WA

   
2,042

 
3,304

 

   

   
2,042

 
3,304

 
5,346

 
72

 
1978
 
06/19
 
25
    Bloomfield, CT

   
269

 
2,738

 

   

   
269

 
2,738

 
3,007

 
59

 
1978
 
06/19
 
25
    Cedar City, UT

   
195

 
2,111

 

   

   
195

 
2,111

 
2,306

 
46

 
1972
 
06/19
 
25
    Charlotte, NC

   
576

 
1,932

 

   

   
576

 
1,932

 
2,508

 
35

 
2002
 
06/19
 
30
    Colorado Springs, CO

   
261

 
1,144

 

   

   
261

 
1,144

 
1,405

 
21

 
2000
 
06/19
 
30
    Deer Park, NY

   
891

 
2,617

 

   

   
891

 
2,617

 
3,508

 
57

 
1966
 
06/19
 
25
    El Paso, TX

   
380

 
3,628

 

   

   
380

 
3,628

 
4,008

 
79

 
1978
 
06/19
 
25
    Fife, WA

   
1,272

 
3,537

 

   

   
1,272

 
3,537

 
4,809

 
77

 
1974
 
06/19
 
25
    Franksville, WI

   
529

 
2,098

 

   

   
529

 
2,098

 
2,627

 
32

 
2018
 
06/19
 
35
    Houston, TX

   
964

 
5,546

 

   

   
964

 
5,546

 
6,510

 
100

 
1998
 
06/19
 
30
    Irving, TX

   
455

 
3,054

 

   

   
455

 
3,054

 
3,509

 
55

 
2000
 
06/19
 
30
    Kansas City, KS

   
1,049

 
1,959

 

   

   
1,049

 
1,959

 
3,008

 
42

 
1946
 
06/19
 
25
    Kennesaw, GA

   
3,126

 
2,384

 

   

   
3,126

 
2,384

 
5,510

 
43

 
1996
 
06/19
 
30
    Lake Dallas, TX

   
1,076

 
5,156

 

   

   
1,076

 
5,156

 
6,232

 
112

 
1990
 
06/19
 
25
    Lubbock, TX

   
269

 
2,238

 

   

   
269

 
2,238

 
2,507

 
40

 
2000
 
06/19
 
30


See accompanying report of independent registered public accounting firm.
F-4


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Oklahoma City, OK

   
603

 
2,404

 

   

   
603

 
2,404

 
3,007

 
52

 
1981
 
06/19
 
25
    Richfield, UT

   
84

 
1,369

 

   

   
84

 
1,369

 
1,453

 
30

 
1995
 
06/19
 
25
    Sacramento, CA

   
1,235

 
1,774

 

   

   
1,235

 
1,774

 
3,009

 
38

 
1970
 
06/19
 
25
    Salt Lake City, UT

   
1,486

 
5,032

 

   

   
1,486

 
5,032

 
6,518

 
109

 
1977
 
06/19
 
25
    Tampa, FL

   
687

 
3,822

 

   

   
687

 
3,822

 
4,509

 
83

 
1966
 
06/19
 
25
    Waco, TX

   
288

 
1,719

 

   

   
288

 
1,719

 
2,007

 
37

 
1979
 
06/19
 
25
    Winston Salem, NC

   
177

 
1,182

 

   

   
177

 
1,182

 
1,359

 
26

 
1970
 
06/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Ajuua Mexican Restaurant:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Aurora, CO

   
1,168

 
1,105

 
22

   

   
1,168

 
1,127

 
2,295

 
540

 
2000
 
06/05
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Aldi:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Cutler Bay, FL

   
989

 
1,479

 
205

   

   
989

 
1,684

 
2,673

 
936

 
1995
 
06/96
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

All Star Sports:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Wichita, KS

   
1,551

 
965

 
152

   

   
1,551

 
1,117

 
2,668

 
337

 
1987
 
05/07
 
40
    Wichita, KS

   
3,275

 
1,631

 
167

   

   
3,275

 
1,798

 
5,073

 
550

 
1988
 
05/07
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Allsup's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Abilene, TX

   
233

 
2,769

 

   

   
233

 
2,769

 
3,002

 
12

 
2009
 
11/19
 
30
    Abilene, TX

   
58

 
2,944

 

   

   
58

 
2,944

 
3,002

 
12

 
2008
 
11/19
 
30
    Abilene, TX

   
243

 
3,760

 

   

   
243

 
3,760

 
4,003

 
16

 
2008
 
11/19
 
30
    Artesia, NM

   
136

 
2,867

 

   

   
136

 
2,867

 
3,003

 
14

 
1980
 
11/19
 
25
    Azle, TX

   
68

 
1,935

 

   

   
68

 
1,935

 
2,003

 
8

 
1987
 
11/19
 
30
    Bowie, TX

   
272

 
2,711

 

   

   
272

 
2,711

 
2,983

 
11

 
1987
 
11/19
 
30
    Brownwood, TX

   
165

 
3,837

 

   

   
165

 
3,837

 
4,002

 
16

 
2012
 
11/19
 
30
    Canyon, TX

   
146

 
1,857

 

   

   
146

 
1,857

 
2,003

 
9

 
1979
 
11/19
 
25
    Carlsbad, NM

   
233

 
2,769

 

   

   
233

 
2,769

 
3,002

 
14

 
1980
 
11/19
 
25
    Carlsbad, NM

   
437

 
3,565

 

   

   
437

 
3,565

 
4,002

 
15

 
1983
 
11/19
 
30
    Carlsbad, NM

   
146

 
2,857

 

   

   
146

 
2,857

 
3,003

 
14

 
1981
 
11/19
 
25
    Cisco, TX

   
243

 
2,760

 

   

   
243

 
2,760

 
3,003

 
11

 
2007
 
11/19
 
30
    Clarendon, TX

   
457

 
3,546

 

   

   
457

 
3,546

 
4,003

 
13

 
2018
 
11/19
 
35
    Clovis, NM

   
175

 
1,828

 

   

   
175

 
1,828

 
2,003

 
8

 
2011
 
11/19
 
30
    Clovis, NM

   
155

 
2,847

 

   

   
155

 
2,847

 
3,002

 
14

 
1980
 
11/19
 
25


See accompanying report of independent registered public accounting firm.
F-5


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Comanche, TX

   
360

 
2,643

 

   

   
360

 
2,643

 
3,003

 
11

 
1982
 
11/19
 
30
    Denver City, TX

   
87

 
3,915

 

   

   
87

 
3,915

 
4,002

 
16

 
1987
 
11/19
 
30
    Friona, TX

   
107

 
2,896

 

   

   
107

 
2,896

 
3,003

 
12

 
1983
 
11/19
 
30
    Hobbs, NM

   
87

 
2,915

 

   

   
87

 
2,915

 
3,002

 
15

 
1977
 
11/19
 
25
    Hobbs, NM

   
330

 
2,672

 

   

   
330

 
2,672

 
3,002

 
13

 
1981
 
11/19
 
25
    Hobbs, NM

   
544

 
3,458

 

   

   
544

 
3,458

 
4,002

 
12

 
2015
 
11/19
 
35
    Hobbs, NM

   
68

 
2,935

 

   

   
68

 
2,935

 
3,003

 
15

 
1955
 
11/19
 
25
    Lovington, NM

   
136

 
2,867

 

   

   
136

 
2,867

 
3,003

 
14

 
1962
 
11/19
 
25
    Lovington, NM

   
49

 
2,954

 

   

   
49

 
2,954

 
3,003

 
15

 
1962
 
11/19
 
25
    Plains, TX

   
165

 
3,837

 

   

   
165

 
3,837

 
4,002

 
14

 
2017
 
11/19
 
35
    Plainview, TX

   
330

 
3,672

 

   

   
330

 
3,672

 
4,002

 
13

 
2018
 
11/19
 
35
    Portales, NM

   
39

 
1,964

 

   

   
39

 
1,964

 
2,003

 
8

 
1978
 
11/19
 
30
    Rio Rancho, NM

   
301

 
2,206

 

   

   
301

 
2,206

 
2,507

 
9

 
1989
 
11/19
 
30
    Roswell, NM

   
146

 
3,857

 

   

   
146

 
3,857

 
4,003

 
16

 
1997
 
11/19
 
30
    San Angelo, TX

   
476

 
3,526

 

   

   
476

 
3,526

 
4,002

 
13

 
2018
 
11/19
 
35
    San Angelo, TX

   
622

 
3,381

 

   

   
622

 
3,381

 
4,003

 
12

 
2017
 
11/19
 
35
    Santa Fe, NM

   
496

 
2,012

 

   

   
496

 
2,012

 
2,508

 
8

 
1995
 
11/19
 
30
    Santa Fe, NM

   
292

 
2,216

 

   

   
292

 
2,216

 
2,508

 
9

 
1990
 
11/19
 
30
    Silverton, TX

   
155

 
2,847

 

   

   
155

 
2,847

 
3,002

 
14

 
1981
 
11/19
 
25
    Snyder, TX

   
185

 
3,818

 

   

   
185

 
3,818

 
4,003

 
14

 
2014
 
11/19
 
35
    Stephenville, TX

   
612

 
2,390

 

   

   
612

 
2,390

 
3,002

 
9

 
2013
 
11/19
 
35
    Stephenville, TX

   
884

 
2,623

 

   

   
884

 
2,623

 
3,507

 
11

 
2008
 
11/19
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

AMC Theatre:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Bloomington, IN

   
2,338

 
4,000

 

   

   
2,338

 
4,000

 
6,338

 
1,967

 
1987
 
09/07
 
25
    Brighton, CO

   
1,070

 
5,491

 
3,000

   

   
1,070

 
8,491

 
9,561

 
1,981

 
2005
 
09/07
 
40
    Castle Rock, CO

   
2,905

 
5,002

 

   

   
2,905

 
5,002

 
7,907

 
1,537

 
2005
 
09/07
 
40
    Evansville, IN

   
1,300

 
4,269

 
3,400

   

   
1,300

 
7,669

 
8,969

 
1,921

 
1999
 
09/07
 
35
    Galesburg, IL

   
1,205

 
2,441

 

   

   
1,205

 
2,441

 
3,646

 
750

 
2003
 
09/07
 
40
    Machesney Park, IL

   
3,018

 
8,770

 

   

   
3,018

 
8,770

 
11,788

 
2,695

 
2005
 
09/07
 
40
    Michigan City, IN

   
1,996

 
8,422

 

   

   
1,996

 
8,422

 
10,418

 
2,588

 
2005
 
09/07
 
40
    Muncie, IN

   
1,243

 
5,512

 
2,400

   

   
1,243

 
7,912

 
9,155

 
1,858

 
2005
 
09/07
 
40
    Naperville, IL

   
6,141

 
11,624

 

   

   
6,141

 
11,624

 
17,765

 
3,572

 
2006
 
09/07
 
40
    New Lenox, IL

   
6,778

 
10,980

 

   

   
6,778

 
10,980

 
17,758

 
3,374

 
2004
 
09/07
 
40


See accompanying report of independent registered public accounting firm.
F-6


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Chicago, IL

   
7,257

 
10,955

 

   

   
7,257

 
10,955

 
18,212

 
3,275

 
2007
 
01/08
 
40
    Johnson Creek, WI

   
1,433

 
3,932

 

   

   
1,433

 
3,932

 
5,365

 
1,343

 
1997
 
01/08
 
35
    Lake Delton, WI

   
2,063

 
8,366

 

   

   
2,063

 
8,366

 
10,429

 
2,858

 
1999
 
01/08
 
35
    Quincy, IL

   
1,297

 
2,850

 

   

   
1,297

 
2,850

 
4,147

 
974

 
1982
 
01/08
 
35
    Schererville, IN

   
6,619

 
14,225

 

   

   
6,619

 
14,225

 
20,844

 
5,670

 
1996
 
01/08
 
30
    Fayetteville, NC

   
2,409

 

 
13,750

   

   
2,409

 
13,750

 
16,159

 
1,762

 
2014
 
11/13
 
40
    Southington, CT

   
1,346

 

 
4,263

   

   
1,346

 
4,263

 
5,609

 
788

 
1993
 
05/14
(o)
30
    Albuquerque, NM

   
1,474

 

 
10,301

   

   
1,474

 
10,301

 
11,775

 
1,084

 
2015
 
11/14
(m)
40
    West Jordan, UT

   
3,302

 
246

 
3,117

   

   
3,302

 
3,363

 
6,665

 
443

 
2015
 
05/15
(m)
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

American Family Care:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Mobile, AL

   
843

 
562

 
348

   

   
843

 
910

 
1,753

 
346

 
1997
 
12/01
 
40
    Alcoa, TN

   
1,221

 

 
1,730

   

   
1,221

 
1,730

 
2,951

 
272

 
2013
 
12/12
(m)
40
    Cullman, AL

   
541

 

 
1,517

   

   
541

 
1,517

 
2,058

 
235

 
2013
 
12/12
(m)
40
    Decatur, AL

   
460

 
1,283

 

   

   
460

 
1,283

 
1,743

 
258

 
2010
 
12/12
 
35
    Nashville, TN

   
377

 

 
1,403

   

   
377

 
1,403

 
1,780

 
212

 
2013
 
12/12
(m)
40
    Pace, FL

   
738

 

 
1,459

   

   
738

 
1,459

 
2,197

 
226

 
2013
 
12/12
(m)
40
    Woodstock, GA

   
563

 

 
1,653

   

   
563

 
1,653

 
2,216

 
243

 
2014
 
12/12
(m)
40
    Fairhope, AL

   
 (l)

 
1,929

 

   

   
 (l)

 
1,929

 
1,929

 
332

 
2012
 
02/13
 
40
    Dothan, AL

   
667

 

 
1,400

   

   
667

 
1,400

 
2,067

 
220

 
2013
 
02/13
(m)
40
    Auburn, AL

   
663

 

 
1,835

   

   
663

 
1,835

 
2,498

 
277

 
2013
 
03/13
(m)
40
    Milton, GA

   
577

 
1,526

 

   

   
577

 
1,526

 
2,103

 
259

 
2012
 
03/13
 
40
    Roswell, GA

   
814

 

 
1,851

   

   
816

 
1,851

 
2,667

 
249

 
2014
 
04/13
(m)
40
    Marietta, GA

   
432

 

 
1,846

   

   
432

 
1,846

 
2,278

 
271

 
2014
 
04/13
(m)
40
    Mt. Juliet, TN

   
875

 
1,566

 

   

   
875

 
1,566

 
2,441

 
253

 
2013
 
07/13
 
40
    Chattanooga, TN

   
469

 

 
1,626

   

   
469

 
1,626

 
2,095

 
239

 
2014
 
07/13
(m)
40
    Columbus, GA

   
550

 

 
1,520

   

   
550

 
1,520

 
2,070

 
223

 
2014
 
07/13
(m)
40
    Birmingham, AL

   
445

 

 
1,640

   

   
445

 
1,640

 
2,085

 
244

 
2005
 
08/13
(o)
40
    Hendersonville, TN

   
660

 
1,640

 

   

   
660

 
1,640

 
2,300

 
251

 
2013
 
11/13
 
40
    Calera, AL

   
606

 

 
1,673

   

   
606

 
1,673

 
2,279

 
228

 
2014
 
12/13
(m)
40
    Spring Hill, TN

   
589

 

 
1,718

   

   
589

 
1,718

 
2,307

 
224

 
2014
 
02/14
(m)
40
    Athens, AL

   
497

 

 
1,834

   

   
497

 
1,834

 
2,331

 
231

 
2014
 
03/14
(m)
40
    Panama City Beach, FL

   
995

 

 
1,745

   

   
995

 
1,745

 
2,740

 
224

 
2014
 
04/14
(m)
40
    Gadsden, AL

   
527

 

 
1,565

   

   
527

 
1,565

 
2,092

 
197

 
2014
 
05/14
 
40


See accompanying report of independent registered public accounting firm.
F-7


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Knoxville, TN

   
2,021

 

 
2,014

   

   
2,021

 
2,014

 
4,035

 
221

 
2015
 
08/14
(m)
40
    Fort Oglethorpe, GA

   
736

 

 
1,832

   

   
736

 
1,832

 
2,568

 
212

 
2015
 
08/14
(m)
40
    Enterprise, AL

   
570

 

 
1,703

   

   
570

 
1,703

 
2,273

 
179

 
2015
 
01/15
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

American Freight:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Glen Allen, VA

   
889

 
1,948

 

   

   
889

 
1,948

 
2,837

 
1,149

 
1996
 
05/96
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

American Retail Service:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lincoln City, OR

   
1,099

 
1,560

 

   

   
1,099

 
1,560

 
2,659

 
439

 
1973
 
12/12
 
25
    Salem, OR

   
433

 
1,627

 
735

   

   
433

 
2,362

 
2,795

 
494

 
1999
 
12/12
(o)
40
    Yuma, AZ

   
1,118

 
1,878

 

   

   
1,118

 
1,878

 
2,996

 
529

 
1987
 
12/12
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Amoco:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Miami, FL

   
969

 

 

   

   
969

 
 (i)

 
969

 
 (i)

 
 (i)
 
05/03
 
(i)
    Sunrise, FL

   
949

 

 

   

   
949

 
 (i)

 
949

 
 (i)

 
 (i)
 
06/03
 
(i)
    Deerfield Beach, FL

   
770

 
274

 
26

   

   
770

 
300

 
1,070

 
102

 
1980
 
12/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Amscot:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Tampa, FL

   
1,160

 
352

 

   

   
1,160

 
352

 
1,512

 
125

 
1981
 
10/05
 
40
    Orlando, FL

   
764

 

 
891

   

   
764

 
891

 
1,655

 
301

 
2006
 
12/05
 
40
    Orlando, FL

   
664

 
1,011

 

   

   
664

 
983

 
1,647

 
328

 
2006
 
12/05
(g)
40
    Orlando, FL

   
358

 

 
900

   

   
358

 
900

 
1,258

 
305

 
2006
 
02/06
(g)
40
    Orlando, FL

   
546

 

 
872

   

   
546

 
872

 
1,418

 
298

 
2006
 
02/06
(g)
40
    Clearwater, FL

   
456

 
332

 

   

   
456

 
332

 
788

 
110

 
1967
 
09/06
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Antojo Mexican Grill:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lakewood, WA

   
580

 
201

 

   

   
575

 
201

 
776

 
133

 
1984
 
09/06
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Applebee's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Ballwin, MO

   
1,496

 
1,404

 
47

   

   
1,496

 
1,450

 
2,946

 
639

 
1995
 
12/01
 
40
    Crestview Hills, KY

   
1,069

 
1,367

 

   

   
1,069

 
1,367

 
2,436

 
513

 
1993
 
08/10
 
25
    Danville, KY

   
641

 
1,645

 

   

   
641

 
1,645

 
2,286

 
514

 
2003
 
08/10
 
30
    Florence, KY

   
1,075

 
1,488

 

   

   
1,075

 
1,488

 
2,563

 
558

 
1988
 
08/10
 
25
    Frankfort, KY

   
862

 
1,610

 

   

   
862

 
1,610

 
2,472

 
503

 
1993
 
08/10
 
30


See accompanying report of independent registered public accounting firm.
F-8


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Georgetown, KY

   
809

 
1,437

 

   

   
809

 
1,437

 
2,246

 
449

 
2001
 
08/10
 
30
    Hilliard, OH

   
808

 
1,846

 

   

   
808

 
1,846

 
2,654

 
577

 
1998
 
08/10
 
30
    Maysville, KY

   
513

 
1,387

 

   

   
513

 
1,387

 
1,900

 
371

 
2005
 
08/10
 
35
    Nicholasville, KY

   
454

 
1,077

 

   

   
454

 
1,077

 
1,531

 
337

 
2000
 
08/10
 
30
    Troy, OH

   
645

 
862

 

   

   
645

 
862

 
1,507

 
323

 
1996
 
08/10
 
25
    Grove City, OH

   
511

 
1,415

 

   

   
511

 
1,415

 
1,926

 
434

 
1990
 
10/10
 
30
    Kettering, OH

   
359

 
1,043

 

   

   
359

 
1,043

 
1,402

 
274

 
2005
 
10/10
 
35
    Mesa, AZ

   
974

 
1,514

 

   

   
974

 
1,514

 
2,488

 
465

 
1992
 
10/10
 
30
    Mt. Sterling, KY

   
510

 
1,392

 

   

   
510

 
1,392

 
1,902

 
366

 
2000
 
10/10
 
35
    Phoenix, AZ

   
781

 
1,456

 

   

   
781

 
1,456

 
2,237

 
447

 
1995
 
10/10
 
30
    Phoenix, AZ

   
458

 
1,099

 

   

   
458

 
1,099

 
1,557

 
289

 
2004
 
10/10
 
35
    Angola, IN

   
478

 
1,533

 

   

   
478

 
1,533

 
2,011

 
239

 
2002
 
07/14
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Arby's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Colorado Springs, CO

   
206

 
534

 

   

   
206

 
534

 
740

 
241

 
1998
 
12/01
 
40
    Thomson, GA

   
268

 
504

 

   

   
268

 
504

 
772

 
227

 
1997
 
12/01
 
40
    Washington Courthouse, OH

   
157

 
546

 
250

   

   
157

 
796

 
953

 
250

 
1998
 
12/01
 
40
    Whitmore Lake, MI

   
171

 
469

 

   

   
171

 
469

 
640

 
212

 
1993
 
12/01
 
40
    Indianapolis, IN

   
285

 
686

 

   

   
285

 
686

 
971

 
125

 
1998
 
07/14
 
30
    Indianapolis, IN

   
456

 
830

 

   

   
456

 
830

 
1,286

 
129

 
2005
 
07/14
 
35
    Madison, GA

   
242

 
697

 

   

   
242

 
697

 
939

 
136

 
1985
 
02/15
 
25
    Muncie, IN

   
400

 
876

 

   

   
400

 
876

 
1,276

 
140

 
1995
 
03/15
 
30
    Gordonsville, TN

   
408

 
1,077

 

   

   
408

 
1,077

 
1,485

 
145

 
2009
 
12/15
 
30
    Ada, OK

   
147

 
1,841

 

   

   
147

 
1,841

 
1,988

 
77

 
1980
 
12/18
 
25
    Altus, OK

   
333

 
902

 

   

   
333

 
902

 
1,235

 
38

 
1978
 
12/18
 
25
    Ardmore, OK

   
490

 
1,206

 

   

   
490

 
1,206

 
1,696

 
36

 
2013
 
12/18
 
35
    Arkansas City, KS

   
59

 
1,118

 

   

   
59

 
1,118

 
1,177

 
39

 
1999
 
12/18
 
30
    Bentonville, AR

   
245

 
1,099

 

   

   
245

 
1,099

 
1,344

 
38

 
2007
 
12/18
 
30
    Boonville, MO

   
157

 
1,040

 

   

   
157

 
1,040

 
1,197

 
36

 
2007
 
12/18
 
30
    Broken Arrow, OK

   
471

 
765

 

   

   
471

 
765

 
1,236

 
27

 
2005
 
12/18
 
30
    Broken Arrow, OK

   
333

 
1,138

 

   

   
333

 
1,138

 
1,471

 
47

 
1978
 
12/18
 
25
    Cabot, AR

   
225

 
1,744

 

   

   
225

 
1,744

 
1,969

 
61

 
1994
 
12/18
 
30
    Choctaw, OK

   
509

 
2,093

 

   

   
509

 
2,093

 
2,602

 
62

 
2017
 
12/18
 
35
    Claremore, OK

   
196

 
1,976

 

   

   
196

 
1,976

 
2,172

 
69

 
2005
 
12/18
 
30


See accompanying report of independent registered public accounting firm.
F-9


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Clinton, MO

   
147

 
1,196

 

   

   
147

 
1,196

 
1,343

 
42

 
2005
 
12/18
 
30
    Coffeyville, KS

   
59

 
1,059

 

   

   
59

 
1,059

 
1,118

 
37

 
1995
 
12/18
 
30
    Colorado Springs, CO

   
344

 
885

 

   

   
344

 
885

 
1,229

 
31

 
2004
 
12/18
 
30
    Concordia, KS

   
118

 
923

 

   

   
118

 
923

 
1,041

 
38

 
1992
 
12/18
 
25
    Conway, AR

   
157

 
972

 

   

   
157

 
972

 
1,129

 
34

 
1994
 
12/18
 
30
    Derby, KS

   
353

 
941

 

   

   
353

 
941

 
1,294

 
33

 
2000
 
12/18
 
30
    Eagle, ID

   
441

 
990

 

   

   
441

 
990

 
1,431

 
29

 
2017
 
12/18
 
35
    Edmond, OK

   
186

 
951

 

   

   
186

 
951

 
1,137

 
40

 
1977
 
12/18
 
25
    Edwardsville, IL

   
147

 
1,294

 

   

   
147

 
1,294

 
1,441

 
45

 
2000
 
12/18
 
30
    El Dorado, KS

   
167

 
1,030

 

   

   
167

 
1,030

 
1,197

 
36

 
2004
 
12/18
 
30
    Fayetteville, AR

   
441

 
1,069

 

   

   
441

 
1,069

 
1,510

 
37

 
1998
 
12/18
 
30
    Fayetteville, AR

   
550

 
658

 

   

   
550

 
658

 
1,208

 
23

 
2006
 
12/18
 
30
    Fort Smith, AR

   
393

 
1,090

 

   

   
393

 
1,090

 
1,483

 
45

 
1980
 
12/18
 
25
    Fountain, CO

   
707

 
913

 

   

   
707

 
913

 
1,620

 
27

 
2013
 
12/18
 
35
    Glenpool, OK

   
137

 
1,334

 

   

   
137

 
1,334

 
1,471

 
56

 
1980
 
12/18
 
25
    Godfrey, IL

   
157

 
1,186

 

   

   
157

 
1,186

 
1,343

 
41

 
2001
 
12/18
 
30
    Greeley, CO

   
529

 
1,684

 

   

   
529

 
1,684

 
2,213

 
50

 
2017
 
12/18
 
35
    Greenwood, AR

   
59

 
943

 

   

   
59

 
943

 
1,002

 
33

 
1994
 
12/18
 
30
    Guthrie, OK

   
303

 
1,566

 

   

   
303

 
1,566

 
1,869

 
54

 
2002
 
12/18
 
30
    Harrison, AR

   
402

 
1,423

 

   

   
402

 
1,423

 
1,825

 
49

 
2003
 
12/18
 
30
    Harrisonville, MO

   
372

 
902

 

   

   
372

 
902

 
1,274

 
38

 
1986
 
12/18
 
25
    Hays, KS

   
176

 
1,888

 

   

   
176

 
1,888

 
2,064

 
79

 
1986
 
12/18
 
25
    Hot Springs, AR

   
441

 
1,128

 

   

   
441

 
1,128

 
1,569

 
47

 
1985
 
12/18
 
25
    Hutchinson, KS

   
118

 
952

 

   

   
118

 
952

 
1,070

 
40

 
1982
 
12/18
 
25
    Hutchinson, KS

   
206

 
1,098

 

   

   
206

 
1,098

 
1,304

 
38

 
2006
 
12/18
 
30
    Independence, MO

   
412

 
853

 

   

   
412

 
853

 
1,265

 
30

 
2008
 
12/18
 
30
    Independence, MO

   
294

 
1,341

 

   

   
294

 
1,341

 
1,635

 
47

 
2010
 
12/18
 
30
    Jerseyville, IL

   
187

 
845

 

   

   
187

 
845

 
1,032

 
29

 
1998
 
12/18
 
30
    Kansas City, MO

   
470

 
1,194

 

   

   
470

 
1,194

 
1,664

 
36

 
2015
 
12/18
 
35
    Kearney, MO

   
343

 
1,234

 

   

   
343

 
1,234

 
1,577

 
43

 
1996
 
12/18
 
30
    Lansing, KS

   
245

 
834

 

   

   
245

 
834

 
1,079

 
29

 
2007
 
12/18
 
30
    Lawton, OK

   
431

 
1,039

 

   

   
431

 
1,039

 
1,470

 
43

 
1987
 
12/18
 
25
    Litchfield, IL

   
186

 
1,402

 

   

   
186

 
1,402

 
1,588

 
42

 
2013
 
12/18
 
35
    Little Rock, AR

   
736

 
579

 

   

   
736

 
579

 
1,315

 
17

 
2013
 
12/18
 
35


See accompanying report of independent registered public accounting firm.
F-10


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Little Rock, AR

   
393

 
541

 

   

   
393

 
541

 
934

 
23

 
1988
 
12/18
 
25
    Manhattan, KS

   
333

 
1,078

 

   

   
333

 
1,078

 
1,411

 
32

 
2015
 
12/18
 
35
    Mehlville, MO

   
167

 
1,264

 

   

   
167

 
1,264

 
1,431

 
44

 
2005
 
12/18
 
30
    Midwest City, OK

   
226

 
922

 

   

   
226

 
922

 
1,148

 
38

 
1978
 
12/18
 
25
    Midwest City, OK

   
245

 
980

 

   

   
245

 
980

 
1,225

 
41

 
1978
 
12/18
 
25
    Mission, KS

   
314

 
892

 

   

   
314

 
892

 
1,206

 
31

 
1999
 
12/18
 
30
    Moore, OK

   
196

 
727

 

   

   
196

 
727

 
923

 
30

 
1977
 
12/18
 
25
    Moore, OK

   
530

 
814

 

   

   
530

 
814

 
1,344

 
28

 
2006
 
12/18
 
30
    Muskogee, OK

   
157

 
1,000

 

   

   
157

 
1,000

 
1,157

 
35

 
2000
 
12/18
 
30
    Neosho, MO

   
206

 
971

 

   

   
206

 
971

 
1,177

 
34

 
2007
 
12/18
 
30
    Newcastle, OK

   
176

 
1,225

 

   

   
176

 
1,225

 
1,401

 
43

 
2007
 
12/18
 
30
    Nixa, MO

   
490

 
628

 

   

   
490

 
628

 
1,118

 
22

 
2005
 
12/18
 
30
    Norman, OK

   
353

 
874

 

   

   
353

 
874

 
1,227

 
30

 
1994
 
12/18
 
30
    North Little Rock, AR

   
491

 
432

 

   

   
491

 
432

 
923

 
13

 
2006
 
12/18
 
35
    Oklahoma City, OK

   
433

 
560

 

   

   
433

 
560

 
993

 
19

 
2003
 
12/18
 
30
    Osage Beach, MO

   
245

 
932

 

   

   
245

 
932

 
1,177

 
32

 
2008
 
12/18
 
30
    Park City, KS

   
284

 
1,351

 

   

   
284

 
1,351

 
1,635

 
40

 
2017
 
12/18
 
35
    Pittsburg, KS

   
216

 
1,303

 

   

   
216

 
1,303

 
1,519

 
54

 
1978
 
12/18
 
25
    Platte City, MO

   
392

 
921

 

   

   
392

 
921

 
1,313

 
32

 
2003
 
12/18
 
30
    Sallisaw, OK

   
127

 
1,186

 

   

   
127

 
1,186

 
1,313

 
41

 
2002
 
12/18
 
30
    Sand Springs, OK

   
147

 
1,459

 

   

   
147

 
1,459

 
1,606

 
51

 
1998
 
12/18
 
30
    Sapulpa, OK

   
147

 
1,733

 

   

   
147

 
1,733

 
1,880

 
72

 
1981
 
12/18
 
25
    Shawnee, OK

   
98

 
1,254

 

   

   
98

 
1,254

 
1,352

 
52

 
1980
 
12/18
 
25
    Siloam Springs, AR

   
216

 
1,216

 

   

   
216

 
1,216

 
1,432

 
51

 
1980
 
12/18
 
25
    St. Louis, MO

   
363

 
1,019

 

   

   
363

 
1,019

 
1,382

 
35

 
2008
 
12/18
 
30
    Topeka, KS

   
587

 
1,116

 

   

   
587

 
1,116

 
1,703

 
39

 
2006
 
12/18
 
30
    Tulsa, OK

   
529

 
784

 

   

   
529

 
784

 
1,313

 
33

 
1993
 
12/18
 
25
    Tulsa, OK

   
206

 
1,216

 

   

   
206

 
1,216

 
1,422

 
51

 
1982
 
12/18
 
25
    Tulsa, OK

   
98

 
865

 

   

   
98

 
865

 
963

 
36

 
1981
 
12/18
 
25
    Tulsa, OK

   
539

 
716

 

   

   
539

 
716

 
1,255

 
25

 
1997
 
12/18
 
30
    Tulsa, OK

   
804

 
716

 

   

   
804

 
716

 
1,520

 
25

 
2006
 
12/18
 
30
    Tulsa, OK

   
323

 
1,470

 

   

   
323

 
1,470

 
1,793

 
61

 
1981
 
12/18
 
25
    Union, MO

   
128

 
835

 

   

   
128

 
835

 
963

 
29

 
2006
 
12/18
 
30
    Van Buren, AR

   
334

 
1,187

 

   

   
334

 
1,187

 
1,521

 
41

 
2000
 
12/18
 
30


See accompanying report of independent registered public accounting firm.
F-11


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Vandalia, IL

   
206

 
962

 

   

   
206

 
962

 
1,168

 
40

 
1981
 
12/18
 
25
    Weatherford, OK

   
118

 
1,469

 

   

   
118

 
1,469

 
1,587

 
51

 
1999
 
12/18
 
30
    Wichita, KS

   
98

 
1,089

 

   

   
98

 
1,089

 
1,187

 
45

 
1981
 
12/18
 
25
    Wichita, KS

   
314

 
960

 

   

   
314

 
960

 
1,274

 
33

 
1994
 
12/18
 
30
    Wichita, KS

   
343

 
687

 

   

   
343

 
687

 
1,030

 
20

 
2014
 
12/18
 
35
    Woodward, OK

   
108

 
1,401

 

   

   
108

 
1,401

 
1,509

 
58

 
1982
 
12/18
 
25
    Wagoner, OK

   
157

 
971

 

   

   
157

 
971

 
1,128

 
28

 
1988
 
04/19
 
25
    Mustang, OK

   
285

 
1,403

 

   

   
285

 
1,403

 
1,688

 
16

 
1984
 
09/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

ARCO ampm:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Casa Grande, AZ

   
2,340

 
1,894

 
83

   

   
2,340

 
1,905

 
4,245

 
640

 
1993
 
05/08
 
35
    Gilbert, AZ

   
1,317

 
1,304

 
85

   

   
1,166

 
1,325

 
2,491

 
454

 
1996
 
05/08
 
35
    Globe, AZ

   
762

 
2,148

 
114

   

   
762

 
2,180

 
2,942

 
745

 
1998
 
05/08
 
35
    Mesa, AZ

   
2,219

 
2,140

 
89

   

   
2,219

 
2,170

 
4,389

 
652

 
2000
 
05/08
 
40
    Mesa, AZ

   
1,332

 
1,367

 
92

   

   
1,156

 
1,385

 
2,541

 
548

 
1986
 
05/08
 
30
    Prescott, AZ

   
1,266

 
1,261

 
118

   

   
1,266

 
1,294

 
2,560

 
452

 
1997
 
05/08
 
35
    Scottsdale, AZ

   
1,529

 
1,373

 
240

   

   
1,529

 
1,451

 
2,980

 
534

 
1999
 
05/08
 
35
    Sedona, AZ

   
1,281

 
1,324

 
107

   

   
1,281

 
1,345

 
2,626

 
406

 
2000
 
05/08
 
40
    Tucson, AZ

   
1,223

 
1,911

 
102

   

   
1,223

 
1,932

 
3,155

 
656

 
1996
 
05/08
 
35
    Tucson, AZ

   
1,457

 
1,619

 
125

   

   
1,457

 
1,651

 
3,108

 
570

 
1995
 
05/08
 
35
    Tucson, AZ

   
1,083

 
1,599

 
86

   

   
1,083

 
1,620

 
2,703

 
552

 
1992
 
05/08
 
35
    Tucson, AZ

   
1,105

 
1,336

 
111

   

   
1,105

 
1,358

 
2,463

 
466

 
1992
 
05/08
 
35
    Soldotna, AK

   
180

 
891

 

   

   
180

 
891

 
1,071

 
194

 
1985
 
07/14
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Ashley Furniture:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Altamonte Springs, FL

   
2,906

 
4,877

 
315

   

   
2,906

 
5,192

 
8,098

 
2,874

 
1997
 
09/97
 
40
    Florissant, MO

   
896

 
1,057

 
3,058

   

   
899

 
4,113

 
5,012

 
1,132

 
1996
 
04/03
(g)
40
    Louisville, KY

   
1,667

 
4,989

 

   

   
1,667

 
4,989

 
6,656

 
1,845

 
2005
 
03/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

At Home:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Douglasville, GA

   
1,588

 
3,916

 

   

   
1,588

 
3,916

 
5,504

 
1,477

 
1987
 
06/12
 
20
    Humble, TX

   
3,559

 
5,046

 

   

   
3,559

 
5,046

 
8,605

 
1,522

 
2001
 
06/12
 
25
    Noblesville, IN

   
1,870

 
4,241

 

   

   
1,870

 
4,241

 
6,111

 
1,599

 
1995
 
06/12
 
20
    Sandston, VA

   
1,972

 
6,599

 

   

   
1,972

 
6,599

 
8,571

 
1,991

 
1996
 
06/12
 
25
    Greensboro, NC

   
2,121

 
6,460

 

   

   
2,121

 
6,460

 
8,581

 
1,516

 
1998
 
12/12
 
30
    Greenville, SC

   
1,892

 
5,404

 

   

   
1,727

 
5,404

 
7,131

 
1,162

 
1996
 
08/14
 
25
    Hilliard, OH

   
1,747

 
4,642

 

   

   
1,836

 
4,514

 
6,350

 
941

 
1994
 
10/14
 
25
    San Antonio, TX

   
3,818

 
5,922

 

   

   
3,818

 
5,922

 
9,740

 
896

 
1999
 
06/15
 
30
    Colorado Springs, CO

   
3,173

 
6,928

 

   

   
3,173

 
6,928

 
10,101

 
150

 
1969
 
06/19
 
25
    Kissimmee, FL

   
2,204

 
5,847

 

   

   
2,204

 
5,847

 
8,051

 
127

 
1992
 
06/19
 
25
    O'Fallon, IL

   
2,160

 
7,484

 

   

   
2,160

 
7,484

 
9,644

 
162

 
1998
 
06/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

AT&T:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Cincinnati, OH

   
297

 
443

 
347

   

   
312

 
775

 
1,087

 
343

 
1999
 
06/98
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Auto Solution:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Albuquerque, NM

   
1,113

 

 
1,443

   

   
1,113

 
1,443

 
2,556

 
518

 
2005
 
04/04
(f)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

AutoZone:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Homestead, PA

   
500

 

 
105

   

   
605

 
 (i)

 
605

 
 (i)

 
 (i)
 
02/97
 
(i)
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bandana's BBQ:


   


 


 


   


   


 


 


 


 
 
 
 
 

    St. Peters, MO

   
318

 
640

 

   

   
318

 
640

 
958

 
125

 
1981
 
02/15
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

BankUnited:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Orlando, FL

   
257

 
287

 

   

   
257

 
72

 
329

 
21

 
1988
 
07/92
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bar Louie:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Rochester, NY

   
792

 
1,535

 
204

   

   
756

 
1,733

 
2,489

 
505

 
1995
 
06/07
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Barnes & Noble:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Brandon, FL

   
1,476

 
1,527

 

   

   
1,476

 
1,527

 
3,003

 
954

 
1995
 
08/94
(f)
40
    Glendale, CO

   
3,245

 
2,722

 

   

   
3,245

 
2,722

 
5,967

 
1,718

 
1994
 
09/94
 
40
    Plantation, FL

   
3,616

 
3,498

 

   

   
3,616

 
960

 
4,576

 
199

 
1996
 
05/95
(f)
30
    Freehold, NJ

   
2,917

 
2,261

 

   

   
2,917

 
2,261

 
5,178

 
1,352

 
1995
 
01/96
 
40
    Dayton, OH

   
1,413

 
3,325

 

   

   
1,413

 
3,325

 
4,738

 
1,865

 
1996
 
05/97
 
40
    Redding, CA

   
497

 
1,626

 

   

   
497

 
1,626

 
2,123

 
916

 
1997
 
06/97
 
40
    Memphis, TN

   
1,574

 
2,242

 

   

   
1,574

 
2,242

 
3,816

 
892

 
1997
 
09/97
 
40
    Marlton, NJ

   
2,831

 
4,319

 

   

   
2,709

 
4,319

 
7,028

 
2,281

 
1995
 
11/98
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Batteries Plus Bulbs:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Sunrise, FL

   
287

 
424

 
98

   

   
287

 
521

 
808

 
176

 
1979
 
05/04
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bay County Tax Collector:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lynn Haven, FL

   
797

 
865

 

   

   
797

 
865

 
1,662

 
566

 
1974
 
06/13
 
10
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bealls:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Sarasota, FL

   
1,078

 
1,795

 
143

   

   
1,131

 
1,886

 
3,017

 
760

 
1996
 
09/97
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Beautiful America Dry Cleaners:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Orlando, FL

   
40

 
111

 

   

   
40

 
111

 
151

 
44

 
2001
 
02/04
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bed Bath & Beyond:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Glen Allen, VA

   
1,184

 
2,843

 
262

   

   
1,267

 
3,021

 
4,288

 
1,307

 
1997
 
06/98
 
40
    Glendale, AZ

   
1,082

 

 
2,758

   

   
1,082

 
2,758

 
3,840

 
1,411

 
1999
 
12/98
(g)
40
    Colonie, NY

   
3,119

 
4,130

 

   

   
3,119

 
4,130

 
7,249

 
740

 
1967
 
08/14
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

BEL Furniture:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Beaumont, TX

   
614

 
2,177

 

   

   
614

 
2,177

 
2,791

 
902

 
1992
 
09/11
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Belle Tire:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lansing, MI

   
983

 
2,969

 

   

   
983

 
2,969

 
3,952

 
111

 
2005
 
11/18
 
30
    Lapeer, MI

   
588

 
2,980

 

   

   
588

 
2,980

 
3,568

 
96

 
2013
 
11/18
 
35
    Michigan City, IN

   
665

 
4,537

 

   

   
665

 
4,537

 
5,202

 
146

 
2017
 
11/18
 
35
    Midland, MI

   
308

 
3,538

 

   

   
308

 
3,538

 
3,846

 
133

 
2006
 
11/18
 
30
    Mt. Pleasant, MI

   
308

 
3,740

 

   

   
308

 
3,740

 
4,048

 
120

 
2012
 
11/18
 
35
    Muskegon, MI

   
733

 
3,114

 

   

   
733

 
3,114

 
3,847

 
100

 
2012
 
11/18
 
35
    Northville, MI

   
905

 
5,448

 

   

   
905

 
5,448

 
6,353

 
175

 
2017
 
11/18
 
35
    Gaylord, MI

   
580

 
2,049

 

   

   
580

 
2,049

 
2,629

 
56

 
2018
 
01/19
 
35
    Camby, IN

   
860

 

 
2,264

   

   
860

 
2,264

 
3,124

 
31

 
2019
 
02/19
(m)
40
    Columbus, IN

   
744

 

 
2,435

   

   
744

 
2,435

 
3,179

 
38

 
2019
 
02/19
(m)
40
    Greenfield, IN

   
570

 

 
2,342

   

   
570

 
2,342

 
2,912

 
32

 
2019
 
02/19
(m)
40
    Greenwood, IN

   
281

 
2,297

 

   

   
281

 
2,297

 
2,578

 
45

 
2019
 
03/19
 
40
    Cumberland, IN

   
464

 
2,223

 

   

   
464

 
2,223

 
2,687

 
44

 
2019
 
03/19
 
40
    Plainfield, IN

   
713

 

 
2,419

   

   
713

 
2,419

 
3,132

 
33

 
2019
 
03/19
(m)
40
    Indianapolis, IN

   
513

 

 
2,489

   

   
513

 
2,489

 
3,002

 
23

 
2019
 
05/19
(m)
40
    Whitestown, IN

   
912

 

 
3,340

   

   
912

 
3,340

 
4,252

 
24

 
2019
 
05/19
(m)
40
    Bloomington, IN

   
883

 

 
2,632

   

   
883

 
2,632

 
3,515

 
19

 
2019
 
05/19
(m)
(k)
    Lawrence, IN

   
463

 

 
2,790

   

   
463

 
2,790

 
3,253

 
15

 
2019
 
06/19
(m)
40
    Merrillville, IN

   
793

 

 
3,048

   

   
793

 
3,048

 
3,841

 
22

 
2019
 
07/19
(m)
40
    Petoskey, MI

   
822

 
2,146

 

   

   
822

 
2,146

 
2,968

 
20

 
2019
 
08/19
 
40
    Fishers, IN

   
777

 

 

   

   
777

 
 (e)

 
777

 
 (e)

 
 (e)
 
10/19
(m)
(e)
    Brownsburg, IN

   
938

 

 

   

   
938

 
 (e)

 
938

 
 (e)

 
 (e)
 
10/19
(m)
(e)
    Lafayette, IN

   
493

 

 

   

   
493

 
 (e)

 
493

 
 (e)

 
 (e)
 
11/19
(m)
(e)
    Terre Haute, IN

   
838

 

 

   

   
838

 
 (e)

 
838

 
 (e)

 
 (e)
 
11/19
(m)
(e)
    West Lafayette, IN

   
673

 

 

   

   
673

 
 (e)

 
673

 
 (e)

 
 (e)
 
11/19
(m)
(e)
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Best Buy:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Brandon, FL

   
2,985

 
2,772

 

   

   
2,985

 
2,772

 
5,757

 
1,585

 
1996
 
02/97
 
40
    Cuyahoga Falls, OH

   
3,709

 
2,359

 

   

   
3,703

 
2,359

 
6,062

 
1,330

 
1988
 
06/97
 
40
    Rockville, MD

   
6,233

 
3,419

 

   

   
6,233

 
3,419

 
9,652

 
1,920

 
1995
 
07/97
 
40
    Fairfax, VA

   
3,052

 
3,218

 

   

   
3,052

 
3,218

 
6,270

 
1,800

 
1995
 
08/97
 
40
    St Petersburg, FL

   
4,032

 
2,611

 

   

   
4,032

 
2,611

 
6,643

 
1,312

 
1997
 
09/97
 
35
    North Fayette, PA

   
2,331

 
2,293

 

   

   
2,331

 
2,293

 
4,624

 
1,235

 
1997
 
06/98
 
40
    Denver, CO

   
8,882

 
4,373

 

   

   
8,882

 
4,373

 
13,255

 
2,027

 
1991
 
06/01
 
40
    Albuquerque, NM

   
2,157

 
3,132

 

   

   
2,157

 
3,132

 
5,289

 
1,039

 
1992
 
09/11
 
25
    Arlington, TX

   
1,372

 
3,890

 

   

   
1,372

 
3,890

 
5,262

 
1,290

 
1991
 
09/11
 
25
    Fort Collins, CO

   
2,054

 
3,346

 

   

   
2,054

 
3,346

 
5,400

 
1,110

 
1992
 
09/11
 
25
    Fort Worth, TX

   
687

 
2,177

 

   

   
687

 
2,177

 
2,864

 
602

 
1992
 
09/11
 
30
    Houston, TX

   
1,409

 
3,095

 

   

   
1,301

 
3,003

 
4,304

 
830

 
1992
 
09/11
 
30
    Nashua, NH

   
1,028

 
7,052

 

   

   
1,028

 
7,052

 
8,080

 
1,949

 
1999
 
09/11
 
30
    North Attleborough, MA

   
2,761

 
4,165

 

   

   
2,761

 
4,165

 
6,926

 
1,151

 
1999
 
09/11
 
30
    Schaumburg, IL

   
3,170

 
4,784

 

   

   
3,170

 
4,784

 
7,954

 
1,984

 
1965
 
09/11
 
20
    Virginia Beach, VA

   
3,140

 
4,276

 

   

   
3,140

 
4,276

 
7,416

 
1,182

 
1999
 
09/11
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Big Lots:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Dover, NJ

   
1,138

 
3,238

 
732

   

   
1,138

 
3,970

 
5,108

 
1,920

 
1995
 
11/98
 
40
    Florence, AL

   
1,034

 

 
4,857

   

   
851

 
4,857

 
5,708

 
810

 
2012
 
06/04
(m)
40
    Webster Groves, MO

   
1,061

 
1,467

 

   

   
1,061

 
1,467

 
2,528

 
167

 
1970
 
04/18
 
15
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Big Sky Mattress:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Helena, MT

   
658

 
1,568

 

   

   
658

 
1,568

 
2,226

 
175

 
2015
 
03/15
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bishop Family Insurance Agency:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Spotsylvania, VA

   
1,398

 
1,158

 
11

   

   
288

 
210

 
498

 
200

 
1964
 
06/13
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

BJ's Wholesale Club:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Orlando, FL

   
3,271

 
8,627

 
357

   

   
3,267

 
8,966

 
12,233

 
3,545

 
2001
 
02/04
 
40
    Fairfax, VA

   
6,792

 
14,941

 

   

   
6,706

 
14,941

 
21,647

 
4,130

 
1992
 
09/11
 
30
    Hamilton, NJ

   
3,166

 
29,373

 

   

   
3,166

 
29,373

 
32,539

 
6,959

 
2002
 
09/11
 
35
    Hialeah, FL

   
4,792

 
14,067

 

   

   
4,792

 
14,067

 
18,859

 
3,888

 
2000
 
09/11
 
30
    Roxbury, NJ

   
3,040

 
16,168

 

   

   
3,040

 
16,168

 
19,208

 
5,362

 
1993
 
09/11
 
25
    W. Hartford, CT

   
2,846

 
14,299

 

   

   
2,846

 
14,299

 
17,145

 
3,952

 
1996
 
09/11
 
30
    Cape Coral, FL

   
2,783

 
13,710

 

   

   
2,783

 
13,710

 
16,493

 
1,733

 
2005
 
03/16
 
30
    Voorhees, NJ

   
3,103

 
14,055

 

   

   
3,103

 
14,055

 
17,158

 
1,737

 
2004
 
04/16
 
30
    Manchester, NH

   
5,009

 
14,053

 

   

   
5,009

 
14,053

 
19,062

 
839

 
1990
 
03/18
 
30
    Auburn, MA

   
3,371

 
9,718

 

   

   
3,371

 
9,718

 
13,089

 
113

 
1992
 
09/19
 
25
    Stoughton, MA

   
5,251

 
10,735

 

   

   
5,251

 
10,735

 
15,986

 
125

 
1991
 
09/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

BMW:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Duluth, GA

   
4,434

 
4,080

 
6,559

   

   
4,504

 
10,639

 
15,143

 
3,830

 
1984
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bob Evans:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Amherst, NY

   
422

 
971

 

   

   
422

 
971

 
1,393

 
120

 
1994
 
04/16
 
30
    Ashland, KY

   
383

 
913

 

   

   
383

 
913

 
1,296

 
113

 
2003
 
04/16
 
30
    Avon, IN

   
432

 
609

 

   

   
414

 
609

 
1,023

 
75

 
2004
 
04/16
 
30
    Baltimore, MD

   
1,138

 
196

 

   

   
1,138

 
196

 
1,334

 
24

 
1993
 
04/16
 
30
    Batavia, NY

   
599

 
657

 

   

   
599

 
657

 
1,256

 
81

 
1996
 
04/16
 
30
    Beachwood, OH

   
542

 
108

 

   

   
542

 
108

 
650

 
13

 
2004
 
04/16
 
30


See accompanying report of independent registered public accounting firm.
F-12


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Beavercreek, OH

   
570

 
334

 

   

   
570

 
334

 
904

 
41

 
2003
 
04/16
 
30
    Beckley, WV

   
579

 
824

 

   

   
579

 
824

 
1,403

 
103

 
1992
 
04/16
 
30
    Bel Air, MD

   
911

 
1,147

 

   

   
911

 
1,147

 
2,058

 
142

 
1995
 
04/16
 
30
    Benton Harbor, MI

   
157

 
1,079

 

   

   
157

 
1,079

 
1,236

 
133

 
1989
 
04/16
 
30
    Blue Springs, MO

   
550

 
462

 

   

   
550

 
462

 
1,012

 
57

 
1996
 
04/16
 
30
    Brook Park, OH

   
570

 
570

 

   

   
570

 
570

 
1,140

 
70

 
2002
 
04/16
 
30
    Camby, IN

   
510

 
932

 

   

   
510

 
932

 
1,442

 
115

 
2002
 
04/16
 
30
    Canton, MI

   
776

 
167

 

   

   
776

 
167

 
943

 
21

 
2002
 
04/16
 
30
    Canton, MI

   
804

 
589

 

   

   
804

 
589

 
1,393

 
73

 
2003
 
04/16
 
30
    Chesterfield Twp, MI

   
746

 
491

 

   

   
746

 
491

 
1,237

 
61

 
2003
 
04/16
 
30
    Chillicothe, OH

   
334

 
727

 

   

   
266

 
702

 
968

 
87

 
1995
 
04/16
 
30
    Cincinnati, OH

   
482

 
295

 

   

   
480

 
295

 
775

 
36

 
1997
 
04/16
 
30
    Cincinnati, OH

   
500

 
1,323

 

   

   
500

 
1,323

 
1,823

 
164

 
1999
 
04/16
 
30
    Clarksville, IN

   
726

 
794

 

   

   
726

 
794

 
1,520

 
98

 
2000
 
04/16
 
30
    Clearwater, FL

   
520

 
648

 

   

   
520

 
648

 
1,168

 
96

 
1986
 
04/16
 
25
    Clermont, FL

   
1,011

 
49

 

   

   
1,011

 
49

 
1,060

 
6

 
2006
 
04/16
 
30
    Coldwater, MI

   
324

 
1,020

 

   

   
324

 
1,020

 
1,344

 
151

 
1995
 
04/16
 
25
    Columbia, MO

   
491

 
521

 

   

   
491

 
521

 
1,012

 
64

 
1997
 
04/16
 
30
    Columbus, IN

   
696

 
1,117

 

   

   
696

 
1,117

 
1,813

 
118

 
2005
 
04/16
 
35
    Columbus, OH

   
647

 
1,010

 

   

   
647

 
1,010

 
1,657

 
125

 
1994
 
04/16
 
30
    Columbus, OH

   
432

 
961

 

   

   
432

 
961

 
1,393

 
143

 
1985
 
04/16
 
25
    Corning, NY

   
196

 
1,412

 

   

   
196

 
1,412

 
1,608

 
175

 
1996
 
04/16
 
30
    Cross Lanes, WV

   
354

 
600

 

   

   
354

 
600

 
954

 
89

 
1987
 
04/16
 
25
    Dearborn, MI

   
560

 
579

 

   

   
560

 
579

 
1,139

 
86

 
1984
 
04/16
 
25
    Dublin, OH

   
697

 
677

 

   

   
697

 
677

 
1,374

 
100

 
1985
 
04/16
 
25
    Dublin, OH

   
804

 
559

 

   

   
804

 
559

 
1,363

 
69

 
1996
 
04/16
 
30
    Dunkirk, NY

   
392

 
1,353

 

   

   
392

 
1,353

 
1,745

 
167

 
1994
 
04/16
 
30
    Erie, PA

   
941

 
902

 

   

   
941

 
902

 
1,843

 
134

 
1990
 
04/16
 
25
    Erie, PA

   
451

 
765

 

   

   
451

 
765

 
1,216

 
95

 
1998
 
04/16
 
30
    Fairfield, OH

   
138

 
776

 

   

   
138

 
776

 
914

 
96

 
1999
 
04/16
 
30
    Fayetteville, WV

   
392

 
1,285

 

   

   
392

 
1,285

 
1,677

 
159

 
2006
 
04/16
 
30
    Festus, MO

   
451

 
1,020

 

   

   
451

 
1,020

 
1,471

 
151

 
1990
 
04/16
 
25
    Fort Wayne, IN

   
795

 
451

 

   

   
795

 
451

 
1,246

 
56

 
1997
 
04/16
 
30
    Fort Wayne, IN

   
765

 
716

 

   

   
736

 
716

 
1,452

 
88

 
2003
 
04/16
 
30


See accompanying report of independent registered public accounting firm.
F-13


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Franklin, IN

   
245

 
1,011

 

   

   
245

 
1,011

 
1,256

 
125

 
2003
 
04/16
 
30
    Frederick, MD

   
491

 
491

 

   

   
491

 
491

 
982

 
61

 
1995
 
04/16
 
30
    Gahanna, OH

   
755

 
1,176

 

   

   
755

 
1,176

 
1,931

 
145

 
1994
 
04/16
 
30
    Gaylord, MI

   
618

 
922

 

   

   
618

 
922

 
1,540

 
114

 
1997
 
04/16
 
30
    Greenfield, IN

   
246

 
766

 

   

   
246

 
766

 
1,012

 
95

 
1994
 
04/16
 
30
    Greenwood, IN

   
481

 
883

 

   

   
481

 
883

 
1,364

 
109

 
2002
 
04/16
 
30
    Groveport, OH

   
549

 
1,078

 

   

   
549

 
1,078

 
1,627

 
133

 
2003
 
04/16
 
30
    Harborcreek, PA

   
510

 
609

 

   

   
510

 
609

 
1,119

 
75

 
2004
 
04/16
 
30
    Heath, OH

   
363

 
1,323

 

   

   
363

 
1,323

 
1,686

 
196

 
1986
 
04/16
 
25
    Hillsboro, OH

   
245

 
1,285

 

   

   
245

 
1,285

 
1,530

 
159

 
2004
 
04/16
 
30
    Holland, OH

   
804

 
843

 

   

   
804

 
843

 
1,647

 
125

 
1987
 
04/16
 
25
    Indianapolis, IN

   
559

 
1,088

 

   

   
559

 
1,088

 
1,647

 
135

 
2001
 
04/16
 
30
    Indianapolis, IN

   
569

 
1,157

 

   

   
569

 
1,157

 
1,726

 
143

 
2000
 
04/16
 
30
    Indianapolis, IN

   
765

 
765

 

   

   
765

 
765

 
1,530

 
113

 
1985
 
04/16
 
25
    Jackson, MI

   
608

 
1,029

 

   

   
608

 
1,029

 
1,637

 
127

 
2002
 
04/16
 
30
    Jacksonville, FL

   
696

 
696

 

   

   
696

 
696

 
1,392

 
86

 
2002
 
04/16
 
30
    Jamestown, NY

   
334

 
697

 

   

   
334

 
697

 
1,031

 
86

 
1995
 
04/16
 
30
    Lakeland, FL

   
618

 
540

 

   

   
618

 
540

 
1,158

 
67

 
2005
 
04/16
 
30
    Lancaster, PA

   
647

 
687

 

   

   
647

 
687

 
1,334

 
85

 
1997
 
04/16
 
30
    Lansing, MI

   
588

 
873

 

   

   
588

 
873

 
1,461

 
108

 
2001
 
04/16
 
30
    Laurel, MD

   
716

 
990

 

   

   
716

 
990

 
1,706

 
122

 
1998
 
04/16
 
30
    Lewis Center, OH

   
608

 
1,049

 

   

   
608

 
1,049

 
1,657

 
130

 
2001
 
04/16
 
30
    Lewisburg, WV

   
354

 
619

 

   

   
354

 
619

 
973

 
77

 
2003
 
04/16
 
30
    Lexington, KY

   
432

 
619

 

   

   
432

 
619

 
1,051

 
77

 
2001
 
04/16
 
30
    Linthicum Heights, MD

   
687

 
755

 

   

   
687

 
755

 
1,442

 
93

 
2004
 
04/16
 
30
    Livonia, MI

   
716

 
755

 

   

   
716

 
755

 
1,471

 
112

 
1982
 
04/16
 
25
    Logan, WV

   
314

 
1,285

 

   

   
314

 
1,285

 
1,599

 
159

 
1999
 
04/16
 
30
    Logansport, IN

   
118

 
1,148

 

   

   
118

 
1,148

 
1,266

 
142

 
1994
 
04/16
 
30
    London, OH

   
235

 
1,060

 

   

   
235

 
1,060

 
1,295

 
131

 
2004
 
04/16
 
30
    Louisville, KY

   
815

 
432

 

   

   
815

 
432

 
1,247

 
53

 
2003
 
04/16
 
30
    Madison Heights, MI

   
599

 
667

 

   

   
599

 
667

 
1,266

 
82

 
2000
 
04/16
 
30
    Mansfield, OH

   
275

 
1,069

 

   

   
275

 
1,069

 
1,344

 
132

 
2005
 
04/16
 
30
    Marion, IL

   
344

 
658

 

   

   
344

 
658

 
1,002

 
81

 
1997
 
04/16
 
30
    Marion, IN

   
443

 
364

 

   

   
443

 
364

 
807

 
45

 
1996
 
04/16
 
30


See accompanying report of independent registered public accounting firm.
F-14


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Martinsburg, WV

   
815

 
491

 

   

   
815

 
491

 
1,306

 
61

 
1992
 
04/16
 
30
    Maumee, OH

   
766

 
295

 

   

   
766

 
295

 
1,061

 
36

 
2000
 
04/16
 
30
    Medina, OH

   
402

 
922

 

   

   
402

 
922

 
1,324

 
137

 
1988
 
04/16
 
25
    Mentor, OH

   
667

 
1,039

 

   

   
667

 
1,039

 
1,706

 
128

 
1995
 
04/16
 
30
    Merrillville, IN

   
942

 
422

 

   

   
942

 
422

 
1,364

 
52

 
2004
 
04/16
 
30
    Moon Township, PA

   
452

 
521

 

   

   
452

 
521

 
973

 
77

 
1984
 
04/16
 
25
    Morgantown, WV

   
1,000

 
990

 

   

   
1,000

 
990

 
1,990

 
122

 
1992
 
04/16
 
30
    New Albany, OH

   
539

 
1,431

 

   

   
539

 
1,431

 
1,970

 
177

 
2002
 
04/16
 
30
    New Castle, PA

   
461

 
912

 

   

   
461

 
912

 
1,373

 
113

 
2005
 
04/16
 
30
    Ocala, FL

   
608

 
1,137

 

   

   
608

 
1,137

 
1,745

 
141

 
2000
 
04/16
 
30
    Ocala, FL

   
853

 
706

 

   

   
853

 
706

 
1,559

 
87

 
2005
 
04/16
 
30
    Oxford, OH

   
294

 
1,216

 

   

   
294

 
1,216

 
1,510

 
150

 
1994
 
04/16
 
30
    Perrysburg, OH

   
795

 
363

 

   

   
795

 
363

 
1,158

 
45

 
2001
 
04/16
 
30
    Perrysburg, OH

   
559

 
990

 

   

   
559

 
990

 
1,549

 
147

 
1984
 
04/16
 
25
    Pickerington, OH

   
519

 
1,509

 

   

   
519

 
1,509

 
2,028

 
187

 
1999
 
04/16
 
30
    Pittsburgh, PA

   
491

 
687

 

   

   
491

 
687

 
1,178

 
102

 
1985
 
04/16
 
25
    Port Orange, FL

   
648

 
491

 

   

   
648

 
491

 
1,139

 
61

 
2002
 
04/16
 
30
    Powell, OH

   
824

 
706

 

   

   
824

 
706

 
1,530

 
87

 
2004
 
04/16
 
30
    Princeton, WV

   
363

 
1,255

 

   

   
363

 
1,255

 
1,618

 
155

 
1998
 
04/16
 
30
    Richmond, IN

   
363

 
1,001

 

   

   
363

 
1,001

 
1,364

 
106

 
2003
 
04/16
 
35
    Rio Grande, OH

   
314

 
1,333

 

   

