National Retail Properties Racks Up Strong 2Q

ORLANDO-Locally based National Retail Properties Inc. posted record operating results for the second quarter, including a 10.5% increase in funds from operations, the company reports. The REIT recorded net earnings of $79.1 million or $1.37 per diluted share compared to $27.6 million or 51 cents in second quarter 2005. For the first half, net earnings totaled $101.6 million or $1.77 per share against $52.6 million or 98 cents last year.

FFO totaled $24.5 million or 42 cents per common share versus $20.4 million or 38 cents per share last year. For the six-month period, FFO totaled $48.1 million or 84 cents per share compared to $40 million or 75 cents per share in the same 2005 period.

Craig Macnab, CEO of National Retail Properties, says FFO is “generally considered by industry analysts to be the most appropriate measure of performance of real estate companies.” However, he adds, 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 the company’s performance or to cash flow as a measure of liquidity or ability to make distributions.”