• We generally own properties that are leased to retail businesses or other commercial enterprises
• The properties are typically freestanding structures (not attached to another building as in a shopping mall or strip center) - properties like convenience stores, restaurants, movie theaters, and automotive parts and services, to mention just a few
• Generally, we own them under triple net leases where the tenant pays the taxes, maintenance and insurance

• Since 1969, when the company was founded, our occupancy has never been below 96% at year-end, so our occupancy has tended to be very stable
• Just because we have been successful for the past 44 years does not mean there are no risks. Please read about risk on the Risk page.

• We generally look for 15 to 20-year lease agreements with our tenants
• We don't do speculative development of commercial real estate

• We owned 3,525 properties as of 3/31/13
• The properties are located throughout 49 states and Puerto Rico
• You can view the number of properties in each state by viewing this geographic diversification table.

• We have a team of executives who have relationships with and contact individual retail chains and other commercial enterprises, real estate developers, brokers, private equity firms and investment banks, to uncover real estate acquisition opportunities for us to review

• "Cap rate" is short for lease capitalization rate. This is a measure that is used to determine the annual return generated from lease payments in relation to the purchase price of a property.

We make decisions based on the

1. Tenant's credit profile,
2. The type of industry the tenant operates in,
3. The economic characteristics of the property location, and
4. The individual location profitability
5. Properties that are well located with attractive demographics relative to the business of our tenant
6. The price of the property

• To close transactions in a timely way we purchase properties for cash using our $1.0 billion acquisition credit facility with an additional $500 million available at the option of our banks.
• We ultimately seek to permanently fund acquisitions by issuing common stock, preferred stock or long-term notes.
• The type of funding we use to permanently finance acquisitions is determined based on market conditions.

• Yes we do. We try to have rent increase provisions built into the majority of our leases
• Rent increases are negotiated at the time the lease is agreed upon
• Rent increases can vary based on the tenant's business and the lease agreement
• Just because we have been successful for the past 44 years does not mean there are no risks. Please read about risk on the Risk page.

• In our quarterly earnings press release we include a table that shows when our leases expire
• The table breaks out first time lease expirations, called "Initial Lease Expirations," from leases that are expiring for the second time, or more, which are labeled "Subsequent Expirations"
• This is important because subsequent lease expirations tend to produce more rent than the renewal for first lease expiration
• Just because we have been successful for the past 44 years does not mean there are no risks. Please read about risk on the Risk page.

• Tenants periodically have financial and operating challenges. This is a normal part of the business of owning a large, diversified portfolio of commercial properties.
• Our historical occupancy has never been below 96%, at year-end, during a variety of different operating environments
• We strive to purchase real estate with attractive operating prospects and tenants with the long-term ability to pay rent. In order to find these properties and tenants:
  1. We engage in a rigorous review process and visit every property that we purchase
  2. We analyze tenant credit and industry characteristics
  3. We look for locations that are profitable so that the profits will be several times higher than the rent payments
• This process has helped us weather a variety of economic conditions since the company began business in 1969
• Just because we have been successful for the past 44 years does not mean there are no risks. Please read about risk on the Risk page