   
314

 
1,333

 
1,647

 
198

 
1962
 
04/16
 
25
    Romulus, MI

   
902

 
628

 

   

   
902

 
628

 
1,530

 
93

 
1988
 
04/16
 
25
    Saginaw, MI

   
648

 
481

 

   

   
648

 
481

 
1,129

 
71

 
1987
 
04/16
 
25
    Salisbury, MD

   
913

 
471

 

   

   
913

 
471

 
1,384

 
58

 
1997
 
04/16
 
30
    Somerset, KY

   
245

 
1,295

 

   

   
245

 
1,295

 
1,540

 
160

 
1995
 
04/16
 
30
    South Bloomfield, OH

   
177

 
1,236

 

   

   
177

 
1,236

 
1,413

 
153

 
2005
 
04/16
 
30
    South Euclid, OH

   
216

 
933

 

   

   
216

 
933

 
1,149

 
99

 
2012
 
04/16
 
35
    St. Louis, MO

   
697

 
589

 

   

   
697

 
589

 
1,286

 
87

 
1986
 
04/16
 
25
    St. Petersburg, FL

   
727

 
324

 

   

   
727

 
324

 
1,051

 
48

 
1986
 
04/16
 
25
    Stafford, VA

   
764

 
1,225

 

   

   
764

 
1,225

 
1,989

 
151

 
2004
 
04/16
 
30
    Toledo, OH

   
745

 
1,225

 

   

   
745

 
1,225

 
1,970

 
182

 
1990
 
04/16
 
25
    Waldorf, MD

   
844

 
657

 

   

   
844

 
657

 
1,501

 
81

 
2004
 
04/16
 
30
    Washington C H, OH

   
304

 
923

 

   

   
304

 
923

 
1,227

 
114

 
1993
 
04/16
 
30
    Washington, PA

   
579

 
501

 

   

   
579

 
501

 
1,080

 
62

 
2003
 
04/16
 
30


See accompanying report of independent registered public accounting firm.
F-15


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Watertown, NY

   
196

 
1,461

 

   

   
196

 
1,461

 
1,657

 
181

 
1996
 
04/16
 
30
    Waverly, OH

   
226

 
1,226

 

   

   
226

 
1,226

 
1,452

 
152

 
1995
 
04/16
 
30
    West Chester, OH

   
765

 
706

 

   

   
765

 
706

 
1,471

 
87

 
1999
 
04/16
 
30
    Wilmington, OH

   
216

 
1,392

 

   

   
216

 
1,392

 
1,608

 
172

 
1993
 
04/16
 
30
    Woodhaven, MI

   
511

 
599

 

   

   
511

 
599

 
1,110

 
74

 
2000
 
04/16
 
30
    Wooster, OH

   
216

 
1,109

 

   

   
216

 
1,109

 
1,325

 
137

 
1995
 
04/16
 
30
    Zanesville, OH

   
363

 
746

 

   

   
363

 
746

 
1,109

 
92

 
2003
 
04/16
 
30
    Zanesville, OH

   
314

 
1,333

 

   

   
314

 
1,333

 
1,647

 
165

 
2000
 
04/16
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bob's Discount Furniture:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Merrillville, IN

   
981

 

 
7,285

   

   
981

 
7,285

 
8,266

 
660

 
2016
 
09/15
(m)
40
    Wharton, NJ

   
1,894

 
4,899

 

   

   
1,894

 
4,899

 
6,793

 
429

 
1981
 
05/17
 
30
    Madison, WI

   
686

 
2,723

 

   

   
686

 
2,723

 
3,409

 
68

 
1997
 
05/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bombones Sports Bar:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Dallas, TX

   
1,138

 
1,025

 
370

   

   
1,138

 
936

 
2,074

 
461

 
1994
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Bonefish:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Mobile, AL

   
801

 
2,137

 

   

   
801

 
2,137

 
2,938

 
476

 
2006
 
03/12
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Books-A-Million:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Newark, DE

   
2,394

 
4,789

 
33

   

   
2,366

 
4,822

 
7,188

 
3,002

 
1994
 
12/94
 
40
    Bangor, ME

   
1,547

 
2,487

 

   

   
1,547

 
2,487

 
4,034

 
1,463

 
1996
 
06/96
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Boot Barn:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lake Charles, LA

   
652

 
1,734

 

   

   
652

 
1,734

 
2,386

 
188

 
1998
 
04/17
 
25
    Mesquite, TX

   
1,375

 
3,849

 

   

   
1,375

 
3,849

 
5,224

 
122

 
1981
 
03/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Boston Market:


   


 


 


   


   


 


 


 


 
 
 
 
 

    North Olmsted, OH

   
602

 
461

 

   

   
602

 
389

 
991

 
176

 
1996
 
12/01
 
40
    Novi, MI

   
836

 
651

 

   

   
836

 
298

 
1,134

 
138

 
1995
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

BP:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Jeannette, PA

   
79

 
235

 

   

   
79

 
235

 
314

 
51

 
1995
 
07/14
 
25


See accompanying report of independent registered public accounting firm.
F-16


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Buck's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    St. Louis, MO

   
776

 

 
3,822

   

   
776

 
3,822

 
4,598

 
1,023

 
2009
 
12/07
(o)
40
    Glendale Heights, IL

   
1,662

 

 
3,101

   

   
1,662

 
3,101

 
4,763

 
307

 
2016
 
03/14
(m)
40
    Omaha, NE

   
2,662

 

 
3,356

   

   
2,662

 
3,356

 
6,018

 
318

 
2016
 
05/15
(m)
40
    Council Bluffs, IA

   
374

 
2,187

 
386

   

   
376

 
2,573

 
2,949

 
380

 
2015
 
06/15
(m)
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Buffalo Wild Wings:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Michigan City, IN

   
163

 
492

 

   

   
163

 
492

 
655

 
222

 
1996
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Burger King:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Clifton Park, NY

   
199

 
1,639

 

   

   
199

 
1,639

 
1,838

 
228

 
2004
 
02/15
 
35
    Colorado Springs, CO

   
638

 
1,047

 

   

   
638

 
1,047

 
1,685

 
204

 
1978
 
02/15
 
25
    Durham, NC

   
566

 
555

 

   

   
566

 
555

 
1,121

 
90

 
1998
 
02/15
 
30
    Durham, NC

   
604

 
581

 

   

   
604

 
581

 
1,185

 
94

 
2005
 
02/15
 
30
    Farmington, ME

   
461

 
708

 

   

   
461

 
708

 
1,169

 
115

 
1980
 
02/15
 
30
    Yakima, WA

   
596

 
1,110

 

   

   
596

 
1,110

 
1,706

 
180

 
1979
 
02/15
 
30
    Fairfield, OH

   
382

 
1,146

 
350

   

   
382

 
1,496

 
1,878

 
159

 
1984
 
03/15
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Burlington Coat Factory:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lacey, WA

   
2,777

 
7,082

 
3,617

   

   
2,777

 
10,700

 
13,477

 
4,816

 
1992
 
02/97
 
40
    Chesterfield, MO

   
2,742

 
6,469

 
147

   

   
2,742

 
6,616

 
9,358

 
738

 
2015
 
04/15
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

C&C Gymnastics:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Augusta, GA

   
177

 
674

 

   

   
177

 
674

 
851

 
304

 
1998
 
12/01
 
40
 


 


 


 


 


 


 


 


 


 
 
 
 
 

Cafe Royal:


   


 


 


   


   


 


 


 


 
 
 
 
 

    New Castle, IN

   
113

 
19

 

   

   
113

 
19

 
132

 
6

 
1991
 
07/11
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Caliber Collision:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Alvin, TX

   
400

 
712

 

   

   
400

 
712

 
1,112

 
316

 
1984
 
02/11
 
20
    Galveston, TX

   
361

 
789

 

   

   
361

 
789

 
1,150

 
350

 
1965
 
02/11
 
20
    Houston, TX

   
348

 
1,731

 

   

   
348

 
1,731

 
2,079

 
614

 
1987
 
02/11
 
25
    Copperas Cove, TX

   
269

 
1,436

 

   

   
269

 
1,436

 
1,705

 
327

 
1972
 
01/12
 
35
    Killeen, TX

   
408

 
2,171

 

   

   
408

 
2,171

 
2,579

 
691

 
1986
 
01/12
 
25


See accompanying report of independent registered public accounting firm.
F-17


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Austin, TX

   
1,071

 
3,412

 

   

   
1,071

 
3,412

 
4,483

 
1,075

 
1975
 
02/12
 
25
    Gilbert, AZ

   
474

 
1,543

 

   

   
474

 
1,543

 
2,017

 
392

 
2003
 
05/12
 
30
    Spring, TX

   
913

 
2,307

 

   

   
913

 
2,307

 
3,220

 
580

 
2006
 
06/12
 
30
    Tomball, TX

   
414

 
1,281

 

   

   
414

 
1,281

 
1,695

 
276

 
2009
 
06/12
 
35
    Edmond, OK

   
472

 
1,437

 

   

   
472

 
1,437

 
1,909

 
325

 
1964
 
03/13
 
30
    Duluth, GA

   
855

 
2,791

 

   

   
853

 
2,791

 
3,644

 
322

 
1996
 
07/16
 
30
    San Antonio, TX

   
717

 
2,768

 

   

   
717

 
2,768

 
3,485

 
383

 
1984
 
07/16
 
25
    Naperville, IL

   
305

 
1,145

 

   

   
305

 
1,145

 
1,450

 
55

 
1993
 
10/18
 
25
    Naperville, IL

   
211

 
1,163

 

   

   
211

 
1,163

 
1,374

 
70

 
1985
 
10/18
 
20
    Schiller Park, IL

   
439

 
2,374

 

   

   
439

 
2,374

 
2,813

 
143

 
1970
 
10/18
 
20
    Mansfield, TX

   
499

 
3,454

 

   

   
499

 
3,454

 
3,953

 
83

 
2018
 
01/19
 
40
    Turnersville, NJ

   
936

 
3,988

 

   

   
936

 
3,988

 
4,924

 
127

 
1988
 
01/19
 
30
    Rockford, IL

   
333

 
1,937

 

   

   
333

 
1,937

 
2,270

 
68

 
1998
 
02/19
 
25
    Pembroke Pines, FL

   
1,637

 
3,480

 

   

   
1,637

 
3,480

 
5,117

 
69

 
2018
 
03/19
 
40
    Altamonte Springs, FL

   
875

 
4,124

 

   

   
875

 
4,124

 
4,999

 
82

 
2019
 
03/19
 
40
    Huntersville, NC

   
1,414

 
3,154

 

   

   
1,414

 
3,154

 
4,568

 
43

 
2019
 
06/19
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Camping World:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Vacaville, CA

   
2,467

 
6,575

 

   

   
2,467

 
6,575

 
9,042

 
1,777

 
2008
 
07/10
 
35
    North Little Rock, AR

   
1,198

 
3,348

 
5,596

   

   
1,789

 
8,363

 
10,152

 
1,310

 
2007
 
09/10
(m)
35
    Strafford, MO

   
1,278

 
3,694

 
2,099

   

   
1,846

 
5,225

 
7,071

 
1,205

 
2007
 
09/10
(o)
35
    Avondale, AZ

   
1,976

 
3,040

 
3,200

   

   
1,976

 
6,239

 
8,215

 
1,385

 
2009
 
05/11
(o)
35
    Mesa, AZ

   
3,972

 
2,046

 
981

   

   
3,975

 
3,027

 
7,002

 
994

 
1983
 
05/11
 
25
    Bowling Green, KY

   
584

 
2,481

 

   

   
584

 
2,481

 
3,065

 
600

 
2007
 
07/11
 
35
    Council Bluffs, IA

   
2,013

 
2,806

 
2,187

   

   
2,955

 
4,048

 
7,003

 
792

 
2008
 
07/11
(o)
35
    Roanoke, VA

   
2,046

 
5,050

 
2,590

   

   
3,563

 
6,122

 
9,685

 
1,319

 
2008
 
07/11
 
35
    Golden, CO

   
5,516

 

 
8,175

   

   
6,446

 
7,246

 
13,692

 
1,332

 
2012
 
10/11
(m)
40
    Kissimmee, FL

   
1,578

 
2,783

 

   

   
1,578

 
2,783

 
4,361

 
895

 
1979
 
12/11
 
25
    La Mirada, CA

   
3,593

 
911

 

   

   
3,577

 
907

 
4,484

 
243

 
1996
 
12/11
 
30
    Nashville, TN

   
1,155

 
1,034

 
5,665

   

   
3,626

 
4,235

 
7,861

 
916

 
1985
 
12/11
(o)
40
    Valencia, CA

   
4,788

 
4,191

 

   

   
4,766

 
4,179

 
8,945

 
1,344

 
1980
 
12/11
 
25
    Calera, AL

   
1,204

 
3,075

 

   

   
1,204

 
3,075

 
4,279

 
685

 
2008
 
03/12
 
35
    Cocoa, FL

   
1,194

 
1,876

 

   

   
1,194

 
1,876

 
3,070

 
466

 
1981
 
07/12
 
30
    Dover, FL

   
2,431

 
9,658

 
3,047

   

   
5,478

 
9,658

 
15,136

 
1,841

 
2013
 
01/13
 
35
    Grain Valley, MO

   
1,210

 
2,908

 
3,441

   

   
2,533

 
5,026

 
7,559

 
738

 
2003
 
09/13
(o)
35
    Lubbock, TX

   
775

 
3,998

 

   

   
775

 
3,998

 
4,773

 
838

 
1997
 
09/13
 
30
    Olive Branch, MS

   
3,163

 

 
3,836

   

   
3,163

 
3,836

 
6,999

 
523

 
2014
 
11/13
(m)
40
    Cedar Falls, IA

   
1,924

 
3,810

 
1,158

   

   
1,924

 
4,968

 
6,892

 
914

 
2004
 
03/14
(o)
30
    Akron, OH

   
1,221

 
7,868

 

   

   
1,221

 
7,868

 
9,089

 
1,508

 
1991
 
03/15
 
25
    Anniston, AL

   
3,206

 
5,328

 
1,264

   

   
3,206

 
6,594

 
9,800

 
1,017

 
2007
 
03/15
(o)
30
    Richmond, IN

   
1,096

 
1,424

 
3,104

   

   
2,062

 
3,562

 
5,624

 
467

 
1998
 
03/15
(o)
35
    Marion, NC

   
1,712

 
5,317

 

   

   
1,712

 
5,317

 
7,029

 
966

 
2003
 
06/15
 
25
    Syracuse, NY

   
1,070

 
8,573

 

   

   
1,070

 
8,573

 
9,643

 
1,298

 
2001
 
06/15
 
30
    Jackson, MS

   
1,690

 
4,241

 

   

   
1,690

 
4,241

 
5,931

 
464

 
2015
 
08/15
 
40
    Davenport, IA

   
1,535

 
4,498

 

   

   
1,535

 
4,498

 
6,033

 
394

 
1992
 
05/17
 
30
    Thornburg, VA

   
1,698

 
3,860

 

   

   
1,698

 
3,860

 
5,558

 
405

 
1989
 
05/17
 
25
    Anderson, CA

   
763

 
2,450

 

   

   
763

 
2,450

 
3,213

 
85

 
2004
 
12/18
 
30
    Apollo, PA

   
303

 
2,324

 

   

   
303

 
2,324

 
2,627

 
69

 
2015
 
12/18
 
35
    Bartow, FL

   
1,005

 
4,573

 

   

   
1,005

 
4,573

 
5,578

 
159

 
2001
 
12/18
 
30
    Dothan, AL

   
1,245

 
3,337

 

   

   
1,245

 
3,337

 
4,582

 
139

 
1991
 
12/18
 
25
    Greenwood, IN

   
2,170

 
4,323

 

   

   
2,170

 
4,323

 
6,493

 
180

 
1990
 
12/18
 
25
    Lubbock, TX

   
512

 
1,314

 

   

   
512

 
1,314

 
1,826

 
55

 
1985
 
12/18
 
25
    Newport News, VA

   
2,697

 
4,342

 

   

   
2,697

 
4,342

 
7,039

 
151

 
2004
 
12/18
 
30
    Oklahoma City, OK

   
635

 
4,378

 

   

   
635

 
4,378

 
5,013

 
152

 
2012
 
12/18
 
30
    Alvarado, TX

   
688

 
11,899

 

   

   
688

 
11,899

 
12,587

 
333

 
2008
 
02/19
 
30
    Pasco, WA

   
1,708

 
6,321

 

   

   
1,708

 
6,321

 
8,029

 
68

 
2017
 
08/19
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Captain D's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Tupelo, MS

   
360

 
517

 

   

   
360

 
517

 
877

 
84

 
1999
 
02/15
 
30
    Ft. Worth, TX

   
254

 
563

 

   

   
254

 
563

 
817

 
135

 
1982
 
03/15
 
20
    Kingsland, GA

   
570

 

 
844

   

   
570

 
844

 
1,414

 
83

 
2015
 
09/15
(m)
40
    Dothan, AL

   
159

 
1,075

 

   

   
159

 
1,075

 
1,234

 
145

 
1985
 
12/15
 
30
    Boiling Springs, SC

   
214

 

 
1,181

   

   
214

 
1,181

 
1,395

 
112

 
2003
 
02/16
(o)
40
    Hermitage, TN

   
546

 
348

 

   

   
546

 
348

 
894

 
52

 
1976
 
04/16
 
25
    Easley, SC

   
690

 

 
794

   

   
690

 
794

 
1,484

 
62

 
2016
 
06/16
(m)
40
    Augusta, GA

   
573

 
869

 

   

   
573

 
869

 
1,442

 
112

 
1986
 
10/16
 
25
    Augusta, GA

   
227

 
1,136

 

   

   
227

 
1,136

 
1,363

 
146

 
1993
 
10/16
 
25
    Augusta, GA

   
296

 
1,274

 

   

   
296

 
1,274

 
1,570

 
117

 
2014
 
10/16
 
35
    Augusta, GA

   
288

 
268

 

   

   
288

 
268

 
556

 
34

 
1985
 
10/16
 
25
    Eastman, GA

   
228

 
693

 

   

   
228

 
693

 
921

 
89

 
1987
 
10/16
 
25
    Fort Valley, GA

   
208

 
841

 

   

   
208

 
841

 
1,049

 
67

 
1987
 
10/16
 
40
    Macon, GA

   
237

 
1,303

 

   

   
237

 
1,303

 
1,540

 
167

 
1982
 
10/16
 
25
    Perry, GA

   
247

 
1,353

 

   

   
247

 
1,353

 
1,600

 
174

 
1972
 
10/16
 
25
    Baton Rouge, LA

   
890

 

 
864

   

   
890

 
864

 
1,754

 
55

 
2017
 
12/16
 
40
    Columbia, SC

   
252

 
756

 

   

   
252

 
756

 
1,008

 
89

 
1976
 
01/17
 
25
    Canton, GA

   
456

 
753

 

   

   
456

 
753

 
1,209

 
84

 
1984
 
03/17
 
25
    Milwaukee, WI

   
300

 

 
938

   

   
300

 
938

 
1,238

 
59

 
1977
 
03/17
(o)
30
    Lugoff, SC

   
255

 
963

 

   

   
255

 
963

 
1,218

 
87

 
2003
 
04/17
 
30
    North Augusta, SC

   
265

 
1,060

 

   

   
265

 
1,060

 
1,325

 
96

 
1993
 
04/17
 
30
    Orangeburg, SC

   
343

 
1,588

 

   

   
343

 
1,588

 
1,931

 
172

 
1988
 
04/17
 
25
    Sumter, SC

   
403

 
717

 

   

   
403

 
717

 
1,120

 
65

 
2006
 
04/17
 
30
    Crestview, FL

   
383

 
874

 

   

   
383

 
874

 
1,257

 
83

 
1989
 
08/17
 
25
    Milwaukee, WI (n)

   
347

 

 
914

   

   
347

 
914

 
1,261

 
5

 
2019
 
03/19
(m)
(k)
    Moultrie, GA

   
99

 
1,104

 

   

   
99

 
1,104

 
1,203

 
26

 
1987
 
04/19
 
30
    Thomasville, GA

   
246

 
1,064

 

   

   
246

 
1,064

 
1,310

 
30

 
1977
 
04/19
 
25
    Dade City, FL

   
335

 
974

 

   

   
335

 
974

 
1,309

 
20

 
1983
 
05/19
 
30
    Pell City, AL

   
181

 
682

 

   

   
181

 
682

 
863

 
3

 
1994
 
11/19
 
30
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Cardenas Markets:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Palo Alto, CA

   
2,272

 
3,405

 
28

   

   
2,272

 
3,433

 
5,705

 
1,779

 
1998
 
12/98
(f)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Carl's Jr.:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Spokane, WA

   
471

 
530

 

   

   
471

 
530

 
1,001

 
239

 
1996
 
12/01
 
40
    Tucson, AZ

   
681

 
536

 
103

   

   
681

 
639

 
1,320

 
639

 
1988
 
06/05
 
10
   


   


 


 


   


   


 


 


 


 
 
 
 
 

CarQuest:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Anaconda, MT

   
35

 
307

 

   

   
35

 
307

 
342

 
139

 
1965
 
12/10
 
20
    Appleton, WI

   
85

 
438

 

   

   
85

 
438

 
523

 
132

 
1995
 
12/10
 
30
    Baker, MT

   
12

 
140

 

   

   
12

 
140

 
152

 
63

 
1965
 
12/10
 
20
    Bakersfield, CA

   
77

 
484

 

   

   
32

 
484

 
516

 
219

 
1945
 
12/10
 
20
    Bay City, MI

   
41

 
282

 

   

   
41

 
282

 
323

 
102

 
1989
 
12/10
 
25
    Billings, MT

   
31

 
188

 

   

   
31

 
188

 
219

 
68

 
1970
 
12/10
 
25
    Bozeman, MT

   
28

 
257

 

   

   
25

 
257

 
282

 
116

 
1964
 
12/10
 
20
    Burlington, NC (n)

   
47

 
229

 

   

   
47

 
229

 
276

 
69

 
1994
 
12/10
 
30
    Cody, WY

   
146

 
253

 

   

   
96

 
253

 
349

 
76

 
1999
 
12/10
 
30
    Colstrip, MT

   
39

 
275

 

   

   
39

 
275

 
314

 
99

 
1981
 
12/10
 
25
    Cut Bank, MT

   
9

 
115

 

   

   
9

 
115

 
124

 
52

 
1937
 
12/10
 
20
    Dillon, MT (n)

   
24

 
204

 

   

   
24

 
204

 
228

 
92

 
1973
 
12/10
 
20
    Enterprise, AL

   
25

 
184

 

   

   
25

 
184

 
209

 
66

 
1988
 
12/10
 
25
    Fairbanks, AK

   
292

 
545

 

   

   
292

 
545

 
837

 
141

 
2003
 
12/10
 
35
    Glasgow, MT

   
48

 
275

 

   

   
48

 
275

 
323

 
124

 
1972
 
12/10
 
20
    Great Falls, MT

   
17

 
173

 

   

   
17

 
173

 
190

 
78

 
1967
 
12/10
 
20
    Hamilton, MT (n)

   
24

 
242

 

   

   
24

 
242

 
266

 
88

 
1991
 
12/10
 
25
    Harlem, MT

   
17

 
116

 

   

   
17

 
116

 
133

 
42

 
1983
 
12/10
 
25
    Helena, MT

   
31

 
282

 

   

   
31

 
282

 
313

 
102

 
1987
 
12/10
 
25
    Kalispell, MT

   
59

 
645

 

   

   
59

 
645

 
704

 
194

 
1998
 
12/10
 
30
    Lafayette, LA (n)

   
51

 
357

 

   

   
51

 
357

 
408

 
108

 
1996
 
12/10
 
30
    Lewistown, MT

   
19

 
180

 

   

   
19

 
180

 
199

 
65

 
1964
 
12/10
 
25
    Livingston, MT

   
34

 
261

 

   

   
34

 
261

 
295

 
118

 
1976
 
12/10
 
20
    Lufkin, TX (n)

   
94

 
229

 

   

   
94

 
229

 
323

 
104

 
1986
 
12/10
 
20
    Malta, MT

   
19

 
181

 

   

   
19

 
181

 
200

 
65

 
1976
 
12/10
 
25
    Memphis, TN (n)

   
38

 
199

 

   

   
38

 
199

 
237

 
72

 
1987
 
12/10
 
25
    Metamora, IL

   
69

 
292

 

   

   
69

 
292

 
361

 
88

 
1996
 
12/10
 
30
    Nicholasville, KY (n)

   
54

 
241

 

   

   
54

 
241

 
295

 
87

 
1988
 
12/10
 
25
    Oshkosh, WI

   
99

 
224

 

   

   
99

 
224

 
323

 
67

 
1999
 
12/10
 
30
    Overland, MO

   
68

 
370

 

   

   
68

 
370

 
438

 
167

 
1961
 
12/10
 
20
    Owosso, MI (n)

   
50

 
264

 

   

   
50

 
264

 
314

 
95

 
1986
 
12/10
 
25
    Pearl, MS

   
43

 
195

 

   

   
43

 
195

 
238

 
59

 
1989
 
12/10
 
30
    Powell, WY

   
37

 
182

 

   

   
37

 
182

 
219

 
66

 
1978
 
12/10
 
25
    Riverton, WY

   
99

 
300

 

   

   
99

 
300

 
399

 
109

 
1978
 
12/10
 
25
    Roundup, MT

   
23

 
205

 

   

   
23

 
205

 
228

 
93

 
1972
 
12/10
 
20
    Sheboygan, WI (n)

   
77

 
370

 

   

   
77

 
370

 
447

 
95

 
2007
 
12/10
 
35
    Shelby, MT

   
20

 
208

 

   

   
20

 
208

 
228

 
94

 
1976
 
12/10
 
20
    Sidney, MT

   
42

 
395

 

   

   
42

 
395

 
437

 
179

 
1962
 
12/10
 
20
    Spartanburg, SC

   
53

 
252

 

   

   
53

 
252

 
305

 
91

 
1972
 
12/10
 
25
    Sulphur, LA (n)

   
31

 
216

 

   

   
31

 
216

 
247

 
98

 
1984
 
12/10
 
20
    Wasilla, AK

   
227

 
504

 

   

   
227

 
504

 
731

 
130

 
2002
 
12/10
 
35
    Whitefish, MT

   
30

 
227

 

   

   
30

 
227

 
257

 
68

 
1993
 
12/10
 
30
    Williston, ND (n)

   
35

 
297

 

   

   
35

 
297

 
332

 
90

 
1999
 
12/10
 
30
    Mt. Pleasant, MI (n)

   
85

 
207

 

   

   
85

 
207

 
292

 
74

 
1984
 
02/11
 
25
    Billings, MT

   
66

 
291

 

   

   
66

 
291

 
357

 
98

 
1994
 
07/11
 
25
    Spokane, WA

   
75

 
56

 

   

   
75

 
56

 
131

 
24

 
1955
 
07/11
 
20
    Missoula, MT

   
99

 
367

 

   

   
99

 
367

 
466

 
149

 
1965
 
11/11
 
20
    Sheridan, WY

   
198

 
385

 

   

   
198

 
385

 
583

 
157

 
1980
 
11/11
 
20
    Sauk Centre, MN

   
64

 
85

 

   

   
64

 
85

 
149

 
28

 
1958
 
11/11
 
25
    Watford City, ND

   
31

 
124

 

   

   
31

 
124

 
155

 
40

 
1974
 
11/11
 
25
    Worland, WY (n)

   
48

 
193

 

   

   
48

 
193

 
241

 
74

 
1949
 
04/12
 
20
    Anchorage, AK

   
315

 
92

 

   

   
315

 
92

 
407

 
35

 
1971
 
06/12
 
20
    Havre, MT

   
29

 
305

 

   

   
29

 
305

 
334

 
115

 
1964
 
06/12
 
20
    San Antonio, TX

   
137

 
361

 

   

   
137

 
361

 
498

 
120

 
1980
 
05/13
 
20
    San Antonio, TX

   
87

 
719

 

   

   
87

 
719

 
806

 
190

 
1973
 
05/13
 
25
    Jackson, MS

   
253

 

 
604

   

   
253

 
604

 
857

 
91

 
2013
 
06/13
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Carrabba's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Canton, MI

   
685

 
1,687

 

   

   
685

 
1,687

 
2,372

 
438

 
2002
 
03/12
 
30
    Dallas, TX

   
672

 
1,078

 

   

   
672

 
1,078

 
1,750

 
280

 
2000
 
03/12
 
30
    Gainesville, FL

   
922

 
1,944

 

   

   
922

 
1,944

 
2,866

 
505

 
2001
 
03/12
 
30
    Jacksonville, FL

   
1,140

 
1,428

 

   

   
1,140

 
1,428

 
2,568

 
371

 
2001
 
03/12
 
30
    Mason, OH

   
653

 
2,267

 

   

   
653

 
2,267

 
2,920

 
589

 
2000
 
03/12
 
30
    Maumee, OH

   
525

 
2,684

 

   

   
525

 
2,684

 
3,209

 
697

 
2002
 
03/12
 
30
    Mobile, AL

   
633

 
1,909

 

   

   
633

 
1,909

 
2,542

 
496

 
2001
 
03/12
 
30
    Pensacola, FL

   
734

 
1,854

 

   

   
734

 
1,854

 
2,588

 
413

 
2003
 
03/12
 
35
    Waldorf, MD

   
1,473

 
2,199

 

   

   
1,473

 
2,199

 
3,672

 
490

 
2007
 
03/12
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Carvana:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Austin, TX

   
1,045

 
1,969

 

   

   
1,045

 
1,969

 
3,014

 
133

 
2017
 
04/17
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Carvers:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Centerville, OH

   
851

 
1,059

 

   

   
851

 
1,059

 
1,910

 
478

 
1986
 
12/01
 
40
 


 


 


 


 


 


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-18


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cascadia Vehicle Tents:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Bend, OR

   
125

 
245

 

   

   
125

 
245

 
370

 
148

 
1935
 
12/10
 
15
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Cell Pro:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Ridgeland, MS

   
436

 
523

 
147

   

   
436

 
670

 
1,106

 
258

 
1997
 
12/05
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Chair King:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Grapevine, TX

   
1,018

 
2,067

 
377

   

   
1,018

 
2,444

 
3,462

 
1,199

 
1998
 
06/98
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Champps:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Irving, TX

   
1,760

 
1,724

 

   

   
1,760

 
1,724

 
3,484

 
778

 
2000
 
12/01
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Charleston Auto Auction:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Moncks Corner, SC

   
1,628

 
5,911

 
471

   

   
1,628

 
6,383

 
8,011

 
895

 
2000
 
09/15
(o)
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Cheddar's Cafe:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Baytown, TX

   
858

 
2,251

 

   

   
858

 
2,251

 
3,109

 
509

 
2010
 
12/10
 
40
    West Monroe, LA

   
907

 
2,301

 

   

   
907

 
2,301

 
3,208

 
515

 
2010
 
01/11
 
40
    Selma, TX

   
1,446

 

 
2,439

   

   
1,446

 
2,439

 
3,885

 
506

 
2011
 
03/11
(m)
40
    Jonesboro, AR

   
1,206

 

 
2,459

   

   
1,206

 
2,459

 
3,665

 
499

 
2011
 
05/11
(m)
40
    Hattiesburg, MS (n)

   
1,203

 

 

   

   
1,196

 
 (i)
 
1,196

 
 (i)
 
 (i)
 
11/11
 
(i)
    Pleasant Prairie, WI

   
1,310

 

 
2,779

   

   
1,310

 
2,779

 
4,089

 
431

 
2013
 
04/13
(m)
40
    Liberty, MO

   
1,313

 

 
3,140

   

   
1,313

 
3,140

 
4,453

 
468

 
2014
 
07/13
(m)
40
    Alcoa, TN

   
1,537

 
3,003

 

   

   
1,537

 
3,003

 
4,540

 
218

 
2010
 
06/17
 
35
    Asheville, NC

   
1,540

 
2,785

 

   

   
1,540

 
2,785

 
4,325

 
236

 
2006
 
06/17
 
30
    Charlotte, NC

   
1,326

 
2,795

 

   

   
1,326

 
2,795

 
4,121

 
237

 
2004
 
06/17
 
30
    Cordova, TN

   
1,869

 
2,411

 

   

   
1,869

 
2,411

 
4,280

 
175

 
2013
 
06/17
 
35
    Knoxville, TN

   
1,444

 
3,086

 

   

   
1,444

 
3,086

 
4,530

 
224

 
2011
 
06/17
 
35
    Morgantown, WV

   
1,530

 
2,966

 

   

   
1,530

 
2,966

 
4,496

 
215

 
2011
 
06/17
 
35
    Triadelphia, WV

   
1,200

 
3,449

 

   

   
1,200

 
3,449

 
4,649

 
250

 
2008
 
06/17
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Chili's:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Camden, SC

   
627

 
1,888

 

   

   
627

 
1,888

 
2,515

 
674

 
2005
 
09/05
 
40
    Milledgeville, GA

   
516

 
1,997

 

   

   
516

 
1,997

 
2,513

 
713

 
2005
 
09/05
 
40


See accompanying report of independent registered public accounting firm.
F-19


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Albany, GA

   
615

 

 
1,984

   

   
615

 
1,984

 
2,599

 
606

 
2007
 
06/07
(m)
40
    Statesboro, GA

   
703

 

 
1,888

   

   
703

 
1,888

 
2,591

 
572

 
2007
 
06/07
(m)
40
    Florence, SC

   
889

 
1,715

 

   

   
889

 
1,715

 
2,604

 
538

 
2007
 
06/07
 
40
    Valdosta, GA

   
716

 

 
1,871

   

   
716

 
1,871

 
2,587

 
563

 
2007
 
07/07
(m)
40
    Tifton, GA

   
454

 
1,550

 

   

   
454

 
1,550

 
2,004

 
434

 
2008
 
06/08
 
40
    Evans, GA

   
700

 

 
1,511

   

   
685

 
1,511

 
2,196

 
411

 
2009
 
10/08
(m)
40
    Jefferson City, MO

   
305

 
898

 

   

   
305

 
898

 
1,203

 
258

 
2003
 
12/09
 
35
    Merriam, KS

   
853

 
981

 

   

   
853

 
981

 
1,834

 
328

 
1998
 
12/09
 
30
    Wichita, KS

   
420

 
623

 

   

   
420

 
623

 
1,043

 
209

 
1995
 
12/09
 
30
    Hutchinson, KS

   
456

 
1,794

 

   

   
456

 
1,794

 
2,250

 
411

 
2004
 
02/13
 
30
    Lexington, SC

   
630

 
1,620

 

   

   
630

 
1,620

 
2,250

 
318

 
2008
 
02/13
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

China 1:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Cohoes, NY

   
16

 
87

 
6

   

   
16

 
93

 
109

 
39

 
1994
 
09/04
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

China Garden:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Tucson, AZ

   
827

 
305

 
142

   

   
845

 
429

 
1,274

 
172

 
1974
 
12/01
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Chipotle:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Florissant, MO

   
50

 
59

 
170

   

   
50

 
228

 
278

 
86

 
2013
 
04/03
(g)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Chuck E. Cheese's:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Mobile, AL

   
340

 
951

 

   

   
340

 
951

 
1,291

 
387

 
1981
 
11/11
 
20
    Antioch, TN

   
459

 
1,738

 

   

   
459

 
1,738

 
2,197

 
632

 
1982
 
07/14
 
15
    Huntsville, AL

   
382

 
1,182

 

   

   
382

 
1,182

 
1,564

 
322

 
1960
 
07/14
 
20
    Saginaw, MI

   
489

 
1,203

 

   

   
489

 
1,203

 
1,692

 
328

 
1981
 
07/14
 
20
    Albuquerque, NM

   
794

 
2,126

 

   

   
794

 
2,126

 
2,920

 
326

 
2003
 
08/14
 
35
    Alexandria, LA

   
872

 
3,291

 

   

   
872

 
3,291

 
4,163

 
707

 
1983
 
08/14
 
25
    Alpharetta, GA

   
2,027

 
1,743

 

   

   
2,027

 
1,743

 
3,770

 
312

 
2001
 
08/14
 
30
    Atlanta, GA

   
1,313

 
1,656

 

   

   
1,313

 
1,656

 
2,969

 
356

 
1982
 
08/14
 
25
    Austin, TX

   
852

 
4,024

 

   

   
852

 
4,024

 
4,876

 
721

 
2001
 
08/14
 
30
    Batavia, IL

   
1,214

 
2,664

 

   

   
1,214

 
2,664

 
3,878

 
477

 
1999
 
08/14
 
30
    Birmingham, AL

   
627

 
3,662

 

   

   
627

 
3,662

 
4,289

 
787

 
1982
 
08/14
 
25
    Columbia, SC

   
509

 
2,655

 

   

   
509

 
2,655

 
3,164

 
476

 
1983
 
08/14
 
30


See accompanying report of independent registered public accounting firm.
F-20


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Conroe, TX

   
793

 
3,388

 

   

   
793

 
3,388

 
4,181

 
607

 
2001
 
08/14
 
30
    Cordova, TN

   
1,195

 
3,055

 

   

   
1,195

 
3,055

 
4,250

 
547

 
2002
 
08/14
 
30
    Denton, TX

   
833

 
1,245

 

   

   
833

 
1,245

 
2,078

 
191

 
2003
 
08/14
 
35
    El Centro, CA

   
470

 
2,811

 

   

   
470

 
2,811

 
3,281

 
432

 
2005
 
08/14
 
35
    Englewood, CO

   
911

 
3,056

 

   

   
911

 
3,056

 
3,967

 
547

 
1970
 
08/14
 
30
    Foothill Ranch, CA

   
1,088

 
1,391

 

   

   
1,088

 
1,391

 
2,479

 
249

 
2003
 
08/14
 
30
    Ft. Wayne, IN

   
686

 
3,232

 

   

   
686

 
3,232

 
3,918

 
579

 
1985
 
08/14
 
30
    Garland, TX

   
1,224

 
2,302

 

   

   
1,224

 
2,302

 
3,526

 
353

 
2006
 
08/14
 
35
    Grand Prairie, TX

   
1,380

 
4,983

 

   

   
1,380

 
4,983

 
6,363

 
893

 
2001
 
08/14
 
30
    Grapevine, TX

   
1,303

 
2,135

 

   

   
1,303

 
2,135

 
3,438

 
383

 
2002
 
08/14
 
30
    Greenville, SC

   
764

 
3,554

 

   

   
764

 
3,554

 
4,318

 
764

 
1983
 
08/14
 
25
    Hickory, NC

   
647

 
1,686

 

   

   
647

 
1,686

 
2,333

 
259

 
2002
 
08/14
 
35
    Horn Lake, MS

   
960

 
3,388

 

   

   
835

 
3,388

 
4,223

 
520

 
2002
 
08/14
 
35
    Jacksonville, FL

   
1,038

 
4,220

 

   

   
1,038

 
4,220

 
5,258

 
907

 
1981
 
08/14
 
25
    Katy, TX

   
960

 
4,171

 

   

   
960

 
4,171

 
5,131

 
747

 
2002
 
08/14
 
30
    Kennesaw, GA

   
1,332

 
3,818

 

   

   
1,332

 
3,818

 
5,150

 
684

 
1999
 
08/14
 
30
    Killeen, TX

   
832

 
4,876

 

   

   
832

 
4,876

 
5,708

 
749

 
2004
 
08/14
 
35
    Lake Charles, LA

   
853

 
1,539

 

   

   
853

 
1,539

 
2,392

 
276

 
2001
 
08/14
 
30
    Littleton, CO

   
1,234

 
4,288

 

   

   
1,234

 
4,288

 
5,522

 
768

 
1994
 
08/14
 
30
    Longview, TX

   
314

 
1,931

 

   

   
314

 
1,931

 
2,245

 
297

 
2004
 
08/14
 
35
    Madison, WI

   
999

 
1,989

 

   

   
999

 
1,989

 
2,988

 
428

 
1982
 
08/14
 
25
    Miamisburg, OH

   
607

 
4,416

 

   

   
607

 
4,416

 
5,023

 
949

 
1986
 
08/14
 
25
    Midland, TX

   
588

 
2,537

 

   

   
588

 
2,537

 
3,125

 
455

 
2000
 
08/14
 
30
    N. Richland Hills, TX

   
588

 
4,064

 

   

   
588

 
4,064

 
4,652

 
874

 
1982
 
08/14
 
25
    Norcross, GA

   
1,077

 
2,703

 

   

   
1,077

 
2,703

 
3,780

 
581

 
1982
 
08/14
 
25
    North Charleston, SC

   
1,449

 
3,319

 

   

   
1,449

 
3,319

 
4,768

 
595

 
2003
 
08/14
 
30
    Oklahoma City, OK

   
499

 
3,203

 

   

   
499

 
3,203

 
3,702

 
689

 
1982
 
08/14
 
25
    Olathe, KS

   
843

 
736

 

   

   
794

 
736

 
1,530

 
132

 
2002
 
08/14
 
30
    Racine, WI

   
765

 
834

 

   

   
765

 
834

 
1,599

 
149

 
2000
 
08/14
 
30
    Roanoke, VA

   
617

 
4,787

 

   

   
617

 
4,787

 
5,404

 
1,029

 
1983
 
08/14
 
25
    San Antonio, TX

   
1,371

 
2,703

 

   

   
1,371

 
2,703

 
4,074

 
484

 
2001
 
08/14
 
30
    San Antonio, TX

   
793

 
4,670

 

   

   
793

 
4,670

 
5,463

 
1,004

 
1990
 
08/14
 
25
    Savannah, GA

   
1,469

 
2,634

 

   

   
1,469

 
2,634

 
4,103

 
566

 
1982
 
08/14
 
25
    Sharonville, OH

   
696

 
1,597

 

   

   
696

 
1,597

 
2,293

 
343

 
1982
 
08/14
 
25


See accompanying report of independent registered public accounting firm.
F-21


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Sterling Heights, MI

   
725

 
2,322

 

   

   
725

 
2,322

 
3,047

 
416

 
1994
 
08/14
 
30
    Sugarland, TX

   
1,107

 
3,134

 

   

   
1,107

 
3,134

 
4,241

 
561

 
2002
 
08/14
 
30
    Topeka, KS

   
373

 
619

 

   

   
373

 
619

 
992

 
111

 
1990
 
08/14
 
30
    Virginia Beach, VA

   
1,018

 
3,848

 

   

   
1,018

 
3,848

 
4,866

 
827

 
1984
 
08/14
 
25
    Wichita Falls, TX

   
323

 
3,105

 

   

   
323

 
3,105

 
3,428

 
668

 
1982
 
08/14
 
25
    Wichita, KS

   
862

 
2,850

 

   

   
862

 
2,850

 
3,712

 
511

 
1991
 
08/14
 
30
    Yuma, AZ

   
471

 
668

 

   

   
471

 
668

 
1,139

 
103

 
2004
 
08/14
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Chuy's:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Cincinnati, OH

   
1,165

 
1,322

 

   

   
1,165

 
1,322

 
2,487

 
281

 
1996
 
05/13
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Cinemark:

   

 

 

   

   

 


 

 


 
 
 
 
 

    Draper, UT

   
1,523

 

 
4,487

   

   
1,523

 
4,487

 
6,010

 
968

 
2011
 
08/10
(m)
40
    Fort Worth, TX

   
2,140

 

 
7,660

   

   
2,140

 
7,660

 
9,800

 
1,444

 
2012
 
08/11
(o)
40
    Cincinnati, OH

   
1,334

 

 
10,206

   

   
1,334

 
10,206

 
11,540

 
1,627

 
2013
 
09/12
(m)
40
    McCandless, PA

   
3,094

 

 
6,389

   

   
3,094

 
6,389

 
9,483

 
845

 
2014
 
09/13
(m)
40
    Marina, CA

   
15

 

 
5,614

   

   
15

 
5,614

 
5,629

 
591

 
2015
 
08/14
(m)
40
    Altoona, IA

   
1,161

 

 
9,923

   

   
1,161

 
9,923

 
11,084

 
961

 
2016
 
01/15
(m)
40
    Abilene, TX

   
1,965

 
8,235

 

   

   
1,965

 
8,235

 
10,200

 
489

 
2017
 
08/17
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

City Barbeque:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Charlotte, NC

   
576

 

 
1,594

   

   
576

 
1,594

 
2,170

 
117

 
2017
 
07/16
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Claim Jumper:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Roseville, CA

   
1,557

 
2,014

 

   

   
1,557

 
2,014

 
3,571

 
908

 
2000
 
12/01
 
40
    Tempe, AZ

   
2,531

 
2,921

 

   

   
2,531

 
2,921

 
5,452

 
1,317

 
2000
 
12/01
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Clairton Mini Mart:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Clairton, PA

   
215

 
701

 

   

   
215

 
701

 
916

 
391

 
1986
 
01/06
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Closson's 3D Truck & Auto:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Benton Harbor, MI

   
207

 
160

 

   

   
207

 
160

 
367

 
71

 
1978
 
02/11
 
20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   

   

 

 

   

   

 

 

 

 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-22


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cobb Theatre:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Tallahassee, FL

   
1,267

 

 
18,776

   

   
1,267

 
18,776

 
20,043

 
685

 
2018
 
06/17
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Continental Rental:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Lapeer, MI

   
88

 
633

 

   

   
88

 
603

 
691

 
190

 
2007
 
10/05
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Cool Crest:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Independence, MO

   
1,838

 
1,534

 
75

   

   
1,838

 
1,609

 
3,447

 
500

 
1988
 
05/07
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Cooper's Hawk:

   

 

 

   

   

 

 

 

 
 
 
 
 

    New Lenox, IL

   
1,328

 

 
5,389

   

   
1,328

 
5,389

 
6,717

 
163

 
2018
 
07/18
(o)
40
    Centerville, OH

   
2,523

 

 
5,120

   

   
2,523

 
5,120

 
7,643

 
48

 
2019
 
02/19
(m)
(k)
   

   

 

 

   

   

 

 

 

 
 
 
 
 

CORA Rehabilitation Clinics:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Orlando, FL

   
80

 
221

 

   

   
80

 
221

 
301

 
89

 
2001
 
02/04
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Crest Furniture:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Iselin, NJ

   
3,750

 
5,983

 

   

   
3,750

 
5,983

 
9,733

 
2,536

 
1994
 
01/03
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

CrossAmerica:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Antioch, IL

   
261

 
2,244

 

   

   
261

 
2,244

 
2,505

 
273

 
1988
 
12/16
 
25
    Fox Lake, IL

   
252

 
1,184

 

   

   
252

 
1,184

 
1,436

 
120

 
1997
 
12/16
 
30
    Grayslake, IL

   
194

 
924

 

   

   
194

 
924

 
1,118

 
112

 
1988
 
12/16
 
25
    Joliet, IL

   
87

 
1,418

 

   

   
87

 
1,418

 
1,505

 
144

 
2005
 
12/16
 
30
    Lincolnshire, IL

   
350

 
1,146

 

   

   
350

 
1,146

 
1,496

 
174

 
1984
 
12/16
 
20
    Loves Park, IL

   
107

 
829

 

   

   
107

 
829

 
936

 
84

 
2000
 
12/16
 
30
    Markham, IL

   
145

 
1,483

 

   

   
145

 
1,483

 
1,628

 
150

 
2007
 
12/16
 
30
    Matteson, IL

   
475

 
1,202

 

   

   
475

 
1,202

 
1,677

 
122

 
2001
 
12/16
 
30
    Orland Park, IL

   
204

 
1,290

 

   

   
204

 
1,290

 
1,494

 
157

 
1992
 
12/16
 
25
    Richton Park, IL

   
126

 
1,021

 

   

   
126

 
1,021

 
1,147

 
78

 
2005
 
12/16
 
40
    Rockford, IL

   
97

 
1,205

 

   

   
97

 
1,205

 
1,302

 
122

 
2002
 
12/16
 
30
    Rockford, IL

   
136

 
1,167

 

   

   
136

 
1,167

 
1,303

 
178

 
1968
 
12/16
 
20
    Rockford, IL

   
263

 
742

 

   

   
263

 
742

 
1,005

 
75

 
1997
 
12/16
 
30
    Spring Grove, IL

   
233

 
1,068

 

   

   
233

 
1,068

 
1,301

 
162

 
1987
 
12/16
 
20


See accompanying report of independent registered public accounting firm.
F-23


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Wadsworth, IL

   
398

 
835

 

   

   
398

 
835

 
1,233

 
85

 
1997
 
12/16
 
30
    Wauconda, IL

   
338

 
2,629

 

   

   
338

 
2,629

 
2,967

 
320

 
1991
 
12/16
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

CSL Plasma:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Homestead, PA

   
384

 

 
2,240

   

   
465

 
2,240

 
2,705

 
35

 
2019
 
02/97
 
(k)
    Warner Robins, GA

   
707

 

 
1,227

   

   
707

 
1,227

 
1,934

 
643

 
1999
 
03/98
(g)
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
CVS:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Lafayette, LA

   
968

 
949

 

   

   
968

 
565

 
1,533

 
39

 
1995
 
01/96
 
25
    Midwest City, OK

   
673

 
1,103

 

   

   
673

 
1,103

 
1,776

 
657

 
1996
 
03/96
 
40
    Pantego, TX

   
1,016

 
1,449

 

   

   
1,016

 
1,449

 
2,465

 
817

 
1996
 
06/97
 
40
    Leavenworth, KS

   
726

 

 
1,331

   

   
726

 
1,331

 
2,057

 
717

 
1998
 
11/97
(g)
40
    Lewisville, TX

   
789

 

 
1,335

   

   
789

 
1,335

 
2,124

 
711

 
1998
 
04/98
(g)
40
    Forest Hill, TX

   
692

 

 
1,175

   

   
692

 
1,175

 
1,867

 
628

 
1998
 
04/98
(g)
40
    Garland, TX

   
1,477

 

 
1,400

   

   
1,455

 
1,400

 
2,855

 
740

 
1998
 
06/98
(g)
40
    Oklahoma City, OK

   
1,581

 

 
1,471

   

   
1,581

 
1,471

 
3,052

 
771

 
1999
 
08/98
(g)
40
    Dallas, TX

   
2,618

 

 
2,571

   

   
2,618

 
2,571

 
5,189

 
1,042

 
2003
 
06/99
(g)
40
    Gladstone, MO

   
1,851

 

 
1,740

   

   
1,851

 
1,740

 
3,591

 
843

 
2000
 
12/99
(g)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Dairy Queen:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lubbock, TX

   
313

 
450

 

   

   
313

 
450

 
763

 
146

 
1981
 
02/15
 
15
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Dave & Buster's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Hilliard, OH

   
934

 
4,689

 

   

   
934

 
4,689

 
5,623

 
1,539

 
1998
 
11/06
 
40
    Tulsa, OK

   
1,862

 

 
2,105

   

   
1,862

 
2,105

 
3,967

 
577

 
2009
 
04/08
(m)
40
    Wauwatosa, WI

   
5,694

 

 
5,638

   

   
5,694

 
5,638

 
11,332

 
1,380

 
2010
 
12/08
(m)
40
    Orlando, FL

   
8,114

 

 
4,224

   

   
8,114

 
4,224

 
12,338

 
893

 
2011
 
06/10
(m)
40
    Oklahoma City, OK

   
3,156

 

 
4,870

   

   
3,156

 
4,870

 
8,026

 
969

 
2012
 
02/11
(m)
40
    Dallas, TX

   
5,052

 

 
8,808

   

   
5,052

 
8,808

 
13,860

 
1,551

 
2012
 
03/12
(m)
40
    Livonia, MI

   
2,116

 

 
7,758

   

   
2,116

 
7,758

 
9,874

 
1,172

 
2013
 
04/13
(m)
40
    Euless, TX

   
2,592

 

 
7,563

   

   
2,592

 
7,563

 
10,155

 
874

 
2015
 
08/14
(m)
40
    Little Rock, AR

   
2,310

 
5,805

 

   

   
2,310

 
5,805

 
8,115

 
491

 
2016
 
01/17
 
35
    Florence, KY

   
4,700

 
7,617

 

   

   
4,700

 
7,617

 
12,317

 
644

 
2016
 
01/17
 
35
    Tampa, FL

   
3,354

 
8,361

 

   

   
3,354

 
8,361

 
11,715

 
235

 
2017
 
11/18
 
40


See accompanying report of independent registered public accounting firm.
F-24


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DaVita Dialysis:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Columbus, OH

   
527

 
1,426

 

   

   
527

 
1,426

 
1,953

 
259

 
2000
 
07/14
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Deg Deg Halal & Deli:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Eden Prairie, MN

   
65

 
181

 
81

   

   
65

 
261

 
326

 
116

 
1997
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Del Frisco's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Fort Worth, TX

   
351

 
5,874

 

   

   
351

 
5,874

 
6,225

 
2,631

 
1890
 
01/11
 
20
    Greenwood Village, CO

   
1,863

 
5,649

 

   

   
1,863

 
5,649

 
7,512

 
2,531

 
1979
 
01/11
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Denny's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Clifton, CO

   
245

 
732

 
375

   

   
245

 
1,107

 
1,352

 
432

 
1998
 
12/01
 
40
    Alexandria, VA

   
604

 
196

 

   

   
604

 
196

 
800

 
130

 
1981
 
09/06
 
20
    Amarillo, TX

   
590

 
632

 

   

   
590

 
632

 
1,222

 
420

 
1982
 
09/06
 
20
    Arlington Heights, IL

   
470

 
228

 

   

   
470

 
228

 
698

 
151

 
1977
 
09/06
 
20
    Boardman Township, OH

   
497

 
258

 

   

   
497

 
258

 
755

 
171

 
1977
 
09/06
 
20
    Campbell, CA

   
460

 
238

 

   

   
460

 
238

 
698

 
158

 
1976
 
09/06
 
20
    Carson, CA

   
1,246

 
157

 

   

   
1,246

 
157

 
1,403

 
105

 
1975
 
09/06
 
20
    Chehalis, WA

   
415

 
287

 

   

   
415

 
287

 
702

 
191

 
1977
 
09/06
 
20
    Chubbock, ID

   
350

 
394

 

   

   
344

 
394

 
738

 
262

 
1983
 
09/06
 
20
    Clackamas, OR

   
468

 
407

 

   

   
468

 
407

 
875

 
271

 
1993
 
09/06
 
20
    Collinsville, IL

   
676

 
283

 

   

   
676

 
283

 
959

 
188

 
1979
 
09/06
 
20
    Corpus Christi, TX

   
345

 
776

 
300

   

   
345

 
1,076

 
1,421

 
698

 
1980
 
09/06
 
20
    Dallas, TX

   
497

 
150

 

   

   
451

 
140

 
591

 
93

 
1979
 
09/06
 
20
    Enfield, CT

   
684

 
229

 

   

   
684

 
229

 
913

 
152

 
1976
 
09/06
 
20
    Fairfax, VA

   
768

 
683

 

   

   
768

 
683

 
1,451

 
454

 
1979
 
09/06
 
20
    Federal Way, WA

   
543

 
193

 

   

   
543

 
193

 
736

 
128

 
1977
 
09/06
 
20
    Florissant, MO

   
443

 
238

 

   

   
443

 
238

 
681

 
158

 
1977
 
09/06
 
20
    Hermitage, PA

   
321

 
420

 

   

   
321

 
420

 
741

 
279

 
1980
 
09/06
 
20
    Houston, TX

   
504

 
348

 

   

   
504

 
348

 
852

 
231

 
1976
 
09/06
 
20
    Indianapolis, IN

   
310

 
590

 

   

   
310

 
590

 
900

 
392

 
1981
 
09/06
 
20
    Indianapolis, IN

   
326

 
511

 

   

   
326

 
511

 
837

 
340

 
1978
 
09/06
 
20
    Indianapolis, IN

   
358

 
767

 

   

   
358

 
767

 
1,125

 
509

 
1978
 
09/06
 
20
    Indianapolis, IN

   
231

 
511

 

   

   
231

 
511

 
742

 
340

 
1974
 
09/06
 
20


See accompanying report of independent registered public accounting firm.
F-25


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Kernersville, NC

   
407

 
557

 

   

   
407

 
557

 
964

 
370

 
2000
 
09/06
 
20
    Lafayette, IN

   
424

 
773

 

   

   
416

 
773

 
1,189

 
514

 
1978
 
09/06
 
20
    Laurel, MD

   
528

 
379

 

   

   
528

 
379

 
907

 
252

 
1976
 
09/06
 
20
    Little Rock, AR

   
703

 
180

 

   

   
703

 
180

 
883

 
119

 
1979
 
09/06
 
20
    Maplewood, MN

   
630

 
271

 

   

   
630

 
271

 
901

 
180

 
1983
 
09/06
 
20
    N. Miami, FL

   
855

 
151

 

   

   
855

 
151

 
1,006

 
100

 
1977
 
09/06
 
20
    Nampa, ID

   
357

 
729

 

   

   
357

 
729

 
1,086

 
485

 
1979
 
09/06
 
20
    Omaha, NE

   
496

 
314

 

   

   
496

 
314

 
810

 
209

 
1994
 
09/06
 
20
    Provo, UT

   
519

 
216

 

   

   
513

 
216

 
729

 
144

 
1978
 
09/06
 
20
    Raleigh, NC

   
1,094

 
482

 

   

   
1,094

 
482

 
1,576

 
321

 
1984
 
09/06
 
20
    Sugarland, TX

   
315

 
334

 

   

   
293

 
334

 
627

 
222

 
1997
 
09/06
 
20
    Tucson, AZ

   
922

 
290

 

   

   
922

 
290

 
1,212

 
193

 
1979
 
09/06
 
20
    Wethersfield, CT

   
884

 
176

 

   

   
884

 
176

 
1,060

 
117

 
1978
 
09/06
 
20
    Worcester, MA

   
383

 
493

 

   

   
383

 
493

 
876

 
327

 
1978
 
09/06
 
20
    Boise, ID

   
514

 
477

 

   

   
514

 
477

 
991

 
311

 
1983
 
12/06
 
20
    St. Louis, MO

   
635

 
303

 

   

   
635

 
303

 
938

 
196

 
1980
 
01/07
 
20
    Virginia Gardens, FL

   
793

 
133

 

   

   
793

 
133

 
926

 
86

 
1977
 
01/07
 
20
    Akron, OH

   
308

 
1,062

 

   

   
308

 
1,062

 
1,370

 
232

 
1992
 
06/13
 
30
    Moab, UT

   
395

 
1,432

 

   

   
395

 
1,432

 
1,827

 
233

 
2000
 
02/15
 
30
    Ft Walton Beach, FL

   
274

 
531

 

   

   
274

 
531

 
805

 
58

 
1973
 
01/17
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Dickey's Barbeque Pit:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Medina, OH

   
405

 
464

 
104

   

   
370

 
568

 
938

 
236

 
1996
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Dick's Sporting Goods:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Taylor, MI

   
1,920

 
3,527

 

   

   
1,920

 
3,527

 
5,447

 
2,054

 
1996
 
08/96
 
40
    White Marsh, MD

   
2,681

 
3,917

 

   

   
2,681

 
3,917

 
6,598

 
2,281

 
1996
 
08/96
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Dirt Cheap:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Nacogdoches, TX

   
397

 
1,257

 
269

   

   
400

 
1,524

 
1,924

 
695

 
1997
 
11/98
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Doctors of Physical Therapy:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lapeer, MI

   
63

 
457

 
80

   

   
63

 
516

 
579

 
139

 
2007
 
10/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-26


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dollar General:


   


 


 


   


   


 


 


 


 
 
 
 
 

    San Antonio, TX

   
441

 
784

 

   

   
441

 
196

 
637

 
39

 
1993
 
12/93
 
30
    Memphis, TN

   
266

 
1,136

 
46

   

   
266

 
1,182

 
1,448

 
599

 
1998
 
12/97
 
40
    High Springs, FL

   
409

 

 
1,072

   

   
432

 
1,072

 
1,504

 
245

 
2010
 
07/10
(m)
40
    Inverness, FL

   
459

 

 
1,046

   

   
471

 
1,046

 
1,517

 
234

 
2011
 
08/10
(m)
40
    Cocoa, FL

   
385

 

 
935

   

   
406

 
935

 
1,341

 
213

 
2010
 
08/10
(m)
40
    Palm Bay, FL

   
355

 

 
1,011

   

   
365

 
1,011

 
1,376

 
228

 
2010
 
08/10
(m)
40
    Deland, FL

   
585

 

 
958

   

   
585

 
958

 
1,543

 
212

 
2010
 
11/10
(m)
40
    Seffner, FL

   
673

 

 
1,223

   

   
446

 
803

 
1,249

 
175

 
2011
 
12/10
(m)
40
    Hernando, FL

   
372

 

 
970

   

   
372

 
970

 
1,342

 
211

 
2011
 
01/11
(m)
40
    Titusville, FL

   
512

 

 
1,002

   

   
512

 
1,002

 
1,514

 
210

 
2011
 
04/11
(m)
40
    Disputanta, VA

   
170

 

 
720

   

   
170

 
720

 
890

 
149

 
2011
 
09/11
(o)
40
    Lumberton, NC

   
115

 

 
902

   

   
115

 
902

 
1,017

 
179

 
2012
 
10/11
(m)
40
    Newport News, VA

   
363

 

 
967

   

   
363

 
967

 
1,330

 
196

 
2011
 
10/11
(m)
40
    Cumberland, VA

   
317

 

 
1,147

   

   
317

 
1,147

 
1,464

 
223

 
2012
 
12/11
(m)
40
    Aberdeen, NC

   
156

 

 
821

   

   
156

 
821

 
977

 
158

 
2012
 
01/12
(m)
40
    Richmond, VA

   
144

 

 
863

   

   
144

 
863

 
1,007

 
161

 
2012
 
02/12
(m)
40
    Danville, VA

   
155

 

 
864

   

   
155

 
864

 
1,019

 
165

 
2012
 
03/12
(m)
40
    Cascade, VA

   
139

 

 
806

   

   
139

 
806

 
945

 
152

 
2012
 
03/12
(m)
40
    Sanford, NC

   
147

 

 
834

   

   
147

 
834

 
981

 
154

 
2012
 
04/12
(m)
40
    Leland, NC

   
245

 

 
892

   

   
245

 
892

 
1,137

 
161

 
2012
 
06/12
(m)
40
    Sanford, NC

   
206

 

 
829

   

   
206

 
829

 
1,035

 
149

 
2012
 
07/12
(m)
40
    Richmond, VA

   
305

 

 
902

   

   
305

 
902

 
1,207

 
161

 
2012
 
08/12
(m)
40
    Martinsville, VA

   
165

 

 
831

   

   
165

 
831

 
996

 
146

 
2012
 
09/12
(m)
40
    Yerington, NV

   
313

 

 
1,170

   

   
313

 
1,170

 
1,483

 
204

 
2013
 
09/12
(m)
40
    Hawthorne, NV

   
210

 
1,069

 

   

   
210

 
1,069

 
1,279

 
188

 
2012
 
12/12
 
40
    Norfolk, VA

   
455

 

 
929

   

   
455

 
929

 
1,384

 
152

 
2013
 
03/13
(m)
40
    Suffolk, VA

   
186

 

 
958

   

   
186

 
958

 
1,144

 
157

 
2013
 
03/13
(m)
40
    Suffolk, VA

   
128

 

 
1,010

   

   
128

 
1,010

 
1,138

 
161

 
2013
 
04/13
(m)
40
    Irving, NY

   
210

 

 
961

   

   
210

 
961

 
1,171

 
149

 
2013
 
06/13
(m)
40
    Oakfield, NY

   
257

 

 
1,108

   

