National Retail Properties, Inc. Prices Offering of Convertible Notes

ORLANDO, Fla., Feb. 27 /PRNewswire-FirstCall/ -- National Retail Properties, Inc. (NYSE:NNN) (the "Company") announced today that it has priced its previously announced offering of convertible senior notes due 2028. The Company is selling $220 million aggregate principal amount of notes at par with a coupon of 5.125%. The notes are convertible, subject to various conditions, into cash and at the Company's option, cash, common stock or a combination thereof at an initial conversion price of $25.42 per share. The initial conversion price is equivalent to a conversion rate of 39.3459 shares per $1,000 principal amount of notes. Up to an additional $33 million aggregate principal amount of notes may be issued pursuant to the underwriters' over-allotment option within 30 days of the initial issuance of the notes. The offering is expected to close on March 4, 2008.

The notes will be senior unsecured obligations of the Company. The Company intends to use the net proceeds from the offering to repay borrowings under its credit facility and the remainder to fund future acquisitions and for general corporate purposes. The notes may be converted at the option of the holder at any time on or after June 15, 2027, and prior thereto only upon the occurrence of specified events. The notes will be redeemable at par at the option of the Company on or after June 17, 2013, and holders of the notes may require the Company to repurchase the notes for cash at par initially on June 17, 2013.

Citigroup Global Markets Inc., Banc of America Securities LLC and Wachovia Securities are the joint bookrunning managers for the proposed offering.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. When available, copies of the prospectus and the prospectus supplement, subject to completion, relating to these securities may be obtained from Citigroup Global Markets Inc., Banc of America Securities LLC and Wachovia Securities. You should direct any requests to Citigroup Global Markets Inc., 388 Greenwich Street, New York, NY 10013, by phone: 718-765-6732 or by fax: 718-765-6734, Banc of America Securities LLC, 9 W. 57th Street, New York, NY 10019, and/or to Wachovia Securities, 375 Park Avenue, New York, NY 10152. You may also obtain a copy of the prospectus and the prospectus supplement, subject to completion, and other documents the Company has filed with the SEC for free by visiting the Commission's Web site at www.sec.gov.

NNN acquires, owns, invests in, manages and develops properties that are leased primarily to retail tenants under long-term net leases. As of December 31, 2007, NNN owned 908 Investment Properties, with an aggregate leasable area of 10.6 million square feet, located in 44 states. For more information on the Company, visit www.nnnreit.com.

Statements in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, changes in interest rates, increases in operating costs, the availability of capital, and the profitability of the Company's taxable subsidiary. Additional information concerning these and other factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company's SEC filings, including, but not limited to, Item 1A. Risk Factors of the Company's Annual Report on Form 10-K, as amended. Copies of each filing may be obtained from the Company or the SEC. Consequently, such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

First Call Analyst:
FCMN Contact:

Source: National Retail Properties, Inc.

CONTACT: Kevin B. Habicht, Chief Financial Officer, +1-407-265-7348

Web site: http://www.nnnreit.com/

2008-02-27 18:26:48 0300137 PRNEWSWIRE