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## OUR CAPITAL STRUCTURE 

(as of December 31, 2013 – based on Total Gross Book Assets) 

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## NNN OCCUPANCY VS. REIT INDUSTRY AVERAGE 

## OUR STRONG BALANCE SHEET 

We continue to adhere to our strategy of maintaining an investment grade balance sheet. As of the end of the year our total debt-to-total gross book assets remained just less than 33%. In the recent past, permanent capital has been both well-priced and plentiful and we consciously chose to take advantage of this. In the short term, this had the effect of lowering per share earnings growth. However, we are in great shape in the event we choose to modestly increase leverage from our current position of strength. 

Importantly, over the last three years we have financed about 80% of our approximately $2.1 billion of acquisitions with permanent capital – namely common and preferred equity – or proceeds from asset sales. 

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