   
271

 
1,108

 
1,379

 
158

 
2014
 
10/13
(m)
40
    Holland, NY

   
176

 

 
1,103

   

   
176

 
1,103

 
1,279

 
151

 
2014
 
12/13
(m)
40
    Jeffersonville, IN

   
115

 
960

 

   

   
115

 
960

 
1,075

 
161

 
2010
 
02/14
 
35
    LaFayette, LA

   
157

 
378

 
23

   

   
180

 
378

 
558

 
85

 
2002
 
07/14
 
25


See accompanying report of independent registered public accounting firm.
F-27


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Youngsville, LA

   
98

 
370

 
34

   

   
98

 
404

 
502

 
83

 
2002
 
07/14
 
25
    Daytona Beach Shores, FL

   
459

 
1,282

 

   

   
459

 
1,282

 
1,741

 
87

 
2011
 
12/17
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Dollar Tree:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Garland, TX

   
239

 
626

 

   

   
239

 
626

 
865

 
290

 
1994
 
02/94
 
40
    Homestead, PA

   
256

 

 
1,964

   

   
310

 
1,910

 
2,220

 
185

 
2016
 
02/97
(g)
40
    Marietta, GA

   
525

 

 
787

   

   
524

 
787

 
1,311

 
128

 
1997
 
12/14
(o)
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Don Tello's Tex-Mex Grill:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lithonia, GA

   
923

 
1,276

 
48

   

   
923

 
1,324

 
2,247

 
405

 
2002
 
06/07
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Driscoll Children's Hospital:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Corpus Christi, TX

   
630

 
3,131

 

   

   
630

 
3,131

 
3,761

 
1,628

 
1982
 
03/99
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

El Jalapeno:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Indianapolis, IN

   
223

 
483

 
79

   

   
223

 
562

 
785

 
362

 
1979
 
09/06
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Empire Buffet:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Las Cruces, NM

   
947

 

 
2,390

   

   
947

 
2,390

 
3,337

 
760

 
2006
 
01/06
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Express Mart:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Thomasville, NC

   
140

 
228

 

   

   
140

 
228

 
368

 
62

 
1962
 
07/14
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Express Oil Change:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Birmingham, AL

   
470

 
695

 

   

   
470

 
695

 
1,165

 
205

 
2008
 
02/08
(f)
40
    Florence, AL

   
110

 
381

 

   

   
110

 
381

 
491

 
151

 
1987
 
02/08
 
30
    Helena, AL

   
363

 
628

 

   

   
363

 
628

 
991

 
186

 
1998
 
02/08
 
40
    Muscle Shoals, AL

   
168

 
624

 

   

   
168

 
624

 
792

 
247

 
1985
 
02/08
 
30
    Opelika, AL

   
547

 
680

 

   

   
547

 
680

 
1,227

 
202

 
2006
 
02/08
 
40
    Cordova, TN

   
639

 
785

 

   

   
639

 
785

 
1,424

 
217

 
2000
 
12/08
 
40
    Horn Lake, MS

   
326

 
611

 

   

   
326

 
611

 
937

 
193

 
1998
 
12/08
 
35
    Lakeland, TN

   
186

 
489

 

   

   
186

 
489

 
675

 
135

 
2000
 
12/08
 
40
    Memphis, TN

   
402

 
721

 

   

   
402

 
721

 
1,123

 
199

 
2001
 
12/08
 
40


See accompanying report of independent registered public accounting firm.
F-28


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Houston, TX

   
651

 

 
648

   

   
517

 
648

 
1,165

 
121

 
2012
 
02/12
(m)
40
    Katy, TX

   
539

 

 
830

   

   
539

 
829

 
1,368

 
146

 
2012
 
07/12
(m)
40
    Chattanooga, TN

   
239

 
1,214

 

   

   
239

 
1,214

 
1,453

 
292

 
1998
 
10/12
 
30
    Chattanooga, TN

   
238

 
1,756

 

   

   
238

 
1,756

 
1,994

 
422

 
1998
 
10/12
 
30
    Chattanooga, TN

   
224

 
173

 

   

   
224

 
173

 
397

 
42

 
2001
 
10/12
 
30
    Cleveland, TN

   
318

 
1,064

 

   

   
318

 
1,064

 
1,382

 
219

 
2004
 
10/12
 
35
    Fort Oglethorpe, GA

   
241

 
331

 

   

   
241

 
331

 
572

 
68

 
2003
 
10/12
 
35
    Marietta, GA

   
618

 
30

 

   

   
618

 
30

 
648

 
7

 
1988
 
12/12
 
30
    Smyrna, GA

   
295

 
1,092

 

   

   
295

 
1,092

 
1,387

 
308

 
1984
 
12/12
 
25
    Cypress, TX

   
550

 

 
983

   

   
550

 
983

 
1,533

 
120

 
2014
 
05/14
(m)
40
    Boaz, AL

   
205

 
368

 

   

   
205

 
368

 
573

 
72

 
1995
 
01/15
 
25
    Gadsden, AL

   
116

 
690

 

   

   
116

 
690

 
806

 
113

 
1999
 
01/15
 
30
    Rainbow City, AL

   
164

 
653

 

   

   
164

 
653

 
817

 
129

 
1992
 
01/15
 
25
    Seffner, FL

   
155

 
593

 

   

   
155

 
593

 
748

 
82

 
2008
 
02/15
 
35
    Fayetteville, TN

   
117

 
860

 

   

   
117

 
860

 
977

 
135

 
1998
 
04/15
 
30
    Huntsville, AL

   
214

 
710

 

   

   
214

 
710

 
924

 
134

 
1995
 
04/15
 
25
    Huntsville, AL

   
292

 
526

 

   

   
292

 
526

 
818

 
83

 
1995
 
04/15
 
30
    Madison, AL

   
319

 
1,006

 

   

   
319

 
1,006

 
1,325

 
158

 
1992
 
04/15
 
30
    Houston, TX

   
576

 

 
1,120

   

   
576

 
1,120

 
1,696

 
87

 
2016
 
04/16
(m)
40
    Tampa, FL

   
718

 

 
942

   

   
718

 
942

 
1,660

 
72

 
2016
 
06/16
(m)
40
    West Point, MS

   
335

 

 
1,130

   

   
335

 
1,130

 
1,465

 
76

 
2017
 
10/16
(m)
40
    Tupelo, MS

   
381

 
1,641

 

   

   
381

 
1,641

 
2,022

 
131

 
2013
 
03/17
 
35
    Tupelo, MS

   
607

 

 
1,158

   

   
607

 
1,158

 
1,765

 
59

 
2017
 
03/17
(m)
40
    Canton, GA

   
741

 

 
1,240

   

   
741

 
1,240

 
1,981

 
53

 
2018
 
10/17
(m)
40
    Jasper, AL

   
186

 
879

 

   

   
186

 
879

 
1,065

 
65

 
2000
 
10/17
 
30
    Hurst, TX

   
331

 
1,397

 

   

   
331

 
1,397

 
1,728

 
62

 
2013
 
06/18
 
35
    Hampton Cove, AL

   
628

 

 
1,326

   

   
628

 
1,326

 
1,954

 
21

 
2019
 
09/18
(m)
40
    Dyer, IN

   
618

 
803

 

   

   
618

 
803

 
1,421

 
28

 
2013
 
10/18
 
35
    Hendersonville, TN

   
916

 
1,656

 

   

   
916

 
1,656

 
2,572

 
53

 
2017
 
11/18
 
35
    Nashville, TN

   
833

 
1,898

 

   

   
833

 
1,898

 
2,731

 
61

 
2014
 
11/18
 
35
    Spring Hill, TN

   
536

 
2,570

 

   

   
536

 
2,570

 
3,106

 
83

 
2013
 
11/18
 
35
    Murfreesboro, TN

   
417

 
2,157

 

   

   
417

 
2,157

 
2,574

 
81

 
2004
 
11/18
 
30
    Murfreesboro, TN

   
407

 
2,552

 

   

   
407

 
2,552

 
2,959

 
115

 
2001
 
11/18
 
25
    Murfreesboro, TN

   
667

 
1,594

 

   

   
667

 
1,594

 
2,261

 
51

 
2013
 
11/18
 
35
    Concord, NC

   
570

 
1,626

 

   

   
570

 
1,626

 
2,196

 
45

 
2018
 
01/19
 
35
    Lafayette, LA

   
364

 
1,169

 

   

   
364

 
1,169

 
1,533

 
24

 
2010
 
05/19
 
30
    Lafayette, LA

   
230

 
845

 

   

   
230

 
845

 
1,075

 
18

 
1996
 
05/19
 
30
    Taylors, SC

   
581

 

 
1,283

   

   
581

 
1,283

 
1,864

 
1

 
2019
 
06/19
(m)
(k)
    Richmond Hill, GA

   
792

 

 

   

   
792

 
 (e)

 
792

 
 (e)

 
 (e)
 
11/19
(m)
(e)
    Magnolia, TX

   
1,022

 

 

   

   
1,022

 
 (e)

 
1,022

 
 (e)

 
 (e)
 
11/19
(m)
(e)
    Gallatin, TN

   
808

 
1,663

 

   

   
808

 
1,663

 
2,471

 
5

 
2019
 
11/19
 
40
    Allen, TX

   
575

 
1,781

 

   

   
575

 
1,781

 
2,356

 
2

 
2016
 
12/19
 
35
    Gilbert, AZ

   
602

 
1,872

 

   

   
602

 
1,872

 
2,474

 
2

 
2018
 
12/19
 
40
    Peoria, AZ

   
405

 
1,929

 

   

   
405

 
1,929

 
2,334

 
2

 
2015
 
12/19
 
40
    Tempe, AZ

   
903

 
1,374

 

   

   
903

 
1,374

 
2,277

 
2

 
2014
 
12/19
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Express Wash & Go:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Cohoes, NY

   
27

 
145

 
174

   

   
27

 
318

 
345

 
76

 
1994
 
09/04
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

E-Z Mart:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Andrews, TX

   
140

 
2,623

 

   

   
140

 
2,623

 
2,763

 
128

 
2014
 
04/18
 
35
    Arlington, TX

   
196

 
1,187

 

   

   
196

 
1,187

 
1,383

 
81

 
1982
 
04/18
 
25
    Ashdown, AR

   
112

 
2,996

 

   

   
112

 
2,996

 
3,108

 
146

 
2015
 
04/18
 
35
    Broken Arrow, OK

   
93

 
1,635

 

   

   
93

 
1,635

 
1,728

 
93

 
2012
 
04/18
 
30
    Broken Bow, OK

   
93

 
2,325

 

   

   
93

 
2,325

 
2,418

 
159

 
1964
 
04/18
 
25
    Broken Bow, OK

   
103

 
2,315

 

   

   
103

 
2,315

 
2,418

 
132

 
1994
 
04/18
 
30
    Cleburne, TX

   
65

 
1,663

 

   

   
65

 
1,663

 
1,728

 
114

 
1984
 
04/18
 
25
    Davis, OK

   
37

 
1,691

 

   

   
37

 
1,691

 
1,728

 
116

 
1981
 
04/18
 
25
    Durant, OK

   
215

 
1,858

 

   

   
215

 
1,858

 
2,073

 
106

 
2000
 
04/18
 
30
    Durant, OK

   
131

 
1,598

 

   

   
131

 
1,598

 
1,729

 
78

 
2014
 
04/18
 
35
    Edmond, OK

   
140

 
898

 

   

   
140

 
898

 
1,038

 
61

 
1973
 
04/18
 
25
    Fayetteville, AR

   
84

 
1,299

 

   

   
84

 
1,299

 
1,383

 
89

 
1979
 
04/18
 
25
    Foreman, AR

   
65

 
2,697

 

   

   
65

 
2,697

 
2,762

 
132

 
2015
 
04/18
 
35
    Gladewater, TX

   
28

 
1,700

 

   

   
28

 
1,700

 
1,728

 
116

 
1973
 
04/18
 
25
    Harrah, OK

   
131

 
1,598

 

   

   
131

 
1,598

 
1,729

 
109

 
1986
 
04/18
 
25
    Hartshorne, OK

   
28

 
1,356

 

   

   
28

 
1,356

 
1,384

 
77

 
1998
 
04/18
 
30
    Hot Springs, AR

   
38

 
656

 

   

   
38

 
656

 
694

 
45

 
1977
 
04/18
 
25
    Hot Springs, AR

   
449

 
935

 

   

   
449

 
935

 
1,384

 
53

 
1989
 
04/18
 
30
    Hot Springs, AR

   
823

 
561

 

   

   
823

 
561

 
1,384

 
32

 
2012
 
04/18
 
30
    Hugo, OK

   
28

 
1,356

 

   

   
28

 
1,356

 
1,384

 
93

 
1985
 
04/18
 
25
    Idabel, OK

   
93

 
1,635

 

   

   
93

 
1,635

 
1,728

 
93

 
1998
 
04/18
 
30
    Kilgore, TX

   
327

 
3,126

 

   

   
327

 
3,126

 
3,453

 
153

 
2013
 
04/18
 
35
    Little Rock, AR

   
356

 
683

 

   

   
356

 
683

 
1,039

 
47

 
1980
 
04/18
 
25
    Little Rock, AR

   
253

 
786

 

   

   
253

 
786

 
1,039

 
54

 
1981
 
04/18
 
25
    Longview, TX

   
75

 
1,309

 

   

   
75

 
1,309

 
1,384

 
89

 
1983
 
04/18
 
25
    Longview, TX

   
112

 
1,616

 

   

   
112

 
1,616

 
1,728

 
110

 
1982
 
04/18
 
25
    Lubbock, TX

   
150

 
544

 

   

   
150

 
544

 
694

 
37

 
1974
 
04/18
 
25
    McAlester, OK

   
290

 
1,094

 

   

   
290

 
1,094

 
1,384

 
75

 
1980
 
04/18
 
25
    Mineral Wells, TX

   
103

 
1,626

 

   

   
103

 
1,626

 
1,729

 
93

 
1999
 
04/18
 
30
    Monticello, AR

   
215

 
1,858

 

   

   
215

 
1,858

 
2,073

 
106

 
1990
 
04/18
 
30
    Mountain Home, AR

   
84

 
955

 

   

   
84

 
955

 
1,039

 
65

 
1982
 
04/18
 
25
    Mountain Home, AR

   
47

 
992

 

   

   
47

 
992

 
1,039

 
68

 
1983
 
04/18
 
25
    Nash, TX

   
84

 
1,989

 

   

   
84

 
1,989

 
2,073

 
113

 
1994
 
04/18
 
30
    Paris, TX

   
56

 
1,327

 

   

   
56

 
1,327

 
1,383

 
91

 
1980
 
04/18
 
25
    Pittsburg, TX

   
149

 
1,579

 

   

   
149

 
1,579

 
1,728

 
90

 
1998
 
04/18
 
30
    Queen City, TX

   
168

 
2,595

 

   

   
168

 
2,595

 
2,763

 
127

 
2016
 
04/18
 
35
    Red Oak, OK

   
168

 
1,905

 

   

   
168

 
1,905

 
2,073

 
108

 
2012
 
04/18
 
30
    Spiro, OK

   
103

 
1,970

 

   

   
103

 
1,970

 
2,073

 
135

 
1985
 
04/18
 
25
    Springdale, AR

   
122

 
572

 

   

   
122

 
572

 
694

 
39

 
1969
 
04/18
 
25
    Springdale, AR

   
169

 
525

 

   

   
169

 
525

 
694

 
36

 
1974
 
04/18
 
25
    Sulphur Springs, TX

   
65

 
1,318

 

   

   
65

 
1,318

 
1,383

 
90

 
1981
 
04/18
 
25
    Talihina, OK

   
234

 
1,150

 

   

   
234

 
1,150

 
1,384

 
79

 
1975
 
04/18
 
25
    Texarkana, AR

   
159

 
1,914

 

   

   
159

 
1,914

 
2,073

 
131

 
1975
 
04/18
 
25
    Texarkana, AR

   
56

 
1,672

 

   

   
56

 
1,672

 
1,728

 
95

 
1998
 
04/18
 
30
    Texarkana, AR

   
47

 
1,337

 

   

   
47

 
1,337

 
1,384

 
91

 
1986
 
04/18
 
25
    Texarkana, AR

   
159

 
2,604

 

   

   
159

 
2,604

 
2,763

 
148

 
1994
 
04/18
 
30
    Texarkana, AR

   
93

 
1,290

 

   

   
93

 
1,290

 
1,383

 
88

 
1974
 
04/18
 
25
    Texarkana, TX

   
112

 
2,996

 

   

   
112

 
2,996

 
3,108

 
171

 
2001
 
04/18
 
30
   


   
 
 


 


   


   
 
 


 


 


 
 
 
 
 

Family Dollar:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Riverdale, GA

   
1,089

 
1,707

 

   

   
1,089

 
1,707

 
2,796

 
941

 
1997
 
12/97
 
40
    Albany, NY

   
34

 
824

 
14

   

   
34

 
838

 
872

 
315

 
1992
 
09/04
 
40
    Cohoes, NY

   
140

 
753

 
49

   

   
140

 
802

 
942

 
340

 
1994
 
09/04
 
40
    Hudson Falls, NY

   
51

 
380

 
625

   

   
187

 
869

 
1,056

 
240

 
1993
 
09/04
 
40
    Monticello, NY

   
664

 
769

 
156

   

   
799

 
447

 
1,246

 
254

 
1996
 
03/05
 
40
    Richmond, TX

   
366

 
1,059

 

   

   
366

 
1,059

 
1,425

 
178

 
2012
 
02/14
 
35
    Spring, TX

   
199

 
1,152

 

   

   
199

 
1,152

 
1,351

 
193

 
2012
 
02/14
 
35
    Bartlesville, OK

   
110

 
445

 

   

   
110

 
445

 
555

 
97

 
2001
 
07/14
 
25
    Huntsville, AL

   
141

 
596

 

   

   
141

 
596

 
737

 
108

 
2005
 
07/14
 
30
    Tulsa, OK

   
70

 
519

 
34

   

   
103

 
519

 
622

 
118

 
2001
 
07/14
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Famous Footwear:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lapeer, MI

   
163

 
835

 

   

   
163

 
812

 
975

 
251

 
2007
 
10/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Famsa:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Harlingen, TX

   
317

 
756

 
170

   

   
317

 
926

 
1,243

 
427

 
1999
 
11/98
(f)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Ferguson:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Destin, FL

   
554

 
1,012

 
253

   

   
554

 
1,265

 
1,819

 
396

 
2006
 
03/07
 
40
    Union City, GA

   
144

 
1,260

 

   

   
144

 
1,260

 
1,404

 
311

 
2010
 
05/11
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Fikes Wholesale:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Belton, TX

   
722

 
1,814

 

   

   
722

 
1,814

 
2,536

 
434

 
2007
 
08/11
 
35
    Godley, TX

   
1,453

 
2,084

 

   

   
1,453

 
2,084

 
3,537

 
499

 
2008
 
08/11
 
35
    Killeen, TX

   
1,053

 
833

 

   

   
1,053

 
833

 
1,886

 
199

 
2007
 
08/11
 
35
    Killeen, TX

   
1,302

 
2,514

 

   

   
1,302

 
2,514

 
3,816

 
602

 
2008
 
08/11
 
35
    McGregor, TX

   
511

 
1,484

 

   

   
511

 
1,484

 
1,995

 
355

 
2006
 
08/11
 
35
    Thorndale, TX

   
331

 
984

 

   

   
331

 
984

 
1,315

 
235

 
2007
 
08/11
 
35
    Valley Mills, TX

   
711

 
2,114

 

   

   
711

 
2,114

 
2,825

 
506

 
2006
 
08/11
 
35
    West, TX

   
402

 
864

 

   

   
402

 
864

 
1,266

 
241

 
1999
 
08/11
 
30
    Gladewater, TX

   
145

 
2,107

 

   

   
145

 
2,107

 
2,252

 
319

 
2007
 
09/14
 
35
    Hearne, TX

   
68

 
2,184

 

   

   
68

 
2,184

 
2,252

 
385

 
1996
 
09/14
 
30
    Jarrell, TX

   
541

 
2,965

 

   

   
541

 
2,965

 
3,506

 
448

 
2009
 
09/14
 
35
    Killeen, TX

   
628

 
2,878

 

   

   
628

 
2,878

 
3,506

 
435

 
2013
 
09/14
 
35
    Liberty Hill, TX

   
203

 
3,303

 

   

   
202

 
3,303

 
3,505

 
499

 
2013
 
09/14
 
35
    Rosebud, TX

   
58

 
1,847

 

   

   
58

 
1,847

 
1,905

 
279

 
2012
 
09/14
 
35
    Temple, TX

   
1,052

 
3,302

 

   

   
1,052

 
3,302

 
4,354

 
499

 
2012
 
09/14
 
35
    Waco, TX

   
1,400

 
2,106

 

   

   
1,400

 
2,106

 
3,506

 
371

 
1997
 
09/14
 
30
    Claude, TX

   
193

 
3,728

 

   

   
193

 
3,728

 
3,921

 
430

 
2013
 
12/15
 
35
    Covington, TX

   
164

 
2,512

 

   

   
164

 
2,512

 
2,676

 
338

 
2001
 
12/15
 
30
    Hamilton, TX

   
97

 
2,175

 

   

   
97

 
2,175

 
2,272

 
352

 
1987
 
12/15
 
25
    Lott, TX

   
135

 
3,236

 

   

   
135

 
3,236

 
3,371

 
374

 
2013
 
12/15
 
35
    Salado, TX

   
715

 
3,206

 

   

   
715

 
3,206

 
3,921

 
370

 
2014
 
12/15
 
35
    Temple, TX

   
77

 
2,291

 

   

   
77

 
2,291

 
2,368

 
265

 
2012
 
12/15
 
35
    Vernon, TX

   
154

 
5,850

 

   

   
154

 
5,850

 
6,004

 
591

 
2015
 
12/15
 
40
    Milton, FL

   
1,498

 

 
3,568

   

   
1,498

 
3,568

 
5,066

 
271

 
2016
 
04/16
(m)
40
    Giddings, TX

   
845

 

 
5,219

   

   
845

 
5,219

 
6,064

 
332

 
2017
 
11/16
(m)
40
    Daphne, AL

   
1,411

 
1,247

 

   

   
1,411

 
1,247

 
2,658

 
126

 
2006
 
12/16
 
30
    Foley, AL

   
783

 
1,721

 

   

   
783

 
1,721

 
2,504

 
131

 
2007
 
12/16
 
40
    Belton, TX

   
415

 
3,391

 

   

   
415

 
3,391

 
3,806

 
251

 
2016
 
01/17
 
40
    Hewitt, TX

   
747

 

 
3,233

   

   
747

 
3,233

 
3,980

 
165

 
2017
 
01/17
(m)
40
    Amarillo, TX

   
390

 
3,555

 

   

   
390

 
3,555

 
3,945

 
74

 
2013
 
05/19
 
30
    Crestview, FL

   
504

 
3,394

 

   

   
504

 
3,394

 
3,898

 
61

 
2015
 
05/19
 
35
    Fort Walton Beach, FL

   
684

 
3,213

 

   

   
684

 
3,213

 
3,897

 
50

 
2016
 
05/19
 
40
    Fort Walton Beach, FL

   
799

 
3,099

 

   

   
799

 
3,099

 
3,898

 
55

 
2016
 
05/19
 
35
    Killeen, TX

   
504

 
3,973

 

   

   
504

 
3,973

 
4,477

 
83

 
2012
 
05/19
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

First Cash Pawn:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Alice, TX

   
318

 
578

 

   

   
318

 
578

 
896

 
261

 
1995
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Five Below:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Florissant, MO

   
249

 
294

 
849

   

   
250

 
1,142

 
1,392

 
315

 
1996
 
04/03
(g)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Five Guys Burgers and Fries:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Middleburg Heights, OH

   
497

 
260

 
250

   

   
497

 
510

 
1,007

 
296

 
1976
 
09/06
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Flash Markets:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lebanon, TN

   
582

 

 
2,063

   

   
582

 
2,063

 
2,645

 
612

 
2007
 
03/07
(m)
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 


 


 


 


 


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-29


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fleming's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Akron, OH

   
475

 
3,140

 

   

   
475

 
3,140

 
3,615

 
699

 
2005
 
03/12
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Floor & Decor:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Knoxville, TN

   
2,364

 

 
7,879

   

   
2,364

 
7,879

 
10,243

 
780

 
2016
 
09/15
(m)
40
    Albuquerque, NM

   
2,322

 
10,699

 

   

   
2,322

 
10,699

 
13,021

 
256

 
2018
 
01/19
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Food 4 Less:


   


 


 


   


   


 


 


 


 
 
 
 
 

    National City, CA

   
3,569

 
4,266

 

   

   
3,569

 
1,246

 
4,815

 
10

 
1995
 
11/98
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Food Fast:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Bossier City, LA

   
883

 
658

 

   

   
883

 
658

 
1,541

 
550

 
1975
 
06/07
 
15
    Brownsboro, TX

   
328

 
385

 

   

   
328

 
385

 
713

 
161

 
1990
 
06/07
 
30
    Flint, TX

   
272

 
411

 

   

   
272

 
411

 
683

 
206

 
1985
 
06/07
 
25
    Forney, TX

   
545

 
707

 

   

   
545

 
707

 
1,252

 
296

 
1989
 
06/07
 
30
    Gun Barrel City, TX

   
242

 
467

 

   

   
242

 
467

 
709

 
234

 
1988
 
06/07
 
25
    Gun Barrel City, TX

   
270

 
386

 

   

   
270

 
386

 
656

 
194

 
1986
 
06/07
 
25
    Jacksonville, TX

   
660

 
632

 

   

   
660

 
632

 
1,292

 
529

 
1976
 
06/07
 
15
    Kemp, TX

   
581

 
505

 

   

   
581

 
505

 
1,086

 
253

 
1986
 
06/07
 
25
    Longview, TX

   
271

 
431

 

   

   
271

 
431

 
702

 
180

 
1990
 
06/07
 
30
    Longview, TX

   
403

 
572

 

   

   
403

 
572

 
975

 
287

 
1985
 
06/07
 
25
    Longview, TX

   
426

 
382

 

   

   
426

 
382

 
808

 
191

 
1984
 
06/07
 
25
    Longview, TX

   
252

 
304

 

   

   
252

 
304

 
556

 
152

 
1983
 
06/07
 
25
    Longview, TX

   
360

 
535

 

   

   
360

 
535

 
895

 
269

 
1983
 
06/07
 
25
    Mabank, TX

   
229

 
494

 

   

   
229

 
494

 
723

 
248

 
1986
 
06/07
 
25
    Mt. Vernon, TX

   
292

 
666

 
2,800

   

   
292

 
2,800

 
3,092

 
470

 
2013
 
06/07
(m)
40
    Tyler, TX

   
488

 
831

 

   

   
488

 
831

 
1,319

 
521

 
1980
 
06/07
 
20
    Tyler, TX

   
316

 
545

 

   

   
316

 
545

 
861

 
228

 
1989
 
06/07
 
30
    Tyler, TX

   
473

 
654

 

   

   
473

 
654

 
1,127

 
273

 
1990
 
06/07
 
30
    Tyler, TX

   
323

 
283

 

   

   
323

 
283

 
606

 
178

 
1978
 
06/07
 
20
    Tyler, TX

   
188

 
329

 

   

   
188

 
329

 
517

 
165

 
1984
 
06/07
 
25
    Tyler, TX

   
742

 
546

 

   

   
742

 
546

 
1,288

 
274

 
1985
 
06/07
 
25
    Tyler, TX

   
542

 
403

 

   

   
481

 
403

 
884

 
202

 
1984
 
06/07
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-30


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fort Ticonderoga:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Ticonderoga, NY

   
89

 
689

 
60

   

   
89

 
749

 
838

 
278

 
1993
 
09/04
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Fresenius Medical Care:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Houston, TX

   
422

 
1,915

 
510

   

   
422

 
2,425

 
2,847

 
832

 
1995
 
12/05
 
40
    Rockford, MI

   
226

 
1,404

 

   

   
226

 
1,404

 
1,630

 
256

 
2002
 
07/14
 
30
 


 


 


 


 


 


 


 


 


 
 
 
 
 

Fresh Market:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Gainesville, FL

   
317

 
1,248

 
673

   

   
317

 
1,921

 
2,238

 
716

 
1982
 
03/99
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Frisch's Big Boy:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Batavia, OH

   
319

 
2,637

 
150

   

   
319

 
2,787

 
3,106

 
392

 
1995
 
08/15
 
30
    Bethel, OH

   
242

 
2,512

 
150

   

   
242

 
2,662

 
2,904

 
447

 
1982
 
08/15
 
25
    Burlington, KY

   
589

 
2,357

 
150

   

   
589

 
2,507

 
3,096

 
346

 
1995
 
08/15
 
30
    Cincinnati, OH

   
300

 
1,952

 
150

   

   
300

 
2,102

 
2,402

 
345

 
1990
 
08/15
 
25
    Cincinnati, OH

   
445

 
929

 

   

   
445

 
929

 
1,374

 
135

 
2005
 
08/15
 
30
    Cincinnati, OH

   
387

 
1,865

 

   

   
387

 
1,865

 
2,252

 
272

 
1996
 
08/15
 
30
    Cincinnati, OH

   
183

 
3,283

 
150

   

   
183

 
3,433

 
3,616

 
583

 
1980
 
08/15
 
25
    Cincinnati, OH

   
319

 
2,753

 
150

   

   
319

 
2,903

 
3,222

 
406

 
2007
 
08/15
 
30
    Cincinnati, OH

   
782

 
1,961

 
150

   

   
782

 
2,111

 
2,893

 
352

 
1973
 
08/15
 
25
    Cincinnati, OH

   
271

 
939

 

   

   
271

 
939

 
1,210

 
164

 
1994
 
08/15
 
25
    Cincinnati, OH

   
541

 
1,981

 
150

   

   
541

 
2,131

 
2,672

 
355

 
1964
 
08/15
 
25
    Cincinnati, OH

   
638

 
1,845

 
150

   

   
638

 
1,995

 
2,633

 
330

 
1993
 
08/15
 
25
    Cincinnati, OH

   
290

 
3,100

 
150

   

   
290

 
3,250

 
3,540

 
551

 
1985
 
08/15
 
25
    Cincinnati, OH

   
734

 
1,768

 
150

   

   
734

 
1,918

 
2,652

 
317

 
1991
 
08/15
 
25
    Cincinnati, OH

   
754

 
1,044

 

   

   
754

 
1,044

 
1,798

 
152

 
1997
 
08/15
 
30
    Cincinnati, OH

   
695

 
2,173

 
150

   

   
695

 
2,323

 
3,018

 
324

 
1982
 
08/15
 
30
    Cincinnati, OH

   
329

 
1,672

 

   

   
329

 
1,672

 
2,001

 
293

 
1988
 
08/15
 
25
    Cincinnati, OH

   
657

 
1,874

 
150

   

   
654

 
2,024

 
2,678

 
336

 
1986
 
08/15
 
25
    Cincinnati, OH

   
976

 
1,806

 

   

   
976

 
1,806

 
2,782

 
226

 
2011
 
08/15
 
35
    Cincinnati, OH

   
435

 
3,457

 
150

   

   
435

 
3,607

 
4,042

 
614

 
1970
 
08/15
 
25
    Cold Spring, KY

   
763

 
2,144

 
150

   

   
763

 
2,294

 
3,057

 
320

 
1993
 
08/15
 
30
    Covington, KY

   
522

 
2,444

 
150

   

   
522

 
2,594

 
3,116

 
363

 
1991
 
08/15
 
30
    Dayton, OH

   
445

 
1,276

 

   

   
445

 
1,276

 
1,721

 
160

 
2008
 
08/15
 
35


See accompanying report of independent registered public accounting firm.
F-31


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Dayton, OH

   
464

 
2,029

 

   

   
464

 
2,029

 
2,493

 
296

 
1988
 
08/15
 
30
    Dayton, OH

   
261

 
1,392

 

   

   
261

 
1,392

 
1,653

 
244

 
1985
 
08/15
 
25
    Dayton, OH

   
589

 
1,662

 

   

   
589

 
1,662

 
2,251

 
242

 
2006
 
08/15
 
30
    Dayton, OH

   
407

 
349

 

   

   
407

 
349

 
756

 
44

 
2010
 
08/15
 
35
    Dayton, OH

   
348

 
1,633

 

   

   
348

 
1,633

 
1,981

 
286

 
1990
 
08/15
 
25
    Eaton, OH

   
319

 
1,267

 

   

   
319

 
1,267

 
1,586

 
222

 
1992
 
08/15
 
25
    Englewood, OH

   
348

 
1,846

 
150

   

   
348

 
1,996

 
2,344

 
326

 
1976
 
08/15
 
25
    Erlanger, KY

   
425

 
1,740

 

   

   
425

 
1,740

 
2,165

 
304

 
1991
 
08/15
 
25
    Fairborn, OH

   
348

 
1,305

 

   

   
348

 
1,305

 
1,653

 
190

 
1989
 
08/15
 
30
    Fairfield, OH

   
580

 
1,556

 
150

   

   
580

 
1,706

 
2,286

 
281

 
1976
 
08/15
 
25
    Florence, KY

   
860

 
1,903

 
150

   

   
860

 
2,053

 
2,913

 
340

 
1986
 
08/15
 
25
    Florence, KY

   
850

 
1,971

 
150

   

   
850

 
2,121

 
2,971

 
292

 
2001
 
08/15
 
30
    Fort Mitchell, KY

   
792

 
3,051

 
150

   

   
792

 
3,201

 
3,993

 
452

 
1988
 
08/15
 
30
    Franklin, OH

   
406

 
1,749

 
150

   

   
406

 
1,899

 
2,305

 
314

 
1977
 
08/15
 
25
    Franklin, OH

   
415

 
2,425

 
150

   

   
415

 
2,575

 
2,990

 
359

 
1987
 
08/15
 
30
    Gahanna, OH

   
389

 
165

 

   

   
389

 
165

 
554

 
24

 
1994
 
08/15
 
30
    Greensburg, IN

   
464

 
1,575

 
150

   

   
464

 
1,726

 
2,190

 
234

 
1990
 
08/15
 
30
    Grove City, OH

   
406

 
1,846

 

   

   
406

 
1,846

 
2,252

 
269

 
1993
 
08/15
 
30
    Groveport, OH

   
145

 
1,084

 

   

   
145

 
1,084

 
1,229

 
158

 
1992
 
08/15
 
30
    Hamilton, OH

   
310

 
1,045

 

   

   
310

 
1,045

 
1,355

 
183

 
1968
 
08/15
 
25
    Hamilton, OH

   
560

 
1,894

 

   

   
560

 
1,894

 
2,454

 
276

 
2009
 
08/15
 
30
    Harrison, OH

   
338

 
2,685

 
150

   

   
338

 
2,835

 
3,173

 
395

 
1989
 
08/15
 
30
    Heath, OH

   
939

 
348

 

   

   
939

 
348

 
1,287

 
44

 
2011
 
08/15
 
35
    Hillsboro, OH

   
502

 
2,926

 
150

   

   
502

 
3,076

 
3,578

 
520

 
1980
 
08/15
 
25
    Independence, KY

   
657

 
1,816

 

   

   
657

 
1,816

 
2,473

 
265

 
2009
 
08/15
 
30
    Lancaster, OH

   
570

 
1,604

 

   

   
570

 
1,604

 
2,174

 
234

 
1992
 
08/15
 
30
    Lawrenceburg, IN

   
550

 
3,071

 

   

   
550

 
3,071

 
3,621

 
384

 
2010
 
08/15
 
35
    Lebanon, OH

   
560

 
2,550

 
150

   

   
560

 
2,700

 
3,260

 
378

 
2006
 
08/15
 
30
    Lexington, KY

   
647

 
2,289

 
150

   

   
647

 
2,439

 
3,086

 
408

 
1976
 
08/15
 
25
    Lexington, KY

   
734

 
1,382

 

   

   
724

 
1,382

 
2,106

 
173

 
2013
 
08/15
 
35
    Louisville, KY

   
891

 
97

 

   

   
891

 
97

 
988

 
14

 
1994
 
08/15
 
30
    Louisville, KY

   
628

 
1,691

 
150

   

   
628

 
1,841

 
2,469

 
254

 
1990
 
08/15
 
30
    Loveland, OH

   
241

 
2,666

 
150

   

   
241

 
2,816

 
3,057

 
475

 
1980
 
08/15
 
25
    Loveland, OH

   
184

 
1,740

 

   

   
184

 
1,740

 
1,924

 
254

 
1990
 
08/15
 
30


See accompanying report of independent registered public accounting firm.
F-32


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Marysville, OH

   
281

 
823

 

   

   
281

 
823

 
1,104

 
120

 
1993
 
08/15
 
30
    Mason, OH

   
531

 
1,981

 
150

   

   
531

 
2,131

 
2,662

 
355

 
1987
 
08/15
 
25
    Maysville, KY

   
454

 
3,119

 
175

   

   
479

 
3,269

 
3,748

 
554

 
1992
 
08/15
 
25
    Miamisburg, OH

   
551

 
1,701

 
150

   

   
551

 
1,851

 
2,402

 
300

 
1970
 
08/15
 
25
    Middletown, OH

   
823

 
310

 

   

   
823

 
310

 
1,133

 
39

 
2013
 
08/15
 
35
    Middletown, OH

   
155

 
1,952

 
150

   

   
155

 
2,102

 
2,257

 
350

 
1966
 
08/15
 
25
    Milford, OH

   
309

 
1,942

 
150

   

   
309

 
2,092

 
2,401

 
348

 
1960
 
08/15
 
25
    New Albany, IN

   
493

 
1,238

 

   

   
493

 
1,238

 
1,731

 
180

 
1995
 
08/15
 
30
    Shepherdsville, KY

   
793

 
1,092

 

   

   
793

 
1,092

 
1,885

 
159

 
2009
 
08/15
 
30
    Springfield, OH

   
560

 
1,691

 
150

   

   
560

 
1,841

 
2,401

 
250

 
2007
 
08/15
 
30
    Tipp City, OH

   
503

 
919

 

   

   
503

 
919

 
1,422

 
134

 
1996
 
08/15
 
30
    Troy, OH

   
445

 
1,807

 
150

   

   
445

 
1,957

 
2,402

 
266

 
1987
 
08/15
 
30
    Urbana, OH

   
252

 
1,142

 

   

   
252

 
1,142

 
1,394

 
200

 
1991
 
08/15
 
25
    Washington, OH

   
300

 
1,672

 
150

   

   
300

 
1,822

 
2,122

 
248

 
1990
 
08/15
 
30
    Wilmington, OH

   
377

 
2,502

 
150

   

   
377

 
2,652

 
3,029

 
444

 
1973
 
08/15
 
25
    Winchester, KY

   
348

 
1,325

 

   

   
348

 
1,325

 
1,673

 
193

 
2008
 
08/15
 
30
    Xenia, OH

   
261

 
2,299

 
150

   

   
261

 
2,449

 
2,710

 
338

 
1986
 
08/15
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Fuel Up:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Chambersburg, PA

   
76

 
197

 

   

   
76

 
197

 
273

 
142

 
1990
 
08/05
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Fuel-On:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Emporium, PA

   
380

 
569

 

   

   
380

 
569

 
949

 
409

 
1996
 
08/05
 
20
    Johnsonburg, PA

   
781

 
504

 

   

   
781

 
504

 
1,285

 
362

 
1978
 
08/05
 
20
    St. Marys, PA

   
274

 
261

 

   

   
274

 
261

 
535

 
188

 
1979
 
08/05
 
20
    Houtzdale, PA

   
541

 
500

 
46

   

   
356

 
46

 
402

 
3

 
1977
 
01/06
 
15
    Pittsburgh, PA

   
905

 
1,346

 

   

   
905

 
1,346

 
2,251

 
470

 
1967
 
01/06
 
40
    Zelienople, PA

   
160

 
437

 

   

   
160

 
437

 
597

 
153

 
1988
 
01/06
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Fuji Japanese Steakhouse:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Farmington, NM

   
2,757

 

 
773

   

   
2,757

 
773

 
3,530

 
217

 
2003
 
12/07
(o)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

 


 


 


 


 


 


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-33


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Furniture Bank:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Columbus, OH

   
1,596

 
934

 
239

   

   
1,605

 
1,165

 
2,770

 
397

 
1970
 
11/04
(o)
40
   


   
 
 


 


   


   
 
 


 


 


 
 
 
 
 

Furr's Family Dining:


   
 
 


 


   


   
 
 


 


 


 
 
 
 
 

    Moore, OK

   
939

 

 
2,429

   

   
939

 
2,429

 
3,368

 
741

 
2007
 
03/07
(m)
40
    Arlington, TX

   
1,061

 

 
1,594

   

   
1,061

 
1,594

 
2,655

 
367

 
2010
 
04/10
(m)
40
    McAllen, TX

   
520

 
1,700

 

   

   
520

 
1,700

 
2,220

 
456

 
2004
 
12/11
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

FX Video Game Exchange:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Corpus Christi, TX

   
125

 
137

 
229

   

   
125

 
366

 
491

 
134

 
1967
 
11/93
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Gander Outdoors:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Amarillo, TX

   
1,514

 
5,781

 
6,614

   

   
4,581

 
9,285

 
13,866

 
2,268

 
2004
 
11/04
(m)
40
    DeForest, WI

   
2,798

 
10,953

 
3,303

   

   
2,787

 
14,216

 
17,003

 
3,503

 
2008
 
09/10
(m)
35
    Springfield, IL

   
1,717

 
7,622

 
5,726

   

   
3,739

 
11,326

 
15,065

 
2,090

 
2009
 
09/10
(m)
35
    Onalaska, WI

   
1,963

 

 
7,417

   

   
1,733

 
7,417

 
9,150

 
1,511

 
2011
 
10/10
(m)
40
    Ocala, FL

   
3,315

 
8,908

 
645

   

   
3,315

 
9,553

 
12,868

 
2,384

 
2008
 
10/10
(m)
35
    Bowling Green, KY

   
1,777

 
7,319

 
713

   

   
1,777

 
8,032

 
9,809

 
1,802

 
2007
 
07/11
(m)
35
    Roanoke, VA

   
1,769

 
8,120

 
738

   

   
1,769

 
8,858

 
10,627

 
2,001

 
2008
 
07/11
(m)
35
    Greenfield, IN

   
878

 

 
6,695

   

   
878

 
6,695

 
7,573

 
886

 
2014
 
12/13
(m)
40
    Lakeville, MN

   
3,243

 
11,191

 
609

   

   
3,243

 
11,800

 
15,043

 
1,826

 
2003
 
03/15
(o)
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Gate Petroleum:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Concord, NC

   
852

 
1,201

 

   

   
852

 
1,201

 
2,053

 
437

 
2001
 
06/05
 
40
    Rocky Mount, NC

   
259

 
1,164

 

   

   
259

 
1,164

 
1,423

 
423

 
2000
 
06/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Gerber Collision:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Garner, NC

   
352

 
1,056

 

   

   
352

 
1,056

 
1,408

 
359

 
1972
 
03/13
 
20
    Estero, FL

   
839

 

 
2,135

   

   
839

 
2,135

 
2,974

 
294

 
2015
 
10/14
(m)
30
    Woodstock, GA

   
328

 
1,291

 

   

   
328

 
1,291

 
1,619

 
221

 
1990
 
11/14
 
30
    Roswell, GA

   
958

 

 
1,920

   

   
961

 
1,920

 
2,881

 
368

 
2015
 
12/14
(m)
25
    Tucson, AZ

   
242

 
1,518

 

   

   
242

 
1,518

 
1,760

 
252

 
2002
 
01/15
 
30
    Tucson, AZ

   
330

 
1,746

 

   

   
330

 
1,746

 
2,076

 
247

 
2008
 
01/15
 
35


See accompanying report of independent registered public accounting firm.
F-34


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Kansas City, MO

   
727

 
834

 

   

   
727

 
834

 
1,561

 
16

 
1950
 
08/19
 
20
    Daytona Beach, FL

   
681

 

 

   

   
681

 
 (e)

 
681

 
 (e)

 
 (e)
 
08/19
(o)
(e)
    Woodstock, GA

   
210

 
785

 

   

   
210

 
785

 
995

 
1

 
1988
 
12/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Global:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Augusta, ME

   
234

 
1,384

 

   

   
234

 
1,384

 
1,618

 
196

 
1987
 
06/16
 
25
    Bedford, NH

   
332

 
907

 

   

   
315

 
907

 
1,222

 
129

 
1980
 
06/16
 
25
    Bridgeport, CT

   
331

 
1,762

 

   

   
331

 
1,762

 
2,093

 
250

 
1979
 
06/16
 
25
    Derry, NH

   
176

 
1,044

 

   

   
176

 
1,044

 
1,220

 
148

 
1987
 
06/16
 
25
    Dover, NH

   
497

 
926

 

   

   
497

 
926

 
1,423

 
109

 
2004
 
06/16
 
30
    Epping, NH

   
798

 
1,363

 

   

   
798

 
1,363

 
2,161

 
161

 
1998
 
06/16
 
30
    Exeter, NH

   
593

 
3,258

 

   

   
593

 
3,258

 
3,851

 
385

 
2001
 
06/16
 
30
    Fitzwilliam, NH

   
146

 
2,404

 

   

   
146

 
2,404

 
2,550

 
341

 
1993
 
06/16
 
25
    Gardner, MA

   
88

 
2,764

 

   

   
88

 
2,764

 
2,852

 
392

 
1968
 
06/16
 
25
    Hanover, MA

   
380

 
1,131

 

   

   
380

 
1,131

 
1,511

 
160

 
1991
 
06/16
 
25
    Johnston, RI

   
478

 
1,082

 

   

   
478

 
1,082

 
1,560

 
153

 
1992
 
06/16
 
25
    Manchester, CT

   
584

 
1,869

 

   

   
584

 
1,869

 
2,453

 
265

 
1983
 
06/16
 
25
    Middleton, MA

   
331

 
1,694

 

   

   
331

 
1,694

 
2,025

 
200

 
2001
 
06/16
 
30
    Milford, MA

   
642

 
1,869

 

   

   
642

 
1,869

 
2,511

 
265

 
1972
 
06/16
 
25
    Nashua, NH

   
351

 
1,160

 

   

   
351

 
1,160

 
1,511

 
164

 
1991
 
06/16
 
25
    North Easton, MA

   
1,293

 
2,917

 

   

   
1,293

 
2,917

 
4,210

 
344

 
2005
 
06/16
 
30
    Portland, ME

   
361

 
732

 

   

   
361

 
732

 
1,093

 
104

 
1987
 
06/16
 
25
    Saugus, MA

   
885

 
3,209

 

   

   
885

 
3,209

 
4,094

 
379

 
1997
 
06/16
 
30
    Scarborough, ME

   
662

 
1,393

 

   

   
662

 
1,393

 
2,055

 
164

 
1998
 
06/16
 
30
    Tewksbury, MA

   
449

 
839

 

   

   
449

 
839

 
1,288

 
99

 
2000
 
06/16
 
30
    Townsend, MA

   
195

 
1,695

 

   

   
195

 
1,695

 
1,890

 
240

 
1983
 
06/16
 
25
    Waltham, MA

   
467

 
1,995

 

   

   
467

 
1,995

 
2,462

 
283

 
1983
 
06/16
 
25
    Warwick, RI

   
633

 
1,120

 

   

   
633

 
1,120

 
1,753

 
132

 
2004
 
06/16
 
30
    Waterville, ME

   
49

 
1,112

 

   

   
49

 
1,112

 
1,161

 
158

 
1987
 
06/16
 
25
    Westerly, RI

   
506

 
2,141

 

   

   
506

 
2,141

 
2,647

 
253

 
1998
 
06/16
 
30
    Westerly, RI

   
351

 
1,830

 

   

   
351

 
1,830

 
2,181

 
259

 
1989
 
06/16
 
25
    Westford, MA

   
448

 
1,072

 

   

   
448

 
1,072

 
1,520

 
127

 
1998
 
06/16
 
30
    Weymouth, MA

   
214

 
1,802

 

   

   
214

 
1,802

 
2,016

 
255

 
1960
 
06/16
 
25


See accompanying report of independent registered public accounting firm.
F-35


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Wyoming, RI

   
409

 
1,276

 

   

   
409

 
1,276

 
1,685

 
151

 
1999
 
06/16
 
30
    York, ME

   
175

 
2,812

 

   

   
175

 
2,812

 
2,987

 
398

 
1990
 
06/16
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Golden Corral:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lake Placid, FL

   
115

 
305

 
54

   

   
115

 
359

 
474

 
358

 
1985
 
05/85
 
35
    Brandon, FL

   
1,188

 
1,339

 

   

   
1,188

 
1,339

 
2,527

 
604

 
1998
 
12/01
 
40
    Temple Terrace, FL

   
1,330

 
1,391

 

   

   
1,330

 
1,391

 
2,721

 
627

 
1997
 
12/01
 
40
    Davenport, IA

   
923

 
2,122

 

   

   
923

 
2,122

 
3,045

 
296

 
1998
 
02/15
 
35
    Orange Park, FL

   
1,074

 
1,794

 

   

   
1,074

 
1,794

 
2,868

 
292

 
1995
 
02/15
 
30
    Pensacola, FL

   
1,344

 
3,212

 

   

   
1,344

 
3,212

 
4,556

 
447

 
1999
 
02/15
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Goodwill:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Sealy, TX

   
612

 
675

 
655

   

   
612

 
1,330

 
1,942

 
531

 
1982
 
03/99
 
40
    Fort Worth, TX

   
988

 
2,368

 
32

   

   
988

 
2,401

 
3,389

 
886

 
1997
 
02/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Goodyear Truck & Tire:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Anthony, TX

   
 (l)

 
1,242

 
6

   

   
 (l)

 
1,248

 
1,248

 
388

 
2007
 
02/07
 
40
    Beaverdam, OH

   
 (l)

 
1,521

 

   

   
 (l)

 
1,521

 
1,521

 
480

 
2004
 
05/07
 
40
    Benton, AR

   
 (l)

 
309

 

   

   
 (l)

 
309

 
309

 
96

 
2001
 
05/07
 
40
    Bowman, SC

   
 (l)

 
969

 

   

   
 (l)

 
969

 
969

 
350

 
1998
 
05/07
 
35
    Dalton, GA

   
 (l)

 
1,541

 

   

   
 (l)

 
1,541

 
1,541

 
486

 
2004
 
05/07
 
40
    Dandridge, TN

   
 (l)

 
1,030

 

   

   
 (l)

 
1,030

 
1,030

 
372

 
1989
 
05/07
 
35
    Franklin, OH

   
 (l)

 
563

 

   

   
 (l)

 
563

 
563

 
203

 
1998
 
05/07
 
35
    Gary, IN

   
 (l)

 
1,486

 

   

   
 (l)

 
1,486

 
1,486

 
469

 
2004
 
05/07
 
40
    Georgetown, KY

   
 (l)

 
679

 

   

   
 (l)

 
679

 
679

 
286

 
1997
 
05/07
 
30
    Mebane, NC

   
 (l)

 
561

 

   

   
 (l)

 
561

 
561

 
202

 
1998
 
05/07
 
35
    Piedmont, SC

   
 (l)

 
567

 

   

   
 (l)

 
567

 
567

 
204

 
1999
 
05/07
 
35
    Port Wentworth, GA

   
 (l)

 
552

 

   

   
 (l)

 
552

 
552

 
199

 
1998
 
05/07
 
35
    Valdosta, GA

   
 (l)

 
1,477

 

   

   
 (l)

 
1,477

 
1,477

 
466

 
2004
 
05/07
 
40
    Temple, GA

   
 (l)

 
1,065

 

   

   
 (l)

 
1,065

 
1,065

 
323

 
2007
 
06/07
 
40
    Whiteland, IN

   
 (l)

 
1,471

 

   

   
 (l)

 
1,471

 
1,471

 
458

 
2004
 
07/07
 
40
    Urbandale, IA

   
 (l)

 
816

 

   

   
 (l)

 
816

 
816

 
254

 
1987
 
07/07
 
40
    Robinson, TX

   
 (l)

 
1,183

 

   

   
 (l)

 
1,183

 
1,183

 
358

 
2007
 
07/07
 
40


See accompanying report of independent registered public accounting firm.
F-36


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Kearney, MO

   
 (l)

 
1,269

 

   

   
 (l)

 
1,269

 
1,269

 
395

 
2003
 
07/07
 
40
    Oklahoma City, OK

   
 (l)

 
1,247

 

   

   
 (l)

 
1,247

 
1,247

 
370

 
2008
 
08/07
 
40
    Amarillo, TX

   
 (l)

 
1,158

 

   

   
 (l)

 
1,158

 
1,158

 
334

 
2008
 
02/08
 
40
    Jackson, MS

   
 (l)

 
1,281

 

   

   
 (l)

 
1,281

 
1,281

 
367

 
2008
 
03/08
 
40
    Glendale, KY

   
 (l)

 
1,066

 

   

   
 (l)

 
1,066

 
1,066

 
299

 
2008
 
07/08
 
40
    Lebanon, TN

   
 (l)

 
1,331

 

   

   
 (l)

 
1,331

 
1,331

 
367

 
2008
 
08/08
(p)
40
    Laredo, TX

   
 (l)

 
1,238

 

   

   
 (l)

 
1,238

 
1,238

 
334

 
2009
 
11/08
(p)
40
    Midland, TX

   
 (l)

 
1,148

 

   

   
 (l)

 
1,148

 
1,148

 
272

 
2010
 
04/10
(p)
40
    Tuscaloosa, AL

   
 (l)

 
1,002

 

   

   
 (l)

 
1,002

 
1,002

 
227

 
2010
 
08/10
(p)
40
    Kenly, NC

   
 (l)

 
1,066

 

   

   
 (l)

 
1,066

 
1,066

 
237

 
2011
 
11/10
(p)
40
    Matthews, MO

   
 (l)

 
1,042

 
50

   

   
 (l)

 
1,092

 
1,092

 
232

 
2011
 
01/11
(p)
40
    Baytown, TX

   
 (l)

 

 
1,375

   

   
 (l)

 
1,375

 
1,375

 
288

 
2011
 
05/11
(p)
40
    Sunbury, OH

   
 (l)

 

 
1,424

   

   
 (l)

 
1,424

 
1,424

 
286

 
2011
 
06/11
(p)
40
    Greenwood, LA

   
 (l)

 

 
1,291

   

   
 (l)

 
1,291

 
1,291

 
262

 
2011
 
06/11
(p)
40
    Joplin, MO

   
 (l)

 

 
1,168

   

   
 (l)

 
1,168

 
1,168

 
237

 
2011
 
06/11
(p)
40
    Winslow, AZ

   
 (l)

 

 
1,613

   

   
 (l)

 
1,613

 
1,613

 
317

 
2012
 
09/11
(p)
40
    Gulfport, MS

   
 (l)

 

 
1,377

   

   
 (l)

 
1,377

 
1,377

 
265

 
2012
 
11/11
(p)
40
    Sulphur Springs, TX

   
 (l)

 

 
1,283

   

   
 (l)

 
1,283

 
1,283

 
245

 
2012
 
12/11
(p)
40
    Walcott, IA

   
 (l)

 

 
1,673

   

   
 (l)

 
1,673

 
1,673

 
173

 
2015
 
07/15
(p)
40
    S. Beloit, IL

   
 (l)

 

 
1,927

   

   
 (l)

 
1,927

 
1,927

 
187

 
2016
 
08/15
(p)
40
    Eloy, AZ

   
 (l)

 

 
1,739

   

   
 (l)

 
1,739

 
1,739

 
168

 
2016
 
10/15
(p)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Gordmans:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Wyoming, MI

   
1,322

 

 
4,447

   

   
1,322

 
4,447

 
5,769

 
607

 
2014
 
10/13
(m)
40
    Saginaw, MI

   
763

 

 
4,088

   

   
763

 
4,088

 
4,851

 
558

 
2014
 
02/14
(m)
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Great Clips:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Swansea, IL

   
46

 
132

 
157

   

   
46

 
290

 
336

 
81

 
1997
 
12/01
(g)
40
    Lapeer, MI

   
27

 
194

 

   

   
27

 
184

 
211

 
58

 
2007
 
10/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Guitar Center:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Roseville, MN

   
1,599

 
1,419

 
23

   

   
1,599

 
1,442

 
3,041

 
503

 
1994
 
12/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-37


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
H&R Block:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Swansea, IL

   
46

 
132

 
69

   

   
46

 
201

 
247

 
135

 
1997
 
12/01
 
40
    Bristol, VA

   
63

 
184

 
40

   

   
63

 
224

 
287

 
47

 
2000
 
07/14
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Harbor Freight Tools:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Federal Way, WA

   
2,037

 
1,662

 
534

   

   
2,037

 
2,195

 
4,232

 
1,063

 
1994
 
06/98
 
40
    Gastonia, NC

   
994

 
1,513

 
193

   

   
994

 
1,706

 
2,700

 
608

 
2004
 
12/04
 
40
    Plainfield, IN

   
503

 

 
1,691

   

   
503

 
1,691

 
2,194

 
266

 
1972
 
12/14
(o)
30
    Houma, LA

   
1,037

 

 
3,362

   

   
1,037

 
3,362

 
4,399

 
235

 
2016
 
08/16
(m)
40
    McKinney, TX

   
1,040

 

 
2,551

   

   
1,040

 
2,551

 
3,591

 
157

 
2017
 
01/17
(m)
40
    Marion, IN

   
493

 

 
1,697

   

   
493

 
1,693

 
2,186

 
87

 
2017
 
08/17
(m)
40
    Sandusky, OH

   
999

 

 
1,296

   

   
999

 
1,296

 
2,295

 
42

 
2018
 
04/18
(m)
40
    Casa Grande, AZ

   
1,963

 
1,206

 

   

   
1,963

 
1,206

 
3,169

 
78

 
1976
 
09/18
 
20
    Hillsboro, OH

   
541

 
2,412

 

   

   
541

 
2,412

 
2,953

 
125

 
1978
 
09/18
 
25
    Howell, MI

   
737

 
2,828

 

   

   
737

 
2,828

 
3,565

 
146

 
1993
 
09/18
 
25
    Lake City, FL

   
767

 
2,567

 

   

   
767

 
2,567

 
3,334

 
95

 
2014
 
09/18
 
35
    Morristown, TN

   
657

 
2,290

 

   

   
657

 
2,290

 
2,947

 
84

 
2015
 
09/18
 
35
    Palm Harbor, FL

   
1,948

 
2,216

 

   

   
1,948

 
2,216

 
4,164

 
95

 
1980
 
09/18
 
30
    Reynoldsburg, OH

   
767

 
3,502

 

   

   
767

 
3,502

 
4,269

 
129

 
2014
 
09/18
 
35
    Rogers, AR

   
448

 
2,052

 

   

   
448

 
2,052

 
2,500

 
88

 
1997
 
09/18
 
30
    Sebring, FL

   
519

 
2,350

 

   

   
519

 
2,350

 
2,869

 
101

 
1980
 
09/18
 
30
    Steubenville, OH

   
748

 
2,162

 

   

   
748

 
2,162

 
2,910

 
112

 
1999
 
09/18
 
25
    Troy, OH

   
685

 
2,750

 

   

   
685

 
2,750

 
3,435

 
118

 
2006
 
09/18
 
30
    Warren, OH

   
332

 
2,960

 

   

   
332

 
2,960

 
3,292

 
109

 
2013
 
09/18
 
35
    Zanesville, OH

   
913

 
2,202

 

   

   
913

 
2,202

 
3,115

 
81

 
2014
 
09/18
 
35
    Louisville, KY

   
970

 

 
1,808

   

   
970

 
1,808

 
2,778

 
24

 
2019
 
11/18
(m)
(k)
    Defiance, OH

   
515

 
2,435

 

   

   
515

 
2,435

 
2,950

 
55

 
2017
 
03/19
 
35
    Henderson, NV

   
577

 
2,653

 

   

   
577

 
2,653

 
3,230

 
70

 
1961
 
03/19
 
30
    Las Vegas, NV

   
1,152

 
3,870

 

   

   
1,152

 
3,870

 
5,022

 
102

 
1991
 
03/19
 
30
    Cranberry, PA

   
631

 
2,870

 

   

   
631

 
2,870

 
3,501

 
62

 
2000
 
06/19
 
25
    La Mirada, CA

   
3,670

 
3,304

 

   

   
3,670

 
3,304

 
6,974

 
72

 
1999
 
06/19
 
25
    Monaca, PA

   
698

 
3,365

 

   

   
698

 
3,365

 
4,063

 
61

 
2004
 
06/19
 
30
    Van Nuys, CA

   
2,889

 
2,618

 

   

   
2,889

 
2,618

 
5,507

 
57

 
1978
 
06/19
 
25


See accompanying report of independent registered public accounting firm.
F-38


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Los Lunas, NM

   
330

 
2,428

 

   

   
330

 
2,428

 
2,758

 
23

 
2019
 
08/19
 
40
    Bay City, MI

   
819

 

 

   

   
819

 
 (e)

 
819

 
 (e)

 
 (e)
 
10/19
(m)
(e)
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Hardee's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Savannah, TN

   
151

 
713

 

   

   
151

 
713

 
864

 
174

 
1988
 
02/15
 
20
    Warrenton, NC

   
143

 
633

 

   

   
143

 
633

 
776

 
103

 
1960
 
02/15
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Havertys Furniture:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Pensacola, FL

   
633

 
1,595

 
66

   

   
603

 
1,661

 
2,264

 
956

 
1994
 
06/96
 
40
    Bowie, MD

   
1,966

 
4,221

 

   

   
1,966

 
4,221

 
6,187

 
2,243

 
1997
 
12/97
 
39
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Healthy Pet:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Suwanee, GA

   
175

 
1,038

 

   

   
175

 
1,038

 
1,213

 
339

 
1997
 
12/06
 
40
    Colonial Heights, VA

   
160

 
746

 

   

   
160

 
746

 
906

 
242

 
1996
 
01/07
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Hear USA:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lapeer, MI

   
29

 
211

 

   

   
29

 
201

 
230

 
63

 
2007
 
10/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Heartland Dental:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Greer, SC

   
399

 

 
1,435

   

   
399

 
1,435

 
1,834

 
85

 
2017
 
05/17
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Herc Rentals:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Anaheim, CA

   
6,156

 
1,214

 

   

   
6,156

 
1,214

 
7,370

 
89

 
2005
 
10/17
 
30
    Arden, NC

   
359

 
1,286

 

   

   
359

 
1,286

 
1,645

 
95

 
1992
 
10/17
 
30
    Athens, GA

   
255

 
2,039

 

   

   
255

 
2,039

 
2,294

 
180

 
1977
 
10/17
 
25
    Augusta, GA

   
360

 
1,069

 

   

   
360

 
1,069

 
1,429

 
79

 
1999
 
10/17
 
30
    Austin, TX

   
2,215

 
1,517

 

   

   
2,215

 
1,517

 
3,732

 
112

 
2002
 
10/17
 
30
    Baltimore, MD

   
283

 
1,484

 

   

   
283

 
1,484

 
1,767

 
131

 
1984
 
10/17
 
25
    Beaumont, TX

   
822

 
624

 

   

   
822

 
624

 
1,446

 
46

 
1989
 
10/17
 
30
    Boston, MA

   
4,536

 
2,964

 

   

   
4,536

 
2,964

 
7,500

 
262

 
1960
 
10/17
 
25
    Carson, CA

   
5,646

 
3,764

 

   

   
5,646

 
3,764

 
9,410

 
277

 
2002
 
10/17
 
30
    Charlotte, NC

   
389

 
626

 

   

