During 1999, we invested $181.4 million in New Properties and properties under development (excluding estimated unfunded development costs on properties under construction at December 31, 1999 of $15.4 million). The weighted average annual unleveraged return on the $181.4 million invested in 1999 is estimated to be 10.5%, computed as estimated contractual net operating income (which in the case of a net-leased property is equal to the base rent or, in the case of properties under construction, the estimated base rent under the lease) for the first year of each lease, divided by the estimated total costs of each property. Since it is possible that a tenant could default on the payment of contractual rent, no assurance can be given that the actual return on the funds invested will not differ from the foregoing percentage.

The New Properties are leased to 21 separate retail chains operating in 16 different retail industries, are located in 26 states, will contain approximately 948,000 leasable square feet and are 100% leased under net leases, with an average initial lease term of 17.4 years. Of the New Properties, 102 were occupied as of March 1, 2000 and the remaining properties were pre-leased and under construction pursuant to contracts under which the tenants have agreed to develop the properties (with development costs funded by the Company) and to begin paying rent when the premises open for business.

Increases in Monthly Distributions to Common Stockholders In April, Julyand October 1999, and January 2000, monthly distributions to common stockholders were increased $0.0025 to $0.1725, $0.1750, $0.1775 and $0.1800 per share, respectively. We are committed to our policy of paying monthly distributions to common stockholders. During 1999, we paid three distributions of $0.1700 per common share, three distributions of $0.1725 per common share, three distributions of $0.1750 per common share, and three distributions of $0.1775 per common share. Common stock distributions for 1999 totaled $2.085 per share. In December 1999, January 2000 and February 2000, we declared distributions of $0.18 per common share, which were paid on January 18, 2000, February 15, 2000 and March 15, 2000, respectively. The monthly distribution of $0.18 per common share represents a current annualized distribution of $2.175 per share, and an annualized distribution yield of approximately 10.4% based on the last reported sale price of our common stock on the NYSE of $20.75 on March 1, 2000. Although we expect to continue our policy of paying monthly distributions, there can be no assurance that the current level of distributions per share will be maintained by the Company, that we will continue our pattern of increasing distributions per share, or as to the actual distribution yield for any future period.

Unsecured Revolving Credit Facilities In December 1999, weenteredintoa$200 million, three-year, revolvingunsecured acquisition credit facility, which expires in December 2002. Simultaneously with the execution of the $200 million credit facility our $170 million credit facility was cancelled. As of March 1, 2000, we had $70.7 million available for borrowing under the $200 million credit facility. At that time, the outstanding balance was $129.3 million with an effective interest rate of 7.3%.

In February 2000, we entered into a $25 million, three-year, revolving credit facility, which expires in February 2003. This credit facility can be used for the acquisition of property and for making capital contributions to subsidiaries for the purpose of acquiring properties.

Stock and Senior Debt Repurchase Program In January 2000, our Board of Directors authorized the purchase of up to $10 million of our outstanding common and preferred shares and senior debt securities during the next 12 months. We may make periodic purchases on the open market at prevailing prices or in privately negotiated transactions. The purchases will be funded using available working capital which consists primarily of cash flow from operations.

Formationof Subsidiary In January 2000, weformed Crest Net Lease, Inc., ofwhichweown 95% ofthecommonstock, all of which is non-voting, and certain members of management own 5% of the common stock, all of which is voting stock. Crest Net Lease was created to actively buy and sell certain select properties, primarily to buyers using tax-deferred exchanges, under Section 1031 of the Internal Revenue Service Code.

Preferred Stock Offerings In May 1999, weissued 2,760,000 sharesof 93/8% Class Bcumulativeredeemablepreferred stock (the “Class B Preferred”) at a price of $25.00 per share. The Class B Preferred trades on the New York Stock Exchange (“NYSE”) under the symbol “OprB” and its cusip number is 756109-302. Dividends on the Class B Preferred are payable quarterly. The net proceeds of $66.5 million were used to pay down bank borrowings.

In July 1999, we issued 1,380,000 shares of 9 1/2% Class C cumulative redeemable preferred stock (the “Class C Preferred”) at a price of $25.00 per share. The Class C Preferred trades on the NYSE under the symbol “OprC” and its cusip number is 756109-500. Dividends on the Class C Preferred are payable monthly. The net proceeds of $33.2 million were used to pay down bank borrowings.

Notes Offering In January 1999, we issued $20 million of 8.0% unsecured senior notes due 2009 (the “1999 Notes”). The 1999 Notes were sold at 98.757% of par to yield 8.1%. The proceeds from the offering were used to pay down bank borrowings and for other corporate purposes. Currently, there is no formal trading market for the 1999 Notes and we have not listed and do not intend to list the 1999 Notes on any securities exchange.