   
389

 
626

 
1,015

 
55

 
1964
 
10/17
 
25
    Cincinnati, OH

   
453

 
1,842

 

   

   
453

 
1,842

 
2,295

 
163

 
1971
 
10/17
 
25


See accompanying report of independent registered public accounting firm.
F-39


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Columbus, OH

   
483

 
1,051

 

   

   
483

 
1,051

 
1,534

 
93

 
1968
 
10/17
 
25
    Deer Park, TX

   
443

 
1,953

 

   

   
443

 
1,953

 
2,396

 
144

 
1984
 
10/17
 
30
    Fayetteville, NC

   
311

 
2,038

 

   

   
311

 
2,038

 
2,349

 
180

 
1981
 
10/17
 
25
    Foothill Ranch, CA

   
3,484

 
1,799

 

   

   
3,484

 
1,799

 
5,283

 
132

 
2003
 
10/17
 
30
    Gilbert, AZ

   
839

 
1,754

 

   

   
839

 
1,754

 
2,593

 
129

 
1997
 
10/17
 
30
    Greensboro, NC

   
351

 
843

 

   

   
351

 
843

 
1,194

 
62

 
1988
 
10/17
 
30
    Henderson, CO

   
877

 
1,414

 

   

   
877

 
1,414

 
2,291

 
104

 
2005
 
10/17
 
30
    Houston, TX

   
417

 
596

 

   

   
417

 
596

 
1,013

 
53

 
1972
 
10/17
 
25
    Lakeland, FL

   
802

 
1,264

 

   

   
802

 
1,264

 
2,066

 
93

 
1998
 
10/17
 
30
    Las Vegas, NV

   
1,845

 
4,999

 

   

   
1,845

 
4,999

 
6,844

 
442

 
1975
 
10/17
 
25
    Little Rock, AR

   
463

 
1,342

 

   

   
463

 
1,342

 
1,805

 
119

 
1974
 
10/17
 
25
    Macon, GA

   
275

 
731

 

   

   
275

 
731

 
1,006

 
54

 
1999
 
10/17
 
30
    Miami, FL

   
3,041

 
1,469

 

   

   
3,041

 
1,469

 
4,510

 
130

 
1970
 
10/17
 
25
    Norcross, GA

   
692

 
464

 

   

   
692

 
464

 
1,156

 
41

 
1969
 
10/17
 
25
    Oklahoma City, OK

   
416

 
1,295

 

   

   
416

 
1,295

 
1,711

 
114

 
1983
 
10/17
 
25
    Orlando, FL

   
707

 
2,318

 

   

   
707

 
2,318

 
3,025

 
171

 
1998
 
10/17
 
30
    Pensacola, FL

   
180

 
851

 

   

   
180

 
851

 
1,031

 
63

 
1985
 
10/17
 
30
    Phoenix, AZ

   
511

 
814

 

   

   
511

 
814

 
1,325

 
72

 
1976
 
10/17
 
25
    Raleigh, NC

   
622

 
2,018

 

   

   
622

 
2,018

 
2,640

 
178

 
1965
 
10/17
 
25
    Richland, MS

   
208

 
1,268

 

   

   
208

 
1,268

 
1,476

 
93

 
1996
 
10/17
 
30
    Riviera Beach, FL

   
1,130

 
3,380

 

   

   
1,130

 
3,380

 
4,510

 
213

 
2007
 
10/17
 
35
    Roseville, CA

   
1,233

 
5,544

 

   

   
1,233

 
5,544

 
6,777

 
408

 
2002
 
10/17
 
30
    San Diego, CA

   
3,407

 
4,283

 

   

   
3,407

 
4,283

 
7,690

 
378

 
1977
 
10/17
 
25
    Sarasota, FL

   
443

 
1,377

 

   

   
443

 
1,377

 
1,820

 
122

 
1959
 
10/17
 
25
    Savannah, GA

   
426

 
758

 

   

   
426

 
758

 
1,184

 
56

 
1989
 
10/17
 
30
    Springdale, AR

   
702

 
323

 

   

   
702

 
323

 
1,025

 
24

 
1996
 
10/17
 
30
    Springfield, MO

   
199

 
1,078

 

   

   
199

 
1,078

 
1,277

 
95

 
1971
 
10/17
 
25
    Tampa, FL

   
490

 
2,026

 

   

   
490

 
2,026

 
2,516

 
179

 
1966
 
10/17
 
25
    Texas City, TX

   
539

 
700

 

   

   
539

 
700

 
1,239

 
62

 
1972
 
10/17
 
25
    Virginia Beach, VA

   
463

 
1,398

 

   

   
463

 
1,398

 
1,861

 
103

 
1986
 
10/17
 
30
    West Sacramento, CA

   
575

 
2,302

 

   

   
575

 
2,302

 
2,877

 
169

 
1987
 
10/17
 
30
    Kansas City, MO

   
1,009

 
4,121

 

   

   
1,009

 
4,121

 
5,130

 
172

 
1962
 
12/18
 
25
 


 


 


 


 


 


 


 


 


 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hibbett Sports:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Sealy, TX

   
208

 
230

 
282

   

   
208

 
512

 
720

 
130

 
1982
 
03/99
(g)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Hobby Lobby:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Beavercreek, OH

   
1,837

 

 
3,790

   

   
1,926

 
3,701

 
5,627

 
374

 
2015
 
08/15
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Hollywood Feed:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Ridgeland, MS

   
343

 
411

 
413

   

   
343

 
824

 
1,167

 
201

 
1997
 
12/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Home Decor:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Memphis, TN

   
549

 
540

 
364

   

   
549

 
904

 
1,453

 
459

 
1998
 
12/97
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Home Depot:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Sunrise, FL

   
5,149

 

 

   

   
5,149

 
 (i)

 
5,149

 
 (i)

 
 (i)
 
05/03
 
(i)
   


   


 


 


   


   


 


 


 


 
 
 
 
 

HomeGoods:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Fairfax, VA

   
523

 
756

 
1,699

   

   
971

 
2,455

 
3,426

 
1,142

 
1995
 
12/95
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Hometown Urgent Care:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Warren, OH

   
562

 
468

 
100

   

   
562

 
568

 
1,130

 
237

 
1997
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Hooters:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Tampa, FL

   
784

 
505

 
450

   

   
784

 
955

 
1,739

 
298

 
1993
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Hudson Grille:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Alpharetta, GA

   
3,033

 
1,642

 
209

   

   
3,033

 
1,851

 
4,884

 
758

 
1999
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Humana:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Sunrise, FL

   
800

 
253

 

   

   
800

 
253

 
1,053

 
99

 
1984
 
05/04
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Hy-Vee:


   


 


 


   


   


 


 


 


 
 
 
 
 

    St. Joseph, MO

   
1,580

 
2,849

 

   

   
1,580

 
2,849

 
4,429

 
1,232

 
1991
 
09/02
 
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Insurance Auto Auctions:


   


 


 


   


   


 


 


 


 
 
 
 
 

    New Orleans, LA

   
1,445

 

 
4,123

   

   
1,445

 
3,987

 
5,432

 
836

 
1993
 
06/13
(o)
30
    E Dundee, IL

   
2,772

 

 
8,320

   

   
2,772

 
8,320

 
11,092

 
1,040

 
2014
 
01/14
(m)
40
    Bergen, NY

   
762

 

 
5,024

   

   
762

 
5,024

 
5,786

 
380

 
2016
 
08/15
(m)
40
    Eminence, KY

   
724

 
4,928

 

   

   
724

 
4,928

 
5,652

 
463

 
2015
 
09/16
 
35
    Meridian, ID

   
1,076

 

 
4,048

   

   
1,076

 
4,048

 
5,124

 
361

 
2006
 
10/16
(o)
35
    Flint, MI

   
1,049

 

 
5,676

   

   
1,049

 
5,676

 
6,725

 
195

 
2018
 
10/16
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Int'l House of Pancakes:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Midwest City, OK

   
407

 

 

   

   
407

 
 (i)

 
407

 
 (i)

 
 (i)
 
11/00
 
(i)
    Ankeny, IA

   
693

 
515

 

   

   
693

 
515

 
1,208

 
250

 
2002
 
06/05
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

ISD Renal:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Corpus Christi, TX

   
406

 
4,036

 

   

   
406

 
4,036

 
4,442

 
1,082

 
1978
 
12/11
 
30
    Kendallville, IN

   
66

 
2,748

 

   

   
66

 
2,748

 
2,814

 
631

 
2007
 
12/11
 
35
    Memphis, TN

   
283

 
4,146

 

   

   
283

 
4,146

 
4,429

 
1,111

 
2001
 
12/11
 
30
    Memphis, TN

   
180

 
3,223

 

   

   
180

 
3,223

 
3,403

 
864

 
2002
 
12/11
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

J & J Insurance:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Hollywood, FL

   
398

 
90

 
74

   

   
243

 
37

 
280

 
7

 
1960
 
12/05
 
15
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Jack in the Box:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Plano, TX

   
1,055

 
1,237

 

   

   
1,055

 
1,237

 
2,292

 
450

 
2001
 
06/05
 
40
    Mansfield, TX

   
808

 

 
508

   

   
808

 
508

 
1,316

 
55

 
2015
 
06/15
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Jack's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Blounstville, AL

   
435

 
1,543

 

   

   
435

 
1,543

 
1,978

 
216

 
1997
 
10/15
 
30
    Centre, AL

   
128

 
2,648

 

   

   
128

 
2,648

 
2,776

 
318

 
2006
 
10/15
 
35
    Collinsville, AL

   
119

 
1,968

 

   

   
119

 
1,968

 
2,087

 
331

 
1994
 
10/15
 
25
    Demopolis, AL

   
208

 
1,514

 

   

   
208

 
1,514

 
1,722

 
182

 
2007
 
10/15
 
35
    Geraldine, AL

   
119

 
2,125

 

   

   
119

 
2,125

 
2,244

 
298

 
1998
 
10/15
 
30
    Guin, AL

   
89

 
1,652

 

   

   
89

 
1,652

 
1,741

 
232

 
1999
 
10/15
 
30
    Hanceville, AL

   
544

 
1,779

 

   

   
544

 
1,779

 
2,323

 
250

 
2002
 
10/15
 
30
    Holly Pond, AL

   
119

 
2,056

 

   

   
119

 
2,056

 
2,175

 
288

 
2000
 
10/15
 
30
    Jasper, AL

   
247

 
2,549

 

   

   
247

 
2,549

 
2,796

 
429

 
1983
 
10/15
 
25
    Ohatchee, AL

   
119

 
1,938

 

   

   
119

 
1,938

 
2,057

 
272

 
1995
 
10/15
 
30
    Scottsboro, AL

   
247

 
1,494

 

   

   
247

 
1,494

 
1,741

 
180

 
2006
 
10/15
 
35
    Fyffe, AL

   
95

 
1,657

 

   

   
95

 
1,657

 
1,752

 
205

 
2001
 
04/16
 
30
    Lafayette, AL

   
209

 
1,989

 

   

   
209

 
1,989

 
2,198

 
295

 
1987
 
04/16
 
25
    Pinson, AL

   
228

 
2,453

 

   

   
228

 
2,453

 
2,681

 
303

 
1994
 
04/16
 
30
    Addison, AL

   
261

 
1,586

 

   

   
261

 
1,586

 
1,847

 
43

 
2018
 
01/19
 
35
    Moulton, AL

   
261

 
1,586

 

   

   
261

 
1,586

 
1,847

 
43

 
2018
 
01/19
 
35
    Greensboro, AL

   
193

 
1,672

 

   

   
193

 
1,672

 
1,865

 
2

 
2019
 
12/19
 
40
    Section, AL

   
213

 
1,643

 

   

   
213

 
1,643

 
1,856

 
2

 
2019
 
12/19
 
40
 


 


 


 


 


 


 


 


 


 
 
 
 
 

Jared Jewelers:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Richmond, VA

   
955

 
1,336

 

   

   
955

 
1,336

 
2,291

 
603

 
1998
 
12/01
 
40
    Brandon, FL

   
1,197

 
1,182

 

   

   
1,197

 
1,182

 
2,379

 
521

 
2001
 
05/02
 
40
    Lithonia, GA

   
1,271

 
1,216

 

   

   
1,271

 
1,216

 
2,487

 
536

 
2001
 
05/02
 
40
    Houston, TX

   
1,676

 
1,440

 

   

   
1,637

 
1,433

 
3,070

 
616

 
1999
 
12/02
 
40
    Oviedo, FL

   
1,328

 
1,500

 

   

   
1,328

 
868

 
2,196

 
124

 
1998
 
06/13
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

JC Nails Salon:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lapeer, MI

   
37

 
264

 

   

   
37

 
251

 
288

 
79

 
2007
 
10/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Jiffi Stop:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Barry, IL

   
48

 
1,194

 

   

   
48

 
1,194

 
1,242

 
153

 
1984
 
10/16
 
25
    Bowen, IL (n)

   
39

 
744

 

   

   
39

 
744

 
783

 
80

 
1999
 
10/16
 
30
    Carrollton, IL

   
48

 
1,319

 

   

   
48

 
1,319

 
1,367

 
169

 
1986
 
10/16
 
25
    Griggsville, IL

   
29

 
801

 

   

   
29

 
801

 
830

 
103

 
1983
 
10/16
 
25
    Jacksonville, IL

   
854

 
4,251

 

   

   
854

 
4,251

 
5,105

 
390

 
2010
 
10/16
 
35
    Pittsfield, IL

   
19

 
581

 

   

   
19

 
581

 
600

 
75

 
1947
 
10/16
 
25
    Pleasant Hill, IL

   
87

 
753

 

   

   
87

 
753

 
840

 
97

 
1980
 
10/16
 
25
    Quincy, IL

   
58

 
676

 

   

   
58

 
676

 
734

 
87

 
1994
 
10/16
 
25
    Quincy, IL

   
183

 
1,539

 

   

   
183

 
1,539

 
1,722

 
165

 
2002
 
10/16
 
30
    Quincy, IL

   
596

 
2,056

 

   

   
596

 
2,056

 
2,652

 
220

 
2003
 
10/16
 
30
    Springfield, IL

   
192

 
2,593

 

   

   
192

 
2,593

 
2,785

 
333

 
1993
 
10/16
 
25
    Springfield, IL

   
288

 
2,411

 

   

   
288

 
2,411

 
2,699

 
309

 
1992
 
10/16
 
25
    Springfield, IL

   
518

 
3,782

 

   

   
518

 
3,782

 
4,300

 
485

 
1995
 
10/16
 
25
    Springfield, IL

   
231

 
1,625

 

   

   
231

 
1,625

 
1,856

 
174

 
1999
 
10/16
 
30
    Taylor, MO

   
39

 
945

 

   

   
39

 
945

 
984

 
121

 
1982
 
10/16
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Jiffy Lube:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Auburn, MA

   
455

 
856

 

   

   
455

 
856

 
1,311

 
134

 
1988
 
07/14
 
35
    Ayer, MA

   
326

 
792

 

   

   
326

 
792

 
1,118

 
144

 
1989
 
07/14
 
30
    Barrington, IL

   
371

 
612

 

   

   
371

 
612

 
983

 
111

 
1986
 
07/14
 
30
    Berwyn, IL

   
359

 
709

 

   

   
359

 
709

 
1,068

 
111

 
1985
 
07/14
 
35
    Bolingbrook, IL

   
185

 
562

 

   

   
185

 
562

 
747

 
102

 
1986
 
07/14
 
30
    Burbank, IL

   
156

 
418

 

   

   
156

 
418

 
574

 
114

 
1986
 
07/14
 
20
    Plattsburgh, NY

   
127

 
421

 

   

   
127

 
421

 
548

 
92

 
1993
 
07/14
 
25
    Romeoville, IL

   
158

 
557

 

   

   
158

 
557

 
715

 
101

 
1988
 
07/14
 
30
    Worcester, MA

   
287

 
827

 

   

   
287

 
827

 
1,114

 
129

 
1988
 
07/14
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Jin's Asian Cafe:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Sealy, TX

   
67

 
74

 
1

   

   
67

 
75

 
142

 
41

 
1982
 
03/99
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Jo-Ann etc:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Corpus Christi, TX

   
818

 
896

 
71

   

   
818

 
967

 
1,785

 
609

 
1967
 
11/93
 
40
    St. Peters, MO

   
1,741

 
5,406

 
1,233

   

   
1,741

 
6,639

 
8,380

 
2,272

 
2005
 
06/05
(g)
40
 


 


 


 


 


 


 


 


 


 
 
 
 
 

Joe Hudson's Collision Center:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Birmingham, AL

   
469

 
2,081

 

   

   
469

 
2,081

 
2,550

 
108

 
1987
 
09/18
 
25
    Hampton Cove, AL

   
555

 

 
1,708

   

   
555

 
1,708

 
2,263

 
9

 
2019
 
03/19
(m)
(k)
    Statesboro, GA

   
449

 
1,260

 

   

   
449

 
1,260

 
1,709

 
40

 
2001
 
03/19
 
25
    Port Richey, FL

   
278

 
407

 

   

   
278

 
407

 
685

 
7

 
1971
 
07/19
 
25
    Louisville, KY

   
677

 
1,747

 

   

   
677

 
1,747

 
2,424

 
3

 
1979
 
12/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Just 4 Dogs Pet Salon:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Orlando, FL

   
37

 
101

 
6

   

   
37

 
107

 
144

 
35

 
2001
 
02/04
 
40
 


 


 


 


 


 


 


 


 


 
 
 
 
 

 


 


 


 


 


 


 


 


 


 
 
 
 
 

 


 


 


 


 


 


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-40


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Kangaroo Express:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Carthage, NC

   
485

 
354

 

   

   
485

 
354

 
839

 
118

 
1989
 
08/06
 
40
    Sanford, NC

   
666

 
661

 

   

   
666

 
661

 
1,327

 
221

 
2000
 
08/06
 
40
    Sanford, NC

   
1,638

 
1,371

 

   

   
1,638

 
1,371

 
3,009

 
458

 
2003
 
08/06
 
40
    Siler City, NC

   
586

 
645

 

   

   
586

 
645

 
1,231

 
216

 
1998
 
08/06
 
40
    West End, NC

   
426

 
516

 

   

   
397

 
516

 
913

 
173

 
1999
 
08/06
 
40
    Belleview, FL

   
471

 
1,451

 

   

   
471

 
1,451

 
1,922

 
485

 
2006
 
08/06
 
40
    Jacksonville Beach, FL

   
683

 
1,362

 

   

   
683

 
1,362

 
2,045

 
455

 
1969
 
08/06
 
40
    Jacksonville, FL

   
807

 
1,239

 

   

   
807

 
1,239

 
2,046

 
414

 
1975
 
08/06
 
40
    Destin, FL

   
1,366

 
1,192

 

   

   
1,366

 
1,192

 
2,558

 
396

 
2000
 
09/06
 
40
    Niceville, FL

   
1,434

 
1,124

 

   

   
1,434

 
1,124

 
2,558

 
374

 
2000
 
09/06
 
40
    Kill Devil Hills, NC

   
490

 
741

 

   

   
490

 
741

 
1,231

 
245

 
1995
 
10/06
 
40
    Kill Devil Hills, NC

   
679

 
552

 

   

   
679

 
552

 
1,231

 
182

 
1990
 
10/06
 
40
    Interlachen, FL

   
519

 
1,500

 

   

   
519

 
1,500

 
2,019

 
442

 
2007
 
10/06
 
40
    Clarksville, TN

   
521

 
710

 

   

   
521

 
710

 
1,231

 
231

 
1999
 
12/06
 
40
    Clarksville, TN

   
276

 
955

 

   

   
276

 
955

 
1,231

 
311

 
1999
 
12/06
 
40
    Gallatin, TN (n)

   
474

 
757

 

   

   
474

 
757

 
1,231

 
246

 
1999
 
12/06
 
40
    Midland City, AL

   
729

 
2,538

 

   

   
729

 
2,538

 
3,267

 
828

 
2006
 
12/06
 
40
    Naples, FL

   
3,195

 
1,403

 

   

   
2,985

 
1,403

 
4,388

 
458

 
2001
 
12/06
 
40
    Columbiana, AL

   
771

 
989

 

   

   
771

 
989

 
1,760

 
320

 
1982
 
01/07
 
40
    Naples, FL

   
3,162

 
1,597

 

   

   
3,162

 
1,597

 
4,759

 
514

 
1995
 
02/07
 
40
    Longs, SC

   
745

 
758

 

   

   
745

 
758

 
1,503

 
242

 
2001
 
03/07
 
40
    Kentwood, LA

   
985

 
891

 

   

   
985

 
891

 
1,876

 
285

 
2001
 
03/07
 
40
    Dothan, AL

   
774

 
1,886

 

   

   
774

 
1,886

 
2,660

 
603

 
2007
 
03/07
 
40
    Naples, FL

   
2,412

 
1,589

 

   

   
2,412

 
1,589

 
4,001

 
502

 
2000
 
05/07
 
40
    Cary, NC

   
1,314

 
2,125

 

   

   
1,314

 
2,125

 
3,439

 
657

 
2007
 
08/07
 
40
    Havelock, NC

   
170

 
681

 

   

   
170

 
681

 
851

 
124

 
1962
 
07/14
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

KARM Home Store:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Knoxville, TN

   
467

 
735

 

   

   
467

 
735

 
1,202

 
385

 
1999
 
01/98
(f)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Kay Jeweler's:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Farmington, MO

   
654

 

 
962

   

   
654

 
962

 
1,616

 
53

 
2017
 
07/17
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-41


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Keg Steakhouse:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Lynnwood, WA

   
1,256

 
649

 

   

   
1,256

 
649

 
1,905

 
293

 
1992
 
12/01
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Kent Kwik:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Midland, TX

   
126

 
3,181

 

   

   
126

 
3,181

 
3,307

 
90

 
1983
 
04/19
 
25
    Odessa, TX

   
145

 
2,815

 

   

   
145

 
2,815

 
2,960

 
80

 
1976
 
04/19
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

KFC:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Fenton, MO

   
307

 
496

 

   

   
307

 
496

 
803

 
415

 
1985
 
07/92
 
33
    Erie, PA

   
517

 
496

 

   

   
517

 
496

 
1,013

 
224

 
1996
 
12/01
 
40
    Marysville, WA

   
647

 
546

 

   

   
647

 
546

 
1,193

 
246

 
1996
 
12/01
 
40
    Evansville, IN

   
370

 
767

 

   

   
370

 
767

 
1,137

 
261

 
2004
 
05/06
 
40
    Hampton, VA

   
251

 
1,173

 

   

   
251

 
1,173

 
1,424

 
279

 
2001
 
11/12
 
30
    Mechanicsville, VA

   
482

 
422

 

   

   
394

 
422

 
816

 
120

 
1989
 
11/12
 
25
    Newport News, VA

   
572

 
442

 

   

   
572

 
442

 
1,014

 
126

 
1986
 
11/12
 
25
    Newport News, VA

   
582

 
392

 

   

   
582

 
392

 
974

 
112

 
1985
 
11/12
 
25
    Newport News, VA

   
461

 
883

 

   

   
461

 
883

 
1,344

 
210

 
2001
 
11/12
 
30
    Richmond, VA

   
452

 
452

 

   

   
452

 
452

 
904

 
129

 
1984
 
11/12
 
25
    Richmond, VA

   
481

 
1,253

 

   

   
481

 
1,253

 
1,734

 
357

 
1990
 
11/12
 
25
    Richmond, VA

   
532

 
472

 

   

   
532

 
472

 
1,004

 
134

 
1986
 
11/12
 
25
    Richmond, VA

   
492

 
452

 

   

   
492

 
452

 
944

 
92

 
2003
 
11/12
 
35
    Richmond, VA

   
552

 
532

 

   

   
552

 
532

 
1,084

 
152

 
1984
 
11/12
 
25
    Virginia Beach, VA

   
402

 
482

 

   

   
402

 
482

 
884

 
137

 
1984
 
11/12
 
25
    Ahoskie, NC

   
393

 
1,012

 

   

   
393

 
1,012

 
1,405

 
245

 
1988
 
12/13
 
25
    Elizabeth City, NC

   
197

 
1,209

 

   

   
197

 
1,209

 
1,406

 
292

 
1988
 
12/13
 
25
    Brownsville, TX

   
334

 
865

 

   

   
334

 
865

 
1,199

 
206

 
1990
 
01/14
 
25
    Brownsville, TX

   
404

 
374

 

   

   
404

 
374

 
778

 
64

 
2003
 
01/14
 
35
    Copperas Cove, TX

   
256

 
747

 

   

   
256

 
747

 
1,003

 
148

 
2001
 
01/14
 
30
    Del Rio, TX

   
453

 
246

 

   

   
453

 
246

 
699

 
49

 
1995
 
01/14
 
30
    Eagle Pass, TX

   
226

 
1,071

 

   

   
226

 
1,071

 
1,297

 
255

 
1992
 
01/14
 
25
    Edinburg, TX

   
452

 
1,237

 

   

   
452

 
1,237

 
1,689

 
246

 
1996
 
01/14
 
30
    Harker Heights, TX

   
275

 
1,218

 

   

   
275

 
1,218

 
1,493

 
207

 
2008
 
01/14
 
35
    Harlingen, TX

   
128

 
1,708

 

   

   
128

 
1,708

 
1,836

 
407

 
1992
 
01/14
 
25
    Jacksonville, TX

   
69

 
562

 

   

   
69

 
562

 
631

 
134

 
1985
 
01/14
 
25


See accompanying report of independent registered public accounting firm.
F-42


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Killeen, TX

   
226

 
1,228

 

   

   
226

 
1,228

 
1,454

 
244

 
1993
 
01/14
 
30
    Laredo, TX

   
265

 
1,580

 

   

   
265

 
1,580

 
1,845

 
314

 
1996
 
01/14
 
30
    Marshall, TX

   
89

 
709

 

   

   
89

 
709

 
798

 
169

 
1985
 
01/14
 
25
    McAllen, TX

   
491

 
1,051

 

   

   
491

 
1,051

 
1,542

 
250

 
1987
 
01/14
 
25
    Mission, TX

   
137

 
1,404

 

   

   
137

 
1,404

 
1,541

 
279

 
1993
 
01/14
 
30
    Palestine, TX

   
89

 
484

 

   

   
89

 
484

 
573

 
115

 
1996
 
01/14
 
25
    Pharr, TX

   
167

 
581

 

   

   
167

 
581

 
748

 
115

 
1999
 
01/14
 
30
    Rio Grande City, TX

   
256

 
394

 

   

   
256

 
394

 
650

 
67

 
2004
 
01/14
 
35
    S Padre Island, TX

   
856

 
30

 

   

   
856

 
30

 
886

 
6

 
1994
 
01/14
 
30
    San Benito, TX

   
177

 
503

 

   

   
177

 
503

 
680

 
100

 
1994
 
01/14
 
30
    Temple, TX

   
246

 
1,188

 

   

   
246

 
1,188

 
1,434

 
283

 
1985
 
01/14
 
25
    Tyler, TX

   
709

 
30

 

   

   
709

 
30

 
739

 
6

 
1994
 
01/14
 
30
    Waco, TX

   
276

 
620

 

   

   
276

 
620

 
896

 
148

 
1984
 
01/14
 
25
    Waco, TX

   
463

 
246

 

   

   
463

 
246

 
709

 
49

 
1993
 
01/14
 
30
    Weslaco, TX

   
236

 
1,561

 

   

   
236

 
1,561

 
1,797

 
310

 
1995
 
01/14
 
30
    Belton, MO

   
267

 
744

 

   

   
267

 
744

 
1,011

 
97

 
1987
 
06/15
 
35
    Cameron, MO

   
229

 
1,143

 

   

   
229

 
1,143

 
1,372

 
173

 
1999
 
06/15
 
30
    Columbia, MO

   
343

 
839

 

   

   
343

 
839

 
1,182

 
127

 
1987
 
06/15
 
30
    Excelsior Springs, MO

   
286

 
1,219

 

   

   
286

 
1,219

 
1,505

 
221

 
1988
 
06/15
 
25
    Ft Pierce, FL

   
363

 
487

 

   

   
363

 
487

 
850

 
74

 
1992
 
06/15
 
30
    Ft Pierce, FL

   
591

 
695

 

   

   
591

 
695

 
1,286

 
105

 
2004
 
06/15
 
30
    Lake Wales, FL

   
162

 
1,561

 

   

   
162

 
1,561

 
1,723

 
284

 
1986
 
06/15
 
25
    Oak Grove, MO

   
209

 
1,323

 

   

   
209

 
1,323

 
1,532

 
200

 
2003
 
06/15
 
30
    Port St Lucie, FL

   
695

 
857

 

   

   
695

 
857

 
1,552

 
130

 
1998
 
06/15
 
30
    Port St Lucie, FL

   
723

 
1,740

 

   

   
723

 
1,740

 
2,463

 
226

 
2006
 
06/15
 
35
    Sebastian, FL

   
409

 
1,123

 

   

   
409

 
1,123

 
1,532

 
170

 
2000
 
06/15
 
30
    Vero Beach, FL

   
428

 
1,218

 

   

   
412

 
1,218

 
1,630

 
184

 
2004
 
06/15
 
30
    Lisle, IL

   
499

 
1,314

 

   

   
499

 
1,314

 
1,813

 
188

 
2000
 
09/15
 
30
    Lockport, IL

   
499

 
1,085

 

   

   
499

 
1,085

 
1,584

 
155

 
2007
 
09/15
 
30
    Sandwich, IL

   
86

 
1,143

 

   

   
86

 
1,143

 
1,229

 
164

 
1999
 
09/15
 
30
    Yorkville, IL

   
413

 
960

 

   

   
399

 
960

 
1,359

 
165

 
1972
 
09/15
 
25
    Chillicothe, OH

   
327

 
1,818

 

   

   
327

 
1,818

 
2,145

 
63

 
2007
 
12/18
 
30
    Circleville, OH

   
375

 
1,885

 

   

   
375

 
1,885

 
2,260

 
56

 
2008
 
12/18
 
35
    Findlay, OH

   
337

 
1,645

 

   

   
337

 
1,645

 
1,982

 
57

 
2007
 
12/18
 
30


See accompanying report of independent registered public accounting firm.
F-43


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Florence, KY

   
519

 
2,077

 

   

   
519

 
2,077

 
2,596

 
87

 
1985
 
12/18
 
25
    Hillsboro, OH

   
87

 
2,077

 

   

   
87

 
2,077

 
2,164

 
72

 
1991
 
12/18
 
30
    Marysville, OH

   
164

 
1,924

 

   

   
164

 
1,924

 
2,088

 
67

 
2007
 
12/18
 
30
    New Boston, OH

   
96

 
2,183

 

   

   
96

 
2,183

 
2,279

 
76

 
1991
 
12/18
 
30
    Taylor Mill, KY

   
269

 
1,645

 

   

   
269

 
1,645

 
1,914

 
43

 
1993
 
12/18
 
40
    Wilmington, OH

   
48

 
1,877

 

   

   
48

 
1,877

 
1,925

 
78

 
1986
 
12/18
 
25
    Jackson, OH

   
463

 
1,590

 

   

   
463

 
1,590

 
2,053

 
36

 
2017
 
03/19
 
35
    Bedford, IN

   
196

 
664

 

   

   
196

 
664

 
860

 
1

 
1987
 
12/19
 
25
    Chicopee, MA

   
205

 
1,407

 

   

   
205

 
1,407

 
1,612

 
2

 
1984
 
12/19
 
25
    Jeffersonville, IN

   
75

 
1,048

 

   

   
75

 
1,048

 
1,123

 
1

 
1989
 
12/19
 
30
    Louisville, KY

   
271

 
505

 

   

   
271

 
505

 
776

 
1

 
2004
 
12/19
 
30
    Louisville, KY

   
261

 
971

 

   

   
261

 
971

 
1,232

 
2

 
1974
 
12/19
 
25
    Louisville, KY

   
308

 
1,175

 

   

   
308

 
1,175

 
1,483

 
2

 
2005
 
12/19
 
30
    Louisville, KY

   
187

 
1,073

 

   

   
187

 
1,073

 
1,260

 
2

 
1976
 
12/19
 
25
    Madison, IN

   
140

 
1,027

 

   

   
140

 
1,027

 
1,167

 
2

 
1974
 
12/19
 
25
    New Albany, IN

   
337

 
393

 

   

   
337

 
393

 
730

 

 
2007
 
12/19
 
35
    New Albany, IN

   
401

 
672

 

   

   
401

 
672

 
1,073

 
1

 
1986
 
12/19
 
25
    North Vernon, IN

   
112

 
683

 

   

   
112

 
683

 
795

 
1

 
1991
 
12/19
 
30
    Washington, IN

   
56

 
1,055

 

   

   
56

 
1,055

 
1,111

 
2

 
1986
 
12/19
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Kohl's:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Florence, AL

   
818

 
1,047

 

   

   
818

 
698

 
1,516

 
267

 
2006
 
06/04
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Kroger:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Elkhart, IN

   
541

 
1,550

 
438

   

   
670

 
1,860

 
2,530

 
628

 
1979
 
07/14
 
15
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Kum & Go:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Omaha, NE

   
393

 
214

 

   

   
393

 
214

 
607

 
156

 
1979
 
06/05
 
20
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Kwik Pik:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Bear Creek, PA

   
191

 
230

 

   

   
191

 
230

 
421

 
165

 
1980
 
08/05
 
20
    Bradford, PA

   
184

 
762

 

   

   
184

 
762

 
946

 
547

 
1983
 
08/05
 
20
    Coraopolis, PA

   
476

 
347

 

   

   
476

 
347

 
823

 
250

 
1983
 
08/05
 
20
    Bear Creek Township, PA

   
689

 
275

 

   

   
689

 
275

 
964

 
196

 
1980
 
09/05
 
20


See accompanying report of independent registered public accounting firm.
F-44


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Beech Creek, PA

   
477

 
613

 

   

   
477

 
613

 
1,090

 
214

 
1988
 
01/06
 
40
    Canisteo, NY

   
142

 
485

 

   

   
142

 
485

 
627

 
169

 
1983
 
01/06
 
40
    Curwensville, PA

   
226

 
608

 

   

   
226

 
608

 
834

 
212

 
1983
 
01/06
 
40
    Ellwood City, PA

   
196

 
526

 

   

   
196

 
526

 
722

 
184

 
1987
 
01/06
 
40
    Hastings, PA

   
199

 
455

 

   

   
199

 
455

 
654

 
159

 
1989
 
01/06
 
40
    Jersey Shore, PA

   
515

 
381

 

   

   
515

 
381

 
896

 
133

 
1960
 
01/06
 
40
    Leeper, PA

   
286

 
644

 

   

   
286

 
644

 
930

 
225

 
1987
 
01/06
 
40
    Lewisberry, PA

   
412

 
534

 

   

   
412

 
534

 
946

 
186

 
1988
 
01/06
 
40
    Mercersburg, PA

   
672

 
746

 

   

   
672

 
746

 
1,418

 
260

 
1988
 
01/06
 
40
    New Florence, PA

   
298

 
812

 

   

   
298

 
812

 
1,110

 
284

 
1989
 
01/06
 
40
    Newstead, NY

   
255

 
835

 

   

   
255

 
835

 
1,090

 
292

 
1990
 
01/06
 
40
    Philipsburg, PA

   
428

 
269

 

   

   
428

 
269

 
697

 
94

 
1978
 
01/06
 
40
    Plainfield, PA

   
244

 
383

 

   

   
244

 
383

 
627

 
133

 
1988
 
01/06
 
40
    Reynoldsville, PA

   
113

 
328

 

   

   
113

 
328

 
441

 
114

 
1983
 
01/06
 
40
    Port Royal, PA

   
238

 
635

 

   

   
238

 
635

 
873

 
427

 
1989
 
07/06
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

LA Fitness:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Little Rock, AR

   
3,113

 
2,660

 
4,125

   

   
3,113

 
6,785

 
9,898

 
2,189

 
1997
 
09/98
 
40
    Sarasota, FL

   
471

 
1,344

 
4,450

   

   
471

 
5,794

 
6,265

 
1,602

 
1983
 
03/99
(g)
40
    Centerville, OH

   
2,700

 

 
8,572

   

   
2,700

 
8,572

 
11,272

 
2,259

 
2009
 
06/08
(m)
40
    Warren, MI

   
2,360

 

 
6,674

   

   
2,360

 
6,674

 
9,034

 
1,800

 
2009
 
07/08
(m)
40
    Cincinnati, OH

   
5,145

 

 
9,011

   

   
5,145

 
9,011

 
14,156

 
2,375

 
2009
 
08/08
(m)
40
    Indianapolis, IN

   
1,599

 

 
5,867

   

   
1,762

 
5,870

 
7,632

 
1,376

 
2010
 
01/10
(m)
40
    Laveen, AZ

   
1,665

 

 
5,749

   

   
1,665

 
5,749

 
7,414

 
1,323

 
2010
 
02/10
(m)
40
    Kennesaw, GA

   
3,653

 

 
3,325

   

   
3,653

 
3,325

 
6,978

 
745

 
2011
 
07/10
(m)
40
    Arlington, TX

   
1,166

 
6,214

 

   

   
1,166

 
6,214

 
7,380

 
1,591

 
2007
 
01/11
 
35
    Hurst, TX

   
1,494

 
6,187

 

   

   
1,494

 
6,187

 
7,681

 
1,495

 
2008
 
07/11
 
35
    South Plainfield, NJ

   
2,415

 
6,592

 

   

   
2,415

 
6,592

 
9,007

 
1,421

 
2006
 
06/12
 
35
    McDonough, GA

   
1,503

 
6,727

 

   

   
1,503

 
6,727

 
8,230

 
1,402

 
2008
 
09/12
 
35
    Greensburg, PA

   
1,791

 
7,015

 

   

   
1,791

 
7,015

 
8,806

 
1,235

 
2012
 
12/12
 
40
    Indianapolis, IN

   
1,651

 
6,585

 

   

   
1,651

 
6,585

 
8,236

 
1,159

 
2012
 
12/12
 
40
    Phoenix, AZ

   
1,601

 
6,540

 

   

   
1,601

 
6,540

 
8,141

 
1,151

 
2012
 
12/12
 
40
    Tampa, FL

   
4,492

 
10,894

 

   

   
4,486

 
10,894

 
15,380

 
1,918

 
2012
 
12/12
 
40


See accompanying report of independent registered public accounting firm.
F-45


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    West Dundee, IL

   
1,961

 
6,525

 

   

   
1,961

 
6,525

 
8,486

 
1,149

 
2012
 
12/12
 
40
    Irving, TX

   
3,636

 
7,326

 

   

   
3,636

 
7,326

 
10,962

 
1,387

 
2006
 
05/13
 
35
    Royal Oak, MI

   
3,238

 
8,998

 

   

   
3,238

 
8,998

 
12,236

 
1,617

 
2010
 
09/13
 
35
    St. Louis Park, MN

   
3,436

 
8,665

 
42

   

   
3,478

 
8,665

 
12,143

 
1,500

 
2009
 
12/13
 
35
    Pompano Beach, FL

   
7,009

 

 
9,572

   

   
7,009

 
9,572

 
16,581

 
951

 
2015
 
12/14
(m)
40
    San Antonio, TX

   
2,084

 

 
7,157

   

   
2,081

 
7,157

 
9,238

 
693

 
2016
 
02/15
(m)
40
    Antioch, CA

   
2,521

 

 
8,510

   

   
2,521

 
8,510

 
11,031

 
807

 
2016
 
06/15
(m)
40
    Plymouth, MI

   
1,646

 

 
7,820

   

   
1,646

 
7,820

 
9,466

 
790

 
2015
 
06/15
(m)
40
    Tacoma, WA

   
846

 

 
7,331

   

   
846

 
7,331

 
8,177

 
710

 
2016
 
07/15
(m)
40
    Round Rock, TX

   
1,556

 

 
7,205

   

   
1,556

 
7,205

 
8,761

 
503

 
2017
 
04/16
(m)
40
    Roswell, GA

   
3,175

 

 
8,726

   

   
3,175

 
8,726

 
11,901

 
554

 
2017
 
10/16
(m)
40
    Cordova, TN

   
2,391

 

 
7,085

   

   
2,391

 
7,085

 
9,476

 
391

 
2017
 
12/16
(m)
40
    Lakeland, FL

   
1,856

 

 
7,004

   

   
1,856

 
7,004

 
8,860

 
357

 
2017
 
12/16
(m)
40
    Livonia, MI

   
2,729

 

 
8,116

   

   
2,729

 
8,116

 
10,845

 
313

 
2018
 
08/17
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

LaPetite Academy:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Albuquerque, NM

   
332

 
1,166

 

   

   
332

 
1,166

 
1,498

 
212

 
1989
 
07/14
 
30
    Ft. Worth, TX

   
140

 
383

 

   

   
140

 
383

 
523

 
139

 
1981
 
07/14
 
15
    Moore, OK

   
119

 
412

 

   

   
119

 
412

 
531

 
150

 
1982
 
07/14
 
15
    Oklahoma City, OK

   
100

 
391

 

   

   
100

 
391

 
491

 
142

 
1982
 
07/14
 
15
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Last Stop West:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Azle, TX

   
648

 
859

 

   

   
648

 
859

 
1,507

 
269

 
1970
 
06/07
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Life Time Fitness:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Mt. Laurel, NJ

   
3,617

 
39,878

 

   

   
3,617

 
39,878

 
43,495

 
4,130

 
2015
 
05/16
 
35
    Framingham, MA

   
8,860

 
37,806

 

   

   
8,860

 
37,806

 
46,666

 
3,032

 
2016
 
10/16
 
40
    Gaithersburg, MD

   
8,344

 
45,286

 

   

   
8,344

 
45,286

 
53,630

 
3,632

 
2016
 
10/16
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Lil' Champ:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Gainesville, FL

   
900

 

 
1,800

   

   
900

 
1,800

 
2,700

 
576

 
2006
 
07/05
(m)
40
    Jacksonville, FL

   
2,225

 
3,265

 

   

   
2,225

 
3,265

 
5,490

 
946

 
2006
 
08/05
 
40
    Ocala, FL

   
846

 

 
1,564

   

   
846

 
1,564

 
2,410

 
490

 
2006
 
02/06
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Little Germany Restaurant:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Fort Worth, TX

   
392

 
314

 
22

   

   
392

 
336

 
728

 
209

 
1974
 
09/06
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

LoanMax:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Bridgeview, IL

   
673

 
744

 

   

   
673

 
744

 
1,417

 
336

 
1997
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Logan's Roadhouse:


   


 


 


   


   


 
 
 


 
 
 
 
 
 
 
 
    Alexandria, LA

   
1,218

 
3,049

 

   

   
1,218

 
3,049

 
4,267

 
1,000

 
1998
 
11/06
 
40
    Beckley, WV

   
1,396

 
2,405

 

   

   
1,396

 
2,405

 
3,801

 
789

 
2006
 
11/06
 
40
    Cookeville, TN

   
1,262

 
2,271

 

   

   
1,262

 
2,271

 
3,533

 
745

 
1997
 
11/06
 
40
    Greenwood, IN

   
1,341

 
2,105

 

   

   
1,341

 
2,105

 
3,446

 
691

 
2000
 
11/06
 
40
    Hurst, TX

   
1,858

 
1,916

 

   

   
1,858

 
1,916

 
3,774

 
629

 
1999
 
11/06
 
40
    Jackson, TN

   
1,200

 
2,246

 

   

   
1,200

 
2,246

 
3,446

 
737

 
1994
 
11/06
 
40
    Lake Charles, LA

   
1,285

 
2,202

 

   

   
1,285

 
2,202

 
3,487

 
723

 
1998
 
11/06
 
40
    McAllen, TX

   
1,608

 
2,178

 

   

   
1,608

 
2,178

 
3,786

 
715

 
2005
 
11/06
 
40
    Roanoke, VA

   
2,302

 
1,947

 

   

   
2,302

 
1,947

 
4,249

 
639

 
1998
 
11/06
 
40
    Smyrna, TN

   
1,335

 
2,047

 

   

   
1,335

 
2,047

 
3,382

 
672

 
2002
 
11/06
 
40
    Southhaven, MS

   
1,298

 
1,338

 

   

   
1,298

 
1,338

 
2,636

 
436

 
2005
 
12/06
 
40
    Columbus, MS

   
707

 

 
1,681

   

   
707

 
1,681

 
2,388

 
352

 
2011
 
11/10
(m)
40
    Nashville, TN

   
844

 

 
1,592

   

   
844

 
1,592

 
2,436

 
323

 
2011
 
06/11
(m)
40
    Marion, IL

   
1,016

 

 
1,674

   

   
1,016

 
1,674

 
2,690

 
305

 
2012
 
03/12
(m)
40
    Pooler, GA

   
1,159

 

 
1,720

   

   
1,159

 
1,720

 
2,879

 
296

 
2013
 
03/12
(m)
40
    Cullman, AL

   
889

 

 
1,585

   

   
889

 
1,585

 
2,474

 
286

 
2012
 
04/12
(m)
40
    Lebanon, TN

   
789

 

 
1,725

   

   
789

 
1,725

 
2,514

 
304

 
2012
 
06/12
(m)
40
    Chester, VA

   
871

 

 
1,697

   

   
871

 
1,697

 
2,568

 
295

 
2013
 
07/12
(m)
40
    Gonzales, LA

   
975

 

 
1,696

   

   
975

 
1,696

 
2,671

 
288

 
2013
 
10/12
(m)
40
    Madison, AL

   
689

 

 
1,657

   

   
689

 
1,657

 
2,346

 
274

 
2013
 
11/12
(m)
40
    Hopkinsville, KY

   
644

 

 
1,788

   

   
644

 
1,788

 
2,432

 
255

 
2014
 
09/13
(m)
40
    Muscle Shoals, AL

   
907

 

 
1,506

   

   
907

 
1,506

 
2,413

 
190

 
2014
 
06/14
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Lowe's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Memphis, TN

   
3,215

 
9,170

 
120

   

   
3,311

 
9,194

 
12,505

 
4,046

 
2001
 
01/01
 
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Magic China Café:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Orlando, FL

   
40

 
111

 

   

   
40

 
111

 
151

 
44

 
2001
 
02/04
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Magic Mountain:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Columbus, OH

   
5,380

 
2,693

 
25

   

   
5,380

 
2,718

 
8,098

 
850

 
1990
 
06/07
 
40
    Columbus, OH

   
2,076

 
1,906

 
124

   

   
2,076

 
2,030

 
4,106

 
624

 
1990
 
06/07
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Main Event:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Oklahoma City, OK

   
2,004

 
8,711

 

   

   
2,004

 
8,711

 
10,715

 
989

 
2014
 
06/15
 
40
    San Antonio, TX

   
2,115

 
10,080

 

   

   
2,115

 
10,080

 
12,195

 
1,308

 
2014
 
06/15
 
35
    Tulsa, OK

   
1,542

 
7,748

 

   

   
1,542

 
7,748

 
9,290

 
880

 
2015
 
06/15
 
40
    Fort Worth, TX

   
2,538

 

 
6,623

   

   
2,538

 
6,622

 
9,160

 
642

 
2016
 
12/15
(m)
40
    Louisville, KY

   
2,504

 

 
6,375

   

   
2,504

 
6,375

 
8,879

 
604

 
2016
 
12/15
(m)
40
    Independence, MO

   
1,794

 
7,650

 

   

   
1,794

 
7,650

 
9,444

 
773

 
2015
 
12/15
 
40
    Memphis, TN

   
1,263

 
6,825

 

   

   
1,263

 
6,825

 
8,088

 
690

 
2015
 
12/15
 
40
    Olathe, KS

   
3,174

 

 
6,704

   

   
3,174

 
6,704

 
9,878

 
538

 
2016
 
02/16
(m)
40
    West Chester, OH

   
2,767

 

 
6,414

   

   
2,767

 
6,414

 
9,181

 
581

 
2016
 
02/16
(m)
40
    Hoffman Estates, IL

   
1,730

 

 
8,022

   

   
1,730

 
8,022

 
9,752

 
677

 
2016
 
06/16
(m)
40
    Suwanee, GA

   
1,787

 

 
6,736

   

   
1,787

 
6,736

 
8,523

 
512

 
2016
 
06/16
(m)
40
    Albuquerque, NM

   
2,531

 

 
6,889

   

   
2,531

 
6,889

 
9,420

 
610

 
2016
 
06/16
(m)
40
    Humble, TX

   
2,669

 

 
5,916

   

   
2,669

 
5,916

 
8,585

 
388

 
2017
 
10/16
(m)
40
    Kansas City, MO

   
3,519

 

 
5,442

   

   
3,519

 
5,442

 
8,961

 
357

 
2017
 
10/16
(m)
40
    Knoxville, TN

   
3,225

 

 
6,546

   

   
3,225

 
6,546

 
9,771

 
402

 
2017
 
12/16
(m)
40
    Gilbert, AZ

   
2,348

 

 
6,281

   

   
2,348

 
6,281

 
8,629

 
412

 
2017
 
02/17
(m)
40
    Highlands Ranch, CO

   
3,297

 

 
7,695

   

   
3,297

 
7,695

 
10,992

 
216

 
2018
 
07/17
(m)
40
    Avon, OH

   
2,760

 

 
6,981

   

   
2,760

 
6,981

 
9,741

 
269

 
2018
 
07/17
(m)
40
 


 


 


 


 


 


 


 


 


 
 
 
 
 

Mattress Firm:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Buford, GA

   
635

 
1,635

 
465

   

   
635

 
2,100

 
2,735

 
735

 
2003
 
07/04
(g)
40
    Lancaster, OH

   
600

 

 
793

   

   
600

 
671

 
1,271

 
140

 
2012
 
01/08
(g)
40
    Plainfield, IN

   
379

 

 
1,267

   

   
379

 
1,267

 
1,646

 
170

 
2014
 
01/14
(m)
40
    Fayetteville, AR

   
891

 
2,229

 

   

   
891

 
2,229

 
3,120

 
437

 
1998
 
02/14
 
30
    Pocatello, ID

   
268

 

 
1,505

   

   
268

 
1,505

 
1,773

 
190

 
2014
 
09/14
(m)
40
    South Jordan, UT

   
719

 

 
1,572

   

   
716

 
1,572

 
2,288

 
188

 
2015
 
11/14
(m)
40
    Kentwood, MI

   
593

 
1,531

 

   

   
593

 
1,531

 
2,124

 
180

 
2015
 
04/15
 
40
    Muncie, IN

   
288

 
1,537

 

   

   
288

 
1,537

 
1,825

 
207

 
2015
 
04/15
 
35
    Sandusky, OH

   
518

 
1,409

 

   

   
518

 
1,409

 
1,927

 
160

 
2015
 
06/15
 
40
    Fort Collins, CO

   
757

 

 
1,301

   

   
757

 
1,301

 
2,058

 
134

 
2015
 
07/15
(m)
40
    Wooster, OH

   
332

 
1,334

 

   

   
332

 
1,334

 
1,666

 
110

 
2016
 
09/16
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Mavis Tire Supply (Auto Spot):


   


 


 


   


   


 


 


 


 
 
 
 
 

    Jacksonville, FL

   
678

 
1,539

 

   

   
678

 
1,539

 
2,217

 
79

 
2012
 
03/18
 
35
    Jacksonville, FL

   
641

 
1,356

 

   

   
641

 
1,356

 
1,997

 
81

 
2003
 
03/18
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Mavis Tire Supply (DeKalb Tire):


   


 


 


   


   


 


 


 


 
 
 
 
 

    Cumming, GA

   
587

 
1,422

 

   

   
587

 
1,422

 
2,009

 
73

 
2002
 
06/18
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Mavis Tire Supply (Kauffman Tire):


   


 


 


   


   


 


 


 


 
 
 
 
 

    Alpharetta, GA

   
679

 
1,119

 

   

   
679

 
1,119

 
1,798

 
73

 
2007
 
01/18
 
30
    Alpharetta, GA

   
707

 
872

 

   

   
707

 
872

 
1,579

 
57

 
1998
 
01/18
 
30
    Alpharetta, GA

   
513

 
1,714

 

   

   
513

 
1,714

 
2,227

 
112

 
1998
 
01/18
 
30
    Athens, GA

   
807

 
1,009

 

   

   
807

 
1,009

 
1,816

 
56

 
2014
 
01/18
 
35
    Bradenton, FL

   
696

 
2,409

 

   

   
696

 
2,409

 
3,105

 
157

 
2011
 
01/18
 
30
    Covington, GA

   
587

 
1,615

 

   

   
587

 
1,615

 
2,202

 
105

 
2011
 
01/18
 
30
    Cumming, GA

   
696

 
2,445

 

   

   
696

 
2,445

 
3,141

 
160

 
1998
 
01/18
 
30
    Douglasville, GA

   
458

 
2,226

 

   

   
458

 
2,226

 
2,684

 
145

 
2002
 
01/18
 
30
    Hiram, GA

   
696

 
2,317

 

   

   
696

 
2,317

 
3,013

 
130

 
2012
 
01/18
 
35
    Kennesaw, GA

   
1,027

 
1,953

 

   

   
1,005

 
1,953

 
2,958

 
128

 
2010
 
01/18
 
30
    Lawrenceville, GA

   
404

 
2,073

 

   

   
404

 
2,073

 
2,477

 
162

 
1995
 
01/18
 
25
    Lawrenceville, GA

   
724

 
1,668

 

   

   
724

 
1,668

 
2,392

 
109

 
2002
 
01/18
 
30
    Lilburn, GA

   
642

 
1,329

 

   

   
642

 
1,329

 
1,971

 
87

 
2010
 
01/18
 
30
    Loganville, GA

   
623

 
1,668

 

   

   
623

 
1,668

 
2,291

 
109

 
2006
 
01/18
 
30
    Marietta, GA

   
596

 
1,018

 

   

   
596

 
1,018

 
1,614

 
66

 
2006
 
01/18
 
30
    McDonough, GA

   
743

 
1,128

 

   

   
743

 
1,128

 
1,871

 
74

 
2007
 
01/18
 
30
    New Port Richey, FL

   
404

 
2,339

 

   

   
404

 
2,339

 
2,743

 
153

 
2005
 
01/18
 
30
    Stockbridge, GA

   
587

 
1,549

 

   

   
587

 
1,549

 
2,136

 
101

 
2007
 
01/18
 
30
    Valdosta, GA

   
395

 
1,643

 

   

   
395

 
1,643

 
2,038

 
92

 
2014
 
01/18
 
35
    Brunswick, GA

   
725

 
2,109

 

   

   
725

 
2,109

 
2,834

 
93

 
2017
 
06/18
 
35
    Canton, GA

   
358

 
2,293

 

   

   
358

 
2,293

 
2,651

 
118

 
2012
 
06/18
 
30
    Cordele, GA

   
486

 
1,762

 

   

   
486

 
1,762

 
2,248

 
78

 
2014
 
06/18
 
35
    Midland, GA

   
871

 
1,972

 

   

   
871

 
1,972

 
2,843

 
87

 
2016
 
06/18
 
35
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Mavis Tire Supply (Mavis Discount Tire):


   


 


 


   


   


 


 


 


 
 
 
 
 

    N. Plainfield, NJ

   
746

 
1,548

 

   

   
746

 
1,548

 
2,294

 
126

 
1974
 
12/17
 
25
    Raritan, NJ

   
703

 
983

 

   

   
703

 
983

 
1,686

 
80

 
1965
 
12/17
 
25
    Coram, NY

   
220

 

 
1,183

   

   
220

 
1,183

 
1,403

 
41

 
1984
 
07/18
(o)
30
    Clearwater, FL

   
175

 
849

 

   

   
175

 
849

 
1,024

 
38

 
1973
 
11/18
 
25
    Dunedin, FL

   
332

 
1,087

 

   

   
332

 
1,087

 
1,419

 
35

 
1991
 
01/19
 
30
    Buford, GA

   
459

 
1,513

 

   

   
459

 
1,513

 
1,972

 
41

 
2002
 
04/19
 
25
    Rincon, GA

   
379

 
795

 

   

   
379

 
795

 
1,174

 
19

 
1991
 
04/19
 
25
    Dallas, GA

   
267

 
1,555

 

   

   
267

 
1,555

 
1,822

 
31

 
2011
 
05/19
 
30
    Concord, NC

   
700

 

 

   

   
700

 
 (e)

 
700

 
 (e)

 
 (e)
 
06/19
(m)
(e)
    Batesburg, SC

   
218

 
871

 

   

   
218

 
871

 
1,089

 
16

 
1986
 
07/19
 
25
    Yulee, FL

   
881

 

 

   

   
881

 
 (e)

 
881

 
 (e)

 
 (e)
 
08/19
(m)
(e)
    Walkertown, NC

   
663

 

 

   

   
663

 
 (e)

 
663

 
 (e)

 
 (e)
 
08/19
(m)
(e)
    Hickory, NC

   
831

 

 

   

   
831

 
 (e)

 
831

 
 (e)

 
 (e)
 
08/19
(m)
(e)
    Oldsmar, FL

   
319

 
1,645

 

   

   
319

 
1,645

 
1,964

 
19

 
1999
 
09/19
 
25
    Spring Hill, FL

   
773

 

 

   

   
773

 
 (e)

 
773

 
 (e)

 
 (e)
 
11/19
(m)
(e)
    West Hempstead, NY

   
461

 
1,648

 

   

   
461

 
1,648

 
2,109

 
8

 
1984
 
11/19
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Mavis Tire Supply (Sun Tire):


   


 


 


   


   


 


 


 


 
 
 
 
 

    Jacksonville, FL

   
697

 
1,403

 

   

   
697

 
1,403

 
2,100

 
72

 
2012
 
03/18
 
35
    Jacksonville, FL

   
367

 
1,174

 

   

   
367

 
1,174

 
1,541

 
70

 
1995
 
03/18
 
30
    Jacksonville, FL

   
239

 
982

 

   

   
239

 
982

 
1,221

 
70

 
1985
 
03/18
 
25
    Jacksonville, FL

   
339

 
1,449

 

   

   
339

 
1,449

 
1,788

 
104

 
1983
 
03/18
 
25
    Jacksonville, FL

   
450

 
772

 

   

   
450

 
772

 
1,222

 
55

 
1987
 
03/18
 
25
    Jacksonville, FL

   
276

 
1,139

 

   

   
276

 
1,139

 
1,415

 
82

 
1977
 
03/18
 
25
    Middleburg, FL

   
661

 
752

 

   

   
661

 
752

 
1,413

 
45

 
2003
 
03/18
 
30
 


 


 


 


 


 


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-46


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Orange Park, FL

   
294

 
1,340

 

   

   
294

 
1,340

 
1,634

 
96

 
1981
 
03/18
 
25
    Orange Park, FL

   
395

 
827

 

   

   
395

 
827

 
1,222

 
49

 
1990
 
03/18
 
30
    Tallahassee, FL

   
294

 
1,340

 

   

   
294

 
1,340

 
1,634

 
96

 
1989
 
03/18
 
25
    Tallahassee, FL

   
220

 
1,412

 

   

   
220

 
1,412

 
1,632

 
84

 
1997
 
03/18
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

MedExpress Urgent Care:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Fairmont, WV

   
245

 
1,859

 

   

   
245

 
1,859

 
2,104

 
405

 
2011
 
05/12
 
35
    Hanover, PA

   
533

 
1,521

 

   

   
533

 
1,521

 
2,054

 
331

 
2011
 
05/12
 
35
    Hermitage, PA

   
445

 
2,108

 

   

   
445

 
2,108

 
2,553

 
459

 
2011
 
05/12
 
35
    Latrobe, PA

   
681

 
1,511

 

   

   
681

 
1,511

 
2,192

 
329

 
2011
 
05/12
 
35
    Mt. Pleasant, PA

   
593

 
1,482

 

   

   
593

 
1,482

 
2,075

 
323

 
2011
 
05/12
 
35
    Pittsburgh, PA

   
227

 
1,936

 

   

   
227

 
1,936

 
2,163

 
492

 
1970
 
05/12
 
30
    Martinsburg, WV

   
917

 

 
650

   

   
917

 
650

 
1,567

 
102

 
2013
 
12/12
(m)
40
    Wheeling, WV

   
485

 
1,232

 

   

   
485

 
1,232

 
1,717

 
279

 
1989
 
03/13
 
30
    Huntington, WV

   
990

 

 
735

   

   
1,017

 
735

 
1,752

 
114

 
2013
 
08/13
(m)
40
    Anderson, IN

   
777

 

 
661

   

   
777

 
661

 
1,438

 
100

 
2013
 
08/13
(m)
40
    Terre Haute, IN

   
144

 
1,616

 

   

   
144

 
1,616

 
1,760

 
343

 
1991
 
08/13
 
30
    Benton, AR

   
376

 
1,125

 

   

   
376

 
1,125

 
1,501

 
125

 
2015
 
07/15
 
40
    Connellsville, PA

   
162

 
1,172

 

   

   
162

 
1,172

 
1,334

 
131

 
2015
 
07/15
 
40
    Rogers, AR

   
435

 
1,168

 

   

   
435

 
1,168

 
1,603

 
130

 
2015
 
07/15
 
40
    Russellville, AR

   
247

 
1,098

 

   

   
247

 
1,098

 
1,345

 
140

 
2015
 
07/15
 
35
    Hot Springs, AR

   
440

 
1,155

 

   

   
440

 
1,155

 
1,595

 
126

 
2015
 
08/15
 
40
    Salina, KS

   
321

 
1,315

 

   

   
321

 
1,315

 
1,636

 
161

 
1999
 
09/15
 
35
    Lehigh Acres, FL

   
459

 

 
2,151

   

   
459

 
2,151

 
2,610

 
333

 
2016
 
10/15
(m)
25
    North Little Rock, AR

   
489

 
1,137

 

   

   
489

 
1,137

 
1,626

 
112

 
2015
 
01/16
 
40
    Little Rock, AR

   
858

 
1,806

 

   

   
858

 
1,806

 
2,664

 
179

 
2016
 
01/16
 
40
    Swansea, IL

   
236

 
1,292

 

   

   
236

 
1,292

 
1,528

 
153

 
1997
 
06/16
 
30
    Derby, KS

   
442

 

 

   

   
442

 
 (i)

 
442

 
 (i)

 
 (i)
 
07/16
 
(i)
    Alton, IL

   
376

 
1,397

 

   

   
376

 
1,397

 
1,773

 
121

 
2016
 
07/16
 
40
    Pine Bluff, AR

   
478

 

 

   

   
478

 
 (i)

 
478

 
 (i)

 
 (i)
 
07/16
 
(i)
    Collinsville, IL

   
304

 

 

   

   
304

 
 (i)

 
304

 
 (i)

 
 (i)
 
08/16
 
(i)
    Wichita, KS

   
482

 

 

   

   
482

 
 (i)

 
482

 
 (i)

 
 (i)
 
08/16
 
(i)
    Wichita, KS

   
213

 

 

   

   
213

 
 (i)

 
213

 
 (i)

 
 (i)
 
08/16
 
(i)
    Quakertown, PA

   
658

 

 

   

   
658

 
 (i)

 
658

 
 (i)

 
 (i)
 
08/16
 
(i)


See accompanying report of independent registered public accounting firm.
F-47


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Fort Myers, FL

   
1,522

 

 

   

   
1,522

 
 (i)

 
1,522

 
 (i)

 
 (i)
 
09/16
 
(i)
    Grand Rapids, MI

   
435

 

 

   

   
435

 
 (i)

 
435

 
 (i)

 
 (i)
 
10/16
 
(i)
    Naples, FL

   
689

 

 

   

   
689

 
 (i)

 
689

 
 (i)

 
 (i)
 
10/16
 
(i)
    Duluth, MN

   
535

 

 

   

   
535

 
 (i)

 
535

 
 (i)

 
 (i)
 
12/16
 
(i)
    Hadley, MA

   
866

 

 

   

   
866

 
 (i)

 
866

 
 (i)

 
 (i)
 
05/17
 
(i)
    Richmond, VA

   
734

 

 

   

   
734

 
 (i)

 
734

 
 (i)

 
 (i)
 
05/17
 
(i)
    Bemidji, MN

   
475

 

 

   

   
475

 
 (i)

 
475

 
 (i)

 
 (i)
 
06/17
 
(i)
    Hagerstown, MD

   
850

 

 

   

   
850

 
 (i)

 
850

 
 (i)

 
 (i)
 
07/17
 
(i)
    Rochester, MN

   
751

 

 

   

   
751

 
 (i)

 
751

 
 (i)

 
 (i)
 
08/17
 
(i)
    Jenison, MI

   
271

 

 

   

   
271

 
 (i)

 
271

 
 (i)

 
 (i)
 
08/17
 
(i)
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Michaels:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Fairfax, VA

   
534

 
773

 
1,483

   

   
992

 
2,256

 
3,248

 
1,059

 
1995
 
12/95
 
40
    Altamonte Springs, FL

   
1,947

 
3,267

 
1,198

   

   
1,947

 
3,370

 
5,317

 
1,067

 
1997
 
09/97
 
26
    Plymouth Meeting, PA

   
2,911

 
2,595

 
165

   

   
2,911

 
2,760

 
5,671

 
1,314

 
1999
 
10/98
(g)
40
    Florissant, MO

   
523

 
617

 
1,784

   

   
524

 
2,399

 
2,923

 
677

 
1996
 
04/03
(g)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Miller's Ale House:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Franklin, TN

   
2,519

 
1,705

 

   

   
2,519

 
1,705

 
4,224

 
556

 
1995
 
12/06
 
40
    Pensacola, FL

   
1,363

 
1,842

 

   

   
1,363

 
1,842

 
3,205

 
458

 
2008
 
04/11
 
35
    Oviedo, FL

   
113

 

 
3,785

   

   
113

 
3,785

 
3,898

 
682

 
2012
 
10/11
(m)
40
    Norridge, IL

   
2,482

 

 

   

   
2,482

 
 (i)

 
2,482

 
 (i)

 
 (i)
 
05/18
 
(i)
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Mimi's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Tampa, FL (n)

   
688

 
2,357

 

   

   
688

 
2,357

 
3,045

 
462

 
2003
 
02/14
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Mister Car Wash:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Anoka, MN

   
212

 
214

 

   

   
212

 
214

 
426

 
182

 
1968
 
03/07
 
15
    Brooklyn Park, MN

   
438

 
778

 

   

   
438

 
778

 
1,216

 
396

 
1985
 
04/07
 
25
    Cedar Rapids, IA

   
391

 
816

 

   

   
391

 
816

 
1,207

 
415

 
1989
 
04/07
 
25
    Clive, IA

   
1,141

 
935

 

   

   
1,141

 
935

 
2,076

 
594

 
1983
 
04/07
 
20
    Cottage Grove, MN

   
274

 
485

 

   

   
274

 
485

 
759

 
246

 
1992
 
04/07
 
25
    Des Moines, IA

   
213

 
476

 

   

   
182

 
476

 
658

 
302

 
1964
 
04/07
 
20
    Des Moines, IA

   
249

 
596

 

   

   
249

 
596

 
845

 
252

 
1990
 
04/07
 
30


See accompanying report of independent registered public accounting firm.
F-48


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Eden Prairie, MN

   
865

 
751

 

   

   
865

 
751

 
1,616

 
477

 
1984
 
04/07
 
20
    Edina, MN

   
894

 
687

 

   

   
894

 
687

 
1,581

 
436

 
1985
 
04/07
 
20
    Houston, TX

   
1,960

 
1,145

 

   

   
1,960

 
1,145

 
3,105

 
582

 
1983
 
04/07
 
25
    Houston, TX

   
3,193

 
1,305

 

   

   
3,193

 
1,305

 
4,498

 
474

 
1995
 
04/07
 
35
    Houston, TX

   
796

 
678

 

   

   
796

 
678

 
1,474

 
345

 
1986
 
04/07
 
25
    Houston, TX

   
624

 
1,108

 

   

   
624

 
1,108

 
1,732

 
469

 
1988
 
04/07
 
30
    Houston, TX

   
5,126

 
1,267

 

   

   
5,126

 
1,267

 
6,393

 
460

 
1995
 
04/07
 
35
    Houston, TX

   
1,846

 
1,592

 

   

   
1,846

 
1,592

 
3,438

 
809

 
1983
 
04/07
 
25
    Houston, TX

   
1,347

 
1,702

 

   

   
1,347

 
1,702

 
3,049

 
721

 
1984
 
04/07
 
30
    Houston, TX

   
288

 
466

 

   

   
288

 
466

 
754

 
395

 
1970
 
04/07
 
15
    Humble, TX

   
1,204

 
1,517

 

   

   
1,204

 
1,517

 
2,721

 
551

 
1993
 
04/07
 
35
    Plymouth, MN

   
827

 
182

 

   

   
767

 
182

 
949

 
182

 
1955
 
04/07
 
10
    Roseville, MN

   
861

 
564

 

   

   
861

 
564

 
1,425

 
358

 
1963
 
04/07
 
20
    Spokane, WA

   
1,253

 
1,146

 

   

   
1,253

 
1,146

 
2,399

 
416

 
1997
 
04/07
 
35
    Spokane, WA

   
214

 
580

 

   

   
214

 
580

 
794

 
246

 
1990
 
04/07
 
30
    St. Cloud, MN

   
243

 
391

 

   

   
242

 
391

 
633

 
249

 
1986
 
04/07
 
20
    Sugarland, TX

   
3,789

 
1,972

 

   

   
3,789

 
1,972

 
5,761

 
716

 
1995
 
04/07
 
35
    West St Paul, MN

   
836

 
236

 

   

   
794

 
236

 
1,030

 
150

 
1972
 
04/07
 
20
    Rochester, MN

   
1,055

 
2,327

 

   

   
1,055

 
2,327

 
3,382

 
710

 
2003
 
10/07
 
40
    Birmingham, AL

   
2,378

 
2,145

 

   

   
2,378

 
2,145

 
4,523

 
867

 
1985
 
11/07
 
30
    Clearwater, FL

   
825

 
765

 

   

   
825

 
765

 
1,590

 
371

 
1969
 
11/07
 
25
    Mesquite, TX

   
1,596

 
2,201

 

   

   
1,596

 
2,201

 
3,797

 
1,068

 
1987
 
11/07
 
25
    Seminole, FL

   
2,166

 
1,496

 

   

   
2,166

 
1,496

 
3,662

 
605

 
1985
 
11/07
 
30
    Tampa, FL

   
2,993

 
1,669

 

   

   
2,993

 
1,669

 
4,662

 
809

 
1969
 
11/07
 
25
    Vestavia Hills, AL

   
1,009

 
956

 

   

   
1,009

 
956

 
1,965

 
464

 
1967
 
11/07
 
25
    El Paso, TX

   
1,807

 
2,287

 

   

   
1,807

 
2,287

 
4,094

 
689

 
1983
 
12/07
 
40
    El Paso, TX

   
1,424

 
1,306

 

   

   
1,424

 
1,306

 
2,730

 
524

 
1986
 
12/07
 
30
    El Paso, TX

   
664

 
824

 

   

   
664

 
824

 
1,488

 
248

 
1991
 
12/07
 
40
    El Paso, TX

   
1,399

 
1,468

 

   

   
1,399

 
1,468

 
2,867

 
442

 
1991
 
12/07
 
40
    El Paso, TX

   
988

 
1,046

 

   

   
988

 
1,046

 
2,034

 
315

 
1998
 
12/07
 
40
    Tampa, FL

   
541

 
829

 

   

   
541

 
829

 
1,370

 
322

 
1978
 
04/10
 
25
    Springfield, MO

   
642

 
1,767

 

   

   
642

 
1,767

 
2,409

 
498

 
1979
 
07/11
 
30
    Springfield, MO

   
1,188

 
2,817

 

   

   
1,188

 
2,817

 
4,005

 
681

 
2000
 
07/11
 
35
    Springfield, MO

   
1,064

 
2,109

 

   

   
1,064

 
2,109

 
3,173

 
595

 
1990
 
07/11
 
30


See accompanying report of independent registered public accounting firm.
F-49


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Missouri City, TX

   
549

 
1,553

 

   

   
549

 
1,553

 
2,102

 
361

 
2004
 
11/11
 
35
    Bountiful, UT

   
484

 
292

 

   

   
484

 
292

 
776

 
78

 
1995
 
01/12
 
30
    Salt Lake City, UT

   
522

 
1,806

 

   

   
522

 
1,806

 
2,328

 
479

 
1993
 
01/12
 
30
    Tucson, AZ

   
742

 
2,226

 

   

   
742

 
2,226

 
2,968

 
590

 
2000
 
01/12
 
30
    Tucson, AZ

   
946

 
2,566

 

   

   
946

 
2,566

 
3,512

 
681

 
2003
 
01/12
 
30
    Tucson, AZ

   
493

 
345

 

   

   
493

 
345

 
838

 
78

 
2007
 
01/12
 
35
    Cedar Park, TX

   
794

 
1,316

 

   

   
794

 
1,316

 
2,110

 
290

 
2009
 
04/12
 
35
    Spokane Valley, WA

   
454

 
857

 

   

   
454

 
857

 
1,311

 
189

 
2005
 
04/12
 
35
    Salt Lake City, UT

   
781

 
2,303

 

   

   
781

 
2,303

 
3,084

 
491

 
2009
 
07/12
 
35
    College Park, GA

   
322

 
1,056

 

   

   
322

 
1,056

 
1,378

 
220

 
2008
 
09/12
 
35
    Griffin, GA

   
401

 
2,897

 

   

   
401

 
2,897

 
3,298

 
603

 
2007
 
09/12
 
35
    Hampton, GA

   
421

 
1,996

 

   

   
421

 
1,996

 
2,417

 
416

 
2006
 
09/12
 
35
    Lilburn, GA

   
381

 
2,426

 

   

   
381

 
2,426

 
2,807

 
505

 
2007
 
09/12
 
35
    Oxford, AL

   
301

 
3,607

 

   

   
301

 
3,607

 
3,908

 
751

 
2008
 
09/12
 
35
    Clermont, FL

   
783

 
2,328

 

   

   
783

 
2,328

 
3,111

 
479

 
2006
 
10/12
 
35
    Springfield, MO

   
474

 
736

 

   

   
474

 
736

 
1,210

 
178

 
2006
 
10/12
 
30
    Abilene, TX

   
641

 
3,093

 

   

   
641

 
3,093

 
3,734

 
630

 
2006
 
11/12
 
35
    Abilene, TX

   
101

 
426

 

   

   
101

 
426

 
527

 
87

 
2009
 
11/12
 
35
    Lubbock, TX

   
350

 
2,984

 

   

   
350

 
2,984

 
3,334

 
607

 
2007
 
11/12
 
35
    Lubbock, TX

   
411

 
2,534

 

   

   
411

 
2,534

 
2,945

 
602

 
2003
 
11/12
 
30
    Lubbock, TX

   
400

 
3,403

 

   

   
400

 
3,403

 
3,803

 
693

 
2004
 
11/12
 
35
    Ephrata, PA

   
241

 
2,797

 

   

   
241

 
2,797

 
3,038

 
788

 
1987
 
12/12
 
25
    Lancaster, PA

   
920

 
7,894

 

   

   
920

 
7,894

 
8,814

 
1,853

 
1999
 
12/12
 
30
    Sinking Spring, PA

   
1,251

 
4,735

 

   

   
1,251

 
4,735

 
5,986

 
1,111

 
2005
 
12/12
 
30
    York, PA

   
591

 
4,605

 

   

   
591

 
4,605

 
5,196

 
1,081

 
1995
 
12/12
 
30
    Atlanta, GA

   
1,633

 
5,378

 

   

   
1,633

 
5,378

 
7,011

 
1,262

 
1998
 
12/12
 
30
    Atlanta, GA

   
1,773

 
4,528

 

   

   
1,773

 
4,528

 
6,301

 
911

 
2003
 
12/12
 
35
    Urbandale, IA

   
485

 
374

 

   

   
485

 
374

 
859

 
84

 
1990
 
04/13
 
30
    Houston, TX

   
551

 
2,967

 

   

   
551

 
2,967

 
3,518

 
776

 
1980
 
06/13
 
25
    Houston, TX

   
542

 
1,876

 

   

   
542

 
1,876

 
2,418

 
351

 
2012
 
06/13
 
35
    Houston, TX

   
752

 
1,736

 

   

   
752

 
1,736

 
2,488

 
324

 
2005
 
06/13
 
35
    Houston, TX

   
1,573

 
2,315

 

   

   
1,573

 
2,315

 
3,888

 
433

 
2006
 
06/13
 
35
    Houston, TX

   
713

 
964

 

   

   
713

 
964

 
1,677

 
180

 
2005
 
06/13
 
35
    Humble, TX

   
611

 
3,327

 

   

   
611

 
3,327

 
3,938

 
622

 
2006
 
06/13
 
35


See accompanying report of independent registered public accounting firm.
F-50


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Katy, TX

   
421

 
2,157

 

   

   
421

 
2,157

 
2,578

 
470

 
2002
 
06/13
 
30
    Spring, TX

   
652

 
2,627

 

   

   
652

 
2,627

 
3,279

 
491

 
2006
 
06/13
 
35
    Tucson, AZ

   
654

 
1,357

 

   

   
654

 
1,357

 
2,011

 
285

 
1986
 
09/13
 
30
    Rochester, MN

   
396

 
264

 

   

   
396

 
264

 
660

 
52

 
1987
 
02/14
 
30
    Tucson, AZ

   
988

 
272

 

   

   
988

 
272

 
1,260

 
53

 
1987
 
02/14
 
30
    Brooklyn Park, MN

   
287

 
394

 

   

   
265

 
394

 
659

 
48

 
2011
 
09/15
 
35
    Lake Mary, FL

   
692

 
3,518

 

   

   
692

 
3,518

 
4,210

 
493

 
1997
 
10/15
 
30
    Melbourne, FL

   
1,262

 
4,348

 

   

   
1,262

 
4,348

 
5,610

 
523

 
2009
 
10/15
 
35
    Sanford, FL

   
1,322

 
3,887

 

   

   
1,322

 
3,887

 
5,209

 
467

 
2008
 
10/15
 
35
    Tampa, FL

   
630

 
2,879

 

   

   
630

 
2,879

 
3,509

 
324

 
1991
 
08/16
 
30
    Clermont, FL

   
1,550

 
2,460

 

   

   
1,550

 
2,460

 
4,010

 
231

 
2013
 
09/16
 
35
    Lakeland, FL

   
446

 
3,064

 

   

   
446

 
3,064

 
3,510

 
383

 
1979
 
11/16
 
25
    Comstock Park, MI

   
1,151

 
3,860

 

   

   
1,151

 
3,860

 
5,011

 
444

 
1978
 
02/17
 
25
    Grand Rapids, MI

   
494

 
3,513

 
189

   

   
683

 
3,513

 
4,196

 
289

 
2013
 
02/17
 
35
    Grand Rapids, MI

   
426

 
2,180

 

   

   
426

 
2,180

 
2,606

 
251

 
1963
 
02/17
 
25
    Grand Rapids, MI

   
416

 
3,590

 

   

   
416

 
3,590

 
4,006

 
344

 
2006
 
02/17
 
30
    Grand Rapids, MI

   
455

 
1,958

 

   

   
455

 
1,958

 
2,413

 
225

 
1963
 
02/17
 
25
    Wyoming, MI

   
928

 
5,077

 

   

   
928

 
5,077

 
6,005

 
584

 
1965
 
02/17
 
25
    Columbia Heights, MN

   
96

 
252

 

   

   
96

 
252

 
348

 
24

 
1961
 
02/18
 
20
    Madison, TN

   
669

 
51

 

   

   
669

 
51

 
720

 
3

 
1988
 
06/18
 
25
    Colorado Springs, CO

   
295

 
2,118

 

   

   
295

 
2,118

 
2,413

 
73

 
2013
 
10/18
 
35
    Atwater, CA

   
809

 
4,198

 

   

   
809

 
4,198

 
5,007

 
125

 
2008
 
12/18
 
35
    Ceres, CA

   
347

 
4,160

 

   

   
347

 
4,160

 
4,507

 
173

 
1994
 
12/18
 
25
    Los Banos, CA

   
712

 
4,294

 

   

   
712

 
4,294

 
5,006

 
112

 
2018
 
12/18
 
40
    Manteca, CA

   
501

 
4,506

 

   

   
501

 
4,506

 
5,007

 
134

 
2016
 
12/18
 
35
    Merced, CA

   
347

 
4,660

 

   

   
347

 
4,660

 
5,007

 
162

 
1998
 
12/18
 
30
    Modesto, CA

   
741

 
3,765

 

   

   
741

 
3,765

 
4,506

 
131

 
2002
 
12/18
 
30
    Modesto, CA

   
674

 
3,332

 

   

   
674

 
3,332

 
4,006

 
116

 
1991
 
12/18
 
30
    Patterson, CA

   
741

 
4,265

 

   

   
741

 
4,265

 
5,006

 
127

 
2017
 
12/18
 
35
    Tracy, CA

   
761

 
4,246

 

   

   
761

 
4,246

 
5,007

 
126

 
2013
 
12/18
 
35
    Deltona, FL

   
481

 
3,027

 

   

   
481

 
3,027

 
3,508

 
71

 
2010
 
04/19
 
30
    Titusville, FL

   
575

 
3,931

 

   

   
575

 
3,931

 
4,506

 
80

 
2002
 
04/19
 
35
    Merced, CA

   
1,070

 
2,939

 

   

   
1,070

 
2,939

 
4,009

 
45

 
2018
 
06/19
 
35
    Delano, CA

   
564

 
3,687

 

   

   
564

 
3,687

 
4,251

 
22

 
2016
 
10/19
 
35


See accompanying report of independent registered public accounting firm.
F-51


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Dinuba, CA

   
593

 
3,414

 

   

   
593

 
3,414

 
4,007

 
20

 
2010
 
10/19
 
35
    Hanford, CA

   
329

 
3,678

 

   

   
329

 
3,678

 
4,007

 
22

 
2011
 
10/19
 
35
    Hanford, CA

   
404

 
3,847

 

   

   
404

 
3,847

 
4,251

 
23

 
2015
 
10/19
 
35
    Porterville, CA

   
517

 
3,490

 

   

   
517

 
3,490

 
4,007

 
21

 
2016
 
10/19
 
35
    Porterville, CA

   
433

 
3,574

 

   

   
433

 
3,574

 
4,007

 
21

 
2011
 
10/19
 
35
    Tulare, CA

   
640

 
3,367

 

   

   
640

 
3,367

 
4,007

 
20

 
2015
 
10/19
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Motor Trend:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Orlando, FL

   
820

 
2,441

 
125

   

   
820

 
2,566

 
3,386

 
1,609

 
1992
 
05/93
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Movie Tavern Theatre:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Covington, LA

   
1,081

 
6,779

 

   

   
1,081

 
6,779

 
7,860

 
1,196

 
1993
 
09/14
 
30
    Baton Rouge, LA

   
1,497

 

 
10,888

   

   
1,497

 
10,888

 
12,385

 
1,225

 
1993
 
11/14
(o)
40
    Allentown, PA

   
3,610

 

 
10,921

   

   
3,610

 
10,921

 
14,531

 
375

 
2018
 
06/17
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Muchas Gracias Mexican Restaurant:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Salem, OR

   
556

 
736

 

   

   
556

 
736

 
1,292

 
332

 
1996
 
12/01
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Murphy Oil:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Arlington, TX

   
2,079

 

 
1,397

   

   
2,079

 
 (i)
 
2,079

 
 (i)
 
 (i)
 
11/97
 
(i)
    Fort Worth, TX

   
1,652

 
2,018

 

   

   
1,652

 
 (i)
 
1,652

 
 (i)
 
 (i)
 
02/05
 
(i)
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Natural Grocers:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Coeur D'Alene, ID

   
2,172

 

 
2,778

   

   
2,172

 
2,778

 
4,950

 
402

 
2014
 
08/13
(m)
40
    Flagstaff, AZ
2,551

 (j)
831

 
4,079

 

   

   
831

 
4,079

 
4,910

 
597

 
2012
 
11/14
 
35
    Helena, MT
2,237

 (j)
1,079

 
3,062

 

   

   
1,079

 
3,062

 
4,141

 
448

 
2012
 
11/14
 
35
    Missoula, MT
1,992

 (j)
929

 
3,222

 

   

   
929

 
3,222

 
4,151

 
472

 
2012
 
11/14
 
35
    Sedona, AZ
2,344

 (j)
1,064

 
3,211

 

   

   
1,064

 
3,211

 
4,275

 
470

 
2012
 
11/14
 
35
    Steamboat Springs, CO
2,713

 (j)
1,512

 
3,447

 

   

   
1,512

 
3,447

 
4,959

 
505

 
2012
 
11/14
 
35
    Independence, MO

   
912

 
5,002

 

   

   
912

 
5,002

 
5,914

 
841

 
2002
 
12/14
 
30
    Oklahoma City, OK

   
1,190

 
3,275

 

   

   
1,190

 
2,456

 
3,646

 
20

 
2015
 
01/16
 
35
    Vancouver, WA

   
1,639

 

 
4,338

   

   
1,639

 
4,338

 
5,977

 
330

 
2016
 
06/16
(m)
40
    South Jordan, UT

   
1,460

 

 
4,039

   

   
1,460

 
4,039

 
5,499

 
299

 
2016
 
08/16
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-52


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nebraskaland Tire:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Park City, KS

   
214

 
687

 

   

   
214

 
687

 
901

 
499

 
1989
 
06/05
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

New Vision Theatre:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Montgomery, AL

   
1,686

 
11,156

 

   

   
1,686

 
11,156

 
12,842

 
1,476

 
2014
 
09/14
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Nitlantika:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Hollywood, FL

   
383

 
88

 
73

   

   
234

 
36

 
270

 
7

 
1960
 
12/05
 
15
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Northern Tool:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Beaumont, TX

   
483

 
831

 
1,207

   

   
483

 
2,038

 
2,521

 
597

 
1992
 
03/99
 
40
    Asheville, NC

   
519

 
2,998

 

   

   
519

 
2,998

 
3,517

 
653

 
2007
 
05/12
 
35
    Spartanburg, SC

   
654

 
3,174

 

   

   
654

 
3,174

 
3,828

 
560

 
2007
 
09/14
 
30
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
NTB Tire and Service Centers:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Hampton, VA

   
180

 
427

 

   

   
180

 
427

 
607

 
158

 
1986
 
03/05
 
40
    Newport News, VA

   
234

 
259

 

   

   
234

 
259

 
493

 
96

 
1986
 
03/05
 
40
    Norfolk, VA

   
398

 
508

 

   

   
398

 
508

 
906

 
188

 
1986
 
03/05
 
40
    Rockville, MD

   
1,030

 
306

 

   

   
1,016

 
306

 
1,322

 
113

 
1974
 
03/05
 
40
    Washington, DC (n)

   
624

 
578

 

   

   
624

 
578

 
1,202

 
214

 
1983
 
03/05
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Office Depot:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Gastonia, NC

   
1,554

 
2,367

 
1,019

   

   
1,554

 
3,386

 
4,940

 
1,125

 
2004
 
12/04
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

OfficeMax:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Cincinnati, OH

   
543

 
1,575

 

   

   
543

 
1,575

 
2,118

 
1,003

 
1994
 
07/94
 
40
    Evanston, IL

   
1,868

 
1,758

 

   

   
1,868

 
1,758

 
3,626

 
1,079

 
1995
 
06/95
 
40
    Salinas, CA

   
1,353

 
1,829

 

   

   
1,353

 
1,829

 
3,182

 
1,046

 
1995
 
02/97
 
40
    Lynchburg, VA

   
562

 

 
1,851

   

   
562

 
1,851

 
2,413

 
985

 
1998
 
02/98
(m)
40
    Griffin, GA

   
685

 

 
1,802

   

   
685

 
1,802

 
2,487

 
933

 
1999
 
11/98
(g)
40
    Weatherford, TX

   
548

 
2,436

 

   

   
548

 
2,436

 
2,984

 
430

 
1999
 
09/14
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Old Chicago:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Garland, TX

   
895

 

 
1,085

   

   
888

 
1,085

 
1,973

 
124

 
2016
 
01/16
(m)
30


See accompanying report of independent registered public accounting firm.
F-53


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ollie's Bargain Outlet:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Sarasota, FL

   
1,428

 
1,703

 
1,104

   

   
1,428

 
2,807

 
4,235

 
772

 
1988
 
09/97
 
40
    Baltimore, MD

   
2,595

 
4,156

 

   

   
2,595

 
4,156

 
6,751

 
104

 
1982
 
05/19
 
25
    Cuyahoga Falls, OH

   
1,191

 
2,169

 

   

   
1,191

 
2,169

 
3,360

 
54

 
1986
 
05/19
 
25
    Dublin, OH

   
1,208

 
2,741

 

   

   
1,208

 
2,741

 
3,949

 
69

 
1988
 
05/19
 
25
    Hoover, AL

   
1,853

 
316

 

   

   
1,853

 
316

 
2,169

 
8

 
1989
 
05/19
 
25
    Lafayette, LA

   
1,751

 
987

 

   

   
1,751

 
987

 
2,738

 
25

 
1990
 
05/19
 
25
    Lewisville, TX

   
2,286

 
1,504

 

   

   
2,286

 
1,504

 
3,790

 
31

 
1990
 
05/19
 
30
    Media, PA

   
2,525

 
2,230

 

   

   
2,525

 
2,230

 
4,755

 
56

 
1984
 
05/19
 
25
    Memphis, TN

   
1,937

 
3,641

 

   

   
1,937

 
3,641

 
5,578

 
76

 
1996
 
05/19
 
30
    Merrillville, IN

   
1,354

 
560

 

   

   
1,354

 
560

 
1,914

 
12

 
2001
 
05/19
 
30
    Pennsdale, PA

   
874

 
1,008

 

   

   
874

 
1,008

 
1,882

 
25

 
1994
 
05/19
 
25
    Sterling, VA

   
3,074

 
794

 

   

   
3,074

 
794

 
3,868

 
17

 
2001
 
05/19
 
30
    Winchester, VA

   
1,961

 
705

 

   

   
1,961

 
705

 
2,666

 
15

 
1994
 
05/19
 
30
    Roanoke, VA

   
1,739

 

 

   

   
1,739

 
 (i)
 
1,739

 
 (i)
 
 (i)
 
12/19
 
(i)
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Orchard Supply Hardware:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Pismo Beach, CA

   
2,436

 
1,997

 
2,339

   

   
2,436

 
4,336

 
6,772

 
1,329

 
1989
 
12/11
(o)
25
    San Jose, CA

   
4,092

 
4,279

 
3,307

   

   
4,092

 
7,586

 
11,678

 
2,347

 
1982
 
12/11
(o)
25
    San Jose, CA (n)

   
6,406

 
2,457

 
3,374

   

   
6,406

 
5,831

 
12,237

 
1,780

 
1982
 
12/11
(o)
25
    Chico, CA (n)

   
1,782

 
4,563

 
746

   

   
1,782

 
5,308

 
7,090

 
1,297

 
2002
 
07/12
(o)
30
    Clovis, CA

   
1,226

 
1,426

 
151

   

   
1,226

 
1,577

 
2,803

 
467

 
1982
 
07/12
(o)
25
    Pinole, CA (n)

   
2,784

 
5,195

 

   

   
2,784

 
5,195

 
7,979

 
1,550

 
1987
 
07/12
(o)
25
    San Jose, CA

   
3,370

 
2,517

 

   

   
3,370

 
2,517

 
5,887

 
751

 
1965
 
07/12
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Oregano's Pizza Bistro:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Fort Collins, CO

   
390

 
895

 
367

   

   
390

 
1,262

 
1,652

 
284

 
1995
 
02/11
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Outback:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Cheyenne, WY

   
672

 
2,502

 

   

   
672

 
2,502

 
3,174

 
650

 
2001
 
03/12
 
30
    Conroe, TX

   
524

 
583

 

   

   
524

 
583

 
1,107

 
182

 
1992
 
03/12
 
25
    Copley Township, OH

   
753

 
2,407

 

   

   
753

 
2,407

 
3,160

 
750

 
1993
 
03/12
 
25
    Coraopolis, PA

   
487

 
2,326

 

   

   
487

 
2,326

 
2,813

 
604

 
1998
 
03/12
 
30
    Denver, CO

   
850

 
1,305

 

   

   
850

 
1,305

 
2,155

 
291

 
2003
 
03/12
 
35


See accompanying report of independent registered public accounting firm.
F-54


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Knoxville, TN

   
753

 
1,852

 

   

   
753

 
1,852

 
2,605

 
412

 
2004
 
03/12
 
35
    Largo, MD

   
1,738

 
2,227

 

   

   
1,738

 
2,227

 
3,965

 
578

 
2001
 
03/12
 
30
    Lufkin, TX

   
514

 
1,147

 

   

   
514

 
1,147

 
1,661

 
298

 
1999
 
03/12
 
30
    Mechanicsville, VA

   
674

 
2,328

 

   

   
674

 
2,328

 
3,002

 
605

 
2002
 
03/12
 
30
    Mt. Pleasant, SC

   
713

 
1,466

 

   

   
713

 
1,466

 
2,179

 
381

 
1999
 
03/12
 
30
    Phoenix, AZ

   
821

 
2,284

 

   

   
821

 
2,284

 
3,105

 
593

 
2002
 
03/12
 
30
    Shreveport, LA

   
633

 
3,105

 

   

   
633

 
3,105

 
3,738

 
968

 
1994
 
03/12
 
25
    Smithfield, NC

   
772

 
2,345

 

   

   
772

 
2,345

 
3,117

 
522

 
2004
 
03/12
 
35
    Stockbridge, GA

   
910

 
1,988

 

   

   
910

 
1,988

 
2,898

 
516

 
2001
 
03/12
 
30
    Troy, OH

   
456

 
1,575

 

   

   
456

 
1,575

 
2,031

 
351

 
2004
 
03/12
 
35
    Venice, FL

   
833

 
2,529

 

   

   
833

 
2,529

 
3,362

 
657

 
2001
 
03/12
 
30
    Warrenton, VA

   
1,833

 
2,021

 

   

   
1,833

 
2,021

 
3,854

 
525

 
2001
 
03/12
 
30
    Wheaton, IL

   
901

 
654

 

   

   
901

 
654

 
1,555

 
204

 
1994
 
03/12
 
25
    Fultondale, AL

   
765

 
2,097

 

   

   
765

 
2,097

 
2,862

 
358

 
1998
 
11/14
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Palais Royale:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Sealy, TX

   
457

 
504

 
1,778

   

   
462

 
2,282

 
2,744

 
805

 
1982
 
03/99
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Panda Express:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Florissant, MO

   
50

 
59

 
170

   

   
50

 
228

 
278

 
67

 
2012
 
04/03
(g)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Patient First:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Richmond, VA

   
270

 
1,545

 

   

   
270

 
1,545

 
1,815

 
444

 
1988
 
05/11
 
30
    York, PA

   
772

 
2,995

 

   

   
772

 
2,995

 
3,767

 
633

 
2011
 
07/11
 
40
    Mechanicsburg, PA

   
933

 
3,401

 

   

   
933

 
3,401

 
4,334

 
670

 
2011
 
02/12
 
40
    Chesapeake, VA

   
598

 
2,161

 

   

   
598

 
2,161

 
2,759

 
201

 
1998
 
03/17
 
30
    Virginia Beach, VA

   
550

 
2,160

 

   

   
550

 
2,160

 
2,710

 
201

 
1998
 
03/17
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Patriot Fuels:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Vinita, OK

   
72

 
368

 

   

   
72

 
368

 
440

 
191

 
1972
 
07/09
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Pawn America:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Fridley, MN

   
1,013

 
4,465

 

   

   
1,013

 
4,465

 
5,478

 
1,048

 
1978
 
12/12
 
30
    Mankato, MN

   
449

 

 
1,705

   

   
449

 
1,705

 
2,154

 
261

 
2013
 
03/13
(m)
40


See accompanying report of independent registered public accounting firm.
F-55


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PDQ:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Altamonte Springs, FL

   
553

 
997

 
486

   

   
1,039

 
 (i)
 
1,039

 
 (i)
 
 (i)
 
01/96
 
(i)
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Pep Boys:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Chicago, IL

   
1,077

 
3,756

 

   

   
1,077

 
3,756

 
4,833

 
1,301

 
1993
 
11/07
 
35
    Cicero, IL

   
1,341

 
3,760

 

   

   
1,341

 
3,760

 
5,101

 
1,303

 
1993
 
11/07
 
35
    Cornwell Heights, PA

   
2,058

 
3,102

 

   

   
2,058

 
3,102

 
5,160

 
1,504

 
1972
 
11/07
 
25
    East Brunswick, NJ

   
2,449

 
5,026

 

   

   
2,449

 
5,026

 
7,475

 
2,031

 
1987
 
11/07
 
30
    Guayama, PR

   
1,729

 
2,732

 

   

   
1,729

 
2,131

 
3,860

 
653

 
1998
 
11/07
 
33
    Jacksonville, FL

   
810

 
2,331

 

   

   
810

 
2,331

 
3,141

 
808

 
1989
 
11/07
 
35
    Joliet, IL

   
1,506

 
3,727

 

   

   
1,506

 
3,727

 
5,233

 
1,291

 
1993
 
11/07
 
35
    Lansing, IL

   
869

 
3,440

 

   

   
869

 
3,440

 
4,309

 
1,192

 
1993
 
11/07
 
35
    Marietta, GA

   
1,311

 
3,556

 

   

   
1,311

 
3,556

 
4,867

 
1,437

 
1987
 
11/07
 
30
    Marlton, NJ

   
1,608

 
4,142

 

   

   
1,608

 
4,142

 
5,750

 
1,674

 
1983
 
11/07
 
30
    Philadelphia, PA

   
1,300

 
3,830

 

   

   
1,300

 
3,830

 
5,130

 
1,327

 
1995
 
11/07
 
35
    Quakertown, PA

   
1,129

 
3,252

 

   

   
1,129

 
3,252

 
4,381

 
1,126

 
1995
 
11/07
 
35
    Reading, PA

   
1,189

 
3,367

 

   

   
1,189

 
2,819

 
4,008

 
1,018

 
1989
 
11/07
 
28
    Roswell, GA

   
931

 
2,732

 

   

   
931

 
2,732

 
3,663

 
1,104

 
2007
 
11/07
 
30
    Turnersville, NJ

   
990

 
3,494

 

   

   
990

 
3,494

 
4,484

 
1,412

 
1986
 
11/07
 
30
    Houston, TX

   
734

 
3,028

 

   

   
734

 
3,028

 
3,762

 
980

 
1994
 
04/10
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Perkins Restaurant:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Des Moines, IA

   
270

 
218

 

   

   
270

 
218

 
488

 
218

 
1977
 
06/05
 
10
    Des Moines, IA

   
256

 
136

 

   

   
256

 
136

 
392

 
136

 
1976
 
06/05
 
10
    Des Moines, IA

   
226

 
203

 

   

   
226

 
203

 
429

 
203

 
1976
 
06/05
 
10
    Newton, IA

   
354

 
402

 

   

   
354

 
402

 
756

 
402

 
1979
 
06/05
 
10
    Urbandale, IA

   
377

 
581

 

   

   
377

 
581

 
958

 
423

 
1979
 
06/05
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Pet Paradise:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Houston, TX

   
417

 
2,306

 

   

   
417

 
2,306

 
2,723

 
680

 
2008
 
03/08
 
40
    Bunnell, FL

   
316

 
881

 

   

   
316

 
881

 
1,197

 
258

 
1997
 
04/08
 
40
    Charlotte, NC

   
825

 

 
3,231

   

   
825

 
3,231

 
4,056

 
845

 
2009
 
11/08
(m)
40
    Davie, FL

   
1,138

 
1,069

 

   

   
1,138

 
1,069

 
2,207

 
337

 
2003
 
12/08
 
35
    Wesley Chapel, FL

   
1,529

 

 
2,175

   

   
1,529

 
2,175

 
3,704

 
120

 
2017
 
02/17
(m)
40


See accompanying report of independent registered public accounting firm.
F-56


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Petco:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Grand Forks, ND

   
307

 
910

 

   

   
307

 
910

 
1,217

 
501

 
1996
 
12/97
 
40
    Florissant, MO

   
299

 
352

 
1,019

   

   
300

 
1,371

 
1,671

 
378

 
2012
 
04/03
(g)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Petro Express:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Belmont, NC

   
1,508

 
1,622

 

   

   
1,508

 
1,622

 
3,130

 
589

 
2001
 
04/07
 
35
    Charlotte, NC

   
1,458

 
2,047

 

   

   
1,458

 
2,047

 
3,505

 
867

 
1987
 
04/07
 
30
    Charlotte, NC

   
1,810

 
2,570

 

   

   
1,810

 
2,570

 
4,380

 
816

 
2004
 
04/07
 
40
    Charlotte, NC

   
2,784

 
3,720

 

   

   
2,784

 
3,720

 
6,504

 
1,351

 
1998
 
04/07
 
35
    Charlotte, NC

   
1,697

 
2,419

 

   

   
1,682

 
2,419

 
4,101

 
768

 
2005
 
04/07
 
40
    Charlotte, NC

   
1,030

 
1,725

 

   

   
1,030

 
1,725

 
2,755

 
731

 
1983
 
04/07
 
30
    Charlotte, NC

   
507

 
698

 

   

   
507

 
698

 
1,205

 
443

 
1967
 
04/07
 
20
    Charlotte, NC

   
1,532

 
1,973

 

   

   
1,532

 
1,973

 
3,505

 
716

 
1998
 
04/07
 
35
    Charlotte, NC

   
1,291

 
1,839

 

   

   
1,291

 
1,839

 
3,130

 
779

 
1988
 
04/07
 
30
    Charlotte, NC

   
1,340

 
1,790

 

   

   
1,340

 
1,790

 
3,130

 
650

 
1998
 
04/07
 
35
    Charlotte, NC

   
2,165

 
1,965

 

   

   
2,165

 
1,965

 
4,130

 
713

 
1997
 
04/07
 
35
    Charlotte, NC

   
2,316

 
2,064

 

   

   
2,316

 
2,064

 
4,380

 
749

 
1996
 
04/07
 
35
    Charlotte, NC

   
429

 
425

 

   

   
429

 
425

 
854

 
180

 
1983
 
04/07
 
30
    Charlotte, NC

   
629

 
876

 

   

   
623

 
876

 
1,499

 
371

 
1986
 
04/07
 
30
    Charlotte, NC

   
1,778

 
1,977

 

   

   
1,778

 
1,977

 
3,755

 
838

 
1992
 
04/07
 
30
    Concord, NC

   
2,144

 
1,986

 

   

   
2,144

 
1,986

 
4,130

 
721

 
2000
 
04/07
 
35
    Concord, NC

   
1,828

 
1,677

 

   

   
1,707

 
1,677

 
3,384

 
609

 
2002
 
04/07
 
35
    Denver, NC

   
2,317

 
1,750

 

   

   
2,317

 
1,750

 
4,067

 
635

 
1999
 
04/07
 
35
    Fort Mill, SC

   
3,825

 
2,554

 

   

   
3,825

 
2,554

 
6,379

 
928

 
1998
 
04/07
 
35
    Gastonia, NC

   
965

 
1,228

 

   

   
965

 
1,228

 
2,193

 
446

 
2001
 
04/07
 
35
    Gastonia, NC

   
745

 
760

 

   

   
745

 
760

 
1,505

 
242

 
2003
 
04/07
 
40
    Gastonia, NC

   
1,070

 
1,185

 

   

   
1,070

 
1,185

 
2,255

 
430

 
1990
 
04/07
 
35
    Gastonia, NC

   
335

 
545

 

   

   
317

 
545

 
862

 
173

 
2000
 
04/07
 
40
    Hickory, NC

   
1,975

 
1,530

 

   

   
1,975

 
1,530

 
3,505

 
555

 
2002
 
04/07
 
35
    Kings Mountain, NC

   
1,210

 
982

 

   

   
1,210

 
982

 
2,192

 
357

 
1988
 
04/07
 
35
    Lake Wylie, SC

   
1,381

 
2,061

 

   

   
1,381

 
2,061

 
3,442

 
749

 
1998
 
04/07
 
35
    Lake Wylie, SC

   
1,972

 
1,283

 

   

   
1,972

 
1,283

 
3,255

 
466

 
2003
 
04/07
 
35
    Lincolnton, NC (n)

   
723

 
532

 

   

   
723

 
532

 
1,255

 
225

 
1989
 
04/07
 
30
    Mineral Springs, NC

   
678

 
577

 

   

   
678

 
577

 
1,255

 
183

 
2002
 
04/07
 
40
    Monroe, NC

   
857

 
1,023

 

   

   
857

 
1,023

 
1,880

 
325

 
2004
 
04/07
 
40
    Monroe, NC

   
421

 
834

 

   

   
421

 
834

 
1,255

 
303

 
1997
 
04/07
 
35
    Monroe, NC

   
709

 
796

 

   

   
709

 
796

 
1,505

 
289

 
1999
 
04/07
 
35
    Rock Hill, SC

   
778

 
727

 

   

   
778

 
727

 
1,505

 
308

 
1990
 
04/07
 
30
    Rock Hill, SC

   
3,095

 
1,910

 

   

   
3,095

 
1,910

 
5,005

 
693

 
1999
 
04/07
 
35
    Rock Hill, SC

   
2,119

 
1,886

 

   

   
2,119

 
1,886

 
4,005

 
685

 
1998
 
04/07
 
35
    Statesville, NC

   
1,886

 
2,182

 

   

   
1,864

 
2,182

 
4,046

 
792

 
1999
 
04/07
 
35
    Waxhaw, NC

   
508

 
747

 

   

   
508

 
747

 
1,255

 
237

 
2002
 
04/07
 
40
    York, SC

   
2,306

 
1,449

 

   

   
2,306

 
1,449

 
3,755

 
526

 
1999
 
04/07
 
35
    Charlotte, NC

   
1,834

 
1,214

 

   

   
1,834

 
1,214

 
3,048

 
383

 
1997
 
05/07
 
40
    Charlotte, NC

   
1,849

 
2,280

 

   

   
1,849

 
2,280

 
4,129

 
719

 
2005
 
05/07
 
40
    Rock Hill, SC

   
3,108

 
2,146

 

   

   
3,055

 
2,146

 
5,201

 
677

 
1999
 
05/07
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

PetSense:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Kingsville, TX

   
499

 
458

 
224

   

   
499

 
682

 
1,181

 
264

 
1995
 
12/01
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

PetSmart:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Chicago, IL

   
2,724

 
3,566

 

   

   
2,724

 
3,566

 
6,290

 
1,898

 
1998
 
09/98
 
40
    Rock Hill, SC

   
1,734

 
3,381

 

   

   
1,734

 
3,381

 
5,115

 
239

 
1998
 
11/17
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

PetSuites:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Chesapeake, VA

   
974

 

 
3,715

   

   
974

 
3,715

 
4,689

 
143

 
2018
 
12/17
(m)
40
    Winter Springs, FL

   
943

 

 
3,855

   

   
993

 
3,855

 
4,848

 
141

 
2018
 
12/17
(m)
40
    Suwanee, GA

   
705

 

 
3,419

   

   
705

 
3,419

 
4,124

 
25

 
2019
 
11/18
(m)
(k)
    Louisville, KY

   
375

 
3,185

 

   

   
375

 
3,185

 
3,560

 
17

 
2019
 
10/19
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Pier I Imports:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Anchorage, AK

   
928

 
1,663

 

   

   
928

 
1,663

 
2,591

 
991

 
1995
 
02/96
 
40
    Memphis, TN

   
713

 
822

 

   

   
713

 
822

 
1,535

 
463

 
1997
 
09/96
(f)
40
    Sanford, FL

   
738

 
803

 

   

   
738

 
803

 
1,541

 
438

 
1998
 
06/97
(f)
40
    Valdosta, GA

   
391

 
806

 

   

   
391

 
806

 
1,197

 
405

 
1999
 
01/99
(f)
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   

   

 

 

   

   

 

 

 

 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pizza Hut:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Monroeville, AL

   
547

 
44

 

   

   
547

 
44

 
591

 
20

 
1976
 
12/01
 
40
    Bowie, TX

   
111

 
346

 

   

   
111

 
346

 
457

 
67

 
1976
 
02/15
 
25
    Greeneville, TN

   
111

 
717

 

   

   
111

 
717

 
828

 
140

 
1972
 
02/15
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Pollo Tropical:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Hialeah, FL

   
170

 
106

 

   

   
170

 
 (i)
 
170

 
 (i)
 
 (i)
 
09/06
 
(i)
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Popeye's:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Snellville, GA

   
642

 
437

 

   

   
642

 
437

 
1,079

 
197

 
1995
 
12/01
 
40
    Randallstown, MD

   
483

 
609

 

   

   
483

 
609

 
1,092

 
143

 
1958
 
02/14
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Power Body Wellness:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Conyers, GA

   
320

 
556

 
29

   

   
320

 
585

 
905

 
319

 
1997
 
06/97
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Power Center:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Midland, MI

   
1,085

 
1,635

 
220

   

   
1,085

 
1,598

 
2,683

 
572

 
2005
 
05/05
(g)
40
    Big Flats, NY

   
2,248

 
7,159

 
1,258

   

   
2,248

 
5,075

 
7,323

 
1,817

 
2006
 
08/05
(g)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Power Fuel & C-Store:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Moosic, PA

   
323

 
309

 

   

   
323

 
309

 
632

 
222

 
1980
 
08/05
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Premium Spas & Billiards:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Fairfax, VA

   
105

 
151

 
436

   

   
194

 
587

 
781

 
178

 
1995
 
12/95
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Publix Super Markets:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Tampa, FL

   
2,128

 
1,522

 

   

   
2,128

 
 (i)
 
2,128

 
 (i)
 
 (i)
 
06/96
 
(i)
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Pull-A-Part:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Augusta, GA

   
1,414

 

 
1,449

   

   
1,414

 
1,449

 
2,863

 
455

 
2007
 
08/06
(m)
40
    Birmingham, AL

   
1,165

 
2,090

 

   

   
1,165

 
2,090

 
3,255

 
699

 
1964
 
08/06
 
40
    Charlotte, NC

   
2,913

 
1,724

 

   

   
2,908

 
1,724

 
4,632

 
576

 
2006
 
08/06
 
40
    Conley, GA

   
1,686

 
1,387

 

   

   
1,686

 
1,387

 
3,073

 
464

 
1999
 
08/06
 
40
    Harvey, LA

   
1,887

 

 
4,326

   

   
1,887

 
4,326

 
6,213

 
1,239

 
2008
 
08/06
(m)
40
    Knoxville, TN

   
961

 

 
2,384

   

   
961

 
2,384

 
3,345

 
743

 
2007
 
08/06
(m)
40
    Louisville, KY

   
3,206

 
1,532

 

   

   
3,206

 
1,532

 
4,738

 
512

 
2006
 
08/06
 
40
    Nashville, TN

   
2,164

 
1,414

 

   

   
2,164

 
1,414

 
3,578

 
473

 
2006
 
08/06
 
40
    Norcross, GA

   
1,831

 
1,040

 

   

   
1,831

 
1,040

 
2,871

 
348

 
1998
 
08/06
 
40
    Cleveland, OH

   
4,556

 

 
2,096

   

   
4,556

 
2,096

 
6,652

 
635

 
2007
 
08/06
(m)
40
    Lafayette, LA

   
1,036

 

 
2,226

   

   
1,036

 
2,226

 
3,262

 
670

 
2007
 
08/06
(m)
40
    Montgomery, AL

   
934

 

 
2,013

   

   
934

 
2,013

 
2,947

 
610

 
2007
 
11/06
(m)
40
    Jackson, MS

   
1,315

 

 
2,471

   

   
1,315

 
2,318

 
3,633

 
692

 
2008
 
12/06
(m)
40
    Baton Rouge, LA

   
893

 

 
3,256

   

   
893

 
3,256

 
4,149

 
879

 
2009
 
01/07
(m)
40
    Memphis, TN

   
1,779

 

 
2,964

   

   
1,779

 
2,964

 
4,743

 
861

 
2008
 
05/07
(m)
40
    Mobile, AL

   
550

 

 
2,772

   

   
550

 
2,772

 
3,322

 
759

 
2009
 
06/07
(m)
40
    Winston-Salem, NC

   
846

 

 
2,449

   

   
836

 
2,449

 
3,285

 
676

 
2009
 
08/07
(m)
40
    Lithonia, GA

   
2,410

 

 
2,345

   

   
2,410

 
2,345

 
4,755

 
643

 
2009
 
08/07
(m)
40
    Columbia, SC

   
935

 

 
2,178

   

   
935

 
2,178

 
3,113

 
597

 
2009
 
09/07
(m)
40
    Akron, OH

   
1,065

 

 
1,869

   

   
1,065

 
1,869

 
2,934

 
473

 
2009
 
10/08
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Quaker Steak & Lube:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Mentor, OH

   
841

 
2,452

 

   

   
841

 
2,452

 
3,293

 
400

 
2009
 
04/14
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Quick Quack Car Wash:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Colorado Springs, CO

   
585

 
390

 

   

   
585

 
390

 
975

 
259

 
1978
 
09/06
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

QuikTrip:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Clive, IA

   
623

 
557

 

   

   
623

 
557

 
1,180

 
270

 
1994
 
06/05
 
30
    Johnston, IA

   
394

 
385

 

   

   
394

 
385

 
779

 
187

 
1991
 
06/05
 
30
    Tulsa, OK

   
1,225

 
650

 

   

   
1,225

 
650

 
1,875

 
315

 
1990
 
06/05
 
30
    Fountain Inn, SC

   
723

 
3,289

 

   

   
723

 
3,289

 
4,012

 
325

 
2015
 
07/16
 
35
    Charlotte, NC

   
739

 
3,512

 
3

   

   
740

 
3,514

 
4,254

 
297

 
2016
 
08/16
 
40
    Marietta, GA

   
1,870

 
3,795

 

   

   
1,870

 
3,795

 
5,665

 
304

 
2016
 
10/16
 
40
    Alpharetta, GA

   
1,665

 
3,700

 

   

   
1,665

 
3,700

 
5,365

 
235

 
2016
 
06/17
 
40
    Roswell, GA

   
1,693

 
3,572

 

   

   
1,693

 
3,572

 
5,265

 
220

 
2016
 
07/17
 
40
    Concord, NC

   
1,529

 
3,993

 

   

   
1,529

 
3,993

 
5,522

 
204

 
2017
 
12/17
 
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Qwest Corporation Service Center:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Cedar Rapids, IA

   
184

 
629

 
143

   

   
184

 
772

 
956

 
510

 
1976
 
06/05
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Rabobank:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Chico, CA

   
346

 

 

   

   
346

 
 (e)
 
346

 
 (e)
 
 (i)
 
07/12
 
(e)
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Raising Cane's:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Lancaster, OH

   
600

 

 
1,075

   

   
600

 
1,075

 
1,675

 
192

 
2012
 
01/08
(g)
40
    Cincinnati, OH

   
312

 
898

 

   

   
312

 
 (e)
 
312

 
 (e)
 
 (e)
 
08/10
 
(e)
    Sulphur, LA

   
326

 
1,268

 

   

   
326

 
1,268

 
1,594

 
316

 
2009
 
04/11
 
35
    Hurst, TX

   
763

 

 
1,309

   

   
763

 
1,309

 
2,072

 
269

 
2011
 
05/11
(m)
40
    Fort Worth, TX

   
792

 

 
1,144

   

   
792

 
1,144

 
1,936

 
235

 
2011
 
06/11
(m)
40
    Plano, TX

   
1,316

 

 
1,349

   

   
1,316

 
1,349

 
2,665

 
277

 
2011
 
06/11
(m)
40
    Pearland, TX

   
774

 

 
1,255

   

   
774

 
1,255

 
2,029

 
255

 
2011
 
07/11
(m)
40
    Addison, TX

   
869

 

 
1,343

   

   
869

 
1,343

 
2,212

 
262

 
2012
 
10/11
(m)
40
    Houston, TX

   
737

 

 
1,163

   

   
737

 
1,163

 
1,900

 
229

 
2012
 
10/11
(m)
40
    Euless, TX

   
1,222

 

 
1,376

   

   
1,226

 
1,376

 
2,602

 
277

 
2011
 
12/11
(m)
40
    Moore, OK

   
762

 

 
1,153

   

   
762

 
1,153

 
1,915

 
222

 
2012
 
01/12
(m)
40
    Rowlett, TX

   
814

 

 
1,398

   

   
814

 
1,398

 
2,212

 
261

 
2012
 
02/12
(m)
40
    Keller, TX

   
833

 

 
1,265

   

   
833

 
1,265

 
2,098

 
228

 
2012
 
06/12
(m)
40
    Omaha, NE

   
1,181

 

 
1,676

   

   
1,181

 
1,676

 
2,857

 
292

 
2013
 
08/12
(m)
40
    McKinney, TX

   
1,443

 

 
1,255

   

   
1,443

 
1,255

 
2,698

 
210

 
2013
 
11/12
(m)
40
    Tulsa, OK

   
1,006

 

 
1,508

   

   
1,006

 
1,508

 
2,514

 
253

 
2013
 
12/12
(m)
40
    Broken Arrow, OK

   
1,267

 
1,285

 

   

   
1,267

 
1,285

 
2,552

 
205

 
2013
 
04/13
 
40
    Oklahoma City, OK

   
1,217

 

 
1,312

   

   
1,217

 
1,312

 
2,529

 
198

 
2013
 
06/13
(m)
40
    Oklahoma City, OK

   
988

 

 
1,268

   

   
988

 
1,268

 
2,256

 
197

 
2013
 
06/13
(m)
40
    Owasso, OK

   
641

 

 
1,313

   

   
641

 
1,313

 
1,954

 
196

 
2014
 
09/13
(m)
40
    Longview, TX

   
1,020

 

 
1,488

   

   
1,020

 
1,488

 
2,508

 
203

 
2014
 
02/14
(m)
40
    Georgetown, TX

   
1,101

 

 
1,830

   

   
1,101

 
1,830

 
2,931

 
242

 
2014
 
05/14
(m)
40
    Centennial, CO

   
2,083

 

 
2,217

   

   
2,083

 
2,217

 
4,300

 
122

 
2017
 
04/17
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Rallys:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Toledo, OH

   
126

 
320

 

   

   
126

 
320

 
446

 
227

 
1989
 
07/92
 
39
 

 

 

 

 

 

 

 

 

 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-57


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RBC Bank:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Altamonte Springs, FL

   
1,316

 
2,014

 

   

   
1,316

 
2,014

 
3,330

 
554

 
2007
 
05/10
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Regal Theatre:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Bolingbrook, IL

   
2,937

 
3,032

 
1,500

   

   
2,937

 
4,532

 
7,469

 
1,583

 
1994
 
09/07
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Rent-A-Center:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Cohoes, NY

   
64

 
348

 
242

   

   
64

 
590

 
654

 
157

 
1994
 
09/04
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Rite Aid:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Mobile, AL (n)

   
1,137

 
1,694

 

   

   
1,137

 
1,694

 
2,831

 
764

 
2000
 
12/01
 
40
    Norfolk, VA

   
2,742

 
1,797

 

   

   
2,742

 
1,797

 
4,539

 
803

 
2001
 
02/02
 
40
    Thorndale, PA

   
2,261

 
2,472

 

   

   
2,261

 
2,472

 
4,733

 
1,105

 
2001
 
02/02
 
40
    West Mifflin, PA

   
1,402

 
2,044

 

   

   
1,402

 
2,044

 
3,446

 
913

 
1999
 
02/02
 
40
    Clinton Twp, MI

   
977

 
1,664

 

   

   
977

 
1,664

 
2,641

 
321

 
1998
 
03/14
 
30
    Dowagiac, MI

   
409

 
1,609

 

   

   
409

 
1,609

 
2,018

 
311

 
1998
 
03/14
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Rite Care Pharmacy:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Dallas, TX

   
2,407

 
2,299

 
320

   

   
2,407

 
2,618

 
5,025

 
892

 
1971
 
06/05
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

RNR Wheels / RNR Tire Express:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Anderson, SC

   
140

 
815

 

   

   
140

 
815

 
955

 
127

 
1996
 
07/14
 
35
   

   

 

 

   

   

 


 

 


 
 
 
 
 

Road Ranger:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Springfield, IL

   
705

 
1,500

 

   

   
705

 
1,500

 
2,205

 
508

 
1997
 
06/06
 
40
    Belvidere, IL

   
1,098

 
1,256

 
1,257

   

   
1,098

 
2,513

 
3,611

 
711

 
1997
 
06/06
 
40
    Brazil, IN

   
2,199

 
907

 

   

   
2,199

 
907

 
3,106

 
307

 
1990
 
06/06
 
40
    Cherry Valley, IL

   
1,409

 
1,897

 

   

   
1,409

 
1,897

 
3,306

 
642

 
1991
 
06/06
 
40
    Cottage Grove, WI

   
2,175

 
1,733

 
2

   

   
2,098

 
1,733

 
3,831

 
587

 
1990
 
06/06
 
40
    Decatur, IL

   
815

 
1,314

 

   

   
815

 
1,314

 
2,129

 
445

 
2002
 
06/06
 
40
    Dekalb, IL

   
747

 
1,658

 

   

   
747

 
1,658

 
2,405

 
561

 
2000
 
06/06
 
40
    Elk Run Heights, IA

   
1,538

 
2,470

 

   

   
1,538

 
2,470

 
4,008

 
836

 
1989
 
06/06
 
40
    Lake Station, IN

   
3,172

 
1,112

 

   

   
3,172

 
1,112

 
4,284

 
376

 
1987
 
06/06
 
40
    Mendota, IL

   
1,218

 
3,295

 

   

   
1,218

 
3,295

 
4,513

 
912

 
1996
 
06/06
 
40


See accompanying report of independent registered public accounting firm.
F-58


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Oakdale, WI

   
1,844

 
1,663

 

   

   
1,844

 
1,663

 
3,507

 
563

 
1998
 
06/06
 
40
    Rockford, IL

   
623

 
1,331

 
7

   

   
596

 
803

 
1,399

 
272

 
2000
 
06/06
 
40
    Rockford, IL

   
1,094

 
1,662

 

   

   
1,093

 
1,662

 
2,755

 
563

 
1996
 
06/06
 
40
    Springfield, IL

   
1,795

 
1,863

 

   

   
2,211

 
1,863

 
4,074

 
751

 
1978
 
06/06
 
40
    Champaign, IL

   
3,241

 
2,008

 

   

   
3,241

 
2,008

 
5,249

 
646

 
2006
 
02/07
 
40
    DeKalb, IL

   
505

 
1,503

 

   

   
505

 
1,503

 
2,008

 
484

 
2004
 
02/07
 
40
    Fenton, MO

   
2,584

 
2,622

 

   

   
2,584

 
2,622

 
5,206

 
844

 
2007
 
02/07
 
40
    Hampshire, IL

   
1,307

 
1,501

 
1,629

   

   
1,307

 
3,130

 
4,437

 
983

 
1988
 
02/07
(f)
40
    Princeton, IL

   
1,141

 
3,066

 

   

   
1,141

 
3,066

 
4,207

 
987

 
2003
 
02/07
 
40
    South Beloit, IL

   
3,824

 
2,309

 

   

   
3,824

 
2,309

 
6,133

 
743

 
2002
 
02/07
 
40
    Cedar Rapids, IA

   
1,025

 
984

 

   

   
1,025

 
984

 
2,009

 
315

 
1990
 
03/07
 
40
    Marion, IA

   
737

 
1,071

 

   

   
737

 
1,071

 
1,808

 
343

 
1974
 
03/07
 
40
    Okawville, IL

   
1,530

 
1,147

 
1,034

   

   
1,536

 
2,181

 
3,717

 
567

 
1997
 
08/07
 
40
    Dubuque, IA

   
561

 
1,941

 

   

   
561

 
1,941

 
2,502

 
597

 
2000
 
09/07
 
40
    Belvidere, IL

   
521

 
1,053

 

   

   
521

 
1,053

 
1,574

 
319

 
2008
 
09/07
(f)
40
    South Beloit, IL

   
1,182

 
1,324

 

   

   
1,182

 
1,324

 
2,506

 
401

 
2008
 
09/07
(f)
40
    Chicago, IL

   
1,350

 
6,450

 

   

   
1,350

 
6,450

 
7,800

 
1,924

 
1970
 
07/12
 
25
    Bensenville, IL

   
842

 
3,164

 

   

   
842

 
3,164

 
4,006

 
505

 
2002
 
03/15
 
30
    Loves Park, IL

   
911

 
2,283

 

   

   
911

 
2,283

 
3,194

 
313

 
2010
 
03/15
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Roadrunner Markets:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Abingdon, VA

   
261

 
1,711

 

   

   
261

 
1,711

 
1,972

 
185

 
1992
 
04/17
 
25
    Abingdon, VA

   
251

 
1,817

 

   

   
251

 
1,817

 
2,068

 
164

 
2001
 
04/17
 
30
    Abingdon, VA

   
542

 
890

 

   

   
542

 
890

 
1,432

 
96

 
1972
 
04/17
 
25
    Abingdon, VA

   
820

 
4,005

 

   

   
820

 
4,005

 
4,825

 
310

 
2012
 
04/17
 
35
    Abingdon, VA

   
396

 
1,479

 

   

   
396

 
1,479

 
1,875

 
133

 
1984
 
04/17
 
30
    Asheville, NC

   
966

 
1,690

 

   

   
966

 
1,690

 
2,656

 
183

 
1983
 
04/17
 
25
    Asheville, NC

   
502

 
2,154

 

   

   
502

 
2,154

 
2,656

 
194

 
1997
 
04/17
 
30
    Asheville, NC

   
995

 
1,169

 

   

   
995

 
1,169

 
2,164

 
127

 
1994
 
04/17
 
25
    Blountville, TN

   
242

 
1,189

 

   

   
242

 
1,189

 
1,431

 
129

 
1993
 
04/17
 
25
    Blountville, TN

   
338

 
3,406

 

   

   
338

 
3,406

 
3,744

 
369

 
1968
 
04/17
 
25
    Bluff City, TN

   
174

 
2,587

 

   

   
174

 
2,587

 
2,761

 
234

 
1997
 
04/17
 
30
    Bristol, TN

   
224

 
272

 

   

   
224

 
272

 
496

 
25

 
1997
 
04/17
 
30
    Bristol, TN

   
232

 
1,006

 

   

   
232

 
1,006

 
1,238

 
109

 
1979
 
04/17
 
25


See accompanying report of independent registered public accounting firm.
F-59


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Bristol, VA

   
290

 
2,077

 

   

   
290

 
2,077

 
2,367

 
225

 
1986
 
04/17
 
25
    Bristol, VA

   
174

 
814

 

   

   
174

 
814

 
988

 
73

 
1998
 
04/17
 
30
    Bristol, VA

   
591

 
271

 

   

   
591

 
271

 
862

 
29

 
1980
 
04/17
 
25
    Bristol, VA

   
135

 
1,151

 

   

   
135

 
1,151

 
1,286

 
125

 
1988
 
04/17
 
25
    Bristol, VA

   
203

 
1,228

 

   

   
203

 
1,228

 
1,431

 
111

 
1986
 
04/17
 
30
    Chilhowie, VA

   
213

 
2,154

 

   

   
213

 
2,154

 
2,367

 
194

 
2004
 
04/17
 
30
    Columbus, NC

   
416

 
1,286

 

   

   
416

 
1,286

 
1,702

 
116

 
1998
 
04/17
 
30
    Columbus, NC

   
242

 
1,730

 

   

   
242

 
1,730

 
1,972

 
187

 
1994
 
04/17
 
25
    Elizabethton, TN

   
521

 
1,642

 

   

   
521

 
1,642

 
2,163

 
148

 
1997
 
04/17
 
30
    Elizabethton, TN

   
174

 
1,797

 

   

   
174

 
1,797

 
1,971

 
195

 
1969
 
04/17
 
25
    Erwin, TN

   
425

 
3,512

 

   

   
425

 
3,512

 
3,937

 
317

 
2002
 
04/17
 
30
    Erwin, TN

   
426

 
861

 

   

   
426

 
861

 
1,287

 
93

 
1989
 
04/17
 
25
    Glade Spring, VA

   
570

 
3,369

 

   

   
570

 
3,369

 
3,939

 
365

 
1991
 
04/17
 
25
    Gray, TN

   
348

 
2,114

 

   

   
348

 
2,114

 
2,462

 
229

 
1983
 
04/17
 
25
    Greeneville, TN

   
406

 
1,565

 

   

   
406

 
1,565

 
1,971

 
121

 
2016
 
04/17
 
35
    Hampton, TN

   
232

 
2,481

 

   

   
232

 
2,481

 
2,713

 
224

 
1998
 
04/17
 
30
    Johnson City, TN

   
136

 
900

 

   

   
136

 
900

 
1,036

 
81

 
1995
 
04/17
 
30
    Johnson City, TN

   
358

 
822

 

   

   
358

 
822

 
1,180

 
74

 
1987
 
04/17
 
30
    Johnson City, TN

   
511

 
3,232

 

   

   
511

 
3,232

 
3,743

 
292

 
1998
 
04/17
 
30
    Johnson City, TN

   
1,023

 
2,181

 

   

   
1,023

 
2,181

 
3,204

 
197

 
1996
 
04/17
 
30
    Johnson City, TN

   
926

 
2,914

 

   

   
926

 
2,914

 
3,840

 
263

 
1997
 
04/17
 
30
    Johnson City, TN

   
454

 
2,008

 

   

   
454

 
2,008

 
2,462

 
155

 
2014
 
04/17
 
35
    Johnson City, TN

   
531

 
1,343

 

   

   
531

 
1,343

 
1,874

 
121

 
1989
 
04/17
 
30
    Johnson City, TN

   
454

 
1,025

 

   

   
454

 
1,025

 
1,479

 
93

 
1996
 
04/17
 
30
    Johnson City, TN

   
415

 
1,459

 

   

   
415

 
1,459

 
1,874

 
132

 
2004
 
04/17
 
30
    Johnson City, TN

   
579

 
2,133

 

   

   
579

 
2,133

 
2,712

 
193

 
2005
 
04/17
 
30
    Johnson City, TN

   
212

 
2,153

 

   

   
212

 
2,153

 
2,365

 
194

 
2006
 
04/17
 
30
    Jonesborough, TN

   
145

 
1,334

 

   

   
145

 
1,334

 
1,479

 
145

 
1983
 
04/17
 
25
    Jonesborough, TN

   
531

 
3,107

 

   

   
531

 
3,107

 
3,638

 
240

 
2013
 
04/17
 
35
    Jonesborough, TN

   
299

 
2,163

 

   

   
299

 
2,163

 
2,462

 
146

 
2010
 
04/17
 
40
    Kingsport, TN

   
463

 
1,999

 

   

   
463

 
1,999

 
2,462

 
155

 
2016
 
04/17
 
35
    Kingsport, TN

   
359

 
455

 

   

   
359

 
455

 
814

 
41

 
1997
 
04/17
 
30
    Kingsport, TN

   
97

 
891

 

   

   
97

 
891

 
988

 
96

 
1979
 
04/17
 
25
    Kingsport, TN

   
214

 
282

 

   

   
214

 
282

 
496

 
31

 
1979
 
04/17
 
25


See accompanying report of independent registered public accounting firm.
F-60


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Kingsport, TN

   
97

 
1,382

 

   

   
97

 
1,382

 
1,479

 
150

 
1973
 
04/17
 
25
    Kingsport, TN

   
107

 
534

 

   

   
107

 
534

 
641

 
58

 
1976
 
04/17
 
25
    Kingsport, TN

   
415

 
1,555

 

   

   
415

 
1,555

 
1,970

 
168

 
1983
 
04/17
 
25
    Kingsport, TN

   
319

 
1,160

 

   

   
319

 
1,160

 
1,479

 
105

 
2001
 
04/17
 
30
    Kingsport, TN

   
521

 
2,683

 

   

   
521

 
2,683

 
3,204

 
291

 
1993
 
04/17
 
25
    Kingsport, TN

   
106

 
1,623

 

   

   
106

 
1,623

 
1,729

 
176

 
1972
 
04/17
 
25
    Kingsport, TN

   
521

 
2,336

 

   

   
521

 
2,336

 
2,857

 
211

 
1999
 
04/17
 
30
    Kingsport, TN

   
475

 
320

 

   

   
475

 
320

 
795

 
29

 
1987
 
04/17
 
30
    Kingsport, TN

   
222

 
1,257

 

   

   
222

 
1,257

 
1,479

 
136

 
1988
 
04/17
 
25
    Landrum, SC

   
676

 
4,005

 

   

   
676

 
4,005

 
4,681

 
362

 
1999
 
04/17
 
30
    Lebanon, VA

   
222

 
1,749

 

   

   
222

 
1,749

 
1,971

 
189

 
1989
 
04/17
 
25
    Lebanon, VA

   
155

 
1,084

 

   

   
155

 
1,084

 
1,239

 
98

 
1998
 
04/17
 
30
    Marion, VA

   
550

 
2,501

 

   

   
550

 
2,501

 
3,051

 
271

 
1994
 
04/17
 
25
    Morristown, TN

   
116

 
727

 

   

   
116

 
727

 
843

 
79

 
1974
 
04/17
 
25
    Morristown, TN

   
280

 
1,449

 

   

   
280

 
1,449

 
1,729

 
157

 
1976
 
04/17
 
25
    Morristown, TN

   
242

 
601

 

   

   
242

 
601

 
843

 
65

 
1976
 
04/17
 
25
    Piney Flats, TN

   
463

 
2,191

 

   

   
463

 
2,191

 
2,654

 
198

 
1983
 
04/17
 
30
    Rural Retreat, VA

   
319

 
2,540

 

   

   
319

 
2,540

 
2,859

 
275

 
1991
 
04/17
 
25
    Waynesville, NC

   
261

 
2,395

 

   

   
261

 
2,395

 
2,656

 
216

 
1997
 
04/17
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Robbins Diamonds:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Newark, DE

   
636

 
1,273

 
38

   

   
629

 
1,311

 
1,940

 
806

 
1994
 
12/94
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Ross Dress for Less:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Coral Gables, FL

   
1,782

 
1,661

 
19

   

   
1,782

 
1,680

 
3,462

 
953

 
1994
 
06/96
 
38
    Lodi, CA

   
614

 
1,415

 

   

   
614

 
1,415

 
2,029

 
573

 
1984
 
03/99
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Ruby Tuesday:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Americus, GA

   
371

 
832

 

   

   
371

 
832

 
1,203

 
57

 
2007
 
12/17
 
30
    Arvada, CO

   
705

 
633

 

   

   
705

 
633

 
1,338

 
43

 
1996
 
12/17
 
30
    Ashland, KY

   
623

 
1,084

 

   

   
623

 
1,084

 
1,707

 
74

 
2003
 
12/17
 
30
    Athens, AL

   
895

 
308

 

   

   
895

 
308

 
1,203

 
21

 
2005
 
12/17
 
30
    Austintown, OH

   
244

 
1,265

 

   

   
244

 
1,265

 
1,509

 
86

 
2003
 
12/17
 
30
    Bedford, VA

   
696

 
606

 

   

   
696

 
606

 
1,302

 
41

 
2006
 
12/17
 
30


See accompanying report of independent registered public accounting firm.
F-61


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Big Rapids, MI

   
452

 
958

 

   

   
452

 
958

 
1,410

 
65

 
2006
 
12/17
 
30
    Branson, MO

   
597

 
822

 

   

   
597

 
822

 
1,419

 
67

 
1994
 
12/17
 
25
    Columbia, MD

   
1,760

 
244

 

   

   
1,760

 
244

 
2,004

 
20

 
1994
 
12/17
 
25
    Concord, NC

   
778

 
425

 

   

   
778

 
425

 
1,203

 
29

 
2003
 
12/17
 
30
    Edinburgh, IN

   
533

 
1,210

 

   

   
533

 
1,210

 
1,743

 
82

 
2005
 
12/17
 
30
    Farmville, VA

   
461

 
742

 

   

   
461

 
742

 
1,203

 
50

 
2005
 
12/17
 
30
    Fayetteville, NC

   
370

 
1,436

 

   

   
370

 
1,436

 
1,806

 
98

 
2000
 
12/17
 
30
    Florence, SC

   
406

 
1,400

 

   

   
406

 
1,400

 
1,806

 
95

 
2002
 
12/17
 
30
    Fuquay-Varina, NC

   
606

 
804

 

   

   
606

 
804

 
1,410

 
55

 
2003
 
12/17
 
30
    Hopewell, VA

   
632

 
976

 

   

   
632

 
976

 
1,608

 
66

 
2005
 
12/17
 
30
    Indianapolis, IN

   
877

 
326

 

   

   
877

 
326

 
1,203

 
19

 
2007
 
12/17
 
35
    Inverness, FL

   
587

 
1,219

 

   

   
587

 
1,219

 
1,806

 
71

 
2006
 
12/17
 
35
    Jacksonville, FL

   
833

 
244

 

   

   
833

 
244

 
1,077

 
17

 
2003
 
12/17
 
30
    Kingsland, GA

   
1,066

 
641

 

   

   
1,066

 
641

 
1,707

 
44

 
2006
 
12/17
 
30
    Leeds, AL

   
280

 
923

 

   

   
280

 
923

 
1,203

 
63

 
1999
 
12/17
 
30
    Lincoln, NE

   
361

 
1,445

 

   

   
361

 
1,445

 
1,806

 
98

 
2002
 
12/17
 
30
    New Bern, NC

   
470

 
832

 

   

   
470

 
832

 
1,302

 
57

 
2005
 
12/17
 
30
    New Port Richey, FL

   
461

 
841

 

   

   
461

 
841

 
1,302

 
57

 
2001
 
12/17
 
30
    North Platte, NE

   
515

 
1,093

 

   

   
515

 
1,093

 
1,608

 
64

 
2007
 
12/17
 
35
    Orangeburg, SC

   
605

 
1,399

 

   

   
605

 
1,399

 
2,004

 
95

 
2001
 
12/17
 
30
    Roanoke, VA

   
606

 
804

 

   

   
606

 
804

 
1,410

 
55

 
2001
 
12/17
 
30
    Royal Palm Beach, FL

   
994

 
416

 

   

   
994

 
416

 
1,410

 
28

 
2002
 
12/17
 
30
    St. Augustine, FL

   
1,255

 
551

 

   

   
1,255

 
551

 
1,806

 
37

 
2004
 
12/17
 
30
    Terre Haute, IN

   
371

 
832

 

   

   
371

 
832

 
1,203

 
57

 
2006
 
12/17
 
30
    Troy, AL

   
226

 
1,184

 

   

   
226

 
1,184

 
1,410

 
81

 
2004
 
12/17
 
30
    Vidalia, GA

   
407

 
1,201

 

   

   
407

 
1,201

 
1,608

 
82

 
1998
 
12/17
 
30
    Warsaw, IN

   
524

 
778

 

   

   
524

 
778

 
1,302

 
53

 
1999
 
12/17
 
30
    Waterville, ME

   
145

 
1,463

 

   

   
145

 
1,463

 
1,608

 
100

 
2002
 
12/17
 
30
    Zephyrhills, FL

   
849

 
957

 

   

   
849

 
957

 
1,806

 
65

 
2005
 
12/17
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Ruby's Place:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Swansea, IL

   
46

 
133

 
87

   

   
46

 
220

 
266

 
62

 
1997
 
12/01
(g)
40


See accompanying report of independent registered public accounting firm.
F-62


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rue 21:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lapeer, MI

   
126

 
645

 

   

   
126

 
629

 
755

 
195

 
2007
 
10/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Sally Beauty Supply:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Lapeer, MI

   
33

 
167

 

   

   
33

 
163

 
196

 
50

 
2007
 
10/05
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Salons by JC:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Buford, GA

   
539

 
1,421

 
373

   

   
539

 
1,798

 
2,337

 
602

 
2003
 
07/04
(g)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Saltgrass Steakhouse:


   


 


 


   


   


 


 


 


 
 
 
 
 

    San Marcos, TX

   
837

 
1,453

 
2,227

   

   
837

 
3,680

 
4,517

 
505

 
2000
 
11/06
 
40
    Beaumont, TX

   
558

 

 
2,336

   

   
901

 
1,819

 
2,720

 
468

 
1975
 
09/10
(m)
30
    San Antonio, TX

   
1,280

 

 
853

   

   
1,280

 
853

 
2,133

 
173

 
2011
 
08/11
(m)
40
    Cypress, TX

   
1,071

 

 
1,886

   

   
1,071

 
1,886

 
2,957

 
352

 
2012
 
03/12
(m)
40
    Midland, TX

   
837

 
2,073

 

   

   
837

 
2,073

 
2,910

 
388

 
1998
 
01/13
 
35
    Port Arthur, TX

   
890

 

 
2,049

   

   
890

 
2,049

 
2,939

 
305

 
2014
 
08/13
(m)
40
    McAllen, TX

   
1,390

 

 
1,148

   

   
1,393

 
1,146

 
2,539

 
184

 
2007
 
12/13
(m)
35
    College Station, TX

   
934

 

 
2,076

   

   
934

 
2,076

 
3,010

 
275

 
2014
 
04/14
(m)
40
    Lewisville, TX

   
1,268

 

 
2,456

   

   
1,268

 
2,456

 
3,724

 
251

 
2015
 
11/14
(m)
40
    Waco, TX

   
730

 

 
2,321

   

   
730

 
2,321

 
3,051

 
249

 
2015
 
12/14
(m)
40
    Odessa, TX

   
1,000

 

 
2,410

   

   
1,000

 
2,410

 
3,410

 
243

 
2015
 
01/15
(m)
40
    Lubbock, TX

   
1,025

 

 
2,251

   

   
1,025

 
2,251

 
3,276

 
209

 
2016
 
10/15
(m)
40
    Baytown, TX

   
1,208

 

 
2,455

   

   
1,208

 
2,455

 
3,663

 
182

 
2017
 
07/16
(m)
40
    Corpus Christi, TX

   
1,008

 

 
2,580

   

   
1,008

 
2,580

 
3,588

 
224

 
2016
 
09/16
(m)
35
    Tyler, TX

   
1,622

 

 
2,615

   

   
1,622

 
2,615

 
4,237

 
166

 
2017
 
10/16
(m)
40
    Oklahoma City, OK

   
853

 

 
2,359

   

   
853

 
2,359

 
3,212

 
174

 
1996
 
06/17
(o)
30
    Pasadena, TX

   
1,498

 

 
2,783

   

   
1,498

 
2,783

 
4,281

 
142

 
2017
 
07/17
(m)
40
    Little Rock, AR

   
1,140

 

 
2,606

   

   
1,140

 
2,606

 
3,746

 
122

 
2017
 
08/17
(m)
40
    Sherwood, AR

   
1,166

 

 
2,666

   

   
1,166

 
2,666

 
3,832

 
114

 
2018
 
09/17
(m)
40
    Tulsa, OK

   
1,327

 

 
2,832

   

   
1,327

 
2,832

 
4,159

 
97

 
2018
 
01/18
(m)
40
    Hoover, AL

   
911

 

 
2,489

   

   
911

 
2,489

 
3,400

 
86

 
2003
 
03/18
(o)
35
    Covington, LA

   
1,185

 

 
3,331

   

   
1,185

 
3,331

 
4,516

 
52

 
2018
 
04/18
(m)
(k)
    The Colony, TX

   
1,549

 

 
2,937

   

   
1,549

 
2,937

 
4,486

 
70

 
2019
 
05/18
(m)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-63


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Save A Lot:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Memphis, TN

   
404

 

 
1,278

   

   
404

 
1,278

 
1,682

 
675

 
1998
 
12/97
(g)
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Save on Gas and C-Store:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Wilkes-Barre, PA

   
876

 
1,957

 

   

   
876

 
1,957

 
2,833

 
1,406

 
1998
 
08/05
 
20
    Hughesville, PA

   
290

 
566

 

   

   
290

 
258

 
548

 
160

 
1977
 
01/06
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Savers Thrift Superstore:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Fairview Heights, IL

   
1,258

 
2,623

 
246

   

   
1,258

 
2,869

 
4,127

 
981

 
1980
 
10/05
(g)
40
    North Olmsted, OH

   
1,613

 
4,549

 

   

   
1,613

 
4,549

 
6,162

 
584

 
1983
 
08/16
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Schlotzsky's Deli:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Phoenix, AZ

   
706

 
315

 

   

   
706

 
315

 
1,021

 
142

 
1995
 
12/01
 
40
    Scottsdale, AZ

   
717

 
311

 

   

   
686

 
311

 
997

 
140

 
1995
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Scotchman:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Hudson, NC

   
512

 
2,485

 

   

   
512

 
2,485

 
2,997

 
169

 
2002
 
12/17
 
30
    Kings Mountain, NC

   
533

 
1,985

 

   

   
533

 
1,985

 
2,518

 
135

 
1999
 
12/17
 
30
    Rock Hill, SC

   
319

 
1,588

 

   

   
319

 
1,588

 
1,907

 
130

 
1992
 
12/17
 
25
    Rutherfordton, NC

   
213

 
1,839

 

   

   
213

 
1,839

 
2,052

 
125

 
1999
 
12/17
 
30
    Rutherfordton, NC

   
349

 
2,160

 

   

   
349

 
2,160

 
2,509

 
176

 
1990
 
12/17
 
25
    Shelby, NC

   
320

 
2,189

 

   

   
320

 
2,189

 
2,509

 
179

 
1994
 
12/17
 
25
    Shelby, NC

   
184

 
1,783

 

   

   
184

 
1,783

 
1,967

 
146

 
1990
 
12/17
 
25
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Season's 52:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Schaumburg, IL

   
2,065

 
1,311

 

   

   
2,065

 
 (i)

 
2,065

 
 (i)

 
 (i)
 
12/01
 
(i)
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Service First Automotive:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Katy, TX

   
1,370

 
2,704

 

   

   
1,370

 
2,704

 
4,074

 
70

 
2018
 
12/18
 
40
    Spring, TX

   
1,860

 
2,716

 

   

   
1,860

 
2,716

 
4,576

 
71

 
2018
 
12/18
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Service King:


   


 


 


   


   


 


 


 


 
 
 
 
 

    The Colony, TX

   
2,135

 
3,819

 

   

   
2,135

 
3,819

 
5,954

 
267

 
2016
 
03/17
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-64


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shek's Chinese Express:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Eden Prairie, MN

   
65

 
261

 

   

   
65

 
261

 
326

 
116

 
1997
 
12/01
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Shell:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Glendale, AZ

   
1,817

 
2,415

 
126

   

   
1,817

 
2,541

 
4,358

 
828

 
2001
 
05/08
 
40
    Peoria, AZ

   
860

 
1,117

 
114

   

   
860

 
1,231

 
2,091

 
547

 
1987
 
05/08
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Shop-a-Snak:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Bessemer, AL

   
564

 
742

 

   

   
564

 
742

 
1,306

 
253

 
2002
 
05/06
 
40
    Chelsea, AL

   
391

 
628

 

   

   
391

 
628

 
1,019

 
214

 
1981
 
05/06
 
40
    Jasper, AL

   
551

 
747

 

   

   
551

 
747

 
1,298

 
255

 
1998
 
05/06
 
40
    Birmingham, AL

   
439

 
704

 

   

   
439

 
704

 
1,143

 
240

 
1989
 
05/06
 
40
    Birmingham, AL

   
446

 
672

 

   

   
446

 
672

 
1,118

 
229

 
1989
 
05/06
 
40
    Birmingham, AL

   
361

 
744

 

   

   
361

 
744

 
1,105

 
253

 
1989
 
05/06
 
40
    Homewood, AL

   
468

 
657

 

   

   
468

 
657

 
1,125

 
224

 
1990
 
05/06
 
40
    Hoover, AL

   
764

 
1,157

 

   

   
663

 
1,157

 
1,820

 
394

 
2005
 
05/06
 
40
    Hoover, AL

   
490

 
769

 

   

   
444

 
769

 
1,213

 
262

 
1992
 
05/06
 
40
    Hoover, AL

   
713

 
865

 

   

   
713

 
865

 
1,578

 
294

 
1998
 
05/06
 
40
    Trussville, AL

   
272

 
542

 

   

   
256

 
542

 
798

 
185

 
1992
 
05/06
 
40
    Tuscaloosa, AL

   
386

 
733

 

   

   
386

 
733

 
1,119

 
250

 
1991
 
05/06
 
40
    Tuscaloosa, AL

   
432

 
559

 

   

   
432

 
559

 
991

 
191

 
1991
 
05/06
 
40
    Tuscaloosa, AL

   
525

 
463

 

   

   
525

 
463

 
988

 
158

 
1991
 
05/06
 
40
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Showtime Auto:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Essexville, MI

   
113

 
113

 

   

   
113

 
113

 
226

 
50

 
1974
 
02/11
 
20
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Skechers:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Sioux Falls, SD

   
207

 
1,490

 
716

   

   
207

 
2,206

 
2,413

 
355

 
1985
 
12/12
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Sleep Number:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Tucson, AZ

   
906

 

 
1,271

   

   
906

 
1,271

 
2,177

 
155

 
2015
 
11/14
(m)
40
    Billings, MT

   
708

 

 
1,086

   

   
708

 
1,086

 
1,794

 
83

 
2016
 
08/16
(m)
40
    Dublin, OH

   
333

 

 
1,809

   

   
333

 
1,809

 
2,142

 
54

 
2014
 
09/18
(o)
35
 


 


 


 


 


 


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-65


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sleepy's:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Bay Shore, NY

   
674

 
1,907

 

   

   
674

 
1,907

 
2,581

 
264

 
1985
 
07/16
 
25
    Bridgehampton, NY

   
1,819

 
2,283

 

   

   
1,819

 
2,283

 
4,102

 
263

 
2003
 
07/16
 
30
    Dickson City, PA

   
509

 
3,563

 

   

   
509

 
3,563

 
4,072

 
411

 
1998
 
07/16
 
30
    Farmingdale, NY

   
522

 
2,021

 

   

   
522

 
2,021

 
2,543

 
280

 
1999
 
07/16
 
25
    Hasbrouck Heights, NJ

   
609

 
989

 

   

   
609

 
989

 
1,598

 
137

 
1965
 
07/16
 
25
    Huntington Station, NY

   
437

 
1,766

 

   

   
437

 
1,766

 
2,203

 
244

 
1990
 
07/16
 
25
    Ledgewood, NJ

   
456

 
1,312

 

   

   
456

 
1,312

 
1,768

 
181

 
1981
 
07/16
 
25
    Middletown, NY

   
351

 
3,232

 

   

   
351

 
3,232

 
3,583

 
447

 
1977
 
07/16
 
25
    Montgomeryville, PA

   
283

 
3,084

 

   

   
283

 
3,084

 
3,367

 
427

 
1988
 
07/16
 
25
    Old Saybrook, CT

   
691

 
3,595

 

   

   
691

 
3,595

 
4,286

 
622

 
1929
 
07/16
 
20
    Rockville Centre, NY

   
732

 
951

 

   

   
732

 
951

 
1,683

 
164

 
1925
 
07/16
 
20
    Somers Point, NJ

   
313

 
1,691

 

   

   
313

 
1,691

 
2,004

 
195

 
2004
 
07/16
 
30
    Watchung, NJ

   
587

 
2,662

 

   

   
587

 
2,662

 
3,249

 
368

 
1981
 
07/16
 
25
    Waterford, CT

   
615

 
2,736

 

   

   
615

 
2,736

 
3,351

 
378

 
1976
 
07/16
 
25
    Whitehall, PA

   
218

 
1,177

 

   

   
218

 
1,177

 
1,395

 
136

 
2002
 
07/16
 
30
   


   


 


 


   


   


 


 


 


 
 
 
 
 

Sonic:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Athens, AL

   
275

 
672

 

   

   
275

 
672

 
947

 
59

 
1996
 
05/17
 
30
    Auburn, AL

   
360

 
804

 

   

   
360

 
804

 
1,164

 
70

 
2002
 
05/17
 
30
    Auburn, AL

   
379

 
710

 

   

   
379

 
710

 
1,089

 
62

 
1996
 
05/17
 
30
    Bedford, VA

   
256

 
550

 

   

   
256

 
550

 
806

 
41

 
2007
 
05/17
 
35
    Bristol, TN

   
237

 
569

 

   

   
237

 
569

 
806

 
50

 
2001
 
05/17
 
30
    Columbus, GA

   
341

 
531

 

   

   
341

 
531

 
872

 
46

 
1997
 
05/17
 
30
    Columbus, GA

   
502

 
303

 

 

 
502

 
303

 
805

 
27

 
2001
 
05/17
 
30
    Dandridge, TN

   
142

 
730

 

   

   
142

 
730

 
872

 
64

 
2002
 
05/17
 
30
    Danville, VA

   
331

 
691

 

   

   
331

 
691

 
1,022

 
52

 
2008
 
05/17
 
35
    Decatur, AL

   
237

 
710

 

   

   
237

 
710

 
947

 
62

 
1998
 
05/17
 
30
    Florence, AL

   
265

 
824

 

   

   
265

 
824

 
1,089

 
72

 
1997
 
05/17
 
30
    Florence, AL

   
388

 
559

 

   

   
388

 
559

 
947

 
49

 
2001
 
05/17
 
30
    Greeneville, TN

   
180

 
692

 

   

   
180

 
692

 
872

 
73

 
1990
 
05/17
 
25
    Hampton Cove, AL

   
483

 
681

 

   

   
483

 
681

 
1,164

 
51

 
2006
 
05/17
 
35
    Huntsville, AL

   
246

 
701

 

   

   
246

 
701

 
947

 
74

 
1992
 
05/17
 
25
    Huntsville, AL

   
218

 
871

 

 

 
218

 
871

 
1,089

 
65

 
2008
 
05/17
 
35


See accompanying report of independent registered public accounting firm.
F-66


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Huntsville, AL

 
332

 
616

 

 

 
332

 
616

 
948

 
54

 
 1999
 
05/17
 
30
    Huntsville, AL

 
398

 
625

 

 

 
398

 
625

 
1,023

 
47

 
 2005
 
05/17
 
35
    Huntsville, AL

 
275

 
814

 

 

 
275

 
814

 
1,089

 
71

 
 2001
 
05/17
 
30
    Johnson City, TN

 
379

 
493

 

 

 
379

 
493

 
872

 
52

 
 1994
 
05/17
 
25
    Kingsport, TN

 
322

 
550

 

 

 
322

 
550

 
872

 
48

 
 2000
 
05/17
 
30
    Knoxville, TN

 
227

 
824

 

 

 
227

 
824

 
1,051

 
86

 
 1987
 
05/17
 
25
    Lanett, AL

 
322

 
550

 

 

 
322

 
550

 
872

 
48

 
 1997
 
05/17
 
30
    Madison, AL

 
454

 
634

 

 

 
454

 
634

 
1,088

 
55

 
 2000
 
05/17
 
30
    Madison, AL

 
303

 
720

 

 

 
303

 
720

 
1,023

 
63

 
 1996
 
05/17
 
30
    Marion, VA

 
95

 
852

 

 

 
95

 
852

 
947

 
75

 
 1997
 
05/17
 
30
    Millbrook, AL

 
549

 
540

 

 

 
549

 
540

 
1,089

 
47

 
 2005
 
05/17
 
30
    Montgomery, AL

 
729

 
360

 

 

 
729

 
360

 
1,089

 
27

 
 2005
 
05/17
 
35
    Montgomery, AL

 
227

 
644

 

 

 
227

 
644

 
871

 
56

 
 1999
 
05/17
 
30
    Morristown, TN

 
123

 
607

 

 

 
123

 
607

 
730

 
64

 
 1977
 
05/17
 
25
    Morristown, TN

 
275

 
597

 

 

 
275

 
597

 
872

 
63

 
 1985
 
05/17
 
25
    Moulton, AL

 
379

 
710

 

 

 
379

 
710

 
1,089

 
62

 
 2005
 
05/17
 
30
    Muscle Shoals, AL

 
208

 
880

 

 

 
208

 
880

 
1,088

 
77

 
 1995
 
05/17
 
30
    Newport, TN

 
142

 
664

 

 

 
142

 
664

 
806

 
58

 
 2000
 
05/17
 
30
    North Tazewell, VA

 
114

 
758

 

 

 
114

 
758

 
872

 
66

 
 1993
 
05/17
 
30
    Norton, VA

 
133

 
739

 

 

 
133

 
739

 
872

 
55

 
 2007
 
05/17
 
35
    Opelika, AL

 
663

 
360

 

 

 
663

 
360

 
1,023

 
31

 
 2006
 
05/17
 
30
    Phenix City, AL

 
322

 
701

 

 

 
322

 
701

 
1,023

 
61

 
 1997
 
05/17
 
30
    Prattville, AL

 
388

 
634

 

 

 
388

 
634

 
1,022

 
56

 
 1994
 
05/17
 
30
    Roanoke, VA

 
265

 
757

 

 

 
265

 
757

 
1,022

 
57

 
 2006
 
05/17
 
35
    Rogersville, TN

 
57

 
815

 

 

 
57

 
815

 
872

 
71

 
 1996
 
05/17
 
30
    Sevierville, TN

 
436

 
511

 

 

 
436

 
511

 
947

 
54

 
 1988
 
05/17
 
25
    Chatsworth, GA

 
118

 
1,322

 

 

 
118

 
1,322

 
1,440

 
46

 
 1998
 
02/19
 
25
    Chattanooga, TN

 
355

 
1,341

 

 

 
355

 
1,341

 
1,696

 
39

 
 2000
 
02/19
 
30
    Chattanooga, TN

 
306

 
1,155

 

 

 
306

 
1,155

 
1,461

 
34

 
 2003
 
02/19
 
30
    Chattanooga, TN

 
286

 
1,047

 

 

 
286

 
1,047

 
1,333

 
37

 
 1998
 
02/19
 
25
    Chattanooga, TN

 
237

 
1,411

 

 

 
237

 
1,411

 
1,648

 
49

 
 1997
 
02/19
 
25
    Dalton, GA

 
237

 
712

 

 

 
237

 
712

 
949

 
21

 
 2000
 
02/19
 
30
 


 


 


 


 


 


 


 


 


 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-67


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sonic Automotive:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Charlotte, NC

   
3,619

 
4,854

 

   

   
3,619

 
4,854

 
8,473

 
1,532

 
1996
 
05/07
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Sonny's BBQ:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Alachua, FL

   
536

 
2,144

 

   

   
536

 
2,144

 
2,680

 
32

 
1983
 
08/19
 
25
    Belleview, FL

   
124

 
2,202

 

   

   
124

 
2,202

 
2,326

 
28

 
2001
 
08/19
 
30
    Bushnell, FL

   
479

 
1,857

 

   

   
479

 
1,857

 
2,336

 
23

 
2003
 
08/19
 
30
    Jacksonville, FL

   
880

 
1,952

 

   

   
880

 
1,952

 
2,832

 
24

 
2004
 
08/19
 
30
    Jacksonville, FL

   
1,100

 
1,770

 

   

   
1,100

 
1,770

 
2,870

 
22

 
2002
 
08/19
 
30
    Ocala, FL

   
507

 
2,593

 

   

   
507

 
2,593

 
3,100

 
39

 
1977
 
08/19
 
25
    Ocala, FL

   
660

 
2,841

 

   

   
660

 
2,841

 
3,501

 
36

 
1987
 
08/19
 
30
    Orange Park, FL

   
287

 
2,345

 

   

   
287

 
2,345

 
2,632

 
35

 
1976
 
08/19
 
25
    Spring Hill, FL

   
689

 
2,373

 

   

   
689

 
2,373

 
3,062

 
36

 
1997
 
08/19
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Sparkling Image:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Bakersfield, CA

   
3,363

 
3,288

 

   

   
3,363

 
3,288

 
6,651

 
969

 
2002
 
03/08
 
40
    Bakersfield, CA

   
2,798

 
5,260

 
22

   

   
1,781

 
284

 
2,065

 
269

 
1997
 
03/08
 
35
    Bakersfield, CA

   
3,664

 
3,709

 
11

   

   
3,664

 
3,721

 
7,385

 
1,253

 
1994
 
03/08
 
35
    Bakersfield, CA

   
2,043

 
3,520

 
40

   

   
2,043

 
719

 
2,762

 
379

 
1988
 
03/08
 
30
    Bakersfield, CA

   
3,346

 
6,016

 

   

   
3,346

 
6,016

 
9,362

 
2,024

 
1998
 
03/08
 
35
    Bakersfield, CA

   
2,564

 
4,465

 
2,178

   

   
2,564

 
6,643

 
9,207

 
2,473

 
1988
 
03/08
 
30
    San Fernando, CA

   
6,630

 
2,706

 
47

   

   
6,630

 
2,753

 
9,383

 
1,085

 
1988
 
03/08
 
30
    Ventura, CA

   
6,253

 
4,560

 
207

   

   
5,813

 
4,767

 
10,580

 
1,597

 
1994
 
03/08
 
35
    Ventura, CA

   
5,590

 
4,431

 
94

   

   
5,590

 
4,526

 
10,116

 
1,331

 
2001
 
03/08
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Spec's Liquor and Fine Foods:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Corpus Christi, TX

   
768

 
841

 
601

   

   
768

 
1,442

 
2,210

 
822

 
1967
 
11/93
 
40
    Coffee City, TX

   
1,330

 
3,858

 

   

   
1,330

 
3,858

 
5,188

 
1,435

 
1996
 
02/05
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Speedy Cash:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Knoxville, TN

   
324

 
779

 
4

   

   
324

 
782

 
1,106

 
105

 
2014
 
04/15
 
35
    Chicago, IL

   
317

 
859

 

   

   
317

 
859

 
1,176

 
93

 
2014
 
03/16
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Spencer’s Air Conditioning & Appliance:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Glendale, AZ

   
342

 
982

 

   

   
342

 
982

 
1,324

 
502

 
1999
 
12/98
(g)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Sprint PCS:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Lewisville, TX

   
555

 

 
1,172

   

   
598

 
1,128

 
1,726

 
109

 
2016
 
12/01
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Staples:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Memphis, TN (n)

   
931

 
2,210

 

   

   
931

 
2,210

 
3,141

 
371

 
2011
 
02/14
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Steak N Shake:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Munhall, PA

   
688

 
727

 

   

   
688

 
727

 
1,415

 
159

 
2002
 
07/14
 
25
    South Bend, IN

   
447

 
1,238

 

   

   
447

 
1,238

 
1,685

 
225

 
2004
 
07/14
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Sterling Collision:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Lombard, IL

   
622

 
1,714

 

   

   
622

 
1,714

 
2,336

 
483

 
1997
 
12/12
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Stone Mountain Chevrolet:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Lilburn, GA (n)

   
3,027

 
4,685

 

   

   
3,027

 
4,685

 
7,712

 
1,801

 
2004
 
08/04
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Stop N Go:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Grand Prairie, TX

   
421

 
685

 

   

   
421

 
685

 
1,106

 
309

 
1986
 
12/01
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Stripes:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Laredo, TX (n)

   
459

 
460

 

   

   
459

 
460

 
919

 
161

 
1983
 
12/05
 
40
    Lawton, OK (n)

   
697

 
964

 

   

   
649

 
964

 
1,613

 
339

 
1984
 
12/05
 
40
    Wichita Falls, TX (n)

   
440

 
751

 

   

   
440

 
751

 
1,191

 
264

 
1984
 
12/05
 
40
    Wichita Falls, TX (n)

   
484

 
828

 

   

   
484

 
828

 
1,312

 
291

 
1983
 
12/05
 
40
    Wichita Falls, TX (n)

   
905

 
1,351

 

   

   
905

 
1,351

 
2,256

 
474

 
2000
 
12/05
 
40
    Monahans, TX (n)

   
2,628

 
2,973

 

   

   
2,628

 
2,973

 
5,601

 
901

 
1996
 
11/07
 
40
    Odessa, TX (n)

   
2,633

 
3,199

 

   

   
2,633

 
3,199

 
5,832

 
970

 
2006
 
11/07
 
40
    San Angelo, TX (n)

   
194

 
471

 

   

   
194

 
471

 
665

 
143

 
1998
 
11/07
 
40
    Harlingen, TX (n)

   
329

 
935

 

   

   
329

 
935

 
1,264

 
373

 
1980
 
01/08
 
30
    Houston, TX (n)

   
696

 
1,458

 

   

   
696

 
1,458

 
2,154

 
402

 
2008
 
12/08
 
40
    Lubbock, TX (n)

   
671

 
1,612

 

   

   
671

 
1,612

 
2,283

 
445

 
2007
 
12/08
 
40
    Corpus Christi, TX

   
450

 
1,370

 

   

   
450

 
1,370

 
1,820

 
371

 
1996
 
11/11
 
30
    Corpus Christi, TX

   
661

 
2,624

 

   

   
661

 
2,624

 
3,285

 
711

 
1999
 
11/11
 
30
    Corpus Christi, TX

   
412

 
2,356

 

   

   
412

 
2,356

 
2,768

 
638

 
1999
 
11/11
 
30
    Harlingen, TX

   
230

 
2,356

 

   

   
230

 
2,356

 
2,586

 
638

 
2000
 
11/11
 
30
    Laredo, TX

   
441

 
1,935

 

   

   
441

 
1,935

 
2,376

 
449

 
2002
 
11/11
 
35
    Laredo, TX

   
938

 
5,829

 

   

   
938

 
5,829

 
6,767

 
1,579

 
1995
 
11/11
 
30
    Laredo, TX

   
421

 
3,016

 

   

   
421

 
3,016

 
3,437

 
817

 
1998
 
11/11
 
30
    Laredo, TX

   
335

 
2,509

 

   

   
335

 
2,509

 
2,844

 
680

 
1999
 
11/11
 
30
    Mercedes, TX

   
556

 
1,523

 

   

   
556

 
1,523

 
2,079

 
413

 
1998
 
11/11
 
30
    Portland, TX

   
488

 
4,710

 

   

   
488

 
4,710

 
5,198

 
1,276

 
1999
 
11/11
 
30
    Rockport, TX

   
660

 
4,269

 

   

   
660

 
4,269

 
4,929

 
991

 
2008
 
11/11
 
35
    San Juan, TX

   
565

 
1,179

 

   

   
565

 
1,179

 
1,744

 
319

 
1999
 
11/11
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Subway:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Eden Prairie, MN

   
54

 
150

 
67

   

   
54

 
218

 
272

 
97

 
1997
 
12/01
 
40
    Albany, NY

   
3

 
67

 

   

   
3

 
67

 
70

 
25

 
1992
 
09/04
 
40
    Cohoes, NY

   
21

 
116

 
8

   

   
21

 
123

 
144

 
52

 
1994
 
09/04
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Sunbelt Rentals:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Dayton, OH

   
391

 
1,223

 

   

   
391

 
1,223

 
1,614

 
269

 
2008
 
04/12
 
35
    Shepherdsville, KY

   
516

 
1,577

 

   

   
516

 
1,577

 
2,093

 
347

 
2009
 
04/12
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Sunoco:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Arnold, MD

   
417

 
581

 

   

   
417

 
581

 
998

 
130

 
1993
 
04/13
 
30
    Baltimore, MD

   
542

 
2,054

 

   

   
542

 
2,054

 
2,596

 
459

 
1998
 
04/13
 
30
    Baltimore, MD

   
310

 
1,686

 

   

   
310

 
1,686

 
1,996

 
323

 
2004
 
04/13
 
35
    Baltimore, MD

   
620

 
1,279

 

   

   
620

 
1,279

 
1,899

 
286

 
1989
 
04/13
 
30
    Baltimore, MD

   
368

 
1,647

 

   

   
368

 
1,647

 
2,015

 
368

 
1996
 
04/13
 
30
    Baltimore, MD

   
523

 
2,809

 

   

   
523

 
2,809

 
3,332

 
754

 
1982
 
04/13
 
25
    Baltimore, MD

   
271

 
1,482

 

   

   
271

 
1,482

 
1,753

 
398

 
1968
 
04/13
 
25
    Baltimore, MD

   
455

 
2,122

 

   

   
455

 
2,122

 
2,577

 
569

 
1980
 
04/13
 
25
    Bel Air, MD

   
1,376

 
620

 

   

   
1,376

 
620

 
1,996

 
139

 
1994
 
04/13
 
30
    Bethesda, MD

   
1,414

 
1,347

 

   

   
1,414

 
1,347

 
2,761

 
361

 
1971
 
04/13
 
25
    Centreville, VA

   
1,753

 
697

 

   

   
1,753

 
697

 
2,450

 
156

 
1994
 
04/13
 
30
    Chantilly, VA

   
1,472

 
1,831

 

   

   
1,472

 
1,831

 
3,303

 
491

 
1966
 
04/13
 
25
    Dale City, VA

   
639

 
2,461

 

   

   
639

 
2,461

 
3,100

 
550

 
1992
 
04/13
 
30
    Dumfries, VA

   
387

 
2,364

 

   

   
387

 
2,364

 
2,751

 
529

 
1999
 
04/13
 
30
    Edgewood, MD

   
823

 
2,073

 

   

   
823

 
2,073

 
2,896

 
556

 
1985
 
04/13
 
25
    Frederick, MD

   
940

 
1,860

 

   

   
940

 
1,860

 
2,800

 
416

 
1996
 
04/13
 
30
    Gaithersburg, MD

   
1,027

 
2,073

 

   

   
1,027

 
2,073

 
3,100

 
556

 
1982
 
04/13
 
25
    Glen Burnie, MD

   
804

 
1,647

 

   

   
804

 
1,647

 
2,451

 
368

 
1994
 
04/13
 
30
    Herndon, VA

   
707

 
1,792

 

   

   
707

 
1,792

 
2,499

 
401

 
1989
 
04/13
 
30
    Joppa, MD

   
862

 
174

 

   

   
862

 
174

 
1,036

 
47

 
1987
 
04/13
 
25
    Manassas, VA

   
746

 
1,434

 

   

   
746

 
1,434

 
2,180

 
321

 
1993
 
04/13
 
30
    Manassas, VA

   
1,230

 
1,521

 

   

   
1,230

 
1,521

 
2,751

 
340

 
1991
 
04/13
 
30
    Odenton, MD

   
668

 
2,780

 

   

   
668

 
2,780

 
3,448

 
622

 
2000
 
04/13
 
30
    Owings Mills, MD

   
1,337

 
911

 

   

   
1,337

 
911

 
2,248

 
204

 
1994
 
04/13
 
30
    Parkton, MD

   
397

 
2,151

 

   

   
397

 
2,151

 
2,548

 
481

 
1993
 
04/13
 
30
    Pasadena, MD

   
407

 
1,492

 

   

   
407

 
1,492

 
1,899

 
334

 
1989
 
04/13
 
30
    Pasadena, MD

   
591

 
2,509

 

   

   
579

 
2,509

 
3,088

 
561

 
1997
 
04/13
 
30
    Perryville, MD

   
601

 
3,778

 

   

   
601

 
3,778

 
4,379

 
845

 
1990
 
04/13
 
30
    Randallstown, MD

   
746

 
1,715

 

   

   
746

 
1,715

 
2,461

 
383

 
1995
 
04/13
 
30
    Reisterstown, MD

   
649

 
2,354

 

   

   
649

 
2,354

 
3,003

 
526

 
1995
 
04/13
 
30
    Rockville, MD

   
1,996

 
2,054

 

   

   
1,996

 
2,054

 
4,050

 
551

 
1971
 
04/13
 
25
    Severn, MD

   
765

 
3,139

 

   

   
765

 
3,139

 
3,904

 
702

 
1987
 
04/13
 
30
    Sterling, VA

   
1,356

 
1,095

 

   

   
1,356

 
1,095

 
2,451

 
245

 
1997
 
04/13
 
30
    Sterling, VA

   
1,540

 
2,461

 

   

   
1,540

 
2,461

 
4,001

 
550

 
1998
 
04/13
 
30
    Timonium, MD

   
1,356

 
1,598

 

   

   
1,356

 
1,598

 
2,954

 
429

 
1981
 
04/13
 
25
    Towson, MD

   
630

 
2,771

 

   

   
630

 
2,771

 
3,401

 
743

 
1988
 
04/13
 
25
    Warrenton, VA

   
1,802

 
2,703

 

   

   
1,802

 
2,703

 
4,505

 
604

 
1994
 
04/13
 
30
    Woodbridge, VA

   
678

 
2,664

 

   

   
678

 
2,664

 
3,342

 
715

 
1988
 
04/13
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Sunshine Energy:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Kansas City, MO

   
517

 
720

 

   

   
517

 
720

 
1,237

 
301

 
1993
 
07/09
 
25
   

   

 

 

   

   

 

 

 

 
 
 
 
 

SunTrust:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Alexandria, VA

   
2,735

 
732

 

   

   
2,735

 
732

 
3,467

 
319

 
1969
 
06/13
 
15
    Alpharetta, GA

   
1,625

 
1,366

 

   

   
1,625

 
1,366

 
2,991

 
447

 
1991
 
06/13
 
20
    Alpharetta, GA

   
1,056

 
1,425

 

   

   
1,056

 
1,425

 
2,481

 
311

 
2005
 
06/13
 
30
    Atlanta, GA

   
2,130

 
1,623

 

   

   
2,130

 
1,623

 
3,753

 
531

 
1976
 
06/13
 
20
    Augusta, GA

   
865

 
872

 

   

   
865

 
872

 
1,737

 
570

 
1972
 
06/13
 
10
    Black Mountain, NC

   
780

 
655

 

   

   
780

 
655

 
1,435

 
655

 
1943
 
06/13
 
5
    Bladensburg, MD

   
1,528

 
1,538

 

   

   
1,528

 
1,538

 
3,066

 
335

 
1946
 
06/13
 
30
    Bradenton, FL

   
437

 
1,251

 

   

   
429

 
1,251

 
1,680

 
273

 
1980
 
06/13
 
30
    Chattanooga, TN

   
336

 
341

 

   

   
336

 
341

 
677

 
341

 
1974
 
06/13
 
5
    Chattanooga, TN

   
260

 
374

 

   

   
260

 
374

 
634

 
374

 
1981
 
06/13
 
5
    Conyers, GA

   
366

 
501

 

   

   
366

 
501

 
867

 
328

 
1986
 
06/13
 
10
    Crystal River, FL

   
430

 
2,971

 

   

   
430

 
2,971

 
3,401

 
555

 
1983
 
06/13
 
35
    Daytona Beach Shores, FL

   
318

 
720

 

   

   
318

 
720

 
1,038

 
188

 
1982
 
06/13
 
25
    Deland, FL

   
270

 
1,296

 

   

   
270

 
1,296

 
1,566

 
283

 
1993
 
06/13
 
30
    Doral, FL

   
1,912

 
1,100

 

   

   
1,912

 
1,100

 
3,012

 
360

 
1988
 
06/13
 
20
    Duluth, GA

   
851

 
845

 

   

   
851

 
845

 
1,696

 
277

 
1992
 
06/13
 
20
    Edgewater, FL

   
419

 
1,417

 

   

   
419

 
1,417

 
1,836

 
309

 
1986
 
06/13
 
30
    Greenacres City, FL

   
1,395

 
1,533

 

   

   
1,395

 
1,533

 
2,928

 
334

 
1988
 
06/13
 
30
    Greensboro, NC

   
516

 
394

 

   

   
430

 
394

 
824

 
394

 
1980
 
06/13
 
5
    Hialeah, FL

   
2,578

 
1,149

 

   

   
2,578

 
1,149

 
3,727

 
752

 
1978
 
06/13
 
10
    Homosassa, FL

   
344

 
825

 

   

   
344

 
825

 
1,169

 
216

 
1985
 
06/13
 
25
    Huntersville, NC

   
177

 
830

 

   

   
177

 
830

 
1,007

 
217

 
1998
 
06/13
 
25
    Jacksonville, FL

   
938

 
926

 

   

   
938

 
926

 
1,864

 
303

 
1979
 
06/13
 
20
    Jacksonville, FL

   
674

 
821

 

   

   
674

 
821

 
1,495

 
215

 
1987
 
06/13
 
25
    Jupiter, FL

   
1,035

 
1,327

 

   

   
1,035

 
1,327

 
2,362

 
248

 
1998
 
06/13
 
35
    Kannapolis, NC

   
850

 
834

 

   

   
850

 
834

 
1,684

 
834

 
1906
 
06/13
 
5
    Kernersville, NC

   
284

 
708

 

   

   
284

 
708

 
992

 
309

 
1990
 
06/13
 
15
    Lady Lake, FL

   
340

 
1,355

 

   

   
340

 
1,355

 
1,695

 
295

 
1996
 
06/13
 
30
    Lake City, TN

   
326

 
514

 

   

   
326

 
514

 
840

 
514

 
1958
 
06/13
 
5
    Largo, FL

   
258

 
643

 

   

   
258

 
643

 
901

 
210

 
1979
 
06/13
 
20
    Lawrenceville, GA

   
657

 
1,764

 

   

   
657

 
1,764

 
2,421

 
1,154

 
1985
 
06/13
 
10
    Lightfoot, VA

   
177

 
512

 

   

   
177

 
512

 
689

 
335

 
1973
 
06/13
 
10
    Marietta, GA

   
617

 
714

 

   

   
617

 
714

 
1,331

 
467

 
1974
 
06/13
 
10
    Mechanicsville, VA

   
343

 
493

 

   

   
343

 
493

 
836

 
493

 
1965
 
06/13
 
5
    Murfreesboro, TN

   
276

 
554

 

   

   
276

 
554

 
830

 
242

 
1989
 
06/13
 
15
    N Miami Beach, FL

   
915

 
497

 

   

   
915

 
497

 
1,412

 
217

 
1986
 
06/13
 
15


See accompanying report of independent registered public accounting firm.
F-68


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Nashville, TN

   
627

 
639

 

   

   
627

 
639

 
1,266

 
418

 
1972
 
06/13
 
10
    Nashville, TN

   
438

 
1,295

 

   

   
438

 
1,295

 
1,733

 
282

 
1994
 
06/13
 
30
    New Port Richey, FL

   
463

 
1,178

 

   

   
463

 
1,178

 
1,641

 
308

 
1998
 
06/13
 
25
    Norcross, GA

   
789

 
663

 

   

   
789

 
663

 
1,452

 
289

 
1986
 
06/13
 
15
    Orlando, FL

   
801

 
1,135

 

   

   
801

 
1,135

 
1,936

 
371

 
1993
 
06/13
 
20
    Palm Harbor, FL

   
532

 
384

 

   

   
532

 
384

 
916

 
251

 
1983
 
06/13
 
10
    Punta Gorda, FL

   
1,483

 
1,330

 

   

   
1,483

 
1,330

 
2,813

 
435

 
1972
 
06/13
 
20
    Richmond, VA

   
398

 
673

 

   

   
398

 
673

 
1,071

 
673

 
1972
 
06/13
 
5
    Richmond, VA

   
283

 
245

 

   

   
283

 
245

 
528

 
245

 
1973
 
06/13
 
5
    Richmond, VA

   
263

 
563

 

   

   
263

 
563

 
826

 
368

 
1981
 
06/13
 
10
    Roanoke, VA

   
264

 
256

 

   

   
264

 
256

 
520

 
256

 
1973
 
06/13
 
5
    Roxboro, NC

   
452

 
918

 

   

   
452

 
918

 
1,370

 
400

 
1983
 
06/13
 
15
    Sebastian, FL

   
438

 
856

 

   

   
438

 
856

 
1,294

 
280

 
1987
 
06/13
 
20
    South Boston, VA

   
221

 
1,441

 

   

   
221

 
1,441

 
1,662

 
471

 
1975
 
06/13
 
20
    Spartanburg, SC

   
435

 
372

 

   

   
435

 
372

 
807

 
243

 
1921
 
06/13
 
10
    Spring Hill, FL

   
460

 
1,102

 

   

   
460

 
1,102

 
1,562

 
1,102

 
1973
 
06/13
 
5
    Spring Hill, FL

   
631

 
1,950

 

   

   
631

 
1,950

 
2,581

 
425

 
1988
 
06/13
 
30
    Sun City Center, FL

   
568

 
3,671

 

   

   
568

 
3,671

 
4,239

 
686

 
1971
 
06/13
 
35
    Tucker, GA

   
395

 
1,208

 

   

   
395

 
1,208

 
1,603

 
395

 
1971
 
06/13
 
20
    Virginia Beach, VA

   
326

 
366

 

   

   
326

 
366

 
692

 
239

 
1985
 
06/13
 
10
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Superior Petroleum:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Midway, PA

   
311

 
708

 

   

   
311

 
708

 
1,019

 
330

 
1990
 
01/06
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Supervalu:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Maple Heights, OH

   
1,035

 
2,874

 

   

   
1,035

 
2,874

 
3,909

 
1,644

 
1985
 
02/97
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Sweet Berries Cafe:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Sherman, TX

   
233

 
126

 
24

   

   
233

 
150

 
383

 
98

 
1969
 
09/06
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Taco Bell:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Ocala, FL

   
275

 
755

 

   

   
275

 
755

 
1,030

 
341

 
2001
 
12/01
 
40
    Phoenix, AZ

   
594

 
283

 

   

   
594

 
283

 
877

 
128

 
1995
 
12/01
 
40
    Bedford, IN

   
797

 
937

 

   

   
797

 
937

 
1,734

 
319

 
1989
 
05/06
 
40


See accompanying report of independent registered public accounting firm.
F-69


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Columbus, IN

   
1,257

 
2,055

 

   

   
1,257

 
2,055

 
3,312

 
700

 
1990
 
05/06
 
40
    Columbus, IN

   
690

 
1,213

 

   

   
690

 
1,213

 
1,903

 
413

 
2005
 
05/06
 
40
    Evansville, IN

   
524

 
1,815

 

   

   
524

 
1,815

 
2,339

 
618

 
2005
 
05/06
 
40
    Evansville, IN

   
308

 
1,301

 

   

   
308

 
1,301

 
1,609

 
443

 
2000
 
05/06
 
40
    Evansville, IN

   
221

 
828

 

   

   
221

 
828

 
1,049

 
282

 
2003
 
05/06
 
40
    Fishers, IN

   
990

 
486

 

   

   
990

 
486

 
1,476

 
166

 
1998
 
05/06
 
40
    Greensburg, IN

   
648

 
1,079

 

   

   
648

 
1,079

 
1,727

 
368

 
1998
 
05/06
 
40
    Indianapolis, IN

   
547

 
703

 

   

   
547

 
703

 
1,250

 
240

 
2004
 
05/06
 
40
    Indianapolis, IN

   
1,032

 
1,650

 

   

   
1,032

 
1,650

 
2,682

 
562

 
2004
 
05/06
 
40
    Madisonville, KY

   
682

 
1,193

 

   

   
682

 
1,193

 
1,875

 
406

 
1999
 
05/06
 
40
    Owensboro, KY

   
639

 
1,326

 

   

   
639

 
1,326

 
1,965

 
452

 
2005
 
05/06
 
40
    Shelbyville, IN

   
670

 
1,756

 

   

   
670

 
1,756

 
2,426

 
598

 
1998
 
05/06
 
40
    Speedway, IN

   
408

 
1,426

 

   

   
408

 
1,426

 
1,834

 
486

 
2003
 
05/06
 
40
    Terre Haute, IN

   
1,037

 
1,656

 

   

   
1,037

 
1,656

 
2,693

 
564

 
2003
 
05/06
 
40
    Terre Haute, IN

   
1,314

 
2,249

 

   

   
1,314

 
2,249

 
3,563

 
766

 
2003
 
05/06
 
40
    Vincennes, IN

   
502

 
880

 

   

   
502

 
880

 
1,382

 
300

 
2004
 
05/06
 
40
    Hialeah, FL

   
263

 
69

 

   

   
263

 
 (i)
 
263

 
 (i)
 
 (i)
 
09/06
 
(i)
    Anderson, SC

   
273

 
820

 

   

   
273

 
820

 
1,093

 
296

 
1989
 
12/10
 
25
    Anderson, SC

   
176

 
436

 

   

   
176

 
436

 
612

 
132

 
2000
 
12/10
 
30
    Asheville, NC

   
408

 
732

 

   

   
408

 
732

 
1,140

 
265

 
1992
 
12/10
 
25
    Asheville, NC

   
252

 
483

 

   

   
252

 
483

 
735

 
175

 
1993
 
12/10
 
25
    Black Mountain, NC

   
149

 
313

 

   

   
149

 
313

 
462

 
113

 
1992
 
12/10
 
25
    Blue Ridge, GA

   
276

 
553

 

   

   
276

 
553

 
829

 
200

 
1992
 
12/10
 
25
    Cedartown, GA

   
353

 
890

 

   

   
353

 
890

 
1,243

 
322

 
1990
 
12/10
 
25
    Duncan, SC

   
280

 
483

 

   

   
280

 
483

 
763

 
146

 
1999
 
12/10
 
30
    Easley, SC

   
444

 
818

 

   

   
444

 
818

 
1,262

 
296

 
1991
 
12/10
 
25
    Fort Payne, AL

   
362

 
533

 

   

   
362

 
533

 
895

 
193

 
1989
 
12/10
 
25
    Franklin, NC

   
472

 
687

 

   

   
472

 
687

 
1,159

 
248

 
1992
 
12/10
 
25
    Gaffney, SC

   
388

 
940

 

   

   
388

 
940

 
1,328

 
283

 
1998
 
12/10
 
30
    Greenville, SC

   
169

 
330

 

   

   
169

 
330

 
499

 
119

 
1990
 
12/10
 
25
    Greenville, SC

   
414

 
810

 

   

   
414

 
810

 
1,224

 
244

 
1995
 
12/10
 
30
    Hendersonville, NC

   
569

 
1,163

 

   

   
569

 
1,163

 
1,732

 
421

 
1988
 
12/10
 
25
    Inman, SC

   
223

 
502

 

   

   
223

 
502

 
725

 
151

 
1999
 
12/10
 
30
    Lavonia, GA

   
122

 
359

 

   

   
122

 
359

 
481

 
108

 
1999
 
12/10
 
30


See accompanying report of independent registered public accounting firm.
F-70


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Madison, AL

   
498

 
886

 

   

   
498

 
886

 
1,384

 
320

 
1985
 
12/10
 
25
    Oneonta, AL

   
362

 
881

 

   

   
362

 
881

 
1,243

 
319

 
1992
 
12/10
 
25
    Piedmont, SC

   
249

 
702

 

   

   
249

 
702

 
951

 
212

 
2000
 
12/10
 
30
    Pisgah Forest, NC

   
260

 
672

 

   

   
260

 
672

 
932

 
203

 
1998
 
12/10
 
30
    Rainsville, AL

   
411

 
1,077

 

   

   
411

 
1,077

 
1,488

 
325

 
1998
 
12/10
 
30
    Seneca, SC

   
304

 
807

 

   

   
304

 
807

 
1,111

 
292

 
1993
 
12/10
 
25
    Simpsonville, SC

   
635

 
1,022

 

   

   
635

 
1,022

 
1,657

 
370

 
1991
 
12/10
 
25
    Spartanburg, SC

   
492

 
949

 

   

   
492

 
949

 
1,441

 
286

 
1993
 
12/10
 
30
    Spartanburg, SC

   
239

 
496

 

   

   
239

 
496

 
735

 
150

 
1992
 
12/10
 
30
    Sylva, NC

   
580

 
786

 

   

   
580

 
786

 
1,366

 
237

 
1994
 
12/10
 
30
    Toccoa, GA

   
201

 
600

 

   

   
201

 
600

 
801

 
181

 
1993
 
12/10
 
30
    Anderson, IN

   
313

 
1,338

 

   

   
313

 
1,338

 
1,651

 
269

 
2008
 
12/12
 
35
    Bloomington, IN

   
275

 
1,026

 

   

   
275

 
1,026

 
1,301

 
289

 
1988
 
12/12
 
25
    Bloomington, IN

   
332

 
1,234

 

   

   
332

 
1,234

 
1,566

 
248

 
2009
 
12/12
 
35
    Carmel, IN

   
360

 
1,546

 

   

   
360

 
1,546

 
1,906

 
363

 
1994
 
12/12
 
30
    Daleville, IN

   
209

 
893

 

   

   
209

 
893

 
1,102

 
210

 
1995
 
12/12
 
30
    Edinburgh, IN

   
313

 
1,338

 

   

   
313

 
1,338

 
1,651

 
269

 
2007
 
12/12
 
35
    Evansville, IN

   
209

 
1,092

 

   

   
209

 
1,092

 
1,301

 
220

 
2008
 
12/12
 
35
    Indianapolis, IN

   
304

 
1,206

 

   

   
304

 
1,206

 
1,510

 
243

 
2010
 
12/12
 
35
    Indianapolis, IN

   
209

 
799

 

   

   
208

 
799

 
1,007

 
187

 
1994
 
12/12
 
30
    Indianapolis, IN

   
351

 
1,452

 

   

   
351

 
1,452

 
1,803

 
341

 
2005
 
12/12
 
30
    Indianapolis, IN

   
247

 
931

 

   

   
247

 
931

 
1,178

 
219

 
1995
 
12/12
 
30
    Indianapolis, IN

   
256

 
1,102

 

   

   
256

 
1,102

 
1,358

 
222

 
2008
 
12/12
 
35
    Indianapolis, IN

   
285

 
1,225

 

   

   
285

 
1,225

 
1,510

 
246

 
2008
 
12/12
 
35
    Jasper, IN

   
200

 
960

 

   

   
200

 
960

 
1,160

 
225

 
1992
 
12/12
 
30
    New Castle, IN

   
427

 
1,830

 

   

   
427

 
1,830

 
2,257

 
430

 
2006
 
12/12
 
30
    Owensboro, KY

   
436

 
1,119

 

   

   
436

 
1,119

 
1,555

 
225

 
2010
 
12/12
 
35
    Connersville, IN

   
136

 
1,280

 

   

   
136

 
1,280

 
1,416

 
275

 
1991
 
07/13
 
30
    Linton, IN

   
155

 
1,203

 

   

   
155

 
1,203

 
1,358

 
259

 
1996
 
07/13
 
30
    Owensboro, KY

   
136

 
1,549

 

   

   
136

 
1,549

 
1,685

 
333

 
1998
 
07/13
 
30
    Arnold, MO

   
436

 
698

 

   

   
436

 
698

 
1,134

 
178

 
1991
 
08/13
 
25
    Collinsville, IL

   
368

 
1,713

 

   

   
368

 
1,713

 
2,081

 
437

 
1993
 
08/13
 
25
    East Alton, IL

   
271

 
1,008

 

   

   
271

 
1,008

 
1,279

 
214

 
1991
 
08/13
 
30
    Edwardsville, IL

   
310

 
1,549

 

   

   
310

 
1,549

 
1,859

 
329

 
1987
 
08/13
 
30


See accompanying report of independent registered public accounting firm.
F-71


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Eureka, MO

   
466

 
466

 

   

   
466

 
466

 
932

 
119

 
1984
 
08/13
 
25
    Granite City, IL

   
707

 
852

 

   

   
707

 
852

 
1,559

 
155

 
2006
 
08/13
 
35
    Hazelwood, MO

   
513

 
1,470

 

   

   
513

 
1,470

 
1,983

 
312

 
1991
 
08/13
 
30
    Maryland Heights, MO

   
407

 
862

 

   

   
407

 
862

 
1,269

 
183

 
1991
 
08/13
 
30
    O'Fallon, MO

   
445

 
1,770

 

   

   
445

 
1,770

 
2,215

 
376

 
1985
 
08/13
 
30
    O'Fallon, MO

   
580

 
1,403

 

   

   
580

 
1,403

 
1,983

 
256

 
2003
 
08/13
 
35
    St. Charles, MO

   
581

 
872

 

   

   
580

 
872

 
1,452

 
185

 
2000
 
08/13
 
30
    St. Louis, MO

   
252

 
1,047

 

   

   
252

 
1,047

 
1,299

 
267

 
1981
 
08/13
 
25
    St. Louis, MO

   
465

 
1,171

 

   

   
465

 
1,171

 
1,636

 
213

 
2009
 
08/13
 
35
    St. Louis, MO

   
252

 
785

 

   

   
252

 
785

 
1,037

 
167

 
1990
 
08/13
 
30
    Fayetteville, NC

   
269

 
1,771

 

   

   
269

 
1,771

 
2,040

 
393

 
1993
 
06/14
 
25
    Fayetteville, NC

   
448

 
1,334

 

   

   
448

 
1,334

 
1,782

 
246

 
1998
 
06/14
 
30
    Fayetteville, NC

   
289

 
1,205

 

   

   
289

 
1,205

 
1,494

 
223

 
1998
 
06/14
 
30
    Fayetteville, NC

   
686

 
1,631

 

   

   
686

 
1,631

 
2,317

 
362

 
1992
 
06/14
 
25
    Fayetteville, NC

   
607

 
1,135

 

   

   
577

 
1,135

 
1,712

 
252

 
1982
 
06/14
 
25
    Fayetteville, NC

   
388

 
1,552

 

   

   
388

 
1,552

 
1,940

 
287

 
1996
 
06/14
 
30
    Fayetteville, NC

   
298

 
1,989

 

   

   
298

 
1,989

 
2,287

 
367

 
2005
 
06/14
 
30
    Fayetteville, NC

   
149

 
1,652

 

   

   
149

 
1,652

 
1,801

 
366

 
1988
 
06/14
 
25
    Fayetteville, NC

   
497

 
1,691

 

   

   
497

 
1,691

 
2,188

 
312

 
2008
 
06/14
 
30
    Holly Ridge, NC

   
189

 
1,791

 

   

   
189

 
1,791

 
1,980

 
284

 
2012
 
06/14
 
35
    Hope Mills, NC

   
438

 
2,138

 

   

   
438

 
2,138

 
2,576

 
474

 
1990
 
06/14
 
25
    Jacksonville, NC

   
428

 
2,327

 

   

   
428

 
2,327

 
2,755

 
516

 
1993
 
06/14
 
25
    Jacksonville, NC

   
388

 
2,347

 

   

   
388

 
2,347

 
2,735

 
372

 
2007
 
06/14
 
35
    Jacksonville, NC

   
577

 
1,304

 

   

   
577

 
1,304

 
1,881

 
206

 
2013
 
06/14
 
35
    Jacksonville, NC

   
398

 
2,069

 

   

   
398

 
2,069

 
2,467

 
382

 
1994
 
06/14
 
30
    Leland, NC

   
289

 
1,205

 

   

   
289

 
1,205

 
1,494

 
191

 
2008
 
06/14
 
35
    Lumberton, NC

   
368

 
2,208

 

   

   
368

 
2,208

 
2,576

 
408

 
2003
 
06/14
 
30
    Midway Park, NC

   
467

 
2,069

 

   

   
467

 
2,069

 
2,536

 
459

 
1993
 
06/14
 
25
    Pembroke, NC

   
438

 
1,095

 

   

   
438

 
1,095

 
1,533

 
202

 
2008
 
06/14
 
30
    Saint Pauls, NC

   
419

 
767

 

   

   
419

 
767

 
1,186

 
142

 
2008
 
06/14
 
30
    Shallotte, NC

   
329

 
827

 

   

   
329

 
827

 
1,156

 
131

 
2011
 
06/14
 
35
    Spring Lake, NC

   
408

 
2,009

 

   

   
408

 
2,009

 
2,417

 
318

 
2009
 
06/14
 
35
    Whiteville, NC

   
179

 
1,315

 

   

   
179

 
1,315

 
1,494

 
208

 
2010
 
06/14
 
35
    Wilmington, NC

   
547

 
1,423

 

   

   
547

 
1,423

 
1,970

 
225

 
2013
 
06/14
 
35


See accompanying report of independent registered public accounting firm.
F-72


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Wilmington, NC

   
239

 
1,463

 

   

   
239

 
1,463

 
1,702

 
232

 
2013
 
06/14
 
35
    Wilmington, NC

   
587

 
2,277

 

   

   
587

 
2,277

 
2,864

 
361

 
2006
 
06/14
 
35
    Swansboro, NC

   
430

 
1,359

 

   

   
430

 
1,359

 
1,789

 
160

 
2015
 
04/15
 
40
    Buffalo Grove, IL

   
234

 
1,236

 

   

   
234

 
1,236

 
1,470

 
187

 
1987
 
03/16
 
25
    Columbia City, IN

   
122

 
1,535

 

   

   
122

 
1,535

 
1,657

 
233

 
1990
 
03/16
 
25
    Dowagiac, MI

   
131

 
1,236

 

   

   
131

 
1,236

 
1,367

 
156

 
1999
 
03/16
 
30
    Edwardsburg, MI

   
47

 
1,479

 

   

   
47

 
1,479

 
1,526

 
187

 
1998
 
03/16
 
30
    Elkhart, IN

   
393

 
1,618

 

   

   
393

 
1,618

 
2,011

 
175

 
2008
 
03/16
 
35
    Fox Lake, IL

   
309

 
1,376

 

   

   
309

 
1,376

 
1,685

 
174

 
2006
 
03/16
 
30
    Freeport, IL

   
84

 
2,141

 

   

   
84

 
2,141

 
2,225

 
271

 
1999
 
03/16
 
30
    Kendallville, IN

   
150

 
1,637

 

   

   
150

 
1,637

 
1,787

 
207

 
1992
 
03/16
 
30
    Knox, IN

   
66

 
1,255

 

   

   
66

 
1,255

 
1,321

 
190

 
1993
 
03/16
 
25
    Lake Delton, WI

   
815

 
599

 

   

   
815

 
599

 
1,414

 
65

 
2011
 
03/16
 
35
    Lake In The Hills, IL

   
402

 
2,029

 

   

   
366

 
2,029

 
2,395

 
256

 
1998
 
03/16
 
30
    Ligonier, IN

   
216

 
1,021

 

   

   
216

 
1,021

 
1,237

 
129

 
2000
 
03/16
 
30
    Lindenhurst, IL

   
609

 
768

 

   

   
609

 
768

 
1,377

 
97

 
1999
 
03/16
 
30
    McHenry, IL

   
468

 
1,814

 

   

   
468

 
1,814

 
2,282

 
229

 
2006
 
03/16
 
30
    Monroe, WI

   
515

 
1,030

 

   

   
515

 
1,030

 
1,545

 
130

 
1999
 
03/16
 
30
    Mundelein, IL

   
178

 
1,134

 

   

   
178

 
1,134

 
1,312

 
143

 
1999
 
03/16
 
30
    Mundelein, IL

   
131

 
1,544

 

   

   
131

 
1,544

 
1,675

 
195

 
2004
 
03/16
 
30
    Nappanee, IN

   
178

 
1,404

 

   

   
178

 
1,404

 
1,582

 
152

 
2008
 
03/16
 
35
    Portage, WI

   
197

 
1,479

 

   

   
197

 
1,479

 
1,676

 
187

 
1999
 
03/16
 
30
    Richland Center, WI

   
215

 
1,236

 

   

   
215

 
1,236

 
1,451

 
156

 
2000
 
03/16
 
30
    Rochester, IN

   
215

 
1,787

 

   

   
215

 
1,787

 
2,002

 
271

 
1993
 
03/16
 
25
    Rockford, IL

   
328

 
1,413

 

   

   
328

 
1,413

 
1,741

 
179

 
1999
 
03/16
 
30
    Roscoe, IL

   
346

 
1,479

 

   

   
346

 
1,479

 
1,825

 
160

 
2010
 
03/16
 
35
    Roseland, IN

   
496

 
880

 

   

   
496

 
880

 
1,376

 
111

 
2001
 
03/16
 
30
    Round Lake Beach, IL

   
159

 
2,169

 

   

   
159

 
2,169

 
2,328

 
274

 
2005
 
03/16
 
30
    South Bend, IN

   
291

 
788

 

   

   
291

 
788

 
1,079

 
100

 
2006
 
03/16
 
30
    South Bend, IN

   
365

 
1,170

 

   

   
365

 
1,170

 
1,535

 
127

 
2014
 
03/16
 
35
    South Bend, IN

   
365

 
965

 

   

   
365

 
965

 
1,330

 
105

 
2010
 
03/16
 
35
    St. Joseph, MI

   
94

 
1,413

 

   

   
94

 
1,413

 
1,507

 
153

 
2007
 
03/16
 
35
    Watervliet, MI

   
281

 
1,105

 

   

   
281

 
1,105

 
1,386

 
140

 
2000
 
03/16
 
30
 

 

 

 

 

 

 

 

 

 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-73


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Wauconda, IL

   
169

 
1,358

 

   

   
169

 
1,358

 
1,527

 
172

 
2001
 
03/16
 
30
    Waukegan, IL

   
570

 
1,674

 

   

   
570

 
1,674

 
2,244

 
254

 
1997
 
03/16
 
25
    West Baraboo, WI

   
150

 
1,348

 

   

   
150

 
1,348

 
1,498

 
170

 
1999
 
03/16
 
30
    Wheeling, IL

   
486

 
1,861

 

   

   
486

 
1,861

 
2,347

 
235

 
2000
 
03/16
 
30
    Winnebago, IL

   
131

 
1,041

 

   

   
131

 
1,041

 
1,172

 
113

 
2009
 
03/16
 
35
    Wisconsin Dells, WI

   
365

 
1,095

 

   

   
365

 
1,095

 
1,460

 
138

 
1999
 
03/16
 
30
    Zion, IL

   
150

 
1,554

 

   

   
150

 
1,554

 
1,704

 
168

 
2008
 
03/16
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Taco Bueno:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Moore, OK

   
624

 
507

 

   

   
624

 
507

 
1,131

 
60

 
2015
 
01/15
 
40
    Flower Mound, TX

   
1,056

 

 
617

   

   
1,056

 
617

 
1,673

 
43

 
2017
 
04/16
(m)
40
    Sulphur Springs, TX

   
512

 

 
607

   

   
512

 
607

 
1,119

 
39

 
2017
 
03/17
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Taco Cabana:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Austin, TX

   
561

 
1,227

 

   

   
561

 
1,227

 
1,788

 
171

 
1994
 
02/15
 
35
    Houston, TX

   
1,070

 
978

 

   

   
1,016

 
978

 
1,994

 
191

 
1998
 
02/15
 
25
    Houston, TX

   
667

 
852

 

   

   
667

 
852

 
1,519

 
138

 
2000
 
02/15
 
30
    Houston, TX

   
590

 
1,284

 

   

   
590

 
1,284

 
1,874

 
209

 
1987
 
02/15
 
30
    San Antonio, TX

   
492

 
1,283

 

   

   
492

 
1,283

 
1,775

 
179

 
1995
 
02/15
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Tamarind Restaurant:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Tucson, AZ

   
996

 

 
2,742

   

   
996

 
2,742

 
3,738

 
842

 
2007
 
12/06
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Texas Roadhouse:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Grand Junction, CO

   
584

 
920

 

   

   
584

 
920

 
1,504

 
415

 
1997
 
12/01
 
40
    Palm Bay, FL

   
1,035

 
1,512

 

   

   
1,035

 
1,512

 
2,547

 
430

 
2004
 
06/11
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

TGI Friday's:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Corpus Christi, TX

   
1,210

 
1,532

 

   

   
1,157

 
1,532

 
2,689

 
691

 
1995
 
12/01
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

The Beach:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Mason, OH

   
1,707

 
1,303

 

   

   
1,707

 
1,303

 
3,010

 
354

 
1985
 
03/13
 
25
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   

   

 

 

   

   

 

 

 

 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-74


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Containter Store:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Plano, TX

   
1,758

 
5,115

 

   

   
1,758

 
5,115

 
6,873

 
968

 
2009
 
05/13
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

The Shack:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Overland Park, KS

   
1,166

 

 
1,741

   

   
1,166

 
1,741

 
2,907

 
354

 
2011
 
04/11
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

The Snooty Fox:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Cincinnati, OH

   
282

 
521

 
403

   

   
543

 
662

 
1,205

 
274

 
1998
 
12/01
 
40
   

   

 

 

   

   

 


 

 


 
 
 
 
 

The Tile Shop:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Scarsdale, NY

   
4,509

 
2,454

 
352

   

   
4,509

 
2,807

 
7,316

 
1,041

 
1996
 
09/97
 
40
    Buford, GA

   
1,267

 
2,406

 
25

   

   
1,267

 
2,430

 
3,697

 
936

 
2003
 
07/04
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Third Federal Savings:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Parma, OH

   
370

 
238

 
1,100

   

   
370

 
1,338

 
1,708

 
824

 
1977
 
09/06
 
20
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Tile Outlets of America:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Sarasota, FL

   
1,168

 
1,904

 
793

   

   
1,228

 
2,639

 
3,867

 
990

 
1988
 
09/97
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Tire Engineers:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Amarillo, TX

   
244

 
713

 

   

   
244

 
713

 
957

 
62

 
2001
 
05/17
 
30
    Columbia, SC

   
411

 
812

 

   

   
411

 
812

 
1,223

 
71

 
2007
 
05/17
 
30
    Columbia, SC

   
345

 
453

 

   

   
345

 
453

 
798

 
48

 
1973
 
05/17
 
25
    Lexington, SC

   
536

 
1,237

 

   

   
536

 
1,237

 
1,773

 
108

 
2001
 
05/17
 
30
    Orangeburg, SC

   
327

 
445

 

   

   
327

 
445

 
772

 
39

 
2005
 
05/17
 
30
    West Columbia, SC

   
486

 
1,546

 

   

   
486

 
1,546

 
2,032

 
135

 
2008
 
05/17
 
30
    Pooler, GA

   
764

 

 
1,303

   

   
764

 
1,303

 
2,067

 
61

 
2017
 
08/17
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Tire Kingdom:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Sanford, FL

   
1,157

 
1,887

 

   

   
1,157

 
1,887

 
3,044

 
128

 
2006
 
12/17
 
30
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Tire Zone:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Warrenton, VA

   
123

 
66

 

   

   
123

 
66

 
189

 
59

 
1939
 
02/11
 
10
   

   

 

 

   

   

 

 

 

 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-75


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TitleMax:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Geneva, IL

   
473

 
436

 

   

   
484

 
375

 
859

 
176

 
1996
 
12/01
 
40
    Mobile, AL

   
491

 
498

 

   

   
491

 
498

 
989

 
225

 
1997
 
12/01
 
40
    Dallas, TX

   
1,554

 
1,229

 
46

   

   
1,554

 
1,275

 
2,829

 
458

 
1982
 
06/05
 
40
    Aiken, SC

   
442

 
646

 

   

   
442

 
646

 
1,088

 
245

 
1989
 
08/08
 
30
    Anniston, AL

   
160

 
453

 

   

   
160

 
453

 
613

 
129

 
2008
 
08/08
 
40
    Berkeley, MO

   
237

 
282

 

   

   
237

 
282

 
519

 
160

 
1961
 
08/08
 
20
    Cheraw, SC

   
88

 
330

 

   

   
88

 
330

 
418

 
150

 
1976
 
08/08
 
25
    Columbia, SC

   
212

 
319

 

   

   
212

 
319

 
531

 
121

 
1987
 
08/08
 
30
    Dalton, GA

   
178

 
347

 

   

   
178

 
347

 
525

 
158

 
1972
 
08/08
 
25
    Darlington, SC

   
47

 
267

 

   

   
47

 
267

 
314

 
122

 
1973
 
08/08
 
25
    Fairfield, AL

   
133

 
178

 

   

   
133

 
178

 
311

 
81

 
1974
 
08/08
 
25
    Gadsden, AL

   
250

 
389

 

   

   
250

 
389

 
639

 
111

 
2007
 
08/08
 
40
    Hueytown, AL

   
135

 
93

 

   

   
135

 
93

 
228

 
93

 
1948
 
08/08
 
10
    Jonesboro, GA

   
675

 
292

 

   

   
675

 
292

 
967

 
133

 
1970
 
08/08
 
25
    Lawrenceville, GA

   
370

 
332

 

   

   
370

 
332

 
702

 
126

 
1986
 
08/08
 
30
    Lewisburg, TN

   
70

 
298

 

   

   
70

 
298

 
368

 
97

 
1998
 
08/08
 
35
    Macon, GA

   
103

 
290

 

   

   
103

 
290

 
393

 
165

 
1967
 
08/08
 
20
    Marietta, GA

   
285

 
278

 

   

   
285

 
278

 
563

 
158

 
1967
 
08/08
 
20
    Memphis, TN

   
226

 
444

 

   

   
226

 
444

 
670

 
168

 
1986
 
08/08
 
30
    Memphis, TN

   
111

 
237

 

   

   
111

 
237

 
348

 
90

 
1981
 
08/08
 
30
    Montgomery, AL

   
96

 
233

 

   

   
96

 
233

 
329

 
106

 
1970
 
08/08
 
25
    Nashville, TN

   
256

 
301

 

   

   
256

 
301

 
557

 
114

 
1982
 
08/08
 
30
    Nashville, TN

   
268

 
276

 

   

   
268

 
276

 
544

 
126

 
1978
 
08/08
 
25
    Norcross, GA

   
599

 
350

 

   

   
599

 
350

 
949

 
159

 
1975
 
08/08
 
25
    Pulaski, TN

   
109

 
361

 

   

   
109

 
361

 
470

 
137

 
1986
 
08/08
 
30
    Riverdale, GA

   
877

 
400

 

   

   
877

 
400

 
1,277

 
182

 
1978
 
08/08
 
25
    Springfield, MO

   
220

 
400

 

   

   
220

 
400

 
620

 
182

 
1979
 
08/08
 
25
    Springfield, MO

   
125

 
230

 

   

   
125

 
230

 
355

 
105

 
1979
 
08/08
 
25
    St. Louis, MO

   
134

 
398

 

   

   
134

 
398

 
532

 
129

 
1993
 
08/08
 
35
    St. Louis, MO

   
244

 
288

 

   

   
244

 
288

 
532

 
131

 
1971
 
08/08
 
25
    Sylacauga, AL

   
94

 
191

 

   

   
94

 
191

 
285

 
72

 
1986
 
08/08
 
30
    Taylors, SC

   
299

 
372

 

   

   
299

 
372

 
671

 
121

 
1999
 
08/08
 
35
    Bay Minette, AL

   
51

 
113

 

   

   
51

 
113

 
164

 
40

 
1980
 
01/11
 
25


See accompanying report of independent registered public accounting firm.
F-76


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    N. Richland Hills, TX

   
132

 
132

 

   

   
132

 
132

 
264

 
59

 
1976
 
01/11
 
20
    Petersburg, VA

   
139

 
366

 

   

   
139

 
366

 
505

 
163

 
1979
 
02/11
 
20
    Savannah, GA

   
231

 
361

 

   

   
231

 
361

 
592

 
159

 
1972
 
03/11
 
20
    Fort Worth, TX

   
131

 
312

 

   

   
119

 
312

 
431

 
110

 
1985
 
03/11
 
25
    Hoover, AL

   
378

 
546

 

   

   
378

 
546

 
924

 
192

 
1970
 
03/11
 
25
    Eufaula, AL

   
61

 
360

 

   

   
61

 
360

 
421

 
121

 
1980
 
08/11
 
25
    Kansas City, MO

   
69

 
129

 

   

   
69

 
129

 
198

 
54

 
1920
 
08/11
 
20
    Arnold, MO

   
321

 
120

 

   

   
321

 
120

 
441

 
49

 
1960
 
10/11
 
20
    Bristol, VA

   
199

 
517

 

   

   
199

 
517

 
716

 
141

 
2001
 
10/11
 
30
    Fairview Heights, IL

   
93

 
185

 

   

   
93

 
185

 
278

 
61

 
1979
 
10/11
 
25
    Florissant, MO

   
143

 
153

 

   

   
143

 
153

 
296

 
50

 
1974
 
10/11
 
25
    Greenville, SC (n)

   
602

 
612

 

   

   
602

 
612

 
1,214

 
201

 
2008
 
10/11
 
25
    Jonesboro, GA

   
301

 
683

 

   

   
301

 
683

 
984

 
160

 
2007
 
10/11
 
35
    Olive Branch, MS

   
121

 
312

 

   

   
121

 
312

 
433

 
102

 
1978
 
10/11
 
25
    Sugar Creek, MO

   
202

 
181

 

   

   
202

 
181

 
383

 
60

 
1978
 
10/11
 
25
    Roanoke, VA

   
158

 
207

 

   

   
158

 
207

 
365

 
76

 
1950
 
08/12
 
20
    Fredericksburg, VA

   
228

 
555

 

   

   
228

 
555

 
783

 
162

 
1989
 
09/12
 
25
    Florissant, MO

   
119

 
288

 

   

   
119

 
288

 
407

 
81

 
1970
 
12/12
 
25
    Savannah, GA

   
259

 
359

 

   

   
259

 
359

 
618

 
68

 
2012
 
05/13
 
35
    South Boston, VA

   
163

 
133

 

   

   
163

 
133

 
296

 
44

 
1980
 
05/13
 
20
    O'Fallon, MO

   
75

 
261

 

   

   
75

 
261

 
336

 
65

 
1981
 
11/13
 
25
    Crest Hill, IL

   
92

 
323

 

   

   
92

 
323

 
415

 
77

 
1963
 
03/15
 
20
    St. Louis, MO

   
76

 
237

 

   

   
76

 
237

 
313

 
57

 
1953
 
03/15
 
20
   

   

 

 

   

   

 

 

 

 
 
 
 
 

T-Mobile:

   

 

 

   

   

 

 

 

 
 
 
 
 

    El Reno, OK

   
517

 

 
605

   

   
517

 
605

 
1,122

 
40

 
2017
 
03/17
(m)
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Tony's Tires:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Montgomery, AL

   
593

 
1,187

 
43

   

   
593

 
1,229

 
1,822

 
428

 
1998
 
12/05
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

TopGolf:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Chesterfield, MO

   
4,577

 

 
21,260

   

   
4,705

 
21,260

 
25,965

 
731

 
2018
 
06/17
(m)
40
    Tucson, AZ

   
3,591

 

 
16,026

   

   
3,591

 
16,026

 
19,617

 
818

 
2017
 
07/17
(m)
40
    Glendale, AZ

   
5,721

 

 
18,703

   

   
5,721

 
18,703

 
24,424

 
604

 
2018
 
02/18
(m)
40


See accompanying report of independent registered public accounting firm.
F-77


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Lake Mary, FL

   
5,550

 

 

   

   
5,550

 
 (e)
 
5,550

 
 (e)
 
 (e)
 
04/19
(m)
(e)
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Tutor Time:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Elk Grove, CA

   
1,216

 
2,786

 
9

   

   
1,216

 
2,750

 
3,966

 
731

 
2009
 
09/08
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Twin Peaks:

   

 

 

   

   

 

 

 

 
 
 
 
 

    Beaumont, TX

   
439

 
1,363

 
365

   

   
864

 
1,490

 
2,354

 
631

 
2000
 
12/01
(g)
40
    Olathe, KS

   
525

 
731

 

   

   
525

 
731

 
1,256

 
194

 
2005
 
09/10
 
35
   

   

 

 

   

   

 

 

 

 
 
 
 
 

ULTA Salon, Cosmetics and Fragrance:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Florissant, MO

   
423

 
499

 
1,444

   

   
425

 
1,942

 
2,367

 
525

 
1996
 
04/03
(g)
40
    Lapeer, MI

   
408

 
2,086

 
594

   

   
408

 
2,625

 
3,033

 
693

 
2007
 
10/05
 
40
   

   

 

 

   

   

 

 

 

 
 
 
 
 

Ultra Car Wash:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Mobile, AL

   
1,071

 
1,086

 

   

   
1,071

 
1,086

 
2,157

 
336

 
2005
 
08/07
 
40
    Lilburn, GA

   
1,396

 
1,119

 

   

   
1,396

 
1,119

 
2,515

 
325

 
2004
 
05/08
 
40
   

   

 

 

   

   


 

 

 

 
 
 
 
 

Uni-Mart:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    East Brady, PA

   
269

 
583

 

   

   
269

 
583

 
852

 
419

 
1987
 
08/05
 
20
    Port Vue, PA

   
824

 
118

 

   

   
824

 
118

 
942

 
85

 
1953
 
08/05
 
20
    Punxsutawney, PA

   
253

 
542

 

   

   
253

 
542

 
795

 
389

 
1983
 
08/05
 
20
    Shamokin, PA

   
324

 
506

 

   

   
324

 
506

 
830

 
364

 
1956
 
08/05
 
20
    Wilkes-Barre, PA

   
178

 
471

 

   

   
178

 
471

 
649

 
339

 
1989
 
08/05
 
20
    Wilkes-Barre, PA

   
171

 
422

 

   

   
171

 
422

 
593

 
304

 
1999
 
08/05
 
20
    Williamsport, PA

   
909

 
122

 

   

   
909

 
122

 
1,031

 
88

 
1950
 
08/05
 
20
    Ashland, PA

   
355

 
545

 

   

   
355

 
545

 
900

 
390

 
1977
 
09/05
 
20
    Mountaintop, PA

   
423

 
616

 

   

   
423

 
616

 
1,039

 
441

 
1987
 
09/05
 
20
    Effort, PA

   
1,297

 
1,202

 

   

   
1,297

 
1,202

 
2,499

 
419

 
2000
 
01/06
 
40
    Milesburg, PA

   
134

 
373

 

   

   
134

 
373

 
507

 
130

 
1987
 
01/06
 
40
    Punxsutawney, PA

   
294

 
650

 

   

   
294

 
650

 
944

 
227

 
1983
 
01/06
 
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 


 


 


 


 


 


 


 


 
 
 
 
 
 



See accompanying report of independent registered public accounting firm.
F-78


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United Rentals:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Cedar Park, TX (n)

   
535

 
829

 

   

   
535

 
829

 
1,364

 
312

 
1990
 
12/04
 
40
    Clearwater, FL

   
1,173

 
1,811

 

   

   
1,173

 
1,811

 
2,984

 
681

 
2001
 
12/04
 
40
    Fort Collins, CO (n)

   
2,057

 
978

 

   

   
2,057

 
978

 
3,035

 
368

 
1975
 
12/04
 
40
    Irving, TX

   
708

 
911

 

   

   
708

 
911

 
1,619

 
342

 
1984
 
12/04
 
40
    La Porte, TX

   
1,115

 
2,125

 

   

   
1,115

 
2,125

 
3,240

 
799

 
2000
 
12/04
 
40
    Littleton, CO

   
1,743

 
1,944

 

   

   
1,733

 
1,944

 
3,677

 
731

 
2002
 
12/04
 
40
    Oklahoma City, OK

   
744

 
1,265

 

   

   
744

 
1,265

 
2,009

 
476

 
1997
 
12/04
 
40
    Perrysburg, OH

   
642

 
1,119

 

   

   
642

 
1,119

 
1,761

 
421

 
1979
 
12/04
 
40
    Plano, TX

   
1,030

 
1,148

 

   

   
1,030

 
1,148

 
2,178

 
432

 
1996
 
12/04
 
40
    Fort Worth, TX

   
1,428

 

 

   

   
1,428

 
 (i)
 
1,428

 
 (i)
 
 (i)
 
01/05
 
(i)
    Fort Worth, TX

   
510

 
1,128

 

   

   
510

 
1,128

 
1,638

 
422

 
1997
 
01/05
 
40
    Melbourne, FL

   
747

 
607

 

   

   
747

 
607

 
1,354

 
222

 
1970
 
05/05
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
University of Phoenix:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Glen Allen, VA

   
2,177

 
2,600

 
670

   

   
2,177

 
3,270

 
5,447

 
1,789

 
1995
 
06/95
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Urban Air:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Beaumont, TX

   
941

 
1,618

 
2,313

   

   
941

 
3,931

 
4,872

 
1,047

 
1992
 
03/99
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Urban Tandoor, Indian Wine & Dine:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Colorado Springs, CO

   
321

 
377

 

   

   
321

 
377

 
698

 
250

 
1984
 
09/06
 
20
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Vacant Land:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Hadley, MA

   
2,824

 

 

   

   
5

 
 (e)
 
5

 
 (e)
 
 (e)
 
02/08
 
(e)
    Bakersfield, CA

   
3,303

 
3,845

 

   

   
1,826

 
 (e)
 
1,826

 
 (e)
 
 (e)
 
03/08
 
(e)
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Vacant Property:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Baton Rouge, LA

   
609

 
914

 
6

   

   
609

 
920

 
1,529

 
548

 
1995
 
12/95
(m)
40
    Redding, CA

   
667

 
2,182

 

   

   
667

 
2,182

 
2,849

 
1,229

 
1997
 
06/97
 
40
    Kelso, WA

   
868

 

 
1,806

   

   
868

 
1,806

 
2,674

 
991

 
1998
 
09/97
(g)
40
    Tigard, OR

   
1,540

 
2,247

 

   

   
1,540

 
2,247

 
3,787

 
1,187

 
1995
 
11/98
 
40
    Colonial Heights, VA

   
662

 
610

 

   

   
662

 
610

 
1,272

 
275

 
1997
 
12/01
 
40
    Eden Prairie, MN

   
76

 
211

 
110

   

   
76

 
321

 
397

 
139

 
1997
 
12/01
 
40


See accompanying report of independent registered public accounting firm.
F-79


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
    Geneva, IL

   
653

 
601

 

   

   
669

 
518

 
1,187

 
244

 
1996
 
12/01
 
40
    Homewood, AL

   
1,032

 
697

 

   

   
1,032

 
697

 
1,729

 
314

 
1997
 
12/01
 
40
    Lubbock, TX

   
1,007

 
1,206

 

   

   
1,007

 
1,206

 
2,213

 
544

 
1995
 
12/01
 
40
    Midland, MI

   
231

 

 
2,705

   

   
231

 
2,705

 
2,936

 
888

 
2006
 
07/03
 
40
    Albany, NY

   
25

 
867

 

   

   
25

 
867

 
892

 
332

 
1994
 
09/04
 
40
    Temple, TX

   
1,160

 
1,360

 

   

   
1,160

 
1,360

 
2,520

 
512

 
1998
 
12/04
 
40
    Monticello, NY

   
116

 
424

 

   

   
116

 
424

 
540

 
157

 
1996
 
03/05
 
40
    Chandler, AZ

   
729

 
644

 

   

   
729

 
644

 
1,373

 
468

 
1984
 
06/05
 
20
    Houston, TX

   
112

 
509

 
302

   

   
112

 
811

 
923

 
223

 
1995
 
12/05
 
40
    Lafayette, LA

   
603

 
1,149

 
30

   

   
603

 
1,179

 
1,782

 
411

 
1999
 
12/05
 
40
    Austintown, OH

   
466

 
397

 

   

   
466

 
397

 
863

 
264

 
1980
 
09/06
 
20
    North Richland Hills, TX

   
500

 
130

 

   

   
500

 
130

 
630

 
86

 
1970
 
09/06
 
20
    St. Louis, MO

   
520

 
266

 

   

   
520

 
266

 
786

 
177

 
1973
 
09/06
 
20
    Avon, IN

   
1,302

 

 
4,178

   

   
1,302

 
4,178

 
5,480

 
779

 
2012
 
12/11
(m)
40
    Lincolnshire, IL

   
862

 
1,574

 

   

   
862

 
1,574

 
2,436

 
501

 
1999
 
01/12
 
25
    Knoxville, TN

   
1,500

 
5,571

 

   

   
1,500

 
5,571

 
7,071

 
1,354

 
1996
 
09/12
 
30
    Fargo, ND

   
335

 
2,747

 

   

   
335

 
2,747

 
3,082

 
553

 
2008
 
12/12
 
35
    Chestertown, MD

   
856

 
290

 

   

   
856

 
290

 
1,146

 
290

 
1974
 
06/13
 
5
    Clearwater, FL

   
433

 
530

 

   

   
433

 
530

 
963

 
231

 
1983
 
06/13
 
15
    Gulf Breeze, FL

   
1,021

 
1,382

 

   

   
1,021

 
1,382

 
2,403

 
904

 
1960
 
06/13
 
10
    Lake Placid, FL

   
289

 
1,402

 

   

   
289

 
1,402

 
1,691

 
306

 
1988
 
06/13
 
30
    Statesville, NC

   
249

 
653

 

   

   
249

 
653

 
902

 
102

 
1960
 
07/14
 
35
    Riverdale, UT

   
2,294

 
5,396

 

   

   
2,294

 
5,396

 
7,690

 
1,052

 
1991
 
02/15
 
25
    Spokane, WA

   
2,270

 
7,975

 

   

   
2,270

 
7,975

 
10,245

 
1,555

 
1986
 
02/15
 
25
    West Bend, WI

   
1,435

 
7,654

 

   

   
1,435

 
7,654

 
9,089

 
1,493

 
1987
 
02/15
 
25
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Value City Furniture:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    White Marsh, MD

   
3,762

 

 
3,006

   

   
3,762

 
3,006

 
6,768

 
1,638

 
1998
 
10/97
(g)
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
VCA Animal Hospital:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Mission, KS

   
891

 
3,758

 

   

   
852

 
3,758

 
4,610

 
976

 
2000
 
03/12
 
30
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Verizon Wireless:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Anderson, SC (n)

   
38

 

 

   

   
38

 

 
38

 
 (e)
 
 (i)
 
07/14
 
(e)
    Bristol, VA

   
175

 
512

 

   

   
175

 
512

 
687

 
112

 
2000
 
07/14
 
25


See accompanying report of independent registered public accounting firm.
F-80


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
    Amherst, NY

   
230

 
175

 
403

   

   
230

 
578

 
808

 
91

 
1977
 
02/15
 
20
    North Olmsted, OH

   
324

 
1,015

 

   

   
324

 
1,015

 
1,339

 
86

 
1983
 
08/16
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Vitality Veterinary:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Buford, GA

   
751

 
1,979

 
586

   

   
751

 
2,565

 
3,316

 
837

 
2003
 
07/04
(g)
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Vitamin Shoppe, The:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Cincinnati, OH

   
297

 
443

 
385

   

   
312

 
813

 
1,125

 
356

 
1999
 
06/98
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Vogue Nails & Spa:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Swansea, IL

   
46

 
132

 

   

   
46

 
132

 
178

 
45

 
1997
 
12/01
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Walgreens:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Altamonte Springs, FL

   
1,137

 
2,053

 

   

   
1,137

 
 (i)
 
1,137

 
 (i)
 
 (i)
 
01/96
 
(i)
    Douglasville, GA

   
413

 
995

 

   

   
413

 
995

 
1,408

 
595

 
1996
 
01/96
 
40
    Conyers, GA

   
575

 
999

 
64

   

   
575

 
1,063

 
1,638

 
570

 
1997
 
06/97
 
40
    Orange Beach, AL

   
1,410

 
1,996

 

   

   
1,410

 
1,996

 
3,406

 
900

 
2000
 
12/01
 
40
    Sunrise, FL

   
1,958

 
1,401

 

   

   
1,958

 
1,401

 
3,359

 
582

 
1994
 
05/03
 
40
    Saratoga Springs, NY

   
762

 
591

 
5,090

   

   
2,364

 
3,530

 
5,894

 
202

 
2017
 
09/04
(o)
40
    Tulsa, OK

   
1,193

 
3,056

 

   

   
1,193

 
3,056

 
4,249

 
1,111

 
2003
 
06/05
 
40
    Boise, ID

   
792

 
1,875

 

   

   
792

 
1,875

 
2,667

 
612

 
2000
 
03/10
 
30
    Nampa, ID

   
1,062

 
2,253

 

   

   
1,062

 
2,253

 
3,315

 
735

 
2000
 
03/10
 
30
    Pueblo, CO

   
899

 
3,313

 

   

   
899

 
3,313

 
4,212

 
888

 
2000
 
12/11
 
30
    Rapid City, SD

   
1,387

 
2,957

 

   

   
1,387

 
2,957

 
4,344

 
672

 
2000
 
01/12
 
35
    Hamilton, OH

   
731

 
2,879

 

   

   
731

 
2,879

 
3,610

 
764

 
2000
 
01/12
 
30
    Durham, NC

   
1,553

 
2,621

 

   

   
1,553

 
2,621

 
4,174

 
375

 
1999
 
09/15
 
30
    Charlotte, NC

   
754

 
1,708

 

   

   
754

 
1,708

 
2,462

 
26

 
1999
 
08/19
 
25
    Mint Hill, NC

   
972

 
1,657

 

   

   
972

 
1,657

 
2,629

 
25

 
1999
 
08/19
 
25
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Warehouse Shoe Sale:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Houston, TX

   
2,311

 
1,628

 
3,514

   

   
2,583

 
4,872

 
7,455

 
1,067

 
1976
 
03/99
(g)
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Waterford Nails & Spa:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Orlando, FL

   
40

 
111

 

   

   
40

 
111

 
151

 
44

 
2001
 
02/04
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 


See accompanying report of independent registered public accounting firm.
F-81


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
Wawa:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Clearwater, FL

   
1,184

 
2,526

 
44

   

   
1,476

 
 (i)
 
1,476

 
 (i)
 
 (i)
 
05/93
 
(i)
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Wehrenberg Theater:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Cedar Rapids, IA

   
1,567

 
8,433

 

   

   
1,567

 
8,433

 
10,000

 
1,783

 
2011
 
07/11
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Wenco HQ:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Ashland, OH

   
245

 
1,109

 

   

   
245

 
1,109

 
1,354

 
57

 
2014
 
03/18
 
35
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Wendy's:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Sacramento, CA

   
586

 

 

   

   
586

 
 (i)
 
586

 
 (i)
 
 (i)
 
02/98
 
(i)
    New Kensington, PA

   
501

 
333

 

   

   
501

 
333

 
834

 
150

 
1980
 
12/01
 
40
    Orland Park, IL

   
562

 
556

 

   

   
562

 
377

 
939

 
172

 
1995
 
12/01
 
40
    Boerne, TX

   
456

 
679

 

   

   
456

 
679

 
1,135

 
191

 
1986
 
12/12
 
25
    Brownsburg, IN

   
242

 
1,483

 

   

   
242

 
1,483

 
1,725

 
418

 
1984
 
12/12
 
25
    Converse, TX

   
301

 
554

 

   

   
301

 
554

 
855

 
111

 
2007
 
12/12
 
35
    Everett, WA

   
339

 
1,018

 

   

   
339

 
1,018

 
1,357

 
239

 
2000
 
12/12
 
30
    Everett, WA

   
486

 
437

 

   

   
486

 
437

 
923

 
123

 
1979
 
12/12
 
25
    Fishers, IN

   
544

 
514

 

   

   
510

 
514

 
1,024

 
121

 
2000
 
12/12
 
30
    Fishers, IN

   
766

 
717

 

   

   
766

 
717

 
1,483

 
168

 
1990
 
12/12
 
30
    Henderson, NV

   
370

 
311

 

   

   
370

 
311

 
681

 
88

 
1988
 
12/12
 
25
    Henderson, NV

   
398

 
1,028

 

   

   
398

 
1,028

 
1,426

 
241

 
1991
 
12/12
 
30
    Indianapolis, IN

   
417

 
1,318

 

   

   
417

 
1,318

 
1,735

 
309

 
1991
 
12/12
 
30
    Indianapolis, IN

   
320

 
602

 

   

   
320

 
602

 
922

 
141

 
1998
 
12/12
 
30
    Indianapolis, IN

   
87

 
1,009

 

   

   
87

 
1,009

 
1,096

 
284

 
1973
 
12/12
 
25
    Indianapolis, IN

   
252

 
1,454

 

   

   
252

 
1,454

 
1,706

 
341

 
1999
 
12/12
 
30
    Indianapolis, IN

   
281

 
1,018

 

   

   
281

 
1,018

 
1,299

 
239

 
1996
 
12/12
 
30
    Indianapolis, IN

   
213

 
1,444

 

   

   
213

 
1,444

 
1,657

 
291

 
2003
 
12/12
 
35
    Indianapolis, IN

   
320

 
1,086

 

   

   
320

 
1,086

 
1,406

 
255

 
1993
 
12/12
 
30
    Indianapolis, IN

   
271

 
1,221

 

   

   
271

 
1,221

 
1,492

 
344

 
1974
 
12/12
 
25
    Las Vegas, NV

   
533

 
1,424

 

   

   
533

 
1,424

 
1,957

 
334

 
2001
 
12/12
 
30
    Las Vegas, NV

   
368

 
1,018

 

   

   
368

 
1,018

 
1,386

 
239

 
2001
 
12/12
 
30
    Las Vegas, NV

   
360

 
253

 

   

   
360

 
253

 
613

 
71

 
1980
 
12/12
 
25
    Lynnwood, WA

   
571

 
1,695

 

   

   
571

 
1,695

 
2,266

 
477

 
1978
 
12/12
 
25
    N. Las Vegas, NV

   
310

 
1,463

 

   

   
310

 
1,463

 
1,773

 
294

 
2001
 
12/12
 
35


See accompanying report of independent registered public accounting firm.
F-82


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
    Noblesville, IN

   
582

 
979

 

   

   
582

 
979

 
1,561

 
230

 
1998
 
12/12
 
30
    Port Orchard, WA

   
784

 
1,540

 

   

   
784

 
1,540

 
2,324

 
361

 
1996
 
12/12
 
30
    Poulsbo, WA

   
620

 
901

 

   

   
620

 
901

 
1,521

 
159

 
2012
 
12/12
 
40
    San Antonio, TX

   
370

 
272

 

   

   
370

 
272

 
642

 
64

 
1993
 
12/12
 
30
    San Antonio, TX

   
688

 
727

 

   

   
688

 
727

 
1,415

 
171

 
1993
 
12/12
 
30
    San Antonio, TX

   
553

 
892

 

   

   
303

 
892

 
1,195

 
251

 
1986
 
12/12
 
25
    San Antonio, TX

   
931

 
223

 

   

   
931

 
223

 
1,154

 
52

 
1993
 
12/12
 
30
    San Antonio, TX

   
242

 
1,067

 

   

   
242

 
1,067

 
1,309

 
300

 
1977
 
12/12
 
25
    Lexington Park, MD

   
327

 
773

 

   

   
327

 
773

 
1,100

 
141

 
1982
 
07/14
 
30
    Alcoa, TN

   
587

 
547

 

   

   
587

 
547

 
1,134

 
133

 
1977
 
02/15
 
20
    Lincoln Park, MI

   
326

 
435

 

   

   
326

 
435

 
761

 
85

 
1988
 
02/15
 
25
    North Canton, OH

   
121

 
852

 

   

   
121

 
852

 
973

 
138

 
1986
 
02/15
 
30
    Roanoke, VA

   
172

 
672

 

   

   
172

 
672

 
844

 
164

 
1983
 
02/15
 
20
    Ashland, OH

   
353

 
2,635

 

   

   
353

 
2,635

 
2,988

 
157

 
1993
 
03/18
 
30
    Ashland, OH

   
265

 
2,479

 

   

   
265

 
2,479

 
2,744

 
127

 
2013
 
03/18
 
35
    Bellevue, OH

   
176

 
1,765

 

   

   
176

 
1,765

 
1,941

 
126

 
1985
 
03/18
 
25
    Bluffton, OH

   
98

 
1,090

 

   

   
98

 
1,090

 
1,188

 
65

 
2012
 
03/18
 
30
    Bucyrus, OH

   
88

 
2,234

 

   

   
88

 
2,234

 
2,322

 
160

 
1984
 
03/18
 
25
    Millersburg, OH

   
226

 
1,559

 

   

   
226

 
1,559

 
1,785

 
93

 
2002
 
03/18
 
30
    New Bremen, OH

   
59

 
1,697

 

   

   
59

 
1,697

 
1,756

 
122

 
1988
 
03/18
 
25
    Norwalk, OH

   
157

 
3,173

 

   

   
157

 
3,173

 
3,330

 
162

 
2014
 
03/18
 
35
    Ottawa, OH

   
69

 
1,599

 

   

   
69

 
1,599

 
1,668

 
95

 
1998
 
03/18
 
30
    Parma, OH

   
363

 
805

 

   

   
363

 
805

 
1,168

 
58

 
1983
 
03/18
 
25
    Shelby, OH

   
59

 
1,882

 

   

   
59

 
1,882

 
1,941

 
135

 
1989
 
03/18
 
25
    Upper Sandusky, OH

   
167

 
2,205

 

   

   
167

 
2,205

 
2,372

 
132

 
1993
 
03/18
 
30
    Willard, OH

   
108

 
1,560

 

   

   
108

 
1,560

 
1,668

 
93

 
1995
 
03/18
 
30
    Wooster, OH

   
255

 
2,273

 

   

   
255

 
2,273

 
2,528

 
163

 
1979
 
03/18
 
25
    Wooster, OH

   
323

 
2,791

 

   

   
323

 
2,791

 
3,114

 
167

 
1994
 
03/18
 
30
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Whataburger:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Albuquerque, NM

   
624

 
419

 

   

   
624

 
419

 
1,043

 
189

 
1995
 
12/01
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Wherehouse Music:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Independence, MO

   
503

 
1,209

 

   

   
503

 
1,209

 
1,712

 
425

 
1994
 
12/05
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 


See accompanying report of independent registered public accounting firm.
F-83


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
Winn-Dixie:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Seffner, FL

   
322

 
1,222

 

   

   
322

 
1,222

 
1,544

 
495

 
1983
 
03/99
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
XLerate Auto Auction:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    El Paso, TX

   
2,858

 
1,133

 

   

   
2,858

 
1,133

 
3,991

 
161

 
1987
 
06/16
 
25
    Jenison, MI

   
1,334

 
3,513

 
1,893

   

   
1,058

 
4,678

 
5,736

 
456

 
1984
 
10/16
 
30
    Lubbock, TX

   
301

 
1,507

 
58

   

   
369

 
905

 
1,274

 
113

 
1980
 
11/16
(m)
25
    Corry, PA

   
300

 
1,772

 

   

   
300

 
1,772

 
2,072

 
38

 
1975
 
06/19
 
25
    Obetz, OH

   
11,899

 
14,149

 

   

   
11,899

 
14,149

 
26,048

 
118

 
1980
 
10/19
 
25
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Ziebart:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Maplewood, MN

   
308

 
311

 

   

   
308

 
311

 
619

 
116

 
1990
 
02/05
 
40
    Middleburg Heights, OH

   
199

 
148

 

   

   
199

 
148

 
347

 
55

 
1961
 
02/05
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasehold Interests:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Oklahoma City, OK

   
 (l)
 
1,419

 

   

   
 (l)
 
355

 
355

 
210

 
1997
 
06/97
 
5
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
SUBTOTAL
$
11,837

 
$
2,480,496

 
$
4,875,374

 
$
1,113,943

 
$

 
$
2,492,984

 
$
5,917,880

 
$
8,410,864

 
$
1,148,277

 
 
 
 
 
 




See accompanying report of independent registered public accounting firm.
F-84


Table of Contents

 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment the Company has Invested in Under Direct Financing Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CVS:
   

   
   

 
   

 
   

   
   

   
   

 
   

 
   

 
   

 
 
 
 
 
 
    Warr Acres, OK
$

   
 (l)

 
$
1,365

 
$

   
$

   
 (l)

 
 (c)

 
 (c)

 
 (c)

 
1997
 
06/97
 
(c)
   


 
 
 


 


 


 
 
 
   

 
   

 
   

 
 
 
 
 
 
Denny's:


   
   

 


 


   


   
   

 
   

 
   

 
   

 
 
 
 
 
 
    Stockton, CA

   
940

 
509

 

   

   
 (d)

 
 (d)

 
 (d)

 
 (d)

 
1982
 
09/06
 
(d)
   
 
   
 
 
 
 
 
   
 
   
 
 
   

 
   

 
   

 
 
 
 
 
 
Jared Jewelers:


   


 


 


   


   
 
 
   

 
   

 
   

 
 
 
 
 
 
    Lewisville, TX

   
 (l)

 
1,503

 

   

   
 (l)

 
 (c)

 
 (c)

 
 (c)

 
1998
 
12/01
 
(c)
   
 
   
   

 
 
 
 
   
 
   
   

 
   

 
   

 
   

 
 
 
 
 
 
Rite Aid:


   


 


 


 


   


 
   

 
   

 
   

 
 
 
 
 
 
    Kennett Square, PA

   
 (l)

 
0

 
1,984

 

   
 (l)

 
 (c)

 
 (c)

 
 (c)

 
2000
 
12/00
 
(c)
   


   


 


 


   


   
   

 
   

 
   

 
   

 
 
 
 
 
 
Sunshine Energy:


   
 
 


 


   


   
   

 
   

 
   

 
   

 
 
 
 
 
 
    Altamont, KS

   
124

 
142

 

   

   
 (d)

 
 (d)

 
 (d)

 
 (d)

 
1979
 
07/09
 
(d)
   


   
 
 


 


   


   
 
 
   

 
   

 
   

 
 
 
 
 
 
Walgreens:


   


 


 


   


   
 
 
   

 
   

 
   

 
 
 
 
 
 
    Arlington, VA

   
 (l)

 
3,201

 

   

   
 (l)

 
 (c)

 
 (c)

 
 (c)

 
2000
 
02/02
 
(c)
 


 


 


 


 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUBTOTAL
$

 
$
1,064

 
$
6,720

 
$
1,984

 
$

 
$

 
$

 
$

 
$

 
 
 
 
 
 




See accompanying report of independent registered public accounting firm.
F-85


Table of Contents


 
 
 
Initial Cost  to
Company
 
Costs Capitalized
Subsequent to
Acquisition
 
Gross Amount at Which
Carried at Close of Period (a) (b)
 
 
 
 
 
 
 
Life on Which
Depreciation &
Amortization in Latest Income
Statement is
Computed (Years)
 
Encumbrances
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Improvements
 
Carrying
Costs
 
Land
 
Building,
Improvements &
Leasehold
Interests
 
Total
 
Accumulated
Depreciation
and
Amortization
 
Date  of
Construction
 
Date
Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Sale the Company has Invested in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fuel-On:
   

   
   

 
   

 
   

   
   

   
   

 
   

 
   

 
   

 
 
 
 
 
 
    Bloomsburg, PA
$

   
$
541

 
$
146

 
$

 
$

 
$
311

 
$
105

 
$
416

 
$
105

 
1967
 
08/05
 
40
    Danville, PA

   
180

 
359

 

   

   
180

 
232

 
412

 
125

 
1988
 
01/06
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Mister Car Wash:


   


 


 


   


   


 


 


 


 
 
 
 
 

    Houston, TX

   
2,260

 
1,806

 

   

   
2,260

 
1,806

 
4,066

 
918

 
1975
 
04/07
 
25
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Uni-Mart:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    McSherrystown, PA

   
135

 
365

 

   

   
135

 
365

 
500

 
127

 
1988
 
01/06
 
40
   
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Vacant Property:
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
    Sacramento, CA

   
1,144

 
2,961

 

   

   
1,144

 
2,462

 
3,606

 
1,703

 
1996
 
12/96
 
40
    Bay City, MI

   
647

 
634

 

   

   
647

 
561

 
1,208

 
282

 
1997
 
12/01
 
40
    Chicago, IL

   
90

 
239

 

   

   
62

 
130

 
192

 
130

 
1949
 
11/11
 
40
 


 


 


 


 


 


 


 


 


 
 
 
 
 

SUBTOTAL
$

 
$
4,997

 
$
6,510

 
$

 
$

 
$
4,739

 
$
5,661

 
$
10,400

 
$
3,390

 
 
 
 
 





See accompanying report of independent registered public accounting firm.
F-86



NATIONAL RETAIL PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
December 31, 2019
(dollars in thousands)
 
(a)
Transactions in real estate and accumulated depreciation during 2019, 2018, and 2017 are summarized as follows:
 
2019
 
2018
 
2017
Land, buildings, and leasehold interests:
 
 
 
 
 
Balance at the beginning of year
$
7,883,633

 
$
7,314,132

 
$
6,647,597

Acquisitions, completed construction and tenant improvements
733,376

 
706,903

 
744,577

Disposition of land, buildings, and leasehold interests
(138,332
)
 
(109,590
)
 
(73,089
)
Provision for loss on impairment of real estate
(29,975
)
 
(27,812
)
 
(4,953
)
Balance at the close of year
$
8,448,702

 
$
7,883,633

 
$
7,314,132

Accumulated depreciation and amortization:
 
 
 
 
 
Balance at the beginning of year
$
1,016,271

 
$
881,121

 
$
742,467

Disposition of land, buildings, and leasehold interests
(44,185
)
 
(28,076
)
 
(14,035
)
Depreciation and amortization expense
179,581

 
163,226

 
152,689

Balance at the close of year
$
1,151,667

 
$
1,016,271

 
$
881,121



As of December 31, 2019, 2018, and 2017, the detailed real estate schedule excludes work in progress of $27,438, $8,017 and $41,920, respectively, which is included in the above reconciliation.
(b)
As of December 31, 2019, the leases are treated as either operating or financing leases for federal income tax purposes. As of December 31, 2019, the aggregate cost of the properties owned by NNN that are under operating leases were $8,338,530 and financing leases were $2,703.
(c)
For financial reporting purposes, the portion of the lease relating to the building has been recorded as a direct financing lease; therefore, depreciation is not applicable.
(d)
For financial reporting purposes, the lease for the land and building has been recorded as a direct financing lease; therefore, depreciation is not applicable.
(e)
NNN owns only the land for this property.
(f)
Date acquired represents acquisition date of land. Pursuant to lease agreement, NNN purchased the buildings from the tenants upon completion of construction, generally within 12 months from the acquisition of the land.
(g)
Date acquired represents acquisition date of land. NNN developed the buildings, generally completing construction within 12 months from the acquisition date of the land.
(h)
As of December 31, 2018, this property has been classified as held for sale. Accumulated depreciation and amortization were recorded prior to this reclassification.
(i)
NNN owns only the land for this property, which is subject to a ground lease between NNN and the tenant. The tenant funded the improvements on the property.
(j)
Property is encumbered as a part of NNN's $15,151 long-term, fixed rate mortgage and security agreement, net of premium.
(k)
Pursuant to lease agreement, NNN funds the tenant's construction draws. Building improvements are pending final funding which is anticipated to occur within six months. Depreciation is based on store opening and costs to date, and will be adjusted at time of final funding.
(l)
NNN owns only the building for this property. The land is subject to a ground lease between NNN and an unrelated third party.
(m)
Date acquired represents acquisition date of land. Pursuant to lease agreement, NNN funds the tenant's construction draws, final funding occurs generally within 12 months from the acquisition of the land.
(n)
The tenant of this property has subleased the property. The tenant continues to be responsible for complying with all the terms of the lease agreement and is continuing to pay rent on this property to NNN.
(o)
Date acquired represents acquisition date of land and building. Pursuant to lease agreement, NNN funds additional tenant construction draws. Final funding generally within 12 months from acquisition.
(p)
The land is subject to a ground lease between NNN and an unrelated third party. Pursuant to the lease agreement, NNN funds the tenant's construction draws, final funding occurs generally within 12 months from the execution of the ground lease.

See accompanying report of independent registered public accounting firm.
F-87



NATIONAL RETAIL PROPERTIES, INC. AND SUBSIDIARIES
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
December 31, 2019
(dollars in thousands)
 
Description
Interest
Rate
 
Maturity
Date
 
Periodic
Payment
Terms
 
Prior
Liens
 
Face 
Amount
of Mortgages
 
Carrying
Amount of
Mortgages (b)
 
Principal
Amount
of Loans Subject
to Delinquent
Principal or
Interest
First mortgages on properties:
 
 
 
 
 
 
 
 
$

 
$

(a) 
$


(a)
The following shows the changes in the carrying amounts of mortgage loans during the years:
 
2019
 
 
 
2018
 
 
 
2017
 
Balance at beginning of year
$

 
  
 
$

 
  
 
$
1,250

 
New mortgage loans
3,100

 
 
 

 
 
 

 
Deductions during the year:
 
 
 
 
 
 
 
 
 
 
Collections of principal
(3,100
)
 
 
 

 
 
 
(1,250
)
 
Foreclosures

 
 
 

 
  
 

 
Balance at the close of year
$

 
  
 
$

 
  
 
$

 
(b)
There were no mortgages outstanding at December 31, 2019, 2018 and 2017.


See accompanying report of independent registered public accounting firm.


See accompanying report of independent registered public accounting firm.
F-88



Exhibit 4.22
DESCRIPTION OF THE REGISTRANT'S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
Unless the context otherwise requires, references in this Exhibit to the Annual Report on Form 10-K to the terms “registrant” or “NNN” or the “Company” refer to National Retail Properties, Inc. and all of its consolidated subsidiaries.
The following description sets forth certain material terms and provisions of NNN’s securities that are registered under Section 12 of the Securities Exchange Act of 1934, as amended. This description also contains summaries of the Maryland General Corporation Law (“MGCL”), NNN’s Articles of Incorporation, as amended, restated and supplemented (“Articles of Incorporation”), and NNN’s Bylaws, as amended and restated (“Bylaws”). The following summary of the material terms, rights and preferences of the securities is not complete and is subject to and qualified in its entirety by reference to the MGCL, the Articles of Incorporation and the Bylaws each of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this exhibit is a part. NNN encourages you to read the MGCL, the Articles of Incorporation and the Bylaws.
GENERAL
National Retail Properties, Inc., a Maryland corporation, is a fully integrated real estate investment trust ("REIT") formed in 1984.
Under NNN’s Articles of Incorporation, the Company is authorized to issue up to:
 
Ÿ
 
375,000,000 shares of common stock, par value $0.01 per share, and
  
Ÿ
 
15,000,000 shares of preferred stock, par value $0.01 per share.
As of January 31, 2020, NNN had 171,697,831 shares of common stock outstanding, and 11,500,000 depositary shares each representing a 1/100th interest in a share of 5.20% Series F Cumulative Redeemable Preferred Stock (“Series F Preferred Stock”) outstanding. All issued and outstanding shares of common stock are duly authorized, validly issued, fully paid and nonassessable.
DESCRIPTION OF COMMON STOCK
The statements below describing the common stock are in all respects subject to and qualified in their entirety by reference to the applicable provisions of NNN’s Articles of Incorporation and Bylaws.
General
The holders of common stock elect all directors and are entitled to one vote per share on all matters submitted to a vote of the stockholders. The right to vote is subject to the provisions of the Articles of Incorporation regarding the restriction of the transfer of shares of common stock, which is described under “- Restrictions on Ownership” below. Stockholders are entitled to receive dividends when, as and if declared by NNN’s Board of Directors out of funds legally available for that purpose. The right of holders of common stock to receive those dividends may be affected, however, by the preferential rights of the Series F Preferred Stock or any other class or series of stock and the provisions of the Articles of Incorporation regarding restrictions on the transfer of stock. For example, holders of common stock may not receive dividends if no funds are available for distribution after NNN pays dividends to holders of preferred stock. Upon the Company’s liquidation, dissolution or winding up, holders of common stock are entitled to share pro rata in in all of NNN’s remaining assets after payment or provision for all of its debts and other liabilities and preferential amounts owing in respect of the Series F Preferred Stock and any other preferred stock having a priority over the common stock in the event of NNN’s liquidation, dissolution or winding up. The outstanding Series F Preferred Stock ranks senior to the common stock with respect to the payment of dividends and as to the distribution of assets in the event of NNN’s liquidation, dissolution or winding up. Holders of common

1



stock have no redemption, sinking fund, preemptive, subscription or conversion rights. All outstanding shares of common stock are fully paid and non-assessable.
Stock Exchange Listing.
The common stock is traded on the New York Stock Exchange under the trading symbol “NNN.”
Transfer Agent and Registrar
American Stock Transfer & Trust Company is the transfer agent of the common stock. 

DESCRIPTION OF SERIES F PREFERRED STOCK AND DEPOSITARY SHARES
The following is a summary of the material terms and provisions of the Series F Preferred Stock and depositary shares. The statements below describing the Series F Preferred Stock are in all respects subject to and qualified in their entirety by reference to NNN’s Articles of Incorporation establishing the Series F Preferred Stock, and NNN’s Bylaws.
General
Shares of preferred stock may be offered and sold from time to time, in one or more series, as authorized by NNN’s Board of Directors. NNN’s Board of Directors is authorized under Maryland law and NNN’s Articles of Incorporation to set for each series of preferred stock the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms or conditions of redemption. The Series F Preferred Stock is being issued pursuant to articles supplementary to NNN’s Articles of Incorporation that sets forth the terms of a series of preferred stock consisting of up to 138,000 shares, designated 5.20% Series F Cumulative Redeemable Preferred Stock. NNN’s Board of Directors may authorize the issuance and sale of additional shares of Series F Preferred Stock from time to time without the consent of existing holders of the depositary shares representing interests in the Series F Preferred Stock.
Each depositary share represents a 1/100th interest in a share of Series F Preferred Stock. The Series F Preferred Stock underlying the depositary shares are deposited with American Stock Transfer & Trust Company, as depositary, under a deposit agreement among NNN, the depositary and the holders from time to time of the depositary shares. The depositary shares are evidenced by depositary receipts issued pursuant to the deposit agreement. Subject to the terms of the deposit agreement, each record holder of depositary receipts evidencing depositary shares is entitled to a proportional fractional interest (i.e., 1/100th) to all the rights and preferences of, and subject to all of the limitations of, the Series F Preferred Stock underlying the depositary shares (including dividend, voting, redemption, conversion and liquidation rights and preferences).
Ranking
The Series F Preferred Stock underlying the depositary shares, with respect to the payment of dividends and the distribution of assets in the event of NNN’s liquidation, dissolution or winding up, rank:
 
Ÿ
 
senior to NNN’s common stock and any other of NNN’s equity securities that the Company may later authorize or issue that by their terms rank junior to the Series F Preferred Stock;
  
Ÿ
 
on a parity with any other of NNN’s equity securities that the Company may later authorize or issue and that by their terms are on a parity with the Series F Preferred Stock; and
  
Ÿ
 
junior to any equity securities that the Company may later authorize or issue and that by their terms rank senior to the Series F Preferred Stock.

2



The term “equity securities” does not include convertible debt securities, which will rank senior to the Series F Preferred Stock prior to conversion. In addition, the Series F Preferred Stock will be junior to all of NNN’s existing and future indebtedness and all of the existing or future indebtedness of NNN’s subsidiaries.
Dividends
Holders of depositary shares representing interests in the Series F Preferred Stock are entitled to receive, when, as and if authorized by NNN’s Board of Directors, out of funds legally available for the payment of dividends, cumulative cash dividends at the rate of 5.20% per annum of the $2,500.00 per share (equivalent to $25.00 liquidation preference per depositary share) liquidation preference, equivalent to $130.00 per annum per share (or $1.30 per annum per depositary share). Dividends on the Series F Preferred Stock accrue and are cumulative from and including October 11, 2016, the date of original issue by NNN of the Series F Preferred Stock. Dividends are payable quarterly in arrears on or about March 15, June 15, September 15 and December 15 of each year (or, if not a business day, the next succeeding business day). The Company refers to each such date as a “Dividend Payment Date.” The first dividend on the Series F Preferred Stock sold was payable on December 15, 2016, which was for less than a full quarter, and was in the amount of $23.1111 per share (or $0.231111 per depositary share).
Any dividend, including any dividend payable on the Series F Preferred Stock for any partial dividend period, is computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends are payable to holders of record of depositary shares as they appear in the depositary’s records at the close of business on the applicable record date, which will be the date that NNN’s Board of Directors designates for the payment of a dividend that is not more than 30 nor less than 10 days prior to the dividend payment date, which date NNN refers to as a dividend payment record date.
NNN’s Board of Directors will not authorize, pay or set apart for payment by NNN any dividend on the Series F Preferred Stock at any time that:
 
Ÿ
 
the terms and provisions of any of the Company’s agreements, including any agreement relating to NNN’s indebtedness, prohibits such authorization, payment or setting apart for payment;
  
Ÿ
 
the terms and provisions of any of the Company’s agreements, including any agreement relating to NNN’s indebtedness, provides that such authorization, payment or setting apart for payment would constitute a breach of, or a default under, such agreement; or
  
Ÿ
 
the law restricts or prohibits the authorization or payment.
NNN may become a party to agreements that restrict or prevent the payment of dividends on, or the purchase or redemption of, NNN’s shares. Under certain circumstances, these agreements could restrict or prevent the payment of dividends on, or the purchase or redemption of, shares of Series F Preferred Stock. These restrictions may be indirect (for example, covenants requiring NNN to maintain specified levels of net worth or assets) or direct. NNN does not believe that these restrictions currently have any adverse impact on the Company’s ability to pay dividends on the Series F Preferred Stock.
Notwithstanding the foregoing, dividends on the Series F Preferred Stock will accrue whether or not:
 
Ÿ
 
the terms and provisions of any of NNN’s agreements, including any agreement relating to NNN’s indebtedness, prohibits such authorization, payment or setting apart for payment;
  
Ÿ
 
NNN has earnings;
  
Ÿ
 
there are funds legally available for the payment of the dividends; or
  
Ÿ
 
the dividends are authorized.

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Accrued but unpaid dividends on the Series F Preferred Stock will not bear additional interest, and the holders of depositary shares representing interests in the Series F Preferred Stock will not be entitled to any dividends in excess of full cumulative dividends as described above.
Any dividend payment made on the Series F Preferred Stock, including any capital gain dividends, will first be credited against the earliest accrued but unpaid dividend due with respect to such shares which remains payable.
If, for any taxable year, NNN elects to designate as “capital gain dividends” (as defined in Section 857 of the Code) a portion (the “Capital Gains Amount”) of the dividends, as determined for federal income tax purposes, that are paid or made available for the year to the holders of all classes of shares (the “Total Dividends”), then the portion of the Capital Gains Amount that will be allocable to the holders of depositary shares will be the Capital Gains Amount multiplied by a fraction, the numerator of which will be the total dividends (within the meaning of the Code) paid or made available to the holders of depositary shares for the year and the denominator of which will be the Total Dividends. NNN will not declare or pay any dividends or distributions, or set aside any funds for the payment of dividends or distributions, on NNN’s common stock or any other shares that rank junior to the Series F Preferred Stock, if any, or redeem or otherwise acquire NNN’s common stock or other junior shares, unless NNN also has declared and either paid or set aside for payment the full cumulative dividends on the Series F Preferred Stock and all shares that rank senior to or on a parity with the Series F Preferred Stock, for all past dividend periods. This restriction will not limit NNN’s redemption or other acquisition of shares under incentive, benefit or share purchase plans for officers, directors or employees or others performing or providing similar services or for the purposes of enforcing restrictions upon ownership and transfer of NNN’s equity securities contained in NNN’s Articles of Incorporation in order to preserve the Company’s status as a REIT.
When dividends are not paid in full (or a sum sufficient for such full payment is not set apart) upon the Series F Preferred Stock and the shares of any other class or series of equity securities ranking, as to dividends, on a parity with the Series F Preferred Stock, all dividends declared upon the Series F Preferred Stock and each such other class or series of equity securities ranking, as to dividends, on a parity with the Series F Preferred Stock shall be declared pro rata so that the amount of dividends declared per share of Series F Preferred Stock and such other class or series of equity securities shall in all cases bear to each other the same ratio that accrued dividends per share on the Series F Preferred Stock and such other class or series of equity securities (which shall not include any accrual in respect of unpaid dividends on such other class or series of equity securities for prior dividend periods if such other class or series of equity securities does not have a cumulative dividend) bear to each other.
Liquidation Preference
Upon any voluntary or involuntary liquidation, dissolution or winding up of the Company’s affairs, the holders of Series F Preferred Stock then outstanding are entitled to be paid out of NNN’s assets legally available for distribution to NNN’s stockholders a liquidation preference of $2,500.00 per share (equivalent to $25.00 per depositary share), plus an amount equal to any accrued and unpaid dividends to the date of payment (whether or not declared), before any distribution or payment may be made to holders of shares of common stock or any other class or series of NNN’s equity stock ranking, as to liquidation rights, junior to the Series F Preferred Stock. If, upon NNN’s voluntary or involuntary liquidation, dissolution or winding up, NNN’s available assets are insufficient to pay the full amount of the liquidating distributions on all outstanding Series F Preferred Stock and the corresponding amounts payable on all shares of each other class or series of capital stock ranking, as to liquidation rights, on a parity with the Series F Preferred Stock, then the holders of depositary shares representing interests in the Series F Preferred Stock and each such other class or series of capital stock ranking, as to liquidation rights, on a parity with the Series F Preferred Stock will share ratably in any distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled. Holders of depositary shares representing interests in the Series F Preferred Stock will be entitled to written notice of any liquidation. After payment of the full amount of the liquidating distributions to which they are entitled, the holders of depositary shares representing interests in the Series F Preferred Stock will have no right or claim to any of NNN’s remaining assets.
NNN’s consolidation or merger with or into any other entity or the sale, lease, transfer or conveyance of all or substantially all of NNN’s property or business will not be deemed to constitute the Company’s liquidation, dissolution or winding up. The Series F Preferred Stock will rank senior to the common stock as to priority for

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receiving liquidating distributions and on a parity with any future equity securities which, by their terms, rank on a parity with the Series F Preferred Stock.
Optional Redemption
NNN may not redeem the Series F Preferred Stock prior to October 11, 2021, except as described below and under the section “- Special Optional Redemption.” At any time on and after October 11, 2021, upon no fewer than 30 days’ nor more than 60 days’ written notice, NNN may, at NNN’s option, redeem the Series F Preferred Stock, in whole or in part, from time to time, by paying $2,500.00 per share (equivalent to $25.00 per depositary share), plus any accrued and unpaid dividends to, but not including, the date of redemption, upon the giving of notice, as provided below. Whenever NNN redeems shares of its Series F Preferred Stock held by the depositary, the depositary will redeem as of the same redemption date a number of depositary shares representing the shares so redeemed and the depositary receipts evidencing such depositary shares.
NNN will give notice of redemption by mail to each holder of record of Series F Preferred Stock or depositary shares at the address shown on NNN’s share transfer books. A failure to give notice of redemption or any defect in the notice or in its mailing will not affect the validity of the redemption of any Series F Preferred Stock except as to the holder to whom notice was defective. Each notice will state the following:
 
Ÿ
 
the redemption date;
  
Ÿ
 
the redemption price;
  
Ÿ
 
the number of shares of Series F Preferred Stock and depositary shares to be redeemed;
  
Ÿ
 
the place(s) where the depositary receipts (or Series F Preferred Stock certificates, if no longer held in depositary form) are to be surrendered for payment; and
  
Ÿ
 
that dividends on the depositary shares and the Series F Preferred Stock will cease to accrue on the redemption date.
If fewer than all of the outstanding shares of Series F Preferred Stock are to be redeemed, the shares to be redeemed will be determined pro rata, by lot or in such other manner as prescribed by NNN’s Board of Directors. In the event that the redemption is to be by lot, and if as a result of the redemption any holder of Series F Preferred Stock would own, or be deemed by virtue of certain attribution provisions of the Code to own, in excess of 9.8% in value of NNN’s issued and outstanding equity securities (which includes the depositary shares), then, except in certain instances, NNN will redeem the requisite number of shares of Series F Preferred Stock of that stockholder such that the stockholder will not own or be deemed by virtue of certain attribution provisions of the Code to own, subsequent to the redemption, in excess of 9.8% in value of NNN’s issued and outstanding equity securities (which includes the depositary shares).
If NNN redeems fewer than all of the outstanding shares of Series F Preferred Stock and depositary shares, the notice of redemption mailed to each holder will also specify the number of shares of Series F Preferred Stock, or depositary shares, that NNN will redeem from each holder. In this case, NNN will determine the number of shares of Series F Preferred Stock, or depositary shares, to be redeemed on a pro rata basis, by lot or by any other equitable method NNN may choose in its sole and absolute discretion.
On or after the redemption date, each holder of depositary shares to be redeemed must present and surrender the depositary receipts evidencing the depositary shares to the depositary at the place designated in the notice of redemption. If the Series F Preferred Stock is no longer held in depositary form, on or after the redemption date, each holder of Series F Preferred Stock to be redeemed must present and surrender their preferred certificates to NNN at the place designated in the notice of redemption. The redemption price of the shares will then be paid to or on the order of the person whose name appears on such depositary receipts or preferred certificates as the owner thereof. Each surrendered depositary receipt or certificate will be canceled. In the event that fewer than all the depositary receipts or preferred certificates are to be redeemed, a new depositary receipt will be issued representing the unredeemed depositary shares.

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If NNN has given a notice of redemption and have set aside sufficient funds for the redemption in trust for the benefit of the holders of the depositary shares or the Series F Preferred Stock called for redemption, then from and after the redemption date:  
 
Ÿ
 
all dividends on the depositary shares designated for redemption in the notice will cease to accrue;
  
Ÿ
 
all rights of the depositary holders of the shares or preferred certificates, except the right to receive the redemption price thereof (including all accrued and unpaid dividends up to, but not including, the redemption date), will cease and terminate;
  
Ÿ
 
the depositary shares and preferred certificates will not thereafter be transferred (except with NNN’s consent) on the depositary’s books or NNN’s books; and
  
Ÿ
 
the depositary shares or Series F Preferred Stock will not be deemed to be outstanding for any purpose whatsoever.
Notwithstanding the foregoing, unless full cumulative dividends on all outstanding shares of Series F Preferred Stock for all past dividend periods have been paid or set aside, NNN generally may not redeem any shares of Series F Preferred Stock unless NNN redeems all of the shares of Series F Preferred Stock. This requirement will not prevent NNN’s purchase or acquisition of Series F Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series F Preferred Stock. Unless full cumulative dividends on all outstanding Series F Preferred Stock have been paid or declared and a sum sufficient for the payment of the dividends has been set apart for payment for all past dividend periods, NNN will not purchase or otherwise acquire directly or indirectly any Series F Preferred Stock (except by exchange for NNN’s equity securities ranking junior to the Series F Preferred Stock as to dividend rights and liquidation preference).
Subject to applicable law, NNN may purchase Series F Preferred Stock in the open market, by tender or by private agreement. NNN is permitted to return any Series F Preferred Stock that NNN reacquires to the status of authorized but unissued shares.
Notwithstanding any other provision relating to redemption, including optional redemption or special optional redemption, of the Series F Preferred Stock, NNN may redeem any or all of the Series F Preferred Stock at any time, whether or not prior to October 11, 2021, if NNN’s Board of Directors determines that the redemption is necessary or advisable to preserve NNN’s status as a REIT.
Special Optional Redemption
Upon the occurrence of a Change of Control, NNN may, at its option, redeem the Series F Preferred Stock, in whole or in part within 120 days after the first date on which such Change of Control occurred, by paying $2,500.00 per share of Series F Preferred Stock (equivalent to $25.00 per depositary share), plus any accrued and unpaid dividends to, but not including, the date of redemption. If, prior to the Change of Control Conversion Date, NNN has provided or provide notice of redemption with respect to the Series F Preferred Stock (whether pursuant to NNN’s optional redemption right described above or this special optional redemption right), the holders of depositary shares representing interests in the Series F Preferred Stock will not be permitted to exercise the conversion right described below under “- Conversion” in respect of their shares called for redemption.
NNN will mail to you, if you are a record holder of the Series F Preferred Stock, a notice of redemption no fewer than 30 days nor more than 60 days before the redemption date. NNN will send the notice to your address shown on NNN’s share transfer books. A failure to give notice of redemption or any defect in the notice or in its mailing will not affect the validity of the redemption of any Series F Preferred Stock except as to the holder to whom notice was defective. Each notice will state the following:  
 
Ÿ
 
the redemption date;
 
Ÿ
 
the redemption price;

6



 
Ÿ
 
the number of shares of Series F Preferred Stock and depositary shares to be redeemed;
 
Ÿ
 
the place(s) where the depositary receipts (or Series F Preferred Stock certificates, if no longer held in depositary form) are to be surrendered for payment;
 
Ÿ
 
that the Series F Preferred Stock is being redeemed pursuant to NNN’s special optional redemption right in connection with the occurrence of a Change of Control and a brief description of the transaction or transactions constituting such Change of Control;
 
Ÿ
 
that the holders of depositary shares representing interests in the Series F Preferred Stock to which the notice relates will not be able to tender such shares of Series F Preferred Stock for conversion in connection with the Change of Control and each share of Series F Preferred Stock tendered for conversion that is selected, prior to the Change of Control Conversion Date, for redemption will be redeemed on the related date of redemption instead of converted on the Change of Control Conversion Date; and
 
Ÿ
 
that dividends on the depositary shares and the Series F Preferred Stock to be redeemed will cease to accrue on the redemption date.
If NNN redeems fewer than all of the shares of Series F Preferred Stock, the notice of redemption mailed to each holder of Series F Preferred Stock will also specify the number of shares of Series F Preferred Stock that NNN will redeem from each such holder. In this case, NNN will determine the number of shares of Series F Preferred Stock to be redeemed on a pro rata basis, by lot or by any other equitable method NNN may choose.
If NNN has given a notice of redemption and have set aside sufficient funds for the redemption in trust for the benefit of the holders of depositary shares representing interests in the Series F Preferred Stock called for redemption, then, from and after the redemption date, those shares of Series F Preferred Stock will be treated as no longer being outstanding, no further dividends will accrue and all other rights of the holders of those shares of Series F Preferred Stock will terminate. The holders of those shares of Series F Preferred Stock will retain their right to receive the redemption price for their shares and any accrued and unpaid dividends to but excluding the redemption date.
The holders of depositary shares representing interests in the Series F Preferred Stock at the close of business on a dividend record date will be entitled to receive the dividend payable with respect to the Series F Preferred Stock on the corresponding payment date notwithstanding the redemption of the Series F Preferred Stock between such record date and the corresponding payment date or NNN’s default in the payment of the dividend due. Except as provided above, NNN will make no payment or allowance for unpaid dividends, whether or not in arrears, on Series F Preferred Stock to be redeemed.
A “Change of Control” is when the following have occurred and are continuing:  
 
Ÿ
 
the acquisition by any person, including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of purchases, mergers or other acquisition transactions of NNN’s shares entitling that person to exercise more than 50% of the total voting power of all of NNN’s shares entitled to vote generally in elections of directors (except that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and
 
Ÿ
 
following the closing of any transaction referred to in the bullet point above, neither NNN nor the acquiring or surviving entity has a class of common securities (or ADRs representing such securities) listed on the NYSE, the NYSE MKT or NASDAQ, or listed or quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE MKT or NASDAQ.







7



Conversion
Upon the occurrence of a Change of Control, each holder of depositary shares representing interests in the Series F Preferred Stock will have the right (unless, prior to the Change of Control Conversion Date, NNN has provided or provide notice of NNN’s election to redeem the depositary shares or the Series F Preferred Stock as described above under “- Optional Redemption” or “- Special Optional Redemption”) to direct the depositary, on such holder’s behalf, to convert some or all of the shares of Series F Preferred Stock underlying the depositary shares held by such holder (the “Change of Control Conversion Right”) on the Change of Control Conversion Date into a number of shares of NNN’s common stock (or equivalent value of Alternative Conversion Consideration (as defined below)) per share of Series F Preferred Stock to be converted, or the “Common Stock Conversion Consideration,” equal to the lesser of:  
 
Ÿ
 
the quotient obtained by dividing (1) the sum of the $2,500.00 per share (or $25.00 per depositary share) liquidation preference plus the amount of any accrued and unpaid dividends to, but not including, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a record date for a Series F Preferred Stock dividend payment and prior to the corresponding Series F Preferred Stock dividend payment date, in which case no additional amount for such accrued and then remaining unpaid dividend will be included in this sum) by (2) the Common Stock Price (such quotient, the Conversion Rate); and
 
Ÿ
 
99.62 (equivalent to 0.9962 per depositary share) (i.e., the Share Cap), subject to certain adjustments.
The Share Cap is subject to pro rata adjustments for any share splits (including those effected pursuant to a distribution of shares of NNN’s common stock), subdivisions or combinations (in each case, a “Share Split”) with respect to NNN’s common stock as follows: the adjusted Share Cap as the result of a Share Split will be the number of shares of NNN’s common stock that is equivalent to the product obtained by multiplying (1) the Share Cap in effect immediately prior to such Share Split by (2) a fraction, the numerator of which is the number of shares of NNN’s common stock outstanding after giving effect to such Share Split and the denominator of which is the number of shares of NNN’s common stock outstanding immediately prior to such Share Split.
For the avoidance of doubt, subject to the immediately succeeding sentence, the aggregate number of shares of NNN’s common stock (or equivalent Alternative Conversion Consideration, as applicable) issuable in connection with the exercise of the Change of Control Conversion Right and in respect of the Series F Preferred Stock underlying the depositary shares currently outstanding will not exceed 13,747,560 shares of common stock (or equivalent Alternative Conversion Consideration, as applicable) (the “Exchange Cap”). The Exchange Cap is subject to pro rata adjustments for any Share Splits on the same basis as the corresponding adjustment to the Share Cap and is subject to increase in the event that additional shares of Series F Preferred Stock or depositary shares are issued in the future.
In the case of a Change of Control pursuant to which NNN’s common stock will be converted into cash, securities or other property or assets (including any combination thereof) (the “Alternative Form Consideration”), a holder of depositary shares representing interests in the Series F Preferred Stock will receive upon conversion of such Series F Preferred Stock the kind and amount of Alternative Form Consideration which such holder would have owned or been entitled to receive upon the Change of Control had such holder held a number of shares of NNN’s common stock equal to the Common Stock Conversion Consideration immediately prior to the effective time of the Change of Control (the “Alternative Conversion Consideration,” and the Common Stock Conversion Consideration or the Alternative Conversion Consideration, as may be applicable to a Change of Control, is referred to as the “Conversion Consideration”).
If the holders of NNN’s common stock have the opportunity to elect the form of consideration to be received in the Change of Control, the consideration that the holders of the depositary shares representing interests in the Series F Preferred Stock will receive will be the form and proportion of the aggregate consideration elected by the holders of NNN’s common stock who participate in the determination (based on the weighted average of elections) and will be subject to any limitations to which all holders of NNN’s common stock are subject, including, without limitation, pro rata reductions applicable to any portion of the consideration payable in the Change of Control.

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Because each depositary share represents a 1/100th interest in a share of the Series F Preferred Stock, the number of shares of common stock ultimately received for each depositary share will be equal to the number of shares of common stock received upon conversion of each share of Series F Preferred Stock divided by 100. In the event that the conversion would result in the issuance of fractional shares of common stock, NNN will pay the holder of depositary shares the cash value of such fractional shares in lieu of such fractional shares.
Within 15 days following the occurrence of a Change of Control, NNN will provide to holders of the depositary shares representing interests in the Series F Preferred Stock a notice of occurrence of the Change of Control that describes the resulting Change of Control Conversion Right. This notice will state the following:
 
Ÿ
 
the events constituting the Change of Control;
  
Ÿ
 
the date of the Change of Control;
 
Ÿ
 
the last date on which the holders of the depositary shares representing interests in the Series F Preferred Stock may exercise their Change of Control Conversion Right;
 
Ÿ
 
the method and period for calculating the Common Stock Price;
 
Ÿ
 
the Change of Control Conversion Date;
 
Ÿ
 
that if, prior to the Change of Control Conversion Date, NNN has provided or provide notice of NNN’s election to redeem all or any portion of the Series F Preferred Stock or the depositary shares, holders will not be able to convert the Series F Preferred Stock and such shares will be redeemed on the related redemption date, even if such shares have already been tendered for conversion pursuant to the Change of Control Conversion Right;
 
Ÿ
 
if applicable, the type and amount of Alternative Conversion Consideration entitled to be received per share of Series F Preferred Stock;
 
Ÿ
 
the name and address of the paying agent and the conversion agent; and
 
Ÿ
 
the procedures that the holders of the depositary shares representing interests in the Series F Preferred Stock must follow to exercise the Change of Control Conversion Right.
NNN will issue a press release for publication on the Dow Jones & Company, Inc., Business Wire, PR Newswire or Bloomberg Business News (or, if these organizations are not in existence at the time of the issuance of the press release, such other news or press organization as is reasonably calculated to broadly disseminate the relevant information to the public), or post notice on NNN’s website, in any event prior to the opening of business on the first business day following any date on which NNN provides the notice described above to the holders of the depositary shares representing interests in the Series F Preferred Stock.
 To exercise the Change of Control Conversion Right, each holder of depositary shares representing interests in the Series F Preferred Stock will be required to deliver, on or before the close of business on the Change of Control Conversion Date, the depositary receipts or certificates, if any, evidencing the depositary shares or Series F Preferred Stock, respectively, to be converted, duly endorsed for transfer, together with a written conversion notice completed, to the depositary, in the case of the depositary shares, or to NNN’s transfer agent, in the case of shares of the Series F Preferred Stock. The conversion notice must state:  
 
Ÿ
 
the relevant Change of Control Conversion Date;
 
Ÿ
 
the number of depositary shares or shares of Series F Preferred Stock to be converted; and
 
Ÿ
 
that the depositary shares or the shares of Series F Preferred Stock are to be converted pursuant to the applicable provisions of the Series F Preferred Stock.
The “Change of Control Conversion Date” is the date that the Series F Preferred Stock is to be converted, which will be a business day that is no fewer than 20 days nor more than 35 days after the date on which NNN

9



provides the notice described above to the holders of the depositary shares representing interests in the Series F Preferred Stock.
The “Common Stock Price” will be: (1) the amount of cash consideration per share of common stock, if the consideration to be received in the Change of Control by the holders of NNN’s common stock is solely cash; and (2) the average of the closing prices for NNN’s common stock on the NYSE for the ten consecutive trading days immediately preceding, but not including, the effective date of the Change of Control, if the consideration to be received in the Change of Control by the holders of NNN’s common stock is other than solely cash.
Holders of the depositary shares representing interests in the Series F Preferred Stock may withdraw any notice of exercise of a Change of Control Conversion Right (in whole or in part) by a written notice of withdrawal delivered to the depositary, in the case of the depositary shares, or to NNN’s transfer agent, in the case of shares of the Series F Preferred Stock, prior to the close of business on the business day prior to the Change of Control Conversion Date. The notice of withdrawal must state:  
 
Ÿ
 
the number of withdrawn depositary shares or shares of Series F Preferred Stock;
  
Ÿ
 
if certificated depositary shares or shares of Series F Preferred Stock have been issued, the receipt or certificate numbers of the withdrawn shares of Series F Preferred Stock; and
  
Ÿ
 
the number of depositary shares or shares of Series F Preferred Stock, if any, which remain subject to the conversion notice.
Notwithstanding the foregoing, if the Series F Preferred Stock is held in global form, the conversion notice and/or the notice of withdrawal, as applicable, must comply with applicable procedures of The Depository Trust Company.
Shares of Series F Preferred Stock as to which the Change of Control Conversion Right has been properly exercised and for which the conversion notice has not been properly withdrawn will be converted into the applicable Conversion Consideration in accordance with the Change of Control Conversion Right on the Change of Control Conversion Date, unless prior to the Change of Control Conversion Date NNN has provided or provide notice of NNN’s election to redeem such shares of Series F Preferred Stock, whether pursuant to NNN’s optional redemption right or NNN’s special optional redemption right. If NNN elects to redeem shares of Series F Preferred Stock that would otherwise be converted into the applicable Conversion Consideration on a Change of Control Conversion Date, such shares of Series F Preferred Stock will not be so converted and the holders of such shares will be entitled to receive on the applicable redemption date $2,500.00 per share (or $25.00 per depositary share), plus any accrued and unpaid dividends thereon to, but not including, the redemption date. See “- Optional Redemption” and “- Special Optional Redemption” above.  
NNN will deliver amounts owing upon conversion no later than the third business day following the Change of Control Conversion Date.
In connection with the exercise of any Change of Control Conversion Right, NNN will comply with all federal and state securities laws and stock exchange rules in connection with any conversion of Series F Preferred Stock into NNN’s common stock. Notwithstanding any other provision of the Series F Preferred Stock, no holder of Series F Preferred Stock or depositary shares will be entitled to convert such shares for NNN’s common stock to the extent that receipt of such common stock would cause such holder (or any other person) to exceed the share ownership limits contained in the NNN’s charter and the articles supplementary setting forth the terms of the Series F Preferred Stock, unless NNN provides an exemption from this limitation for such holder. See “- Ownership Limits and Restrictions on Transfer,” below.
Except as otherwise provided above, neither the Series F Preferred Stock nor the depositary shares is convertible into or exchangeable for any other securities or property.


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Voting Rights
Except as described below, holders of depositary shares or Series F Preferred Stock generally have no voting rights. In any matter in which the Series F Preferred Stock may vote (as expressly provided in NNN’s Articles of Incorporation or the articles supplementary, or as may be required by law), each share of Series F Preferred Stock shall be entitled to one vote. As a result, each depositary share will be entitled to 1/100th of a vote.
Whenever dividends on the Series F Preferred Stock are in arrears for six or more quarterly periods, whether or not declared or consecutive, the holders of depositary shares representing interests in the Series F Preferred Stock (voting separately as a class with all other Parity Preferred Stock) will be entitled to vote for the election of a total of two additional directors of the company, and the number of directors on the Board of Directors shall increase by two, at a special meeting called by the holders of record of at least 20% of the Series F Preferred Stock or the holders of any other series of Parity Preferred Stock so in arrears (unless such request is received less than 90 days before the date fixed for the next annual or special meeting of stockholders) or at the next annual meeting of stockholders, and at each subsequent annual meeting until all dividends accumulated on such shares of Series F Preferred Stock for the past dividend periods and the dividend for the then-current dividend period shall have been fully paid or declared and a sum sufficient for the payment thereof set aside for payment.
Any amendment, alteration, repeal or other change to any provision of NNN’s Articles of Incorporation, including the articles supplementary establishing the Series F Preferred Stock, whether by merger, consolidation or otherwise, in any manner that would materially and adversely affect the rights, preferences, powers or privileges of the Series F Preferred Stock cannot be made without the affirmative vote of holders of at least 66  23% of the outstanding shares of Series F Preferred Stock and each other class or series of Parity Preferred Stock (voting together as a single class). Notwithstanding the foregoing, holders of any Parity Preferred Stock will not be entitled to vote together as a class with the holders of Series F Preferred Stock on any such amendment, alteration or repeal of any provision of NNN’s Articles of Incorporation or the articles supplementary establishing the Series F Preferred Stock unless such action affects the holders of the Series F Preferred Stock and such Parity Preferred Stock equally. In addition, the creation, issuance or increase in the authorized number of shares of any class or series of stock having a preference as to dividends or distributions, whether upon liquidation, dissolution or otherwise, that is senior to the Series F Preferred Stock requires the affirmative vote of holders of at least 66  23% of the outstanding shares of Series F Preferred Stock and each other class or series of Parity Preferred Stock (voting together as a single class).
The following actions are not deemed to materially and adversely affect the rights, preferences, powers or privileges of the Series F Preferred Stock:
 
Ÿ
 
any increase in the amount of NNN’s authorized common stock or preferred stock or the creation or issuance of equity securities of any class or series ranking, as to dividends or liquidation preference, on a parity with, or junior to, the Series F Preferred Stock; or
 
Ÿ
 
the amendment, alteration or repeal or change of any provision of NNN’s Articles of Incorporation, including the articles supplementary establishing the Series F Preferred Stock, as a result of a merger, consolidation, reorganization or other business combination, if the Series F Preferred Stock (or shares into which the Series F Preferred Stock have been converted in any successor entity to NNN) remain outstanding with the terms thereof unchanged in all material respects.
Maturity
The Series F Preferred Stock has no stated maturity date and will not be subject to any sinking fund or mandatory redemption provisions.
Ownership Limits and Restrictions on Transfer
In order to maintain NNN’s qualification as a REIT for federal income tax purposes, ownership by any person of NNN’s outstanding equity securities (which includes the depositary shares) is restricted in NNN”s Articles of

11



Incorporation. For further information regarding restrictions on ownership and transfer of the Series F Preferred Stock, see “-Restrictions on Ownership” below.
Surrender of Depositary Shares for Shares of Series F Preferred Stock
Under certain circumstances, holders may be required to surrender depositary receipts to the depositary or to NNN. In the event of such a surrender of depositary shares, the holder will be entitled to receive the number of whole or fractional shares of Series F Preferred Stock represented by the depositary shares. Thereafter, holders of Series F Preferred Stock will not be entitled to receive depositary shares for the Series F Preferred Stock. If a holder seeks to withdraw more depositary shares representing interest in Series F Preferred Stock than are available, then the preferred stock depositary will deliver to such holder at the same time a new depositary receipt evidencing such excess number of depositary shares representing interest in Series F Preferred Stock.
NNN and the depositary may, at any time, agree to amend the form of depositary receipt and any provision of the deposit agreement. However, any amendment that materially and adversely alters the rights of the holders of depositary receipts representing interest in Series F Preferred Stock will not be effective unless that amendment has been approved by the existing holders of at least a majority of the depositary shares.
NNN may terminate the deposit agreement upon not less than 30 days’ prior written notice to the preferred stock depositary if:  
 
Ÿ
 
the termination is to preserve NNN’s status as a REIT; or
 
Ÿ
 
a majority of Series F Preferred Stock consents to the termination;
whereupon the depositary will deliver or make available to each holder of depositary receipts representing interest in Series F Preferred Stock, upon surrender of the depositary receipts held by such holder, such number of whole or fractional shares of Series F Preferred Stock as are represented by the depositary shares evidenced by such depositary receipts.
In addition, the deposit agreement will automatically terminate if:
 
Ÿ
 
all outstanding depositary shares shall have been redeemed;
 
Ÿ
 
there shall have been a final distribution in respect of the related Series F Preferred Stock in connection with NNN’s liquidation, dissolution or winding up, and such distribution shall have been distributed to the holders of the depositary receipts representing interest in Series F Preferred Stock; or
 
Ÿ
 
each share of Series F Preferred Stock shall have been converted into capital stock not so represented by depositary shares.
Stock Listing
NNN has listed the depositary shares on the New York Stock Exchange under the symbol “NNNPRF.” The Series F Preferred Stock underlying the depositary shares is not currently, and will not be listed, and NNN does not expect that any trading market will develop for the Series F Preferred Stock, except as represented by the depositary shares.
Transfer Agent and Registrar
American Stock Transfer & Trust Company is the registrar, transfer agent and distributions disbursing agent for the Series F Preferred Stock.


12



RESTRICTIONS ON OWNERSHIP
For NNN to qualify as a REIT, not more than 50% in value of the Company’s outstanding capital stock may be owned, directly or indirectly, by five or fewer individuals (as defined in the U.S. Internal Revenue Code of 1986 (the “Code”) to include certain entities) during the last half of a taxable year. The shares must be beneficially owned (without reference to any rules of attribution) by 100 or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year; and certain other requirements must be satisfied.
To ensure that five or fewer individuals do not own more than 50% in value of the outstanding common stock, NNN’s Articles of Incorporation provide that, subject to certain exceptions, no holder may own, or be deemed to own by virtue of the attribution provisions of the Code, more than 9.8% in value of the outstanding capital stock. NNN’s Board of Directors may waive this ownership limit if evidence satisfactory to NNN and NNN’s tax counsel is presented that such ownership will not then or in the future jeopardize NNN’s status as a REIT. As a condition of such waiver, NNN’s Board of Directors may require opinions of counsel satisfactory to it and/or an undertaking from the applicant with respect to preserving NNN’s status as a REIT.
This ownership limit will not be automatically removed even if the REIT provisions of the Code are changed so as to no longer contain any ownership concentration limitation or if the ownership concentration limitation is increased. In addition to preserving NNN’s status as a REIT, this ownership limit may prevent any person or small group of persons from acquiring unilateral control of the Company.
If the ownership, transfer or acquisition of shares of common stock, or change in NNN’s capital structure or other event or transaction would result in:
 
Ÿ
 
any person owning (applying certain attribution rules) capital stock in excess of the ownership limit;
  
Ÿ
 
fewer than 100 persons owning NNN’s capital stock;
  
Ÿ
 
NNN being “closely held” within the meaning of Section 856(h) of the Code; or
  
Ÿ
 
NNN otherwise failing to qualify as a REIT;
then the ownership, transfer or acquisition, or change in capital structure or other event or transaction that would have such effect will be void as to the purported transferee or owner, and the purported transferee or owner will not have or acquire any rights to the capital stock to the extent required to avoid such a result. Capital stock owned, transferred, or proposed to be transferred, in excess of the ownership limit or which would otherwise jeopardize NNN’s status as a REIT will automatically be converted to excess stock. A holder of excess stock is not entitled to distributions, voting rights, and other benefits with respect to such shares, except for the right to payment of the purchase price for the shares (or, in the case of a devise or gift or similar event which results in the issuance of excess stock, the fair market value at the time of such devise or gift or event) and the right to certain distributions upon liquidation. Any dividend or distribution paid to a proposed transferee or holder of excess stock shall be repaid to NNN upon demand. Excess stock shall be subject to NNN’s repurchase at NNN’s election. The purchase price of any excess stock shall be equal to the lesser of:  
 
Ÿ
 
the price paid in such purported transaction (or, in the case of a devise or gift or similar event resulting in the issuance of excess stock, the fair market value at the time of such devise or gift or event); or
  
Ÿ
 
the fair market value of such common stock on the date on which NNN or NNN’s designee determines to exercise its repurchase right.
If the foregoing transfer restrictions are determined to be void or invalid by virtue of any legal decision, statute, rule or regulation, then the purported transferee of any excess stock may be deemed, at NNN’s option, to have acted as an agent on NNN’s behalf in acquiring such excess stock and to hold such excess stock on NNN’s behalf.


13



For purposes of NNN’s Articles of Incorporation, the term “person” shall mean:
 
Ÿ
 
an individual;
 
Ÿ
 
a corporation;
 
Ÿ
 
a partnership;
 
Ÿ
 
an estate;
 
Ÿ
 
a trust (including a trust qualified under Section 401(a) or 501(c)(17) of the Code);
 
Ÿ
 
a portion of a trust permanently set aside to be used exclusively for the purposes described in Section 642(c) of the Code;
 
Ÿ
 
an association;
 
Ÿ
 
a private foundation within the meaning of Section 509(a) of the Code;
 
Ÿ
 
a joint stock company or other entity; or
 
Ÿ
 
a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934.
The term “person” shall not include an underwriter which participated in a public offering of NNN’s capital stock for a period of sixty (60) days following the purchase by such underwriter of capital stock therein, provided that the foregoing exclusions shall apply only if the ownership of such capital stock by such underwriter would not cause NNN to fail to qualify as a REIT by reason of being “closely held” within the meaning of Section 856(a) of the Code or otherwise cause NNN to fail to qualify as a REIT.
All certificates representing capital stock will bear a legend referring to the restrictions described above.
NNN’s Articles of Incorporation provide that all persons who own, directly or by virtue of the attribution provisions of the Code, more than 5.0% of the outstanding capital stock, or such lower percentage as may be required pursuant to regulations under the Code or as may be requested by NNN’s Board of Directors, must file a written notice with NNN no later than January 31 of each year with respect to the prior year containing:  
 
Ÿ
 
the name and address of such owner,
  
Ÿ
 
the number of shares of capital stock owned by such holder; and
  
Ÿ
 
a description of how such shares are held.
In addition, each stockholder shall be required to disclose, upon demand, to NNN in writing, such information that NNN may request in good faith in order to determine the Company’s status as a REIT or to comply with the requirements of any taxing authority or governmental agency.
The ownership limitations described above may have the effect of precluding acquisitions of control of NNN by a third party.



14



CERTAIN PROVISIONS OF MARYLAND GENERAL CORPORATE LAW
AND
NNN’S ARTICLES OF INCORPORATION AND BYLAWS
The following summary of certain provisions of the Maryland General Corporation Law and the NNN’s Articles of Incorporation and Bylaws is not complete. Refer to the Maryland General Corporation Law and the NNN’s Articles of Incorporation and Bylaws for more complete information.
Business Combinations. The Articles of Incorporation exempt acquisitions of NNN securities by any person from the “business combination” requirements discussed below. With the approval of the Board of Directors, and of shareholders holding at least two-thirds of shares outstanding and entitled to vote on the matter, however, NNN could modify or eliminate the exemption in the future. If the exemption were eliminated, “business combinations” would be subject to the following provisions.
Under the Maryland Business Combination Act, business combinations between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:
 
Ÿ
 
any person who beneficially owns 10% or more of the voting power of NNN’s outstanding voting shares; or
  
Ÿ
 
any of NNN’s affiliates that beneficially owned, directly or indirectly, 10% or more of the voting power of NNN’s outstanding voting shares at any time within two years immediately prior to the applicable date in question.
A person is not an interested stockholder under the statute if the Board of Directors approves in advance the transaction by which the person otherwise would have become an interested stockholder. However, in approving a transaction, the Board of Directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board.
After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the Board of Directors of the corporation and approved by the affirmative vote of at least:
 
Ÿ
 
80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and
  
Ÿ
 
two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or shares held by an affiliate or associate of the interested stockholder.
These supermajority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under the MGCL, for their shares of common stock in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.
Control Share Acquisitions. The Articles of Incorporation exempt acquisitions of NNN securities by any person from “control share acquisition” requirements discussed below. With the approval of the Board of Directors, and of shareholders holding at least two-thirds of shares outstanding and entitled to vote on the matter, however, NNN could modify or eliminate the exemption in the future. If the exemption were eliminated, “control share acquisitions” would be subject to the following provisions.

15



The Maryland Control Share Acquisition Act provides that “control shares” acquired in a “control share acquisition” have no voting rights unless two-thirds of the shareholders (excluding shares owned by the acquirer and by the officers and trustees who are employees of the Maryland REIT) approve their voting rights.
“Control Shares” are shares that, if added to all other shares previously acquired, would entitle that person to exercise voting power, in electing trustees, within one of the following ranges of voting power:  
 
Ÿ
 
one-tenth or more but less than one-third;
  
Ÿ
 
one-third or more but less than a majority, or
  
Ÿ
 
a majority or more of all voting power.
Control shares do not include shares the acquiring person is entitled to vote with shareholder approval. A “control share acquisition” means the acquisition of control shares, subject to certain exceptions.
A person who has made or proposes to make a control share acquisition may compel the Board of Directors to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including an undertaking to pay the expenses of the meeting. If no request for a meeting is made, NNN may itself present the question at any stockholders’ meeting.
If this provision becomes applicable to NNN, subject to certain conditions and limitations, NNN would be able to redeem any or all control shares. If voting rights for control shares were approved at a shareholders’ meeting and the acquirer were entitled to vote a majority of the shares entitled to vote, all other shareholders could exercise appraisal rights and exchange their shares for a fair value as defined by statute.
Limitation of Liability of Directors and Officers. NNN’s Articles of Incorporation provide that, to the fullest extent that limitations on the liability of directors and officers are permitted by the Maryland General Corporation Law, no director or officer shall be liable to NNN or NNN’s stockholders for money damages. The Maryland General Corporation Law provides that NNN may restrict or limit the liability of directors or officers for money damages except:
 
Ÿ
 
to the extent anyone actually received an improper benefit or profit in money, property or services; or
  
Ÿ
 
a judgment or other final adjudication adverse to the person is entered in a proceeding based on a finding that the person’s action was material to the cause of action adjudicated and the action or failure to act was the result of bad faith or active and deliberate dishonesty.
Indemnification of Directors and Officers. NNN’s Articles of Incorporation and Bylaws permit the Company to indemnify any of its employees or agents and require the Company to indemnify its directors and officers to the fullest extent permitted by Maryland law. The Bylaws require NNN to indemnify each director or officer and to pay or reimburse, in advance of the final disposition of a proceeding, reasonable expenses incurred by a present or former director or officer or any person who, while a director, is or was serving at NNN’s request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, who is made a party to a proceeding by reason of his or her status as a director, officer, employee or agent, to the fullest extent provided by Maryland law. NNN’s Articles of Incorporation and Bylaws permit the Company to cover directors and officers under NNN’s directors’ and officers’ liability insurance.
The Maryland General Corporation Law provides that NNN may indemnify directors and officers unless:
 
 
Ÿ
 
the director actually received an improper benefit or profit in money, property or services;

16



  
Ÿ
 
the act or omission of the director was material to the matter giving rise to the proceeding and was committed in bad faith or was the result of active and deliberate dishonesty; or
  
Ÿ
 
in a criminal proceeding, the director had reasonable cause to believe that the act or omission was unlawful.
Meetings of Stockholders. NNN’s Bylaws provide for an annual meeting of stockholders to elect individuals to the Board of Directors and transact such other business as may properly be brought before the meeting. Special meetings of stockholders may be called by the Chairman of the Board of Directors, the Chief Executive Officer or a majority of the members of the Board of Directors, and shall be called by the Secretary at the request in writing of the holders of not less than a majority of the outstanding shares of common stock entitled to vote.
NNN’s Bylaws provide that any action required or permitted to be taken at a meeting of stockholders may be taken by unanimous written consent without a meeting. The written consent must, among other items, specify the action to be taken and be signed by each stockholder entitled to vote on the matter.
Advance Notice of Director Nominations and New Business. The Bylaws provide that, with respect to an annual meeting of NNN’s stockholders, nominations of individuals for election to NNN’s Board of Directors and the proposal of business to be considered by stockholders at an annual meeting may be made only (i) pursuant to the notice of meeting, (ii) by or at the discretion of NNN’s Board of Directors or (iii) by any stockholder of record as of the date of the notice required by the Bylaws, the record date for the meeting and the meeting date and who has provided the information required pursuant to the advance notice procedures of the Bylaws. With respect to special meetings of NNN’s stockholders, only the business specified in the notice of the meeting may be brought before the meeting. Nominations of individuals for election to NNN’s Board of Directors at a special meeting of NNN’s stockholders may be made only (i) pursuant to the notice of meeting, (ii) by NNN’s Board of Directors or (iii) provided that directors or a duly authorized committee thereof will be elected at the meeting, by a stockholder of record as of the date of the notice required by the Bylaws, the record date for the meeting and the meeting date and who has provided the information required pursuant to the advance notice provisions of the Bylaws.
Vacancies on the Board of Directors. The Bylaws provide that, subject to the rights of any holders of preferred stock, any vacancy on the Board of Directors, including a vacancy created by an increase in the number of directors, may be filled by vote of a majority of the remaining directors, or, if the directors fail to act, at a meeting called for that purpose by the vote of a majority of the shares entitled to vote on the matter. Each director so elected shall serve for the unexpired term of the director he or she is replacing.


17
Exhibit 21
NATIONAL RETAIL PROPERTIES, INC.
SUBSIDIARIES OF THE REGISTRANT
December 31, 2019




Subsidiary
 Jurisdiction
of Formation
CCMH V, LLC
Delaware
CNL Commercial Mortgage Funding, Inc.
Delaware
Gator Pearson, LLC
Delaware
National Retail Properties Trust
Maryland
National Retail Properties, LP
Delaware
Net Lease Funding, Inc.
Maryland
Net Lease Realty I, Inc.
Maryland
NNN - NatGro LLC
Delaware
NNN Athletic I LLC
Delaware
NNN Brokerage Services, Inc.
Maryland
NNN CA Auto Svc LLC
Delaware
NNN GP Corp.
Delaware
NNN PBY LLC
Delaware
NNN TRS, Inc.
Maryland
Orange Avenue Mortgage Investments, Inc.
Delaware





Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-3 No. 333-223141) of National Retail Properties, Inc.,
(2) Registration Statement (Form S-8 No. 333-64794) pertaining to the 2000 Performance Incentive Plan of National Retail Properties, Inc.,
(3) Registration Statement (Form S-8 No. 333-15625) pertaining to the 1992 Stock Option Plan of National Retail Properties, Inc.,
(4) Registration Statement (Form S-8 No. 333-144100) pertaining to the 2007 Performance Incentive Plan of National Retail Properties, Inc.,
(5) Registration Statement (Form S-3 No. 333-111180) pertaining to the Retirement Plan for CTA, and
(6) Registration Statement (Form S-3 No. 333-223181) pertaining to the Dividend Reinvestment and Stock Purchase Plan of National Retail Properties, Inc.,
(7) Registration Statement (Form S-8 No. 333-218339) pertaining to the 2017 Performance Incentive Plan of National Retail Properties, Inc.;

of our reports dated February 11, 2020, with respect to the consolidated financial statements and schedules of National Retail Properties, Inc. and Subsidiaries and the effectiveness of internal control over financial reporting of National Retail Properties, Inc. and Subsidiaries included in this Annual Report (Form 10-K) of National Retail Properties, Inc. for the year ended December 31, 2019.
 
 
/s/ Ernst & Young LLP
Certified Public Accountants
 

Orlando, Florida
February 11, 2020






Exhibit 31.1
CERTIFICATION PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Julian E. Whitehurst, certify that:
 

1.
I have reviewed this Annual Report on Form 10-K of National Retail Properties, Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


 
February 11, 2020
 
 
 
/s/ Julian E. Whitehurst
Date
 
Name:
 
Julian E. Whitehurst
 
 
Title:
 
President and Chief Executive Officer





Exhibit 31.2
CERTIFICATION PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Kevin B. Habicht, certify that:
 

1.
I have reviewed this Annual Report on Form 10-K of National Retail Properties, Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


 
February 11, 2020
 
 
 
/s/ Kevin B. Habicht
Date
 
Name:
 
Kevin B. Habicht
 
 
Title:
 
Chief Financial Officer





Exhibit 32.1
CERTIFICATION PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Julian E. Whitehurst, President and Chief Executive Officer, certifies, to the best of his knowledge, that (1) this Annual Report of National Retail Properties, Inc. (“NNN”) on Form 10-K for the period ended December 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (this “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and (2) the information contained in this Report fairly presents, in all material respects, the financial condition of NNN as of December 31, 2019 and 2018 and its results of operations for the years ended December 31, 2019, 2018 and 2017.
 
February 11, 2020
 
 
 
/s/ Julian E. Whitehurst
Date
 
Name:
 
Julian E. Whitehurst
 
 
Title:
 
President and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to NNN and will be retained by NNN and furnished to the Securities and Exchange Commission or its staff upon request.





Exhibit 32.2
CERTIFICATION PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Kevin B. Habicht, Chief Financial Officer, certifies, to the best of his knowledge, that (1) this Annual Report of National Retail Properties, Inc. (“NNN”) on Form 10-K for the period ended December 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (this “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and (2) the information contained in this Report fairly presents, in all material respects, the financial condition of NNN as of December 31, 2019 and 2018 and its results of operations for the years ended December 31, 2019, 2018 and 2017.
 
February 11, 2020
 
 
 
/s/ Kevin B. Habicht
Date
 
Name:
 
Kevin B. Habicht
 
 
Title:
 
Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to NNN and will be retained by NNN and furnished to the Securities and Exchange Commission or its staff upon request.



NYSE Domestic Section 3O3A Written Affirmation lflffr NYSE" lssuer Exchange WA Year WA Typel National Retail Properties, lnc, NYSE 2019 Annual Notice of Non-compliance: Q v"r2 ONo Part I INSTRUCTIONS: Companies listed on the New York Stock Exchange (the "Exchange" or "NYSE") must comply with the applicable corporate governðnce requirements set forth in Section 3O3A of the NYSF Listed Company Manual (the "Manual") . Please provide the information for each director currently serving, or who will be serving as of the day of listing, on the Company's board of directors and on the Company's audit committee, compensation committee or nominating/corporate governance comm¡ttee. Board Members Boarcl Ternl Boarcl rcA-5 CC D¡rector Nar¡e AC¡ CC5 NCe Financi¿l LÌterôc! Cl¿ss End incieoendcntii lncl.7 lnd s Kevin B. None 2020 No Habicht n Don DeFosset None 2020 Yes n tr SEC Audit Committee M. Fick None 2020 Yes Yes Yes David ø Financial Expert Edward J. None 2020 Yes Yes Financially Literate Fritsch n Sam L. Susser None 2020 Yes Yes Pamela K. M. SEC Audit Committee None 2020 Yes Yes Beal I Financial Expert SEC Audit Committee D. Cosler None 2020 Yes Yes Yes Steven Financial Expert Julian E, None 2020 No Whìtehurst SEC Audit Committee None 2020 Yes Yes Yes Betsy D, Holden Financlal Expert Part ll INSTRUCTIoNS: Please check only one box that best describes the Company: @ f ists common equity securities on the NYSE and does not fit any of the other categories listed below Q Qualifies as a controlled company and relies on the exemption Q ts a limited partnership Q ts in bankruptcy Q ts a business development company Q ts a smaller reporting company and relies on the compensation committee exemption Q ts a smaller reporting company that is a business development company and relies on the compensation comm¡ttee exemption Part lll u5


 
INSTRUCTIONS: ln response to each item below, please check the box beside the single affirmation that is most applicable to the Company. Please note that, depending on the affirmation made, an item may require the Company to provide additional information or a link to the applicable document referenced therein. Please also note that specific types of entities may avail themselves of exemptions to or transition periods for, compliance with certain of the requirements. lf the Company ìs availing itself of any of these exemptions or transition periods, it should select the corresponding affirmation for the applicable item, Item l. Director lndependence: Sections 3O3A.O1 and 3O3A.O2 of the Manual @ t hereby certify that the Compðny's board of directors is comprised of a majority of independent directors as required by Section 3O3A.01 and defined in Section 3O3A of the Manual. Q for business development companies only: I hereby certify that a majority of the Company's directors are not "interested persons" as defined in Section 2(a)(19) of the lnvestment Company Act of 194O. Q for companies relying on the trans¡tion period provided for in Section 3O3A.OO of the Manual only: I hereby certify that the Company is entitled to rely, and is relying, on the one year transition period provided for in Section 3O3A.OO of the Manual. I further hereby certify that the Company's board of directors will be comprised of a majority of independent dìrectors as required by Section 3O3A.01 as defined in Section 3O3A of the Manual by the end of the one year transition period. Q for limited partnerships, controlled companies, and companiês that are in bankruptcy only: I hereby certify that the Company ìs exempt from this requirement. Q fne Company is unable to make one of the affirmations set forth in this ltem I and is therefore non-compliant for the following reasons: Item 2. Executive Sessions, Presiding D¡rector and lnterested Party Communication: Sect¡on 3O3A.O3 of the Manual Q I frereOy certify that the Company has, or will have (in the case of an Initial Affirmation), regularly scheduled meetings of its non- management or independent directors and has also complied with all of the other relevant requirements as required by Section 303A,03 of the Manual. Q fne Company is unable to make the aforementioned affirmation in this ltem 2 and is therefore non-compliant for the following reasons: Item 3. Nominatíng,/Corporate Governance Committee: Section 3O3A.O4 of the Manual Q t frereny certify that the Company has a nomìnâting/corporate governance committee (or a comparable committee to which such duties have been delegated) that meets the requirements of Section 3O3A.O4 of the Manual, I further hereby cedify that such committee has a written charter that meets the requirements of Section 303A.04 of the Manual. For an lnitial Affirmation, I hereby certify that the nominating/corporate governance committee charter is currently available on the Company's website at the link provided in the box below or will be available on the Company's website within the applicable timeline provided under Section 3O3A,OO of the Manual. For an Annual Affirmation, I hereby certify that the Company has disclosed in its Annual Proxy Statement that the nominating/corporate governance committee charter is available on the Company's website at the link provided in the box below. Link http://in vestors. nn n reit.com/govdocs Q for companies relying on the trans¡tion period provided for in Section 3O3A.OO of the Manual only: I hereby certify that the Company is entitled to rely, and is relying, on the transrtion period provided for in Section 3O3A.OO of the Manual and that the Company will be in full compliance at the end of the transition period. lf the Company has already adopted a nominating/corporate governance committee charter the charter is available on the Company's website at (insert link). Please provide a brief description for the basis for reliance on the exemption below. Q for limited partnerships, controlled companies, ând companies that are in bankruptcy only: I hereby certify that the Company is exempt from this requirement. Q fne Company is unable to make one of the affirmations set forth in this ltem 3 and is therefore non-compliant for the following reasons: 2ls


 
Item 4. Compensation Comm¡ttee: Sectíon 3O3A.O5 of the Manual Q t hereby certify that the Company has a compensation committee (or a comparable committee to which such duties have been delegated) that meets the requirements of Section 3O3A.O5 of the Manual(includìng the additional independence requirements applicable to compensation committee members under Section 3O3A.02 of the Manual). I further hereby certify that such committee has a written charter that meets the requirements of Section 3O3A.05 of the Manual. For an lnitial Affirmation, I hereby certify that the compensation committee charter is currently available on the Company's website at the link provided in the box below or will be available on the Company's website within the applicable timeline provided under Section 3O3A.OO of the lVanual, For an Annual Affirmation, I hereby certify that the Company has disclosed in its Annual Proxy Statement that the compensation committee charter is available on the Company's website at the link provided in the box below. Link http:,/investors. n n n reit.com/govdocs Q for smaller reporting compan¡es only: I hereby certify that the Company qualifies as a smaller reporting company under Rule 12b-2 of the Exchange Act and is therefore exempt from compliance with Sections 3O3A,O2(a)(ii) and 3O3A,O5(c)(iv) of the Manual, I further hereby certify that the Company has a compensation committee (or a comparable committee to which such duties have been delegated) composed entirely of independent directors and such committee has a written charter that meets the requirements of Section 3O34.05 of the Manual. For an lnitial Affirmation, I hereby certify that the compensation committee charter rs currently available on the Company's website at the link prov¡ded in the box beloW or will be available on the Company's website within the applicable timeline provided under Section 3O3A.OO of the N4anual. Foran Annual Affirmation, lherebycertifythattheCompanyhasdisclosed in itsAnnual Proxy Statement that the compensation committee charter is available on the Company's website at the link provided in the box below Q for companies relying on the transition period provided for in Section 3O3A.OO of the Manual only: I hereby certify that the Company is entitled to rely, and is relying, on the transition period provided for in Section 3O3A.OO of the l'lanual and that the Company will be in full compliance at the end of the transition period. lf the Company has already adopted a compensation comm¡ttee charter, the charter is available on the Company's website at (insert link). Please provide a brief description for the basis for reliance on the exemption below. Q for companies relying on the compensation committee cure per¡od provided in Section 3O3A.OO of the Manual only: I hereby certify that the Company is entitled to rely, and is relying, on the transition period provided for in Section 3O3A.OO of the l'4anual because a member of the compensation comm¡ttee ceases to be ¡ndependent for reasons outside the member's reasonable control. Please provide a brief description for the basis for reliance and the names of any such committee member relying on the cure below. Q for limited partnerships, controlled companies, änd companies that are ¡n bankruptcy only: I hereby certify that the Company is exempt from this requirement. Q f ne Company is unable to make one of the affirmations set forth in this ltem 4 and is therefore non-compliant for the following reasons: 3t5


 
Item 5. Audit Comm¡ttêe: Sect¡on 3O3A.O7 of the Manual Q t frerebV certify that (i) the Company has an audit comm¡ttee that meets the requirements of Section 3O3A.07 of the Manual and that the composition of such audit comm¡ttee complies with (or is exempt therefrom) the independence requirements of Rule 1OA-3(b)(1) of the Exchange Act and (ii) such âudit committee has a written charter that meets the requirements of Section 3O3A.07 of the Manual. For an lnitial Affirmation, I hereby certify that the audit committee charter is currently available on the Company's website at the link provided in the box below or will be available on the Company's website within the applicable timeline provided under Section 3O3A.OO of the Manual, For an Annual Affirmation, I hereby certify that the Company has disclosed in its Annual Proxy Statement or Form 1O-K, as applicable, that the audìt committee charter is available on the Company's website at the lìnk provided in the box below. Link http://i n vestors. n n n rei t. com/govdocs Q for busíness development companies only: I hereby certify that (i) the Company has an audit committee that meets the requirements of Section 3O3A.07 of the lvlanual (subject to the applicable exemptions set forth in Section 3O3A.OO of the Manual) and that the composition of such audit committee compl¡es with (or ls exempt from) the independence requirements of Rule 1OA-3(b)(1) of the Exchange Act and (ii) such audit committee has a written charter that meets the requirements of Section 3O3A.07 of the Manual. For an lnitial Affirmation, I hereby certify that the audit committee charter is currently available on the Company's website at the link provided in the box beloW or will be available on the Company's website within the applicable timeline provided under Section 3O3A,OO of the Manual. For an Annual Affirmation, I hereby certify that the Company has disclosed in its Annual Proxy Statement that the audit committee charter is available on the Company's website at the link provided in the box below. Q for companies relying on the transition period provided for in Section 3O3A.OO of the Manual only: I hereby certify that the Company is entitled to rely, and ìs relying, on the transition period provided for in Section 3O3A.OO of the Manual and that the Company will be in full compliance by the end of the transition period. lf the Company has already adopted an audit committee charter: the charter is available on the Company's website at (insert lrnk). Please provide a brief description for the basis for reliance on the exemptìon below. Q fne Company is unable to make one of the affirmations set forth in this ltem 5 and is therefore non-compliant for the following reasons: Item 6. Audit Committee Exemption: Section 303A.06 of the Manual for Rule IOA'3 of the Exchange Act Q t hereby certify that the Company is relyìng on an individual or company exemption under Rule lOA-3 in ltem 5, above. Please state below which Rule 1OA-3 exemption(s) the Company or any individual member is relying on and briefly describe the basis for such exemption below. Item 7. lnternal Audit Funct¡on: Sect¡on 3O3A.O7(c) of the Manual @ t hereby certify that the Company maintains an internal audit function that complies with Sectìon 3O3A.O7(C) of the Manual. Q for companies relying on the tränsition period provided for in Section 3O3A.OO of the Manual only: I hereby certify that the Company is entitled to rely, and is relying, on the transition period provided for in Section 3O3A.OO of the Manuâl and that the Company will be in full compliance by the end of the transition period. Q f ne Company is unable to make one of the affirmations set forth in this ltem 7 and is therefore non-compliant for the following reasons: Item 8. Corporate Governance Guidelines: Section 3O3A.O9 of the Mânual o I hereby certify that the Company has adopted corporôte governance guidelines that comply with Section 3O3A.O9 of the Manual. For an lnitial Affirmation, I hereby certify that the corporate governance guidelines are currently available on the Company's website at the link provided in the box beloW or will be available on the Company's website within the applicable timeline provided under Section 303A.OO of the Manual. For an Annual Affirmation, I hereby certify that the Company has disclosed in its Annual Proxy Statement or Form 1O-K, as applicable, that the corporate governance guidelines are available on the Company's website at the link provided in the box below Link http://investors, n n n reit.com/govdocs Q for companies relying on the trans¡tion period provided for in Section 3O3A.OO of the Manuãl only: I hereby certify that the Company is entitled to rely, and is relying, on the transition period provided for in Section 3O3A.OO of the lVanual and that the Company will be in full compliance by the end of the transition period. Q f ne Company is unable to make one of the affirmations set forth in this ltem B and is therefore non-compliant for the following reasons: 415


 
¡tem 9. Code of Business Conduct and Ethics: Section 3O3A.1O of the Manual Manual' o I hereby certify that the Company has adopted a code of business conduct and ethics that complies with Section 3O3A.1O of the For an Initial Affirmation, I hereby certify that the code of business conduct and ethícs is currently available on the Company's website at the link provided in the box below or will be available on the Company's website within the applicable timeline provided under Section gO3A.OO of the Manual. For an Annual Affirmatìon, I hereby certify that the Company has disclosed in its Annual Proxy Statement or Form 1O-K, as applicable, that the code of business conduct and ethics is available on the Company's website at the link provided in the box below. Link http://i n vestors. n n n rei t. com/govdocs o For companies relying on the transition period provided for in Section 3O3A.OO of the Manual only: I hereby certify that the Company is entitled to rely, and is relying, on the transition period provided for in Section 3O3A.OO of the Manual and that the Company will be in full compliance by the end of the transition period, o The Company is unable to make one of the affirmations set forth in this ltem 9 and is therefore non-compliant for the following reasons: Item 10. Other Non-Compliance: Section 3O3A of the Manual Q apart from any non-compliance specìfic to the preceding sections, the Company is non-compliant with Section 303A of the Manual for the fol lowin g reason(s): ¡tem 11. Other General Comments Comments NySE Domestic Company Annual CEO Certification : As the Chief Execut¡ve Officer and as requ¡red by Section 3O5A'12(a) of the New York Stock Exchange Listed Company Manual governance Q t herebV certify that as of the date hereof I am not aware of any violation by the Company of NYSE's corporate listing standards. Q t frereby certify that as of the date hereof the Company is non-compliant with the NYSE's corporate governance listlng standards. CEO Signature CEO Title Certification Date Julian E. Whitehurst Chief Executive Officer and President 2019-0516 - B:53 AM l, Companies that are submitting an lnitìalAffirmat¡on must be compl¡ant in all areas, subject to applicable trans¡tion periods 2, lf this document is serving as a non-compliance notificat¡on to the Exchange it must be executed by the Company's CEO, 3. NYSE Section 3O3A.O2 lndependent 4. Serves on the Audit Committee 5. Serves on the Compensation Committee 6. Serves on the Nominating/Corporate Governance Committee 7. Independent for purposes of Rule 1OA-3 of the Securit¡es Exchange Act of 1934 ("Rule'lOA-3") 8. Section 3O3A.O2(aXii) lndependent Authorized Company Officer S¡gnature I am an authorized officer at the Company and have the legal authority to provide the information and make the affirmations contained herein. I hereby certify that all information contained herein is true and correct to the best of my knowledge as of the date hereof. Ch ristopher P Tessitore Executìve Vice President and Secretary 2019-05-16 - B:53 AVI By (nâme) T¡tle Submitted Date